PSI - NY Life, Accident and Health Practice Exam 17-55 Study Guide
PSI - NY LIFE, ACCIDENT AND HEALTH PRACTICE EXAM 17-55
STUDY GUIDE NEWEST 2025/2026 COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |BRAND
NEW VERSION!!
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
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?
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?
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?
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:
2 year period
What does coinsurance mean?
The insurer and the insured share expenses over the deductible.
1|Page
, PSI - NY Life, Accident and Health Practice Exam 17-55 Study Guide
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?
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?
The policy owner has named an irrevocable beneficiary
Which of the following refers to how often a premium is paid?
Mode
All of the following are common exclusions from loss found in disability income
policies EXCEPT for that incurred while
Committing a misdemeanor
At which point are contractual death benefit settlement options determined and
by whom are they determined?
At the time the policy is purchased by the owner of the policy
All of the following are ownership rights EXCEPT
Switching the policy from one insured to another
All of the following are TRUE regarding incomplete applications EXCEPT
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
2|Page
, PSI - NY Life, Accident and Health Practice Exam 17-55 Study Guide
Medical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT
The minor in a juvenile policy
Why are insurance policies considered conditional contracts?
Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy?
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?
the underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by
which of the following?
Fair Credit Reporting Act
What is the purpose of Stranger-originated life insurance (STOLI)?
the policy is originated primarily or solely for the purpose of resale
All of the following are classifications of risk EXCEPT
non-nicotine
What specific new procedures does the USA Patriot Act require of insurance
companies?
Establish an anti-money laundering program
3|Page
, PSI - NY Life, Accident and Health Practice Exam 17-55 Study Guide
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?
The applicant and possibly the agent initial any changes made.
What is a MIB report?
medical information on an applicant for assessing life or health insurance risk
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?
Free Look
When will a policy pay on a UCR basis?
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?
long term care rider
Which of the following is exempted from the incontestability provision in
insurance policies?
Fraudulent misstatements
What does first dollar coverage mean?
As soon as covered medical expenses are incurred, the policy begins to pay
What is the waiver of premium provision?
In a long term care contract, the premium is waived after the insured has been
confined for a specific period of time
4|Page
PSI - NY LIFE, ACCIDENT AND HEALTH PRACTICE EXAM 17-55
STUDY GUIDE NEWEST 2025/2026 COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |BRAND
NEW VERSION!!
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
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?
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?
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?
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:
2 year period
What does coinsurance mean?
The insurer and the insured share expenses over the deductible.
1|Page
, PSI - NY Life, Accident and Health Practice Exam 17-55 Study Guide
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?
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?
The policy owner has named an irrevocable beneficiary
Which of the following refers to how often a premium is paid?
Mode
All of the following are common exclusions from loss found in disability income
policies EXCEPT for that incurred while
Committing a misdemeanor
At which point are contractual death benefit settlement options determined and
by whom are they determined?
At the time the policy is purchased by the owner of the policy
All of the following are ownership rights EXCEPT
Switching the policy from one insured to another
All of the following are TRUE regarding incomplete applications EXCEPT
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
2|Page
, PSI - NY Life, Accident and Health Practice Exam 17-55 Study Guide
Medical underwriting exam
All of the following are required signatures on a life insurance application EXCEPT
The minor in a juvenile policy
Why are insurance policies considered conditional contracts?
Certain conditions need to be met to make the contract legally enforceable.
When does insurable interest come into play in a life insurance policy?
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?
the underwriting process begins
Obtaining consumer information reports under false pretenses is prosecutable by
which of the following?
Fair Credit Reporting Act
What is the purpose of Stranger-originated life insurance (STOLI)?
the policy is originated primarily or solely for the purpose of resale
All of the following are classifications of risk EXCEPT
non-nicotine
What specific new procedures does the USA Patriot Act require of insurance
companies?
Establish an anti-money laundering program
3|Page
, PSI - NY Life, Accident and Health Practice Exam 17-55 Study Guide
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?
The applicant and possibly the agent initial any changes made.
What is a MIB report?
medical information on an applicant for assessing life or health insurance risk
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?
Free Look
When will a policy pay on a UCR basis?
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?
long term care rider
Which of the following is exempted from the incontestability provision in
insurance policies?
Fraudulent misstatements
What does first dollar coverage mean?
As soon as covered medical expenses are incurred, the policy begins to pay
What is the waiver of premium provision?
In a long term care contract, the premium is waived after the insured has been
confined for a specific period of time
4|Page
