Life and Health Exam Study Guide
An individual purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. What type of annuity is it?
immediate
Social Security disability is defined as the inability to engage in any substantially gainful activity by reason of a physical or mental impairment that will last for at least
12 months
The minimum age requirement for a resident insurance producer in New York is
18
If an insurer pays compensation to an agent for the sale of a Medicare supplement policy, the first-year commission CANNOT exceed what percentage of the renewal commission for servicing the policy in the second year?
200%
Under the Affordable Care Act (ACA), what is the maximum age for a child of an insured to be covered under the insured's plan?
26
The maximum period of time an employee may be entitled to benefits through the New York State Disability Program is
26 weeks during 52 consecutive calendar weeks
How long is a temporary license valid in New York?
90 days
Avoiding tax consequences when transferring assets from one IRA to another can be accomplished by which of the following?
A direct rollover from one plan to another
Which of the following riders usually expires when the covered insured reaches a specific age?
Childrens term
Which of the following standards is used to determine premium rates under the Affordable Care Act (ACA)?
Family Composition
All of the following statements regarding Medicare Supplement insurance are true EXCEPT
Insurers use the traditional risk rating preferred, standard, and substandard in underwriting
Which of the following is NOT a metal level plan available on the insurance exchange?
Iron
Which of the following is TRUE regarding the annuity period?
It may last for the lifetime of the annuitant
In which of the following types of temporary insurance protection does the death benefit NOT change throughout the life of the policy?
Level term
Which of the following is a private health insurance plan?
Medicaid
What is a primary difference between an HMO and a traditional insurance company?
The HMO provides both the financing and patient care for its members, while traditional companies provide the financing only.
What is the purposes of Medigap policies?
To cover expenses for Medicare deductibles and coinsurance
Disclosure statements issued to an applicant for a Medicare Supplement policy in this state must include or prominently display all of the following information EXCEPT
a commission payable to the producer
Under a key person policy, the key employee is the
insured
A surgeon developed a disability and can no longer perform surgeries. However, he is able to teach medicine at the University. He is most likely to collect disability benefits if his disability policy used which definition of disability?
own occupation
Which of the following allows the dividend to be used to pay up policy premiums sooner than originally planned?
paid-up insurance option
HMOs operate on what basis?
stop-loss
Which of the following persons would qualify for Medicare Part A?
anyone living in the United States over age 65
In life insurance, an insurable interest between the policyowner and the insured must exist
at the time of application
Which of the following provisions of options protects the insured from an unintentional policy lapse due to a nonpayment of premium?
automatic premium loan provision
If both parents have family coverage on their respective group health plans, and both of the plans include a coordination of benefits clause, which of the following methods would be used to split a claim payment for a covered child?
birthday rule
After a policy had been in effect for 18 months, a claim was submitted. The insurer determined that the insured had made a material misstatement on the application for coverage. The insurer would probably do which of the following?
contest the claim
The benefit amount under a long-term care (LTC) policy is usually expressed as a fixed dollar amount per
day
Which of the following losses would likely be covered under the Accidental Death rider?
death caused by a head-on collision
Credit life insurance is usually written as what type of policy?
decreasing term
what type of consideration does the proposed insured offer to an insurance company?
insurable interest plus the premium
Which of the following is responsible for paying premiums on an insurance policy?
insured
How does the premium in a survivorship life policy compare to the premium in a joint life policy?
it will be lower
Due to a large inheritance, a policyowner no longer needs a life insurance policy and agrees to sell it to a third party for more than its cash value. This type of transaction is called a
life settlement
Which of the following types of health policies cover medical and hospital expenses, and have deductibles, coinsurance, and high maximum limits?
major medical policies
All of the following characteristics of a group are considered in group underwriting EXCEPT
medical conditions
To qualify for waiver of premium benefit, an insured must meet the policy's definition of
partial disability
HMOs help reduce the cost of health care by providing
primary care
What are the terms used to define the amount of benefit paid in a disability policy that continue an Accidental Death and Dismemberment (AD&D) rider?
principal sum and capital sum
A buyers guide must be provided to the insurance applicant
prior to or at the time of application
Health plans offered through health insurance exchanges are considered
qualified
If a group health insurance plan discontinues its policy and a person covered under it is currently on total disability, the policy owner must cover
reasonable extension of benefits
A policyowner is able to change the beneficiary on a life insurance policy only if the beneficiary designation is
revocable
Long-term care (LTC) coverage may be provided by any of the following EXCEPT
rider to Medicare Part A
Under the Affordable Care Act, a U.S. citizen or legal resident who does not have qualifying health care is subject to a
tax penalty
In medical expense insurance, the term "usual/reasonable/customary" refers to
the average charge for a procedure in a specific geographic area
Which of the following methods is calculating the amount of life insurance needed takes into account the insured's salary and years until retirement?
the human life value approach
When a fixed annuity owner pays his/her insurance company a monthly annuity premium, where is this money placed?
the insurance company's general account
An agent who solicits and files applications for the sale of life insurance represents
the insurer
Which of the following insurance principles states that the larger the number of people with a similar exposure to loss, the more predictable actual losses will be?
the law of large numbers
Under what circumstances will the Superintendent issue a replacement life settlement broker's license?
the license is active, but has been lost or destroyed
Who maintains the rights to an annuity?
the owner
All of the following characteristics are required in order to establish a group health plan for an association EXCEPT
the plan must be contributory
Which of the following is TRUE regarding a level term life policy written with a renewable provision?
the policy automatically renews with no change in coverage or premium
Which of the following is NOT true regarding the policy summary?
the policy summary may be part of the policy
Medicaid is funded by
the states and the federal government
Which of the following is TRUE for both equity indexed annuities and fixed annuities?
they have a guaranteed minimum interest rate
An insured has a disability policy. After becoming disabled, the insured must wait 90 days before qualifying the benefits. This timeframe is called the
elimination period
Where does a domestic insurer have its home office?
in any town where it transacts its business
Which of the following best describes fixed-period settlement option?
both the principal and interest will be liquidated over a selected period of time
If an employee is injured on the job, which of the following will NOT be a standard benefit through Workers Compensation?
caregiver benefits
For which of the following reasons can the Department of Financial Services issue a temporary license?
servicing existing business
When delivering a policy to an insured, an agent collects both the premium and a document verifying that the insured has not been injured or suffered any illnesses since completing the application. This is called
statement of good health
In order to reduce the premium to the lowest monthly amount on his disability income policy, the insured could choose
a longer elimination period and a shorter benefit period
Which of the following is a requirement for standard Medicare supplement plans?
all plans must offer the core benefits
When can an employee join a group health plan without providing evidence of insurability?
during an open-enrollment period
Making a statement that is false, maliciously critical, and designed to injure an insurance person or business is known as
defamation
After an insured's death, the insurer determined that the insured misstated his age on the application for life insurance. What action will the insurer likely take in this case?
adjust the death benefit to the amount that the premium at the correct age would have purchased
Under which of the following provisions does the insured have the right to renew the policy for the life of the contract, while the insurance company may increase the premiums on a class basis only?
guaranteed renewable
To be eligible for coverage under the Health Insurance Marketplace, an applicant must meet all of the following qualifications EXCEPT
have been previously insured by a private insurer
Which of the following would NOT be considered an Activity of Daily Living (ADL) for insurance purposed?
driving
What is the purpose of a disability income policy?
to replace lost income if the insured is unable to perform the duties of his occupation
Which of the following disability riders in life insurance allows the policyowner to keep coverage in force without paying policy premiums after a qualifying event?
waiver of premium
An insurers statement that its policies are backed by the Guaranty Association is
an unfair trade practice
When does the free-look period begin in the insurance policies?
when the policy is delivered
Which of the following premium payment modes would result in the highest overall premium for a year's worth of life insurance?
monthly
Which of the following is true regarding Guaranteed Renewable health insurance policies?
they must be renewed if the insured pays the premium
