The flight physical is basically the first thing at API; you get a sort of preliminary physical at MEPS before you go to OCS, but I don't think there's anything directly relating to that between (they do give you dental work, shots, and that sort of thing when you get to OCS though). As I understand it, a lot of people who flunk out of flight school, at any point, are simply being released. I think they used to try and redesignate the people who didn't make it, but it sounds like they're often not even bothering with that anymore (seems like kind of a waste to me). I know if something were to happen to me, I would want to be redesigneted, and I suppose in that [I believe unlikely] event, I would pull whatever strings I could and try to get into something else. I really want to fly, but the prospects as a civilian aviator are dubious; I also want to be in the Navy, so if anything happens to my NA aspirations I'll deal with it and try to stay in as something else. I don't know what commitment you can be held to if you fail your primary commitment, but I do know that if you're redesignated your commitment is the same as anyone else going into that.