Download NYS LIFE, ACCIDENT, AND HEALTH INSURANCE EXAM 2024 QUESTIONS AND VERIFIED ANSWERS and more Exams Insurance Economics in PDF only on Docsity!
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 no@ce 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 @me of Policy Delivery Carol purchases a whole life policy that provides a choice of dividend op@ons. 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 defini@on of disability based on any occupa@on typically applies ANer two years of disability
NYS LIFE, ACCIDENT, AND
HEALTH INSURANCE EXAM
2024 QUESTIONS AND VERIFIED
ANSWERS
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further payments are permiRed 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 underwri@ng? 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 assump@on? One person benefits from another person's con@nued life Which of these policies is considered a whole life policy? Single premium life Which of the following would be considered an unfair claims seRlement prac@ce? Misrepresen@ng per@nent policy provisions rela@ng to coverage aNer a loss A policyowner is permiRed 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 underwri@ng process? Former residence
Medical loss ra@o Which of the following statements regarding the Fair Credit Repor@ng Act is correct? If credit, insurance, or employment was denied because of an unfavorable report, the consumer must be advised According to the ACA, insurers can no longer deny health coverage due to pre- exsis@ng condi@ons unless that plan is a Grandfathered plan Which item must be considered by an agent when determining the suitability of an annuity recommenda@on? The client's financial status An applicant submits a life insurance applica@on where an inves@ga@ve consumer report is used in the underwri@ng 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? Overu@liza@on of the plan A life insurance producer licensed in New York is authorized to Solicit, receive and forward applica@ons 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 reten@on 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 addi@onal insurance
A policy owner has decided to replace an exis@ng life insurance policy with a new one. The exis@ng life policy should be terminated ANer the new life policy has been issued and delivered to the policy owner Which of the following is NOT a func@on of accident and health insurance? Pays a death benefit as a result of natural causes What typically changes at the re-entry op@on date found in some term life policies? Premium When an illustra@on is used in the sale of a life insurance policy, the illustra@on MUST contain a statement signed by the Agent Andy is in need of health care performed by skilled medical prac@@oners, but only on an intermiRent 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 underwri@ng by a producer May result in the disclosure of hazardous ac@vi@es of the applicant Emergency health care coverage for Medicare enrollees traveling abroad is A Medicare Supplement addi@onal benefit Which of the following statements is true regarding accident and health insurance claims that reimburse on an indemnity basis? Claims can be sent directly to the insured Who may terminate coverage under a cancelable health insurance policy? Either the insured or the insurer
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 informa@on on the applica@on. This applicant would likely be found guilty of Misrepresenta@on 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 adver@sements must be submiRed 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 op@on allows the policy owner to have coverage equal to the net death benefit of the lapsed policy? Extended term nonforfeiture op@on What would be the disadvantage of naming a trust as a beneficiary of a life insurance policy? Trust administra@on fees would reduce policy proceeds What is the elimina@on period of an individual disability policy? Time period a disabled person must wait before benefits are paid Who is protected with the "other insurance with this insurer" provision? Insurance company Which annuity allows contribu@ons to an IRA? Deferred The ACA established "exchanges" in order to Assist individuals and small business when making their health insurance purchases What do Limited accident and health policies normally cover? A specific illness or event Darrell has a group long-term disability income policy paid by his employer. Which of these statements is true? The specified benefit amount is a percentage of his wages Which of the following is NOT an example of risk reten@on?
Bryce purchased a disability income policy with a rider that guarantees him the op@on of purchasing addi@onal amounts of coverage at predetermined @mes 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 op@on 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 adver@sement, 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 @me 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 permiRed under Sec@on 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 ini@al period of coverage, long-term care insurance policies normally EXCLUDE condi@ons that Were treated during a specified period preceding the policy date Which of these may NOT be deducted from premium payments or the cash value of a variable life insurance policy? Federal premium taxes Which element of a contract cons@tutes a definite and unqualified proposal by one party to another? Offer Under which circumstance is the interest rate guaranteed within a market value adjusted annuity? When the contract has been held for the period specified in the policy A prepaid dental plan has an agreement in place with a network of den@sts which Accepts an established amount as payment in full for the dental services rendered Omar is covered by a disability income policy. He is hurt while performing an occupa@on more hazardous than the occupa@on listed in his policy. The policy's change of occupa@on provision will have what effect? Reduce the benefit level Which of the following outlines the authority given to the producer on behalf of the insurer? Producer contract
Which of the following informa@on is NOT needed to determine the suitability of an annuity recommenda@on? Level of educa@on An individual is insured under a major medical plan with a $1,000,000 life@me benefit. The plan has a $500 deduc@ble and an 80% coinsurance. If the insured suffers a $50,500 medical expense during the calendar year, what is the remaining life@me benefit? $960, XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collec@on of premiums. Which authority grants the producer the right to collect premiums? Implied Authority ANer an applicant reads and signs an insurance applica@on, 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 condi@ons 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 long is individual medical expense insurance normally wriRen for? 1 year The beneficiary of a life insurance policy is normally selected by whom? Policyowner Which tax would an IRA par@cipant be subjected to on distribu@ons received prior to age 59 1/2? Income tax and penalty tax Some standard Medicare Supplement policies include which benefit? Hospice care What is a cer@ficate of authority? The license required for an insurer to conduct business in the state How may an insurance company classify an accidental death benefit on a life policy? As an op@onal policy rider Mary is an employee who is covered with a disability income policy through her employer. She pays for the por@on of the premium aRributable to the cost of residual disability benefits, while her employer pays for the remainder. What are the tax implica@ons of this policy? Residual benefits will be received income tax-free Custodial care is normally covered under Long term care insurance
An annuity which starts paying monthly benefits within a month aNer 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 situa@ons EXCEPT Living in a rural area The maximum amount of life insurance coverage that a parent can ini@ally take out on their minor child is $50,
Which life insurance seRlement op@on pays a stated monthly benefit un@l both principal and interest are exhausted? Fixed amount installment op@on Which of the following statements accurately describes the "@me limit on certain defenses"? ANer a stated period of @me, claims cannot be denied due to material misrepresenta@on on the applica@on Who is the beneficiary in a life insurance policy? The stated person or en@ty who is designated to receive the death proceeds What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured? Joint life What is a juvenile life insurance policy? A life policy that covers the life of a minor When an annuity contract has been surrendered, how will the surrender charges affect the final contract seRlement? Final contract seRlement will be reduced Which statement concerning a decreasing term life policy is accurate? Face amount decreases over the policy period Beginning January 1, 2014, the restricted annual limit for plans under the ACA will be No limit Which statement regarding a fixed period seRlement op@on is correct? The installment payment amount is determined by the total number of installments What is the accoun@ng measurement of an insurance company's future obliga@ons to its policy owners?
All of these are considered features of whole life insurance EXCPET Ini@al premium is lower than an equivalent amount of term insurance New York requires adver@sements 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? Automa@c 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 Defama@on 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 no@ced and given opportunity for a hearing Medicare Supplement Insurance requires an individual to be at least how old for open enrollment? No minimum age When a large sum of money is used to structure monthly payments, which product is typically used? An immediate annuity A health insurer MUST provide a proof of loss form Within 15 days of receipt of the no@ce of loss
If a benefit plan is offered on an Exchange, what must the insurance company offer, with regard to that plan, outside of the Exchange? The insurance company must offer the same plan When group benefits under COBRA have expired, a fully insured group policy can be converted to a(n) Individual health policy What is another term used for a "pure" life annuity? Life income Which term refers to insurance wriRen on the interests of the licensee, the licensee's employer, or the licensee's immediate family? Controlled business Prepaid dental plans differ from most other types of dental plans in what way? Closed panel of den@sts can only be used Disability income policies provide protec@on for which of the following? Economic death When must a producer provide disclosure about informa@on prac@ces to an applicant? Prior to or at the @me of signing the applica@on Mike applied for life insurance and was issued a condi@onal receipt. He is later found to be insurable and is issued a policy. When does his coverage become effec@ve? Date of issuance of the condi@onal receipt Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? Reimbursement
