New York Life accident and health insurance Exam

New York 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

 

 

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 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

 

 

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 coverage?

 

 

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