PSI - NY Life, Accident and Health Practice Exam 17-55
Questions and Verified Answers
100% Guarantee Pass
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 ap- plied 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 poli- cy?
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
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
Questions and Verified Answers
100% Guarantee Pass
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 ap- plied 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 poli- cy?
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
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
