PSI - NY LIFE, ACCIDENT AND HEALTH
PRACTICE EXAM 2025/ 2026 QUESTIONS
WITH VERIFIED ANSWERS
Which problem was universal life insurance designed to address?
- correct answer -low interest rates during periods of high inflation
Compared to basic hospital, medical and surgical policies, which
type of insurance provides broader coverage, fewer gaps, higher
individual benefits, and higher policy maximums? - correct
answer -major medical insurance
Current assumption whole life policies are sensitive to which of
the following? - correct answer -interest rates
Which is the major reason why long term care insurance is
becoming increasingly important? - correct answer -As life
expectancy increases, the chances of needing long term care
also increase
,Which of the following is defined as the dollar amount beyond
which the insured no longer participates in payment of medical
expenses? - correct answer -Stop Loss Limit
Which is the primary purpose of Health Reimbursement Accounts
(HRAs)? - correct answer -To assist covered employees with the
payment of medical expenses on a high deductible plan funded
through pre-tax contributions.
States generally define a true "group" for insurance as requiring a
minimum of how many participants? - correct answer -10
When should a buy-sell agreement include a provision for the
buy-out of an owner's business interest in the event of a
disability? - correct answer -When there is a buy-sell agreement
funded with life insurance to buyout the interest of a deceased
owner or partner.
, Which type of life policy can be continued year after year without
a required medical examination but rates are dependent on the
insured's current age? - correct answer -renewable term
Which of the following is true about a decreasing term life policy?
- correct answer -The face amount reaches zero at policy
expiration.
Which of the following is TRUE of the limited pay whole life
policy? - correct answer -Coverage continues after the policy is
paid-up.
Which of the following is a characteristic of Preferred Provider
Organizations (PPOs)? - correct answer -prearranged costs for
services rendered
All of the following are characteristics of variable whole life
EXCEPT - correct answer -there is no guaranteed minimum
death benefit.
PRACTICE EXAM 2025/ 2026 QUESTIONS
WITH VERIFIED ANSWERS
Which problem was universal life insurance designed to address?
- correct answer -low interest rates during periods of high inflation
Compared to basic hospital, medical and surgical policies, which
type of insurance provides broader coverage, fewer gaps, higher
individual benefits, and higher policy maximums? - correct
answer -major medical insurance
Current assumption whole life policies are sensitive to which of
the following? - correct answer -interest rates
Which is the major reason why long term care insurance is
becoming increasingly important? - correct answer -As life
expectancy increases, the chances of needing long term care
also increase
,Which of the following is defined as the dollar amount beyond
which the insured no longer participates in payment of medical
expenses? - correct answer -Stop Loss Limit
Which is the primary purpose of Health Reimbursement Accounts
(HRAs)? - correct answer -To assist covered employees with the
payment of medical expenses on a high deductible plan funded
through pre-tax contributions.
States generally define a true "group" for insurance as requiring a
minimum of how many participants? - correct answer -10
When should a buy-sell agreement include a provision for the
buy-out of an owner's business interest in the event of a
disability? - correct answer -When there is a buy-sell agreement
funded with life insurance to buyout the interest of a deceased
owner or partner.
, Which type of life policy can be continued year after year without
a required medical examination but rates are dependent on the
insured's current age? - correct answer -renewable term
Which of the following is true about a decreasing term life policy?
- correct answer -The face amount reaches zero at policy
expiration.
Which of the following is TRUE of the limited pay whole life
policy? - correct answer -Coverage continues after the policy is
paid-up.
Which of the following is a characteristic of Preferred Provider
Organizations (PPOs)? - correct answer -prearranged costs for
services rendered
All of the following are characteristics of variable whole life
EXCEPT - correct answer -there is no guaranteed minimum
death benefit.
