PSI - NY Life, Accident and Health
Practice Exam 17-55, LATEST UPDATE
2026!!
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? - correct answerFree Look
When will a policy pay on a UCR basis? - correct answerWhen particular benefits
are not listed on a payment schedule
Which type of rider reimburses health and social service expenses incurred in a
convalescent or nursing home facility? - correct answerlong term care rider
Which of the following is exempted from the incontestability provision in insurance
policies? - correct answerFraudulent misstatements
What does first dollar coverage mean? - correct answerAs soon as covered medical
expenses are incurred, the policy begins to pay
What is the waiver of premium provision? - correct answerIn 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 must make the payment
immediately after receiving proof of loss EXCEPT - correct answerfor claims
involving periodic payments
Which is a disadvantage to a flexible premium annuity? - correct answerthe actual
amount of the annuity benefit cannot be determined in advance
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 - correct answera detailed and
comprehensive summary of the accelerated benefit
,which one of the following represents an advantage of obtaining a policy loan versus a
withdrawal? - correct answerthe loan is not taxed while a withdrawal is taxed for
amounts above the contract cost basis
How does a noncancelable policy differ from a guaranteed renewable policy? - correct
answerwith the non cancelable policy the insurer may increase premiums only based
on the terms of the policy
What does it mean if a health policy is conditionally renewable? - correct
answerInsurer may elect NOT to renew only under the conditions specified in the
policy
When the suicide clause is inserted in a life insurance contract, death by suicide is not
covered during the policy's initial: - correct answer2 year period
What does coinsurance mean? - correct answerThe insurer and the insured share
expenses over the deductible.
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? - correct answerNotice of claim
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? -
correct answerThe policy owner has named an irrevocable beneficiary
Which of the following refers to how often a premium is paid? - correct answerMode
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while - correct answerCommitting a misdemeanor
At which point are contractual death benefit settlement options determined and by
whom are they determined? - correct answerAt the time the policy is purchased by
the owner of the policy
All of the following are ownership rights EXCEPT - correct answerSwitching the
policy from one insured to another
All of the following are TRUE regarding incomplete applications EXCEPT - correct
answerThe incomplete application can be accepted with the missing information
added later
,A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT - correct answerMedical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT -
correct answerThe minor in a juvenile policy
Why are insurance policies considered conditional contracts? - correct
answerCertain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - correct
answerwhen the applicant for the policy is not the insured
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - correct answerthe underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by which
of the following? - correct answerFair Credit Reporting Act
What is the purpose of Stranger-originated life insurance (STOLI)? - correct
answerthe policy is originated primarily or solely for the purpose of resale
All of the following are classifications of risk EXCEPT - correct answernon-nicotine
What specific new procedures does the USA Patriot Act require of insurance
companies? - correct answerEstablish an anti-money laundering program
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application? - correct answerThe applicant and possibly the agent initial any
changes made.
What is a MIB report? - correct answermedical information on an applicant for
assessing life or health insurance risk
How do warranties differ from representations? - correct answera 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 applicant must be given full
notice of all of the following EXCEPT - correct answerthe treatment procedures that
are covered by the policy.
, Which of the following was specifically designed to address STOLI and IOLI practices? -
correct answerNCOIL Act
Why is rehabilitation considered worthy of federal help under workers' compensation? -
correct answerit reduces insurance losses and helps regain the worker's dignity
In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - correct answerThe
individual's policy pays first, the spouse's policy pays the remaining up to coverage
amount.
The group conversion option is allowed for all of the following EXCEPT - correct
answerduring the annual benefits enrollment period.
What type of insurance should a company purchase if it wants to insure the life of its
CEO? - correct answerkey person insurance
All of the following are tax qualified retirement plans EXCEPT - correct
answerSection 529 plan.
Why is relying solely on employer group life insurance generally considered inadequate
for most individual's needs? - correct answerIt is financially insufficient to cover end
of life expenses.
For an individual long-term care policy there is an annual dollar limit for tax deductions
that is based on which of the following? - correct answerage
When can the premiums of an individually owned health insurance policy be deducted
from the individual's income tax? - correct answerwhen the taxpayer's medical
expenses exceed 7.5% of adjusted gross income during a taxable year
In noncontributory plans, which percentage of eligible members must participate? -
correct answer100%
Short term disability insurance generally only covers injuries due to which of the
following? - correct answerNon-occupational injuries
Managed care plans increase efficiency by all of the following means EXCEPT -
correct answertransferring the management of costs to the insureds.
Under which situation must insurable interest exist between the applicant and insured at
the time of application? - correct answerWhen a third-party applicant names
themselves beneficiary
Practice Exam 17-55, LATEST UPDATE
2026!!
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? - correct answerFree Look
When will a policy pay on a UCR basis? - correct answerWhen particular benefits
are not listed on a payment schedule
Which type of rider reimburses health and social service expenses incurred in a
convalescent or nursing home facility? - correct answerlong term care rider
Which of the following is exempted from the incontestability provision in insurance
policies? - correct answerFraudulent misstatements
What does first dollar coverage mean? - correct answerAs soon as covered medical
expenses are incurred, the policy begins to pay
What is the waiver of premium provision? - correct answerIn 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 must make the payment
immediately after receiving proof of loss EXCEPT - correct answerfor claims
involving periodic payments
Which is a disadvantage to a flexible premium annuity? - correct answerthe actual
amount of the annuity benefit cannot be determined in advance
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 - correct answera detailed and
comprehensive summary of the accelerated benefit
,which one of the following represents an advantage of obtaining a policy loan versus a
withdrawal? - correct answerthe loan is not taxed while a withdrawal is taxed for
amounts above the contract cost basis
How does a noncancelable policy differ from a guaranteed renewable policy? - correct
answerwith the non cancelable policy the insurer may increase premiums only based
on the terms of the policy
What does it mean if a health policy is conditionally renewable? - correct
answerInsurer may elect NOT to renew only under the conditions specified in the
policy
When the suicide clause is inserted in a life insurance contract, death by suicide is not
covered during the policy's initial: - correct answer2 year period
What does coinsurance mean? - correct answerThe insurer and the insured share
expenses over the deductible.
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? - correct answerNotice of claim
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? -
correct answerThe policy owner has named an irrevocable beneficiary
Which of the following refers to how often a premium is paid? - correct answerMode
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while - correct answerCommitting a misdemeanor
At which point are contractual death benefit settlement options determined and by
whom are they determined? - correct answerAt the time the policy is purchased by
the owner of the policy
All of the following are ownership rights EXCEPT - correct answerSwitching the
policy from one insured to another
All of the following are TRUE regarding incomplete applications EXCEPT - correct
answerThe incomplete application can be accepted with the missing information
added later
,A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT - correct answerMedical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT -
correct answerThe minor in a juvenile policy
Why are insurance policies considered conditional contracts? - correct
answerCertain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? - correct
answerwhen the applicant for the policy is not the insured
Which of the following occurs immediately after the application is submitted and the
initial premium paid? - correct answerthe underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by which
of the following? - correct answerFair Credit Reporting Act
What is the purpose of Stranger-originated life insurance (STOLI)? - correct
answerthe policy is originated primarily or solely for the purpose of resale
All of the following are classifications of risk EXCEPT - correct answernon-nicotine
What specific new procedures does the USA Patriot Act require of insurance
companies? - correct answerEstablish an anti-money laundering program
What procedure is used by an insurer to protect itself in the event a dispute arises and
the applicant and the agent do not recall the changes that were made in a completed
application? - correct answerThe applicant and possibly the agent initial any
changes made.
What is a MIB report? - correct answermedical information on an applicant for
assessing life or health insurance risk
How do warranties differ from representations? - correct answera 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 applicant must be given full
notice of all of the following EXCEPT - correct answerthe treatment procedures that
are covered by the policy.
, Which of the following was specifically designed to address STOLI and IOLI practices? -
correct answerNCOIL Act
Why is rehabilitation considered worthy of federal help under workers' compensation? -
correct answerit reduces insurance losses and helps regain the worker's dignity
In a case where an individual's health is insured by both their own policy and their
spouse's policy, which policy pays in the event of an illness? - correct answerThe
individual's policy pays first, the spouse's policy pays the remaining up to coverage
amount.
The group conversion option is allowed for all of the following EXCEPT - correct
answerduring the annual benefits enrollment period.
What type of insurance should a company purchase if it wants to insure the life of its
CEO? - correct answerkey person insurance
All of the following are tax qualified retirement plans EXCEPT - correct
answerSection 529 plan.
Why is relying solely on employer group life insurance generally considered inadequate
for most individual's needs? - correct answerIt is financially insufficient to cover end
of life expenses.
For an individual long-term care policy there is an annual dollar limit for tax deductions
that is based on which of the following? - correct answerage
When can the premiums of an individually owned health insurance policy be deducted
from the individual's income tax? - correct answerwhen the taxpayer's medical
expenses exceed 7.5% of adjusted gross income during a taxable year
In noncontributory plans, which percentage of eligible members must participate? -
correct answer100%
Short term disability insurance generally only covers injuries due to which of the
following? - correct answerNon-occupational injuries
Managed care plans increase efficiency by all of the following means EXCEPT -
correct answertransferring the management of costs to the insureds.
Under which situation must insurable interest exist between the applicant and insured at
the time of application? - correct answerWhen a third-party applicant names
themselves beneficiary
