PSI - NY Life, Accident and Health Practice Exam
(Questions With 100% Correct Verified Answers)
1. Which policy provision permits the policy owner to take a specified number of
days to examine the contract, and allows for cancellation and a full refund if the
policy owner rejects the terms or costs? - ANSWER: Free Look
2. When will a policy pay on a UCR basis? - ANSWER: When particular benefits
are not listed on a payment schedule
3. Which type of rider reimburses health and social service expenses incurred in a
convalescent or nursing home facility? - ANSWER: long term care rider
4. Which of the following is exempted from the incontestability provision in
insurance policies? - ANSWER: Fraudulent misstatements
5. What does first dollar coverage mean? - ANSWER: As soon as covered
medical expenses are incurred, the policy begins to pay
6. What is the waiver of premium provision? - ANSWER: In a long term care
contract, the premium is waived after the insured has been confined for a specific
period of time
7. According to the Time Payment of Claims provision, the insurer must make the
payment immediately after receiving proof of loss EXCEPT - ANSWER: for
claims involving periodic payments
8. Which is a disadvantage to a flexible premium annuity? - ANSWER: the actual
amount of the annuity benefit cannot be determined in advance
9. When a policy or certificate containing an accelerated benefit provision is applied
for or delivered, the producer is responsible for providing that applicant a
summary of coverage that includes all of the following EXCEPT - ANSWER: a
detailed and comprehensive summary of the accelerated benefit
10. which one of the following represents an advantage of obtaining a policy loan
versus a withdrawal? - ANSWER: the loan is not taxed while a withdrawal is
taxed for amounts above the contract cost basis
11. How does a noncancelable policy differ from a guaranteed renewable policy? -
ANSWER: with the non cancelable policy the insurer may increase premiums
only based on the terms of the policy
12. What does it mean if a health policy is conditionally renewable? - ANSWER:
Insurer may elect NOT to renew only under the conditions specified in the policy
, PSI - NY Life, Accident and Health Practice Exam
(Questions With 100% Correct Verified Answers)
13. When the suicide clause is inserted in a life insurance contract, death by suicide
is not covered during the policy's initial: - ANSWER: 2 year period
14. What does coinsurance mean? - ANSWER: The insurer and the insured share
expenses over the deductible.
15. Which of the following must be given to the insurer within 20 days after
occurrence or commencement of any loss covered by the policy, or as soon
thereafter as is reasonably possible? - ANSWER: Notice of claim
16. The right to change the beneficiary or dispose of the policy or its benefits in any
manner one chooses is reserved to the policy owner UNLESS which of the
following is true? - ANSWER: The policy owner has named an irrevocable
beneficiary
17. Which of the following refers to how often a premium is paid? - ANSWER:
Mode
18. All of the following are common exclusions from loss found in disability income
policies EXCEPT for that incurred while - ANSWER: Committing a
misdemeanor
19. At which point are contractual death benefit settlement options determined and
by whom are they determined? - ANSWER: At the time the policy is purchased
by the owner of the policy
20. All of the following are ownership rights EXCEPT - ANSWER: Switching the
policy from one insured to another
21. All of the following are TRUE regarding incomplete applications EXCEPT -
ANSWER: The incomplete application can be accepted with the missing
information added later
22. A consumer report used to determine eligibility for insurance may include all of
the following EXCEPT - ANSWER: Medical underwriting exam
23. All of the following are required signatures on a life insurance application
EXCEPT - ANSWER: The minor in a juvenile policy
24. Why are insurance policies considered conditional contracts? - ANSWER:
Certain conditions need to be met to make the contract legally enforceable.
(Questions With 100% Correct Verified Answers)
1. Which policy provision permits the policy owner to take a specified number of
days to examine the contract, and allows for cancellation and a full refund if the
policy owner rejects the terms or costs? - ANSWER: Free Look
2. When will a policy pay on a UCR basis? - ANSWER: When particular benefits
are not listed on a payment schedule
3. Which type of rider reimburses health and social service expenses incurred in a
convalescent or nursing home facility? - ANSWER: long term care rider
4. Which of the following is exempted from the incontestability provision in
insurance policies? - ANSWER: Fraudulent misstatements
5. What does first dollar coverage mean? - ANSWER: As soon as covered
medical expenses are incurred, the policy begins to pay
6. What is the waiver of premium provision? - ANSWER: In a long term care
contract, the premium is waived after the insured has been confined for a specific
period of time
7. According to the Time Payment of Claims provision, the insurer must make the
payment immediately after receiving proof of loss EXCEPT - ANSWER: for
claims involving periodic payments
8. Which is a disadvantage to a flexible premium annuity? - ANSWER: the actual
amount of the annuity benefit cannot be determined in advance
9. When a policy or certificate containing an accelerated benefit provision is applied
for or delivered, the producer is responsible for providing that applicant a
summary of coverage that includes all of the following EXCEPT - ANSWER: a
detailed and comprehensive summary of the accelerated benefit
10. which one of the following represents an advantage of obtaining a policy loan
versus a withdrawal? - ANSWER: the loan is not taxed while a withdrawal is
taxed for amounts above the contract cost basis
11. How does a noncancelable policy differ from a guaranteed renewable policy? -
ANSWER: with the non cancelable policy the insurer may increase premiums
only based on the terms of the policy
12. What does it mean if a health policy is conditionally renewable? - ANSWER:
Insurer may elect NOT to renew only under the conditions specified in the policy
, PSI - NY Life, Accident and Health Practice Exam
(Questions With 100% Correct Verified Answers)
13. When the suicide clause is inserted in a life insurance contract, death by suicide
is not covered during the policy's initial: - ANSWER: 2 year period
14. What does coinsurance mean? - ANSWER: The insurer and the insured share
expenses over the deductible.
15. Which of the following must be given to the insurer within 20 days after
occurrence or commencement of any loss covered by the policy, or as soon
thereafter as is reasonably possible? - ANSWER: Notice of claim
16. The right to change the beneficiary or dispose of the policy or its benefits in any
manner one chooses is reserved to the policy owner UNLESS which of the
following is true? - ANSWER: The policy owner has named an irrevocable
beneficiary
17. Which of the following refers to how often a premium is paid? - ANSWER:
Mode
18. All of the following are common exclusions from loss found in disability income
policies EXCEPT for that incurred while - ANSWER: Committing a
misdemeanor
19. At which point are contractual death benefit settlement options determined and
by whom are they determined? - ANSWER: At the time the policy is purchased
by the owner of the policy
20. All of the following are ownership rights EXCEPT - ANSWER: Switching the
policy from one insured to another
21. All of the following are TRUE regarding incomplete applications EXCEPT -
ANSWER: The incomplete application can be accepted with the missing
information added later
22. A consumer report used to determine eligibility for insurance may include all of
the following EXCEPT - ANSWER: Medical underwriting exam
23. All of the following are required signatures on a life insurance application
EXCEPT - ANSWER: The minor in a juvenile policy
24. Why are insurance policies considered conditional contracts? - ANSWER:
Certain conditions need to be met to make the contract legally enforceable.
