PSI - NY Life, Accident and Health Practice Exam 17-55,
Just my cards + 199+ 75 ( TEST) (LOT) questions and
answers 2025\2026 A+ Grade
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
, What is the purpose of Stranger-originated life insurance (STOLI)?
- correct answer the policy is originated primarily or solely for the purpose of resale
All of the following are classifications of risk EXCEPT
- correct answer non-nicotine
What specific new procedures does the USA Patriot Act require of insurance companies?
- correct answer Establish an anti-money laundering program
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?
- correct answer The applicant and possibly the agent initial any changes made.
What is a MIB report?
- correct answer medical information on an applicant for assessing life or health insurance risk
How do warranties differ from representations?
- correct answer a warranty is guaranteed to be true, a representation is believed to be true to the best
of one's knowledge.
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of
the following EXCEPT
- correct answer the treatment procedures that are covered by the policy.
Which of the following was specifically designed to address STOLI and IOLI practices?
- correct answer NCOIL Act
Why is rehabilitation considered worthy of federal help under workers' compensation?
- correct answer it reduces insurance losses and helps regain the worker's dignity
In a case where an individual's health is insured by both their own policy and their spouse's policy, which
policy pays in the event of an illness?
- correct answer The individual's policy pays first, the spouse's policy pays the remaining up to coverage
amount.
Just my cards + 199+ 75 ( TEST) (LOT) questions and
answers 2025\2026 A+ Grade
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
, What is the purpose of Stranger-originated life insurance (STOLI)?
- correct answer the policy is originated primarily or solely for the purpose of resale
All of the following are classifications of risk EXCEPT
- correct answer non-nicotine
What specific new procedures does the USA Patriot Act require of insurance companies?
- correct answer Establish an anti-money laundering program
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?
- correct answer The applicant and possibly the agent initial any changes made.
What is a MIB report?
- correct answer medical information on an applicant for assessing life or health insurance risk
How do warranties differ from representations?
- correct answer a warranty is guaranteed to be true, a representation is believed to be true to the best
of one's knowledge.
If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of
the following EXCEPT
- correct answer the treatment procedures that are covered by the policy.
Which of the following was specifically designed to address STOLI and IOLI practices?
- correct answer NCOIL Act
Why is rehabilitation considered worthy of federal help under workers' compensation?
- correct answer it reduces insurance losses and helps regain the worker's dignity
In a case where an individual's health is insured by both their own policy and their spouse's policy, which
policy pays in the event of an illness?
- correct answer The individual's policy pays first, the spouse's policy pays the remaining up to coverage
amount.
