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PSI - NY Life, Accident and Health Practice Exam 17- 55| 75 Questions - Actual Test| GRADED A
Question 1: 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
Question 2: When will a policy pay on a UCR basis?
CORRECT ANSWER : When particular benefits are not listed
on a payment schedule
Question 3: Which type of rider reimburses health and social
service expenses incurred in a convalescent or nursing home facility?
CORRECT ANSWER : long term care rider
Question 4: Which of the following is exempted from the
incontestability provision in insurance policies?
CORRECT ANSWER : Fraudulent misstatements
Question 5: What does first dollar coverage mean?
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CORRECT ANSWER : As soon as covered medical expenses
are incurred, the policy begins to pay
Question 6: 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
Question 7: 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
Question 8: Which is a disadvantage to a flexible premium
annuity?
CORRECT ANSWER : the actual amount of the annuity benefit
cannot be determined in advance
Question 9: 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
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CORRECT ANSWER : a detailed and comprehensive summary
of the accelerated benefit
Question 10: 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
Question 11: 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
Question 12: 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
Question 13: When the suicide clause is inserted in a life
insurance contract, death by suicide is not covered during the
policy's initial:
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CORRECT ANSWER : 2 year period
Question 14: What does coinsurance mean?
CORRECT ANSWER : The insurer and the insured share
expenses over the deductible.
Question 15: 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
Question 16: 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
Question 17: Which of the following refers to how often a
premium is paid?