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PSI - NY LIFE, ACCIDENT AND HEALTH PRACTICE
EXAM 2025 BRAND NEW ACTUAL EXAM WITH
ANSWERS.
When should a buy-sell agreement include a provision for the buy-out of an
owners business interest in the event of a disability? - ..(ANSWER)...When there is
a buy-sell agreement funded with life insurance to buyout the interest of a
deceased owner or partner
Which of the following policy types is considered double indemnity? -
..(ANSWER)...Accidental Health
Which of the following amends the social security act to make medicare
secondary to group health plans? - ..(ANSWER)...TEFRA
All of the following can be used to qualify for medicare parts a and be except -
..(ANSWER)...Financial Need
In which of the following does a covered employee agree to a reduction in
compensation so the amount can be used to cover medical expenses? -
..(ANSWER)...Flexible Spending Accounts (FSA)
What is the primary purpose of Health Reimbursements Accounts? (HRAS) -
..(ANSWER)...To assist covered employees with the payment of medical expenses
on a high deductible plan funded through pre tax contributions
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Which of the following is the most common method to supplement medicare
coverage? - ..(ANSWER)...Coverage offered by Private Insurers
A group conversion option may be used in all the following instances EXCEPT -
..(ANSWER)...a life-changing event, such a marriage, divorce, or childbirth
Which is a primary difference between individual and group health insurance? -
..(ANSWER)...Individual insurance requires evidence of insurability
State generally define a true "Group" for insurance as requiring a minimum of
how many participants? - ..(ANSWER)...10
Which of the following is considered the major advantage of HIPAA -
..(ANSWER)...Portability
What is the major reason that insurance regulators are often critical of dread
disease insurance policies? - ..(ANSWER)...Buyers often think they are getting
broader coverage that they actually purchase
Which of the following is an example of a hospital indemnity plan? -
..(ANSWER)...pays a fixed amount per day to the insured for each day the insured
is hospitalized
Which whole life policy premium type is the most common? -
..(ANSWER)...continuous premium
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Which of the following is true of the limited pay whole life policy? -
..(ANSWER)...coverage continues after the policy is paid up
In an Adjustable Life policy all of the following can be changed by the policy
owner EXCEPT - ..(ANSWER)...The interest rate
Which problem was universal life insurance designed to address? -
..(ANSWER)...low interest rates during periods of high inflation
All of the following are characteristics of variable whole life except? -
..(ANSWER)...there is no guaranteed minimum death benefit
Which policy type is backed by equity investments and allows the policyholder to
adjust the death benefit? - ..(ANSWER)...Variable Universal Life
Current assumption whole life policies are sensitive to which of the following? -
..(ANSWER)...Interest Rates
Why do equity-indexed life insurance policies have an increased premium? -
..(ANSWER)...for an increased amount of protection
In a level term life policy, which ALWAYS remains constant? - ..(ANSWER)...death
benefit
PSI - NY LIFE, ACCIDENT AND HEALTH PRACTICE
EXAM 2025 BRAND NEW ACTUAL EXAM WITH
ANSWERS.
When should a buy-sell agreement include a provision for the buy-out of an
owners business interest in the event of a disability? - ..(ANSWER)...When there is
a buy-sell agreement funded with life insurance to buyout the interest of a
deceased owner or partner
Which of the following policy types is considered double indemnity? -
..(ANSWER)...Accidental Health
Which of the following amends the social security act to make medicare
secondary to group health plans? - ..(ANSWER)...TEFRA
All of the following can be used to qualify for medicare parts a and be except -
..(ANSWER)...Financial Need
In which of the following does a covered employee agree to a reduction in
compensation so the amount can be used to cover medical expenses? -
..(ANSWER)...Flexible Spending Accounts (FSA)
What is the primary purpose of Health Reimbursements Accounts? (HRAS) -
..(ANSWER)...To assist covered employees with the payment of medical expenses
on a high deductible plan funded through pre tax contributions
,2|Page
Which of the following is the most common method to supplement medicare
coverage? - ..(ANSWER)...Coverage offered by Private Insurers
A group conversion option may be used in all the following instances EXCEPT -
..(ANSWER)...a life-changing event, such a marriage, divorce, or childbirth
Which is a primary difference between individual and group health insurance? -
..(ANSWER)...Individual insurance requires evidence of insurability
State generally define a true "Group" for insurance as requiring a minimum of
how many participants? - ..(ANSWER)...10
Which of the following is considered the major advantage of HIPAA -
..(ANSWER)...Portability
What is the major reason that insurance regulators are often critical of dread
disease insurance policies? - ..(ANSWER)...Buyers often think they are getting
broader coverage that they actually purchase
Which of the following is an example of a hospital indemnity plan? -
..(ANSWER)...pays a fixed amount per day to the insured for each day the insured
is hospitalized
Which whole life policy premium type is the most common? -
..(ANSWER)...continuous premium
, 3|Page
Which of the following is true of the limited pay whole life policy? -
..(ANSWER)...coverage continues after the policy is paid up
In an Adjustable Life policy all of the following can be changed by the policy
owner EXCEPT - ..(ANSWER)...The interest rate
Which problem was universal life insurance designed to address? -
..(ANSWER)...low interest rates during periods of high inflation
All of the following are characteristics of variable whole life except? -
..(ANSWER)...there is no guaranteed minimum death benefit
Which policy type is backed by equity investments and allows the policyholder to
adjust the death benefit? - ..(ANSWER)...Variable Universal Life
Current assumption whole life policies are sensitive to which of the following? -
..(ANSWER)...Interest Rates
Why do equity-indexed life insurance policies have an increased premium? -
..(ANSWER)...for an increased amount of protection
In a level term life policy, which ALWAYS remains constant? - ..(ANSWER)...death
benefit
