PSI - NY Life, Accident and Health Practice Exam 17-
55| 75 Questions - Actual Test| GRADED A
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 Answer: Free Look
When will a policy pay on a UCR basis? Correct Answer: When 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 Answer: long term care rider
Which of the following is exempted from the incontestability provision in insurance policies?
Correct Answer: Fraudulent misstatements
What does first dollar coverage mean? Correct Answer: As soon as covered medical expenses
are incurred, the policy begins to pay
What is the waiver of premium provision? Correct Answer: 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 must make the payment
immediately after receiving proof of loss EXCEPT Correct Answer: for claims involving
periodic payments
Which is a disadvantage to a flexible premium annuity? Correct Answer: the 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 Answer: a 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 Answer: the 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 Answer:
with 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 Answer: Insurer 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 Answer: 2 year period
What does coinsurance mean? Correct Answer: The 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 Answer: Notice 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
Answer: The policy owner has named an irrevocable beneficiary
Which of the following refers to how often a premium is paid? Correct Answer: Mode
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while Correct Answer: Committing a misdemeanor
At which point are contractual death benefit settlement options determined and by whom are
they determined? Correct Answer: At the time the policy is purchased by the owner of the
policy
All of the following are ownership rights EXCEPT Correct Answer: Switching the policy from
one insured to another
All of the following are TRUE regarding incomplete applications EXCEPT Correct Answer:
The 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 Answer: Medical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT Correct
Answer: The minor in a juvenile policy
Why are insurance policies considered conditional contracts? Correct Answer: Certain
conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? Correct Answer: when
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 Answer: the underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by which of the
following? Correct Answer: Fair Credit Reporting Act
55| 75 Questions - Actual Test| GRADED A
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 Answer: Free Look
When will a policy pay on a UCR basis? Correct Answer: When 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 Answer: long term care rider
Which of the following is exempted from the incontestability provision in insurance policies?
Correct Answer: Fraudulent misstatements
What does first dollar coverage mean? Correct Answer: As soon as covered medical expenses
are incurred, the policy begins to pay
What is the waiver of premium provision? Correct Answer: 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 must make the payment
immediately after receiving proof of loss EXCEPT Correct Answer: for claims involving
periodic payments
Which is a disadvantage to a flexible premium annuity? Correct Answer: the 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 Answer: a 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 Answer: the 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 Answer:
with 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 Answer: Insurer 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 Answer: 2 year period
What does coinsurance mean? Correct Answer: The 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 Answer: Notice 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
Answer: The policy owner has named an irrevocable beneficiary
Which of the following refers to how often a premium is paid? Correct Answer: Mode
All of the following are common exclusions from loss found in disability income policies
EXCEPT for that incurred while Correct Answer: Committing a misdemeanor
At which point are contractual death benefit settlement options determined and by whom are
they determined? Correct Answer: At the time the policy is purchased by the owner of the
policy
All of the following are ownership rights EXCEPT Correct Answer: Switching the policy from
one insured to another
All of the following are TRUE regarding incomplete applications EXCEPT Correct Answer:
The 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 Answer: Medical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT Correct
Answer: The minor in a juvenile policy
Why are insurance policies considered conditional contracts? Correct Answer: Certain
conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy? Correct Answer: when
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 Answer: the underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by which of the
following? Correct Answer: Fair Credit Reporting Act
