PSI – NY LIFE, ACCIDENT AND HEALTH
PRACTICE EXAM 17-55 | COMPREHENSIVE
TEST PREP, PRACTICE QUESTIONS,
CORRECT ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Which of the following is exempted from the incontestability Fraudulent misstatements
provision in insurance policies?
What does first dollar coverage mean? As soon as covered medical expenses are incurred, the policy begins to pay
What is the waiver of premium provision? In a long term care contract, the premium is waived after the insured has been confined
for a specific period of time
According to the Time Payment of Claims provision, the insurer for claims involving periodic payments
must make the payment immediately after receiving proof of
loss EXCEPT
Which is a disadvantage to a flexible premium annuity? the actual amount of the annuity benefit cannot be determined in advance
When a policy or certificate containing an accelerated benefit a detailed and comprehensive summary of the 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
which one of the following represents an advantage of the loan is not taxed while a withdrawal is taxed for amounts above the contract cost
obtaining a policy loan versus a withdrawal? basis
How does a noncancelable policy differ from a guaranteed with the non cancelable policy the insurer may increase premiums only based on the
renewable policy? terms of the policy
What does it mean if a health policy is conditionally Insurer may elect NOT to renew only under the conditions specified in the policy
renewable?
When the suicide clause is inserted in a life insurance contract, 2 year period
death by suicide is not covered during the policy's initial:
What does coinsurance mean? The insurer and the insured share expenses over the deductible.
Which of the following must be given to the insurer within 20 Notice of claim
days after occurrence or commencement of any loss covered
by the policy, or as soon thereafter as is reasonably possible?
,The right to change the beneficiary or dispose of the policy or The policy owner has named an irrevocable beneficiary
its benefits in any manner one chooses is reserved to the
policy owner UNLESS which of the following is true?
Which of the following refers to how often a premium is paid? Mode
All of the following are common exclusions from loss found in Committing a misdemeanor
disability income policies EXCEPT for that incurred while
At which point are contractual death benefit settlement At the time the policy is purchased by the owner of the policy
options determined and by whom are they determined?
All of the following are ownership rights EXCEPT Switching the policy from one insured to another
All of the following are TRUE regarding incomplete The incomplete application can be accepted with the missing information added later
applications EXCEPT
A consumer report used to determine eligibility for insurance Medical underwriting exam
may include all of the following EXCEPT
All of the following are required signatures on a life insurance The minor in a juvenile policy
application EXCEPT
Why are insurance policies considered conditional contracts? Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance when the applicant for the policy is not the insured
policy?
Which of the following occurs immediately after the the underwriting process begins
application is submitted and the initial premium paid?
Obtaining consumer information reports under false pretenses Fair Credit Reporting Act
is prosecutable by which of the following?
What is the purpose of Stranger-originated life insurance the policy is originated primarily or solely for the purpose of resale
(STOLI)?
, All of the following are classifications of risk EXCEPT non-nicotine
What specific new procedures does the USA Patriot Act Establish an anti-money laundering program
require of insurance companies?
What procedure is used by an insurer to protect itself in the The applicant and possibly the agent initial any changes made.
event a dispute arises and the applicant and the agent do not
recall the changes that were made in a completed
application?
What is a MIB report? medical information on an applicant for assessing life or health insurance risk
How do warranties differ from representations? a warranty is guaranteed to be true, a representation is believed to be true to the best of
one's knowledge.
If the insurer wishes to share an applicant's HIV status, the the treatment procedures that are covered by the policy.
applicant must be given full notice of all of the following
EXCEPT
Which of the following was specifically designed to address NCOIL Act
STOLI and IOLI practices?
Why is rehabilitation considered worthy of federal help under it reduces insurance losses and helps regain the worker's dignity
workers' compensation?
In a case where an individual's health is insured by both their The individual's policy pays first, the spouse's policy pays the remaining up to coverage
own policy and their spouse's policy, which policy pays in the amount.
event of an illness?
The group conversion option is allowed for all of the following during the annual benefits enrollment period.
EXCEPT
What type of insurance should a company purchase if it wants key person insurance
to insure the life of its CEO?
All of the following are tax qualified retirement plans EXCEPT Section 529 plan.
PRACTICE EXAM 17-55 | COMPREHENSIVE
TEST PREP, PRACTICE QUESTIONS,
CORRECT ANSWERS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Which of the following is exempted from the incontestability Fraudulent misstatements
provision in insurance policies?
What does first dollar coverage mean? As soon as covered medical expenses are incurred, the policy begins to pay
What is the waiver of premium provision? In a long term care contract, the premium is waived after the insured has been confined
for a specific period of time
According to the Time Payment of Claims provision, the insurer for claims involving periodic payments
must make the payment immediately after receiving proof of
loss EXCEPT
Which is a disadvantage to a flexible premium annuity? the actual amount of the annuity benefit cannot be determined in advance
When a policy or certificate containing an accelerated benefit a detailed and comprehensive summary of the 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
which one of the following represents an advantage of the loan is not taxed while a withdrawal is taxed for amounts above the contract cost
obtaining a policy loan versus a withdrawal? basis
How does a noncancelable policy differ from a guaranteed with the non cancelable policy the insurer may increase premiums only based on the
renewable policy? terms of the policy
What does it mean if a health policy is conditionally Insurer may elect NOT to renew only under the conditions specified in the policy
renewable?
When the suicide clause is inserted in a life insurance contract, 2 year period
death by suicide is not covered during the policy's initial:
What does coinsurance mean? The insurer and the insured share expenses over the deductible.
Which of the following must be given to the insurer within 20 Notice of claim
days after occurrence or commencement of any loss covered
by the policy, or as soon thereafter as is reasonably possible?
,The right to change the beneficiary or dispose of the policy or The policy owner has named an irrevocable beneficiary
its benefits in any manner one chooses is reserved to the
policy owner UNLESS which of the following is true?
Which of the following refers to how often a premium is paid? Mode
All of the following are common exclusions from loss found in Committing a misdemeanor
disability income policies EXCEPT for that incurred while
At which point are contractual death benefit settlement At the time the policy is purchased by the owner of the policy
options determined and by whom are they determined?
All of the following are ownership rights EXCEPT Switching the policy from one insured to another
All of the following are TRUE regarding incomplete The incomplete application can be accepted with the missing information added later
applications EXCEPT
A consumer report used to determine eligibility for insurance Medical underwriting exam
may include all of the following EXCEPT
All of the following are required signatures on a life insurance The minor in a juvenile policy
application EXCEPT
Why are insurance policies considered conditional contracts? Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance when the applicant for the policy is not the insured
policy?
Which of the following occurs immediately after the the underwriting process begins
application is submitted and the initial premium paid?
Obtaining consumer information reports under false pretenses Fair Credit Reporting Act
is prosecutable by which of the following?
What is the purpose of Stranger-originated life insurance the policy is originated primarily or solely for the purpose of resale
(STOLI)?
, All of the following are classifications of risk EXCEPT non-nicotine
What specific new procedures does the USA Patriot Act Establish an anti-money laundering program
require of insurance companies?
What procedure is used by an insurer to protect itself in the The applicant and possibly the agent initial any changes made.
event a dispute arises and the applicant and the agent do not
recall the changes that were made in a completed
application?
What is a MIB report? medical information on an applicant for assessing life or health insurance risk
How do warranties differ from representations? a warranty is guaranteed to be true, a representation is believed to be true to the best of
one's knowledge.
If the insurer wishes to share an applicant's HIV status, the the treatment procedures that are covered by the policy.
applicant must be given full notice of all of the following
EXCEPT
Which of the following was specifically designed to address NCOIL Act
STOLI and IOLI practices?
Why is rehabilitation considered worthy of federal help under it reduces insurance losses and helps regain the worker's dignity
workers' compensation?
In a case where an individual's health is insured by both their The individual's policy pays first, the spouse's policy pays the remaining up to coverage
own policy and their spouse's policy, which policy pays in the amount.
event of an illness?
The group conversion option is allowed for all of the following during the annual benefits enrollment period.
EXCEPT
What type of insurance should a company purchase if it wants key person insurance
to insure the life of its CEO?
All of the following are tax qualified retirement plans EXCEPT Section 529 plan.
