PSI - NY Life, Accident and Health Practice Exam 17-55
Questions With 100% Correct Verified Answers
Course
Accident And Health Insurance Agent
1. Which of the following is not typically covered by an Accidental Death and
Dismemberment (AD&D) policy?
A) Loss of life
B) Loss of a limb
C) Loss of hearing
D) Loss due to sickness
Answer: D) Loss due to sickness
Rationale: AD&D policies cover losses resulting from accidents, not illnesses. Loss of life,
limb, or hearing can be included under accidental causes, but sickness is excluded.
2. In a life insurance policy, the insured’s right to change the beneficiary
designation is a feature of:
A) Irrevocable Beneficiary
B) Revocable Beneficiary
C) Assignment Clause
D) Contingent Beneficiary
Answer: B) Revocable Beneficiary
Rationale: A revocable beneficiary allows the policyholder to change the beneficiary at any
time without needing the beneficiary's consent, unlike the irrevocable designation.
3. Which of the following is a common exclusion in life insurance policies?
A) Death from natural causes
B) Death from an automobile accident
C) Death by suicide within two years of policy issuance
D) Death from terminal illness
Answer: C) Death by suicide within two years of policy issuance
Rationale: Most life insurance policies have a suicide exclusion clause, which typically
applies within the first two years of the policy.
4. The incontestability clause in a life insurance policy becomes effective after
the policy has been in force for:
A) 1 year
B) 2 years
C) 5 years
D) 10 years
,Answer: B) 2 years
Rationale: The incontestability clause generally allows the insurer to void the contract only
during the first two years due to misrepresentations. After that period, the policy is
considered incontestable, except for fraud.
5. What is the primary purpose of a waiver of premium rider in a life
insurance policy?
A) To provide extra coverage
B) To extend the policy term
C) To waive premium payments if the insured becomes disabled
D) To allow for accelerated benefits
Answer: C) To waive premium payments if the insured becomes disabled
Rationale: The waiver of premium rider allows the policyholder to stop paying premiums if
they become totally disabled, ensuring the policy remains in effect.
6. In group health insurance, the waiting period before an employee can enroll
in the group plan is called the:
A) Probationary Period
B) Elimination Period
C) Enrollment Period
D) Grace Period
Answer: A) Probationary Period
Rationale: The probationary period is the time a new employee must wait before becoming
eligible to enroll in the group health insurance plan.
7. Which of the following is a characteristic of a Health Maintenance
Organization (HMO)?
A) Unlimited choice of healthcare providers
B) Coverage for services outside the network without referral
C) Emphasis on preventive care
D) High deductibles for most services
Answer: C) Emphasis on preventive care
Rationale: HMOs focus on preventive care and often require members to use network
providers and obtain referrals for specialists to control costs.
8. A beneficiary designation that cannot be changed without the beneficiary’s
consent is called:
A) Irrevocable Beneficiary
B) Contingent Beneficiary
C) Revocable Beneficiary
D) Primary Beneficiary
,Answer: A) Irrevocable Beneficiary
Rationale: Once an irrevocable beneficiary is named, the policyholder cannot change the
beneficiary designation without the irrevocable beneficiary’s consent.
9. Which of the following statements is true about a Guaranteed Renewable
health insurance policy?
A) The insurer can cancel the policy at any time.
B) Premiums can be increased for the individual policyholder.
C) The insurer can increase premiums on the policy anniversary date for a class of
insureds.
D) The policy cannot be renewed past age 65.
Answer: C) The insurer can increase premiums on the policy anniversary date for a class of
insureds.
Rationale: A Guaranteed Renewable policy must be renewed by the insurer as long as
premiums are paid, but the insurer can increase premiums for an entire class of insureds, not
on an individual basis.
10. In a life insurance policy, the provision that specifies the length of time
during which premiums must be paid to keep the policy in force is called:
A) Grace Period
B) Entire Contract Clause
C) Payment of Premium
D) Consideration Clause
Answer: C) Payment of Premium
Rationale: The Payment of Premium provision outlines the policyholder's obligation to pay
premiums and how often they must be paid to keep the policy in effect.
11. Which type of life insurance policy allows the policyholder to adjust the
death benefit and premium payments over time?
A) Whole Life Insurance
B) Term Life Insurance
C) Universal Life Insurance
D) Variable Life Insurance
Answer: C) Universal Life Insurance
Rationale: Universal life insurance offers flexible premiums and adjustable death benefits.
The policyholder can alter the amount and timing of premium payments, within certain
limits, based on the policy's performance.
12. Which of the following is not a common exclusion found in health
insurance policies?
A) Elective cosmetic surgery
B) Experimental treatments
, C) Pre-existing conditions during the waiting period
D) Emergency care
Answer: D) Emergency care
Rationale: Health insurance typically covers emergency care, but it may exclude elective
surgeries, experimental treatments, or pre-existing conditions during a specified waiting
period.
13. What does the Misstatement of Age provision in a life insurance policy
typically adjust?
A) The amount of the death benefit
B) The length of the policy term
C) The premium amount
D) The coverage exclusions
Answer: A) The amount of the death benefit
Rationale: If the insured’s age is misstated on a life insurance policy, the death benefit is
adjusted to reflect the amount the premium would have purchased at the correct age.
14. Which type of beneficiary designation ensures that benefits are paid to the
secondary beneficiary if the primary beneficiary predeceases the insured?
A) Irrevocable Beneficiary
B) Contingent Beneficiary
C) Primary Beneficiary
D) Per Stirpes Beneficiary
Answer: B) Contingent Beneficiary
Rationale: A contingent beneficiary receives the policy proceeds if the primary beneficiary
dies before the insured. The primary beneficiary has first rights to the death benefit.
15. Which of the following health insurance policies is primarily designed to
supplement Medicare coverage?
A) Medicaid
B) Medicare Supplement (Medigap)
C) Long-Term Care Insurance
D) Disability Insurance
Answer: B) Medicare Supplement (Medigap)
Rationale: Medigap policies are specifically designed to cover the "gaps" in Medicare
coverage, such as copayments, coinsurance, and deductibles.
16. What is the primary function of a disability income policy?
A) To pay medical bills
B) To replace lost income due to a disability
C) To cover the costs of long-term care
Questions With 100% Correct Verified Answers
Course
Accident And Health Insurance Agent
1. Which of the following is not typically covered by an Accidental Death and
Dismemberment (AD&D) policy?
A) Loss of life
B) Loss of a limb
C) Loss of hearing
D) Loss due to sickness
Answer: D) Loss due to sickness
Rationale: AD&D policies cover losses resulting from accidents, not illnesses. Loss of life,
limb, or hearing can be included under accidental causes, but sickness is excluded.
2. In a life insurance policy, the insured’s right to change the beneficiary
designation is a feature of:
A) Irrevocable Beneficiary
B) Revocable Beneficiary
C) Assignment Clause
D) Contingent Beneficiary
Answer: B) Revocable Beneficiary
Rationale: A revocable beneficiary allows the policyholder to change the beneficiary at any
time without needing the beneficiary's consent, unlike the irrevocable designation.
3. Which of the following is a common exclusion in life insurance policies?
A) Death from natural causes
B) Death from an automobile accident
C) Death by suicide within two years of policy issuance
D) Death from terminal illness
Answer: C) Death by suicide within two years of policy issuance
Rationale: Most life insurance policies have a suicide exclusion clause, which typically
applies within the first two years of the policy.
4. The incontestability clause in a life insurance policy becomes effective after
the policy has been in force for:
A) 1 year
B) 2 years
C) 5 years
D) 10 years
,Answer: B) 2 years
Rationale: The incontestability clause generally allows the insurer to void the contract only
during the first two years due to misrepresentations. After that period, the policy is
considered incontestable, except for fraud.
5. What is the primary purpose of a waiver of premium rider in a life
insurance policy?
A) To provide extra coverage
B) To extend the policy term
C) To waive premium payments if the insured becomes disabled
D) To allow for accelerated benefits
Answer: C) To waive premium payments if the insured becomes disabled
Rationale: The waiver of premium rider allows the policyholder to stop paying premiums if
they become totally disabled, ensuring the policy remains in effect.
6. In group health insurance, the waiting period before an employee can enroll
in the group plan is called the:
A) Probationary Period
B) Elimination Period
C) Enrollment Period
D) Grace Period
Answer: A) Probationary Period
Rationale: The probationary period is the time a new employee must wait before becoming
eligible to enroll in the group health insurance plan.
7. Which of the following is a characteristic of a Health Maintenance
Organization (HMO)?
A) Unlimited choice of healthcare providers
B) Coverage for services outside the network without referral
C) Emphasis on preventive care
D) High deductibles for most services
Answer: C) Emphasis on preventive care
Rationale: HMOs focus on preventive care and often require members to use network
providers and obtain referrals for specialists to control costs.
8. A beneficiary designation that cannot be changed without the beneficiary’s
consent is called:
A) Irrevocable Beneficiary
B) Contingent Beneficiary
C) Revocable Beneficiary
D) Primary Beneficiary
,Answer: A) Irrevocable Beneficiary
Rationale: Once an irrevocable beneficiary is named, the policyholder cannot change the
beneficiary designation without the irrevocable beneficiary’s consent.
9. Which of the following statements is true about a Guaranteed Renewable
health insurance policy?
A) The insurer can cancel the policy at any time.
B) Premiums can be increased for the individual policyholder.
C) The insurer can increase premiums on the policy anniversary date for a class of
insureds.
D) The policy cannot be renewed past age 65.
Answer: C) The insurer can increase premiums on the policy anniversary date for a class of
insureds.
Rationale: A Guaranteed Renewable policy must be renewed by the insurer as long as
premiums are paid, but the insurer can increase premiums for an entire class of insureds, not
on an individual basis.
10. In a life insurance policy, the provision that specifies the length of time
during which premiums must be paid to keep the policy in force is called:
A) Grace Period
B) Entire Contract Clause
C) Payment of Premium
D) Consideration Clause
Answer: C) Payment of Premium
Rationale: The Payment of Premium provision outlines the policyholder's obligation to pay
premiums and how often they must be paid to keep the policy in effect.
11. Which type of life insurance policy allows the policyholder to adjust the
death benefit and premium payments over time?
A) Whole Life Insurance
B) Term Life Insurance
C) Universal Life Insurance
D) Variable Life Insurance
Answer: C) Universal Life Insurance
Rationale: Universal life insurance offers flexible premiums and adjustable death benefits.
The policyholder can alter the amount and timing of premium payments, within certain
limits, based on the policy's performance.
12. Which of the following is not a common exclusion found in health
insurance policies?
A) Elective cosmetic surgery
B) Experimental treatments
, C) Pre-existing conditions during the waiting period
D) Emergency care
Answer: D) Emergency care
Rationale: Health insurance typically covers emergency care, but it may exclude elective
surgeries, experimental treatments, or pre-existing conditions during a specified waiting
period.
13. What does the Misstatement of Age provision in a life insurance policy
typically adjust?
A) The amount of the death benefit
B) The length of the policy term
C) The premium amount
D) The coverage exclusions
Answer: A) The amount of the death benefit
Rationale: If the insured’s age is misstated on a life insurance policy, the death benefit is
adjusted to reflect the amount the premium would have purchased at the correct age.
14. Which type of beneficiary designation ensures that benefits are paid to the
secondary beneficiary if the primary beneficiary predeceases the insured?
A) Irrevocable Beneficiary
B) Contingent Beneficiary
C) Primary Beneficiary
D) Per Stirpes Beneficiary
Answer: B) Contingent Beneficiary
Rationale: A contingent beneficiary receives the policy proceeds if the primary beneficiary
dies before the insured. The primary beneficiary has first rights to the death benefit.
15. Which of the following health insurance policies is primarily designed to
supplement Medicare coverage?
A) Medicaid
B) Medicare Supplement (Medigap)
C) Long-Term Care Insurance
D) Disability Insurance
Answer: B) Medicare Supplement (Medigap)
Rationale: Medigap policies are specifically designed to cover the "gaps" in Medicare
coverage, such as copayments, coinsurance, and deductibles.
16. What is the primary function of a disability income policy?
A) To pay medical bills
B) To replace lost income due to a disability
C) To cover the costs of long-term care
