New York Life and Health MC

$50,000

Jack has a $20,000 life insurance policy on himself. He wants to insure the life of his 13 year old daughter. According to New York law, what is the maximum amount of life insurance he can purchase on his daughter?

Substandard risk

Which of the following types of risk will result in the highest premium?

Insurer's guaranteed minimum rate of interest

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?

At the time of application or upon delivery of the policy

At what point must an Outline of Coverage be delivered?

Rebating When an agent gives or promises anything of value that is not specified in the policy, they are guilty of rebating.

An agent who gives special favors or advantages in dividends or other benefits is guilty of

Agree to follow the PPO standards and charge the appropriate fees.

How can a new physician be added to the PPO's approved list?

Nothing Nothing needs to be done in this case. Medicare Part A and B will automatically be effective the month you turn 65.

If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?

A licensed life insurance agent of the same insurer involved with the sale of the transaction

Which of the following may share in the commissions from the sale of a life insurance policy?

Revocable beneficiary.

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

An agent's retirement

In this state a temporary license may be issued for all of the following reasons EXCEPT

Residual disability

Disability income policies can provide coverage for a loss of income when returning to work after recovering from total disability. What is the name of this policy?

Insurable interest

Stranger-originated life insurance policies are in direct opposition to the principle of

Net premium plus expenses

Which of the following best describes gross annual premium?

The IRS

The annual contribution limit of a Dependent Care Flexible Spending Account is set by

The method of premium payment

The insuring clause of a disability policy usually states all of the following EXCEPT

18 months

To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan?

The amount of the distribution is reduced by the amount of a 20% withholding tax.

A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true?

Coverage applies both on and off the job

All of the following are true about group disability Income insurance EXCEPT

Benefits are paid to the borrower's beneficiary

All of the following statements are correct regarding Credit Life Insurance EXCEPT

Its a life contingency option

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT

Income assistance for work related injury.

Medicaid provides all of the following benefits EXCEPT

Other-insured rider The other-insureds rider is useful in providing insurance for more than one family member. The type of insurance offered by this rider is usually term insurance, with the right to convert to permanent insurance.

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

The application was processed without a valid license.

A spouse was granted a temporary license for her deceased husband's agency on March 1. On May 1 she processed an application for life insurance on a new applicant. Which of the following is true?

Employee contributions are not tax deductible.

All of the following statements are true regarding tax-qualified annuities EXCEPT

Reciprocity Reciprocity occurs when the state in which the person resides accords the same privilege to residents of New York. (reciprocal)

An agent in another state wants to become an agent in New York. The other state gives the same privileges to New York agents wanting to be licensed in that state as it does its own agents. New York, therefore, extends the privileges of its agents to the prospective agent of the other state. What is this called?

$102 The employer is permitted to collect a premium from the terminated employee at a rate of no more than 102% of the individual's group premium rate (in this scenario, 102% of $100 total premium is $102). The 2% charge is to cover the employer's administrative costs.

An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?

Assets

In a replacement situation, all of the following must be considered EXCEPT

15% of the agent's annual commission is from business sold to the agent's family. Controlled business is when an agent receives more than 10% of the aggregate commissions during a 12-month period from insurance business sold to family, or business associates and their family members.

The Superintendent will not renew an agent or broker's license upon finding that the license has been used to write controlled business. Which of the following would be a violation of controlled business practices?

Open panel

What term is used to describe when a medical caregiver contracts with a health organization to provide services to its members or subscribers, but retains the right to treat patients who are not members or subscribers?

A statement of good health

When the policy premium wasn't submitted with the application, what should the agent obtain from the insured upon policy delivery?

Insurer's executive officer

Which of the following entities has the authority to make changes to an insurance policy?

The insurer can increase the policy premium on an individual basis.

Which of the following is NOT a feature of a guaranteed renewable provision?Coverage is not renewable beyond the insured's age 65. The insured's benefits cannot be reduced. The insurer can increase the policy premium on an individual basis. The insured has a unilateral right to renew the policy for the life of the contract.

Debtor in creditor

Which of the following is NOT an example of insurable interest?

Adult care in a hospital

Which of the following is NOT covered under a long-term care policy?

Adjustment in the death benefit

An applicant for insurance misstates her age at the time her life insurance application is taken. This misstatement may result in

The date of medical exam

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

3%

An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minimum interest is set at 3%. During an economic downswing, the investments only drew 2.5%. What interest rate will the insurer pay to its policyholders?

Medical reimbursement benefit

An insured severely burns her hand, but is not classified as disabled. Which of the following types of coverage would cover at least a portion of the insured's medical expenses?

From trustee to trustee

In a direct rollover, how is the money transferred from one plan to the new one?

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

60 days

Under the Affordable Care Act, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event?

7 days

Under the New York State Disability Benefit Law, for an employed individual, disability benefits will be payable after a waiting period of

Favorable tax treatment

What is the advantage of having a qualified annuity?

25%

What is the maximum amount of coinsurance in New York's major medical plans?

$2500

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

To lessen the risk of financial loss because of the death of a key employee

What is the purpose of key person insurance?

6 months

What is the waiting period on a Waiver of Premium rider in life insurance policies?

Routine and preventative maintenance

Which of the following components of dental insurance does NOT require the payment of a deductible?

The name of the primary and secondary beneficiaries

Which of the following is NOT required on an illustration used in the sale of a life insurance policy?

This is a form of insurance that covers part-time workers.

Which of the following is NOT true regarding partial disability?

The annuitant assumes the risk on investment

Which of the following is TRUE regarding variable annuities?

Trade organization employment

Which of the following is a type of covered employment under the New York State Disability Benefit Law?

Monthly

Which of the following premium modes would result in the highest annual cost for an insurance policy?

Decreasing term

Which of the following types of insurance policies is most commonly used in credit life insurance?

A salaried employee who advertises and solicits insurance.

Which of the following would be required to be licensed as an insurance producer?

The Superintendent

Who has the authority to regulate the issuance and sale of variable contracts?

Annuity certain

Your client plans to retire at age 50. He would like to purchase an annuity that would provide income from the time he retires to the age when social security and other pension funds become available. What settlement option should he consider?