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New York State Life, Accident, and Health
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Which type of life insurance policy is best suited for paying off the outstanding balance of a 30- year mortgage in the event of the insured's death? - ✔✔ 30 - year decreasing term. How many days notice does the ACA require insurers to give before rescinding coverage? - ✔✔ 30 A signed good health statement may be requested by a life producer at the time of - ✔✔Policy Delivery Carol purchases a whole life policy that provides a choice of dividend options. This policy is required to include a statement that the dividends are - ✔✔Not Guaranteeed Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is designed to help pay for this type of expense? - ✔✔Long-term care benefit rider An insured is covered under a group long-term disability policy. Under this type of policy, the definition of disability based on any occupation typically applies - ✔✔After two years of disability Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further payments are permitted and the income stream begins in 15 years. This contract is a(n) - ✔✔Single premium deferred annuity
Which of these is NOT a factor that influences group health insurance underwriting? - ✔✔Physical exams of group members What is the grace period required for an individual accident and health insurance policy with monthly premiums? - ✔✔ 10 days In regards to technology and the ACA, which of the following statements is correct? - ✔✔States which operate with an Exchange must offer an internet-based portal Insurable interest involves what assumption? - ✔✔One person benefits from another person's continued life Which of these policies is considered a whole life policy? - ✔✔Single premium life Which of the following would be considered an unfair claims settlement practice? - ✔✔Misrepresenting pertinent policy provisions relating to coverage after a loss A policyowner is permitted to take out a policy loan on a whole life policy at what point? - ✔✔When the policy has a cash value Which of these is NOT a factor during the health insurance underwriting process? - ✔✔Former residence New York workers compensation laws exclude benefits for disabilities caused by - ✔✔Intentional, self-inflicted injuries occurring on the job When premiums are determined, one factor would be the expenses of the - ✔✔Insurer
According to the ACA, insurers can no longer deny health coverage due to pre-exsisting conditions unless that plan is a - ✔✔Grandfathered plan Which item must be considered by an agent when determining the suitability of an annuity recommendation? - ✔✔The client's financial status An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is true? - ✔✔Applicant has a right to receive a copy of the report If group Health benefit levels are too high, what could be the end result? - ✔✔Overutilization of the plan A life insurance producer licensed in New York is authorized to - ✔✔Solicit, receive and forward applications to the insurer A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a - ✔✔Risk retention group Any employee insured under a group life insurance plan is normally - ✔✔Covered with term life insurance A life insurance guaranteed insurability rider gives the insured the right, without proving insurability, to - ✔✔Periodically purchase additional insurance
A policy owner has decided to replace an existing life insurance policy with a new one. The existing life policy should be terminated - ✔✔After the new life policy has been issued and delivered to the policy owner Which of the following is NOT a function of accident and health insurance? - ✔✔Pays a death benefit as a result of natural causes What typically changes at the re-entry option date found in some term life policies? - ✔✔Premium When an illustration is used in the sale of a life insurance policy, the illustration MUST contain a statement signed by the - ✔✔Agent Andy is in need of health care performed by skilled medical practitioners, but only on an intermittent basis. What level of care will his doctor likely prescribe? - ✔✔Intermediate care An individual may receive Medicare Part A Hospital benefits, regardless of age, as long as the person has received which of the following benefits for at least 24 months? - ✔✔Social Security Disability Field underwriting by a producer - ✔✔may result in the disclosure of hazardous activities of the applicant Emergency health care coverage for Medicare enrollees traveling abroad is - ✔✔A Medicare Supplement additional benefit
A life insurance policy provision that has the ability to reduce the death benefit is called the - ✔✔accelerated (living) benefit When does the producer give a premium receipt for a life insurance application? - ✔✔When the initial premium has been paid with the application A group health insurance policy is a contract between an - ✔✔Employer and insurance company What is another name for a Keogh plan? - ✔✔HR 10 plan A major medical expense plan typically includes coverage for hospital room and board. Which of the following is normally covered under the category "room and board"? - ✔✔General nursing care Which of these life insurance policies does NOT contain a cash value provision? - ✔✔Decreasing term life Which of the following statements BEST describes disability buy-sell insurance policies? - ✔✔Policy proceeds are typically received income tax-free Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the - ✔✔Cost basis
An insurance applicant willingly gave false information on the application. This applicant would likely be found guilty of - ✔✔Misrepresentation Periodic health claim payments MUST be made at least - ✔✔Monthly If a disability income policy contains a cost-of-living adjustment rider, benefits must typically be increased - ✔✔At least once per year from when benefits begin A copy of all Medicare Supplement advertisements must be submitted for approval to - ✔✔The Superintendent of Insurance Employees are required to work at least hours per week to become eligible for a small employer health plan - ✔✔ 20 How does the cost for a survivorship life policy compare to the cost of combining two separate life insurance policies? - ✔✔Survivorship life policy is lower Which life insurance policy option allows the policy owner to have coverage equal to the net death benefit of the lapsed policy? - ✔✔Extended term nonforfeiture option What would be the disadvantage of naming a trust as a beneficiary of a life insurance policy? - ✔✔Trust administration fees would reduce policy proceeds What is the elimination period of an individual disability policy? - ✔✔Time period a disabled person must wait before benefits are paid
Consumers who decide to exercise their right to "opt out" of the disclosure of their nonpublic personal information - ✔✔Are given the chance to stop disclosure John bought a deferred annuity on Mary. John amends the contract years later to name Tom as the recipient of the proceeds if Mary dies. Who is the annuitant for this contract? - ✔✔Mary What action can an insurer take to discourage malingering and false disability claims? - ✔✔Limit the amount of benefits an insured can receive from two disability policies with the same insurer Which statement concerning an adjustable life insurance policy is FALSE? - ✔✔Evidence of insurability is required when there is a change in premium Qualified long-term care premiums are treated for tax purposes as - ✔✔Tax-deductible to the extent they exceed 7 1/2% AGI A health plan offered by private insurance companies is - ✔✔A Medicare Supplement Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? - ✔✔Guaranteed insurability rider Which of these would NOT be a valid reason to add the waiver of premium rider to a life insurance policy? - ✔✔It allows a policy loan to cover premium payments if the policy owner becomes totally disabled
What is considered interstate travel under the Federal Fraud and False Statements Act? - ✔✔Puerto Rico Which of these statements regarding the extended term insurance nonforfeiture option in a life policy is accurate? - ✔✔The premium to purchase the coverage comes from the policy's cash value If a group endorses an accident and health insurance product in an advertisement, the public must be made aware of - ✔✔Any control by the insurer over the group Insurable interest in one's own life is legally considered as - ✔✔Generally unlimited How do benefit payments fluctuate over time in a variable life annuity? - ✔✔Reflects changes in the market value of assets in a separate account Switching Life insurance policies without tax consequence is permitted under - ✔✔Section 1035 rules When a ten year renewable term life insurance policy issued at age 45 is renewed, the premium rate will be the current rate for - ✔✔Ten year term insurance for a person aged 55 What is the effect of the market value adjustment in a market value adjustment annuity? - ✔✔Transfers some of the investment risk to the policy owner During a stated initial period of coverage, long-term care insurance policies normally EXCLUDE conditions that - ✔✔Were treated during a specified period preceding the policy date
Which benefit is normally payable to a life insurance policy owner when the insured's life expectancy has been severely limited? - ✔✔Accelerated (living) benefit Medicare supplement insurance that provides a preventative medical care benefit will often cover - ✔✔Yearly physical examinations During an annuity's liquidation phase, the annuitant normally - ✔✔Receives benefit payments at regular intervals Jonas is covered with disability insurance through his employer. The employer pays 75% of the premium, while Jonas pays the other 25%. What is Jonas' tax liability for any benefits paid from the disability plan? - ✔✔Taxes must be paid on 75% of the benefits received An insured files for an accident and health insurance policy claim eight days after the premium due date. The benefit payable is $500 and the overdue premium is $200. Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision, how much will the insurer pay? - ✔✔$ Which of the following information is NOT needed to determine the suitability of an annuity recommendation? - ✔✔Level of education An individual is insured under a major medical plan with a $1,000,000 lifetime benefit. The plan has a $500 deductible and an 80% coinsurance. If the insured suffers a $50,500 medical expense during the calendar year, what is the remaining lifetime benefit? - ✔✔$960,
XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums? - ✔✔Implied Authority After an applicant reads and signs an insurance application, he/she should be conscious of the fact that - ✔✔A false statement could lead to loss of coverage Which of these is NOT relevant when determining the amount of personal life insurance needed? - ✔✔Local unemployment rates Which of the following is NOT an allowable exclusion for long-term care insurance policies? - ✔✔Care for incurable conditions Employer-paid qualified long-term care insurance premiums are typically - ✔✔Excluded from the employee's gross income How is a collateral assignment used in a life insurance contract? - ✔✔Transfers specific ownership rights to a creditor A preferred provider plan and an indemnity plan are similar in what way? - ✔✔Both pay on a fee-for-service basis Which of the following describes the act of insuring risk against possible loss? - ✔✔Risk transfer Which factor determines the maximum disability income benefit that can be purchased by an applicant? - ✔✔The applicant's income
How are qualified Roth IRA distributions normally treated for tax purposes? - ✔✔Received income tax-free When initially issued, a temporary producer license in New York is valid for days. - ✔✔ 90 Who signs the notice of replacement when a Medicare Supplement policy is being replaced? - ✔✔The agent and the applicant Which of these is NOT considered to be a cost connected with an individual's death? - ✔✔Business expenses Which of the following allows an insurer the right to transact insurance business in the state of New York? - ✔✔Department of Financial Services issues the insurer a certificate of authority Greg applies for insurance and makes a false statement on the application that will influence whether or not the insurer will accept the risk. Greg's false statement is called a(n) - ✔✔material misrepresentation Which of these is NOT a reason to buy a term life policy? - ✔✔To accumulate savings Elimination periods typically apply to - ✔✔Disability policies In New York, a group accident and health certificate of insurance must contain - ✔✔A summary of policy features and benefits
An annuity which starts paying monthly benefits within a month after issuance is called a(n) - ✔✔Immediate annuity Which of these must be disclosed in a universal life policy? - ✔✔The policy's surrender charges Which health policy clause specifies the amount of benefits to be paid? - ✔✔Insuring The policy provision that permits an employee to change from group life coverage to an individual life policy is called the - ✔✔conversion provision An insurable risk requires - ✔✔that the chance of loss be calculable Under the New York Disability Benefits Law, cash payments are provided to workers who are unable to work because of injury or illness that - ✔✔Occurred on the job ABC Partnership is a business with a limited number of partners. Which disability buy-sell agreement is best suited for this business? - ✔✔Cross purchase agreement In New York, reducing benefits for a newborn child under an accident and health plan is - ✔✔Prohibited in any form An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT - ✔✔Living in a rural area
Which statement regarding a fixed period settlement option is correct? - ✔✔The installment payment amount is determined by the total number of installments What is the accounting measurement of an insurance company's future obligations to its policy owners? - ✔✔Reserves Upon meeting company requirements, a lapsed life insurance policy may be reinstated within year(s) - ✔✔ 3 A comprehensive group policy also covers expenses related to vision care. Which of the following is not typically covered under a vision plan? - ✔✔Cataract surgery If an agent is advertising a life insurance policy, the agent MUST disclose the - ✔✔Name of the actual insurer James is covered with health insurance by two different insurers. The "insurance with other insurers" provision in an individual health insurance policy allows an insurer to pay benefits to the insured on a pro-rata basis when - ✔✔The insurer was not notified prior to the claim that the insured has other health coverage According to the ACA, new Health Insurance Marketplaces are established by the - ✔✔CCIIO Which of the following statements BEST describes employer contributions for employer provided health insurance? - ✔✔Employer contributions are deductible
Which of the following is NOT subject to the promise to pay in an insuring clause? - ✔✔How the premium is calculated Under which circumstance can an insurer cancel a Medicare Supplement insurance policy without prior approval by the New York Department of Insurance? - ✔✔Nonpayment of premium All of these are considered features of whole life insurance EXCPET - ✔✔Initial premium is lower than an equivalent amount of term insurance New York requires advertisements for accident and health insurance policies covering ONLY a specified illness to prominently display - ✔✔A statement that the policy is limited In the event of premium default, which life insurance provision will use the cash value to keep the policy in force? - ✔✔Automatic premium loan The Superintendent has the ability to examine the business records of insurers and agencies because - ✔✔Of the powers granted through state statues John the agent made public statements that falsely portrayed an insurer as insolvent. John would be likely found guilty of - ✔✔Defamation Respite Care coverage is typically found in a(n) - ✔✔long term care policy The Superintendent may not revoke an insurance producer's license unless - ✔✔The producer has been properly noticed and given opportunity for a hearing
