PSI - NY Life, Accident and Health Practice
Exam 17-55 ACTUAL EXAM TEST
QUESTIONS & ANSWERS (A+ GRADED
100% VERIFIED) 2025 LATEST!!
Section 1: Life Insurance
1. What is the entire contract in a life insurance policy?
A) The policy and the agent's statements
B) The policy and the application
C) The policy and the insured's check-up
D) The policy and the beneficiary designation
2. An insurance policy that does not build cash value is known as:
A) Whole Life
B) Variable Life
C) Term Life
D) Universal Life
3. What type of life insurance allows the policyowner to adjust the premium payments and
death benefit?
A) Term Life
B) Whole Life
C) Universal Life
D) Limited-Pay Life
4. The provision that allows a policyowner to resume a lapsed policy by paying back
premiums with interest is the:
A) Grace Period
B) Nonforfeiture Clause
C) Reinstatement Provision
D) Incontestability Clause
5. A life insurance policy loan is secured by the policy's:
A) Face Amount
B) Cash Value
C) Premiums Paid
D) Dividend Value
6. What is the purpose of the free-look provision in a life insurance policy?
A) To allow the insurer to investigate the applicant
B) To allow the policyowner to return the policy for a full refund
C) To allow the beneficiary to change
D) To allow the agent to replace the policy
, 7. In a life insurance policy, the clause that prevents the insurer from denying a claim due
to misstatements after the policy has been in force for 2 years is the:
A) Entire Contract Clause
B) Misstatement of Age Clause
C) Incontestability Clause
D) Ownership Clause
8. A policy that combines term insurance with a savings element is a:
A) Term Life Policy
B) Endowment Policy
C) Whole Life Policy
D) Group Life Policy
9. The person who receives the life insurance policy proceeds upon the death of the insured
is the:
A) Insurer
B) Policyowner
C) Beneficiary
D) Annuitant
10. What is the primary purpose of the grace period in a life insurance policy?
A) To allow the insurer to investigate a claim
B) To provide a loan to the policyowner
C) To keep the policy in force if a premium is slightly late
D) To allow the policyowner to change beneficiaries
11. A life insurance policy that provides coverage for a specific period of time is called:
A) Whole Life
B) Term Life
C) Endowment Life
D) Universal Life
12. Which of the following is a nonforfeiture option?
A) Reduced Paid-Up Insurance
B) Policy Loan
C) Dividend
D) Reinstatement
13. The risk of dying too soon is covered by:
A) An Annuity
B) Life Insurance
C) Health Insurance
D) Disability Insurance
14. If a premium is not paid by the end of the grace period, the policy will:
A) Automatically be reinstated
B) Be converted to term insurance
Exam 17-55 ACTUAL EXAM TEST
QUESTIONS & ANSWERS (A+ GRADED
100% VERIFIED) 2025 LATEST!!
Section 1: Life Insurance
1. What is the entire contract in a life insurance policy?
A) The policy and the agent's statements
B) The policy and the application
C) The policy and the insured's check-up
D) The policy and the beneficiary designation
2. An insurance policy that does not build cash value is known as:
A) Whole Life
B) Variable Life
C) Term Life
D) Universal Life
3. What type of life insurance allows the policyowner to adjust the premium payments and
death benefit?
A) Term Life
B) Whole Life
C) Universal Life
D) Limited-Pay Life
4. The provision that allows a policyowner to resume a lapsed policy by paying back
premiums with interest is the:
A) Grace Period
B) Nonforfeiture Clause
C) Reinstatement Provision
D) Incontestability Clause
5. A life insurance policy loan is secured by the policy's:
A) Face Amount
B) Cash Value
C) Premiums Paid
D) Dividend Value
6. What is the purpose of the free-look provision in a life insurance policy?
A) To allow the insurer to investigate the applicant
B) To allow the policyowner to return the policy for a full refund
C) To allow the beneficiary to change
D) To allow the agent to replace the policy
, 7. In a life insurance policy, the clause that prevents the insurer from denying a claim due
to misstatements after the policy has been in force for 2 years is the:
A) Entire Contract Clause
B) Misstatement of Age Clause
C) Incontestability Clause
D) Ownership Clause
8. A policy that combines term insurance with a savings element is a:
A) Term Life Policy
B) Endowment Policy
C) Whole Life Policy
D) Group Life Policy
9. The person who receives the life insurance policy proceeds upon the death of the insured
is the:
A) Insurer
B) Policyowner
C) Beneficiary
D) Annuitant
10. What is the primary purpose of the grace period in a life insurance policy?
A) To allow the insurer to investigate a claim
B) To provide a loan to the policyowner
C) To keep the policy in force if a premium is slightly late
D) To allow the policyowner to change beneficiaries
11. A life insurance policy that provides coverage for a specific period of time is called:
A) Whole Life
B) Term Life
C) Endowment Life
D) Universal Life
12. Which of the following is a nonforfeiture option?
A) Reduced Paid-Up Insurance
B) Policy Loan
C) Dividend
D) Reinstatement
13. The risk of dying too soon is covered by:
A) An Annuity
B) Life Insurance
C) Health Insurance
D) Disability Insurance
14. If a premium is not paid by the end of the grace period, the policy will:
A) Automatically be reinstated
B) Be converted to term insurance
