NYS Life, accident, and health insurance Exam

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

Scott has a life insurance policy in which the dividends are left with the insurance company. This particular policy may be paid up when the cash value plus accumulated dividends

equal the net single premium for the same face amount at the insured's attained age

During open enrollment for Medicare Supplement coverage, an applicant MUST be at least

There is no minimum age requirement

What happens to the cash value of a market value adjusted annuity if it's surrendered prior to the end of the stated guarantee period?

Subject to market value adjustment

Which of the following contracts offer deferred taxation, flexible payments, a guaranteed interest rate, and death benefits equal to the cash value?

Flexible premium fixed annuity

Tonya has been diagnosed with kidney failure and has group accident and health insurance through her large employer. Which of these accident and health plans will be primary during the months following her diagnosis?

Her employer's group accident and health plan

Which statement regarding the certificate of insurance is accurate?

It indicates evidence of an employee's insurance coverage

According to the ACA, the proportion of premium revenues spent on clinical services and quality improvements is called the

Medical loss ratio

Which of the following statements regarding the Fair Credit Reporting 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-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

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 the actuarial value of a bronze level health plan?

60

Rick owns a variable universal life policy and chooses a variable death benefit option. What will typically happen to the death benefit as a result of this selection?

Fluctuate with changes in the cash account

With life insurance, the needs approach is used primarily in determining

How much life insurance a client should apply for

A Health Reimbursement Arrangement MUST be established

By the employer

Pete the agent made public statements that falsely portrayed Acme Insurance Company as avoiding claim payments. Pete may be found guilty of

Defamation

An insurance company willingly published false information in an insurance policy advertisement. This is an example of

Misrepresentation

Mary has a HSA. Distributions that she has made for anything other than qualified medical expenses are considered taxable and subject to a penalty of

20%

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

Who is protected with the "other insurance with this insurer" provision?

Insurance company

Which annuity allows contributions 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 retention?

Not doing a business deal after deciding it would be too risky

A family counseling benefit is typically offered under which of these coverages?

Hospice care

When a Medicare Supplement policy is replaced, the policy owner will have a free look period of ___ days.

30

Long Term Care policies will usually pay for eligible benefits using which of the following methods?

Expense incurred

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 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 constitutes 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 dentists 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 occupation more hazardous than the occupation listed in his policy. The policy's change of occupation 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

Linda is covered with long-term care insurance and has early-stage Alzheimer's. She is still able to reside in her home while receiving primary care, as opposed to moving into a nursing home. All of the following long-term benefits encourage this EXCEPT for

Custodial care