Free NY Life and Health Insurance Practice Questions
Ten questions from our 17-55 Life, Accident and Health practice exams, one per topic, so they also cover what is on the separate 17-51 life and 17-52 health exams. The pass mark is 70%.
Take these as an interactive quiz The full NY Life and Health Insurance exams
Question 1 · Life, Accident and Health Insurance (Series 17-55)
- A. The insured's total lifetime earnings discounted to today
- B. What the survivors will actually require, rather than the earnings that are lost
- C. The face amount the insured can afford
- D. The coverage the insurer will issue on that life
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The answer is B. The two methods commonly produce different numbers. Human life value starts with the earner; the needs approach starts with the household's obligations.
- A is wrong: Discounted lifetime earnings is the human life value method.
- C is wrong: Affordability is a separate constraint on the result.
- D is wrong: What the insurer will issue is an underwriting limit rather than a need.
Question 2 · Life, Accident and Health Insurance (Series 17-55)
- A. Start the premium low and step it up over the early years to a level amount
- B. Reduce the face amount as the insured ages
- C. Keep the premium level for life from the outset
- D. Let the owner change the premium at any time
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The answer is A. It is aimed at a buyer whose income is expected to rise. The early saving is recovered in the later, higher premiums.
- B is wrong: A reducing face amount describes decreasing term.
- C is wrong: A level premium from the start is ordinary whole life.
- D is wrong: Owner-adjusted premiums describe universal life.
Question 3 · Life, Accident and Health Insurance (Series 17-55)
- A. Naming the beneficiary, taking loans and surrendering the contract
- B. Consenting to the coverage at application
- C. Undergoing the medical examination
- D. Choosing a settlement option at claim time
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The answer is A. Where owner and insured are different people this list is the whole of the difference, and it is why an absolute assignment matters so much.
- B is wrong: Consent is given by the person whose life is covered.
- C is wrong: Examination concerns the insured's own body.
- D is wrong: That choice belongs to the beneficiary at claim.
Question 4 · Life, Accident and Health Insurance (Series 17-55)
- A. Further payments into the contract after it is opened
- B. Immediate income payments
- C. A guaranteed rate for life
- D. The owner to withdraw the whole account value at any time with no surrender charge of any kind applying to it
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The answer is A. Single premium contracts take one payment and no more. Flexible premium contracts are built for saving over years.
- B is wrong: Income at once describes an immediate annuity.
- C is wrong: Rate guarantees are a separate feature of the contract.
- D is wrong: Surrender charges apply to both kinds in the early years.
Question 5 · Life, Accident and Health Insurance (Series 17-55)
- A. A plan that pays exactly the same inside and outside the provider network
- B. A plan with no network at all
- C. A plan under which the member may see any provider but must pay a higher share of the cost when that provider is outside the network
- D. A network plan that pays for no care outside its network except emergencies
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The answer is D. It is stricter than a preferred provider organization and usually cheaper for it, and the difference matters most when a member travels.
- A is wrong: Equal payment either way describes an indemnity plan.
- B is wrong: Having no network is the opposite of this design.
- C is wrong: Reduced out-of-network payment describes a preferred provider plan.
Question 6 · Life, Accident and Health Insurance (Series 17-55)
- A. It pays a larger share of earnings for life
- B. It covers only work-related injury
- C. It has a short elimination period and pays for a limited number of weeks
- D. It is paid for entirely by the employee, whereas long term disability coverage is always paid for by the employer under the group contract
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The answer is C. Short term bridges the gap until long term begins, which is why the two are so often bought together and why their definitions differ.
- A is wrong: Lifetime payment describes the long term product at most.
- B is wrong: Work-related injury is the province of workers compensation.
- D is wrong: Who pays varies with the plan rather than with the term.
Question 7 · Life, Accident and Health Insurance (Series 17-55)
- A. Care given only in a hospital
- B. Care given only by family members
- C. Short-term nursing care before a return home
- D. Occasional nursing or rehabilitative care rather than continuous skilled care
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The answer is D. The three levels are a scale of intensity, and a good policy covers all three rather than only the skilled end.
- A is wrong: The setting is not what defines the level.
- B is wrong: Family care is informal rather than a level of care.
- C is wrong: Expected recovery does not define the level.
Question 8 · Life, Accident and Health Insurance (Series 17-55)
- A. It has more than a stated number of members enrolled in it
- B. Its members all work in the same trade
- C. Its members have all been examined and found insurable by the insurer proposing to issue the group contract to the organization
- D. It exists for a purpose other than buying insurance
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The answer is D. A group formed to buy coverage would select against the insurer from the day it was created, which is why the rule exists.
- A is wrong: Size matters but is not what makes a group eligible.
- B is wrong: A common trade is one kind of group among several.
- C is wrong: Individual examination is what group underwriting avoids.
Question 9 · Life, Accident and Health Insurance (Series 17-55)
- A. Outpatient prescription drug coverage through private plans
- B. Inpatient drugs during a hospital stay
- C. Drugs administered in a physician's office
- D. A discount card for prescription drugs
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The answer is A. Drugs given during a covered hospital stay fall under Part A and some administered in a physician's office under Part B, which is a common confusion.
- B is wrong: Inpatient drugs are part of the hospital benefit.
- C is wrong: Office-administered drugs often fall under Part B.
- D is wrong: It is insurance rather than a discount arrangement.
Question 10 · Life, Accident and Health Insurance (Series 17-55)
- A. The money was commingled with the producer's own funds
- B. The money was paid over late, which is the whole of the problem
- C. Nothing, provided the insurer receives the full amount within a reasonable period and no claim arose in between
- D. The producer earned interest on it
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The answer is A. Premium held by a producer is somebody else's money. Keeping it separate is the obligation; paying it over eventually does not cure having mixed it in.
- B is wrong: Timing is a lesser issue than where the money was held.
- C is wrong: Full payment afterward does not undo the mixing of the funds.
- D is wrong: Interest is a consequence rather than the objection itself.