Life and health

The benefits for group disability plans are based on a) A flat amount. b) The employer's net worth. c) The number of employees of the company. d) A percentage of the worker's income.

D

Under the Affordable Care Act, when would pregnancy be considered a pre-existing condition? a Onlv if specificallv excluded by the insurer b) If it begins before the coverage takes effect C)Always D) Never

D

What is the maximum fine for violating a cease and desist order: $10,000 $1,000 $2,500 $5,000

D

Disability benefits last

26 weeks

The waiting period for social security

5 months; payable on the 6th month

Individuals have a certain amount of time to select a qualified health plan after a triggering event.

60 days

Employers must covered over ___ or more of the participant's expected health care costs

60%

#100. HMO members pay a small fee when they see their primary care physician. This fee is called a)copay B)Coinsurance c) Deductible d) Stop-loss

A

#18. A life producer applying for a life settlement broker license may be exempt from the prelicensing education and examination requirement if the producer has held an active life license for at least how many years? a) 1 year b 2 years c) 3 vears d) 5 years

A

#92. Under normal circumstances, how long is a temporary license in this state valid for? a) 90 days b) 1year c) 18 months d) Up to three 60-day terms

A

#96. In order to get a nonresident license is this state, an agent must RO a) Apply and pay a fee to a nonresident state that reciprocates. b) Pass the nonresident state exam and satisfy their continuing education requirements. c) Represent an agency located in this state. Surrender their license in their state of residence.

A

A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend? a) Payor benefit b) Guaranteed insurability c) Automatic premium loan d) Waiver of premium

A

All of the following are characteristics of group health insurance plans EXCEPT A)The parties that hold a group health insurance contract are the employees and the employer b) The cost of insuring an individual is less than what would be charged for comparable benefits under an individual plan. c) Employers may require the employees to contribute to the pren\m payments. d) The benefits under a group plan are more extensive than those under individual plans.

A

An elimination (waiting) period may NOT have to be satisfied for a disability in which of the following? a) An insured suffers a relapse of a prior disability within 6-months of the initial covered disability b) An insured suffered the disability from the results of active duty with the US Armed Forces c) An insured is disabled from a work-related accident d) An insured contracts an incurable disease An insured suffering a relapse from the same disability

A

What is the purpose of a Medicare Carve-out or Supplements? A)Thev pay deductibles or copavments that are not paid by Medicare b) The act as replacement insurance for Medicaid c) Thev pay for excess expenses not paid by Medicare Decause or pre-existing conations. They act as excess insurance paying those covered expenses not paid by Medicare because of previous disabilities.

A

Whenever the Superintendent has reason to believe that a person has violated or is about to violate any unfair method of competition or an unfair claim practice, he or she may serve a statement of the charges and a notice of a hearing. What is the timeframe for the hearing after the notice is served? a) 10 days b) 30 days c) 45 days d) 60 days

A

Which of the following is NOT a format for marketing Long-term Care insurance? a) Associations formed for the purpose of purchasing LTC insurance b) Individual policies c) Group policies at the insured's place of employment d) Associations formed for a reason other than to purchase LTC insurance

A

#149. J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did I choose? a)Joint and survivor b) Fixed Amount c)Fixed Period d) Interest Only

B

#9. Which of the following losses would likely be covered under the Accidental Death rider? a) Death resulting from a long-term disability. b) Death caused by a head-on collision c) Suicide. d) Mountain-climbing accident.

B

All of the following are business uses of life insurance txctpl a Funding business continuation agreements b) Funding against company's general financial loss. C) Compensating executives. D) Funding against financial loss caused by the death of a key employee

B

All of the following are features of a health insurance plan purchased on the health insurance marketplace EXCEPT a) Coverage for pre-existing conditions. b) Dollar limits on essential benefits. c) Guaranteed renewability. ? d) Coverage for emergency services.

B

All of the following are true of credit life EXCEPT a) The creditor is the policyowner. b) The insured names the beneficiary. c) The death benefit cannot exceed the amount of the loan. d) The premium payment is included in the loan payment.

B

All of the following must sign an application for health insurance EXCEPT the a Producer b) Insurer. c) The proposed insured. d) Applicant.

B

If a person qualifies for Social Security disability benefits after the 5 month elimination period, when will benefits begin? a) A lump-sum of benefits will be paid at begin at the beginning of the 6th month which are retroactive to the beginning of the disability. b) Benefits begin at the beginning of the 6th month and are not retroactive to the beginning of the disability. c) Benefits begin at the beginning of the 6th month and are retroactive to the beginning of the disability. d) Benefits will begin after the 6th month and are retroactive to the beginning of the disability.

B

In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business? a) 50% b) 10% c)25% d)33

B

Medicare is a health insurance program for all the following individuals EXCEPT a) Those who have been on Social Security Disability for 2 years. b) Those with low income and low assets. c) Those 65 or over. d) Those with permanent kidney failure.

B

The paid-up addition option uses the dividend A) to accumulate additional savings for retirement B) to purchase a smaller amount of the same type of insurance as the original policy c) To purchase a one-vear term insurance in the amount of the cash value D) To reduce the next years premium.

B

Underwriters use all of these methods to protect the insurer against adverse selection EXCEPT A)Refusing to accept a risk. B)Only accepting a small percentage of applicants. c) Accepting certain risks only at a higher rate. D)Restricting coverage

B

Which of the following is NOT a characteristic of variable insurance and annuities? a) Cash value is adjusted for inflation. b) Benefits are determined solely based on the policy premium. c) Cash value accumulates based on the performance of stocks. d) Benefits are not guaranteed.

B

Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care? a) Skilled care b) Intermediate care c) Custodial care d) Home health care

B

Which of the following services will NOT be provided by an HMO? a) Inpatient hospital care outside the service area b) Unlimited coverage for treatment for drug rehabilitation c) Treatment of mental disorders d) Emergency care Emergency care must be

B

As required by the Affordable Care Act, employers must provide a minimum value plan that covers what minimum percentage of the participant's expected health care costs? a) 25% b) 50% c) 60% d) 75%

C

HMOs are known as what type of plans? a)Consumer driven b)Reimbursement C)Service D)Health savings

C

In a defined benefit plan, a) The contribution and the benefit are known. b) The contribution is known and the benefit is unknown. c) The benefit is known and the contribution is unknown. a The contribution and the benefit are unknown

C

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be a) Based on the issue age of the insured. b Discounted c) Adjusted to the insured's age at the time of renewal. Determined by the health of the insured.

C

Partial disability usually pays what percent of the total disability benefit? a) 10% b) 25% c) 50% d) 65%

C

The Omnibus Budget Reconciliation Act of 1990 (BRA) requires a) Social Security to be paid to anyone over 59½ and still working. b) Small group health plans must provide primary coverage for older disabled individuals. c) Large group health plans must provide primary coverage for disabled individuals under age 65 who are not retired. d) Large group health plans must provide primary coverage for disabled individuals over 65 who are retired.

C

Under the New York State Partnership for Long-term Care, there are restrictions for applying for New York State Medicaid benefits. Which of the following statements is correct? a) If you buy a long-term care insurance policy under the Medicare program, and you use 2 years of nursing home care, or 6 years of home care. b) If vou buv a long-term care insurance policy under the Medicaid program, you will be granted $100.000 automatically in whole life coverage c) If vou buv a long-term care insurance policv under the Partnership program, and vou use 3 vears of nursing home care. or 6 ears of home care d) If you buy a lite policy under the Partnership program. vour health care is unlimited.

C

What type of an interest rate is guaranteed in universal life policies? a) Adjustable interest rate B) Current Interest rate C)Contract interest rate D)Nominal interest rate

C

Which of the following is the typical amount of protection offered by major medical expense policies in New York? a) $500.000 b) $750.000 c) $1 million d) $3 million

C

#42. All of the following must sign an application for health insurance EXCEPT the a) the proposed insured b) Applicant. C) Producer D) insurer

D

#65. If the owner of an IRA dies without having named a beneficiary, by what point must the interest be distributed? a) December 31 of the calendar year that contains the second anniversary of the owner's death b) December 31 of the calendar year immediately following the owner's death, in a lump sum distribution c) Beginning December 31 of the year immediately following the owner's death, extending over a period of no greater than 50 years d) December 31 of the calendar year that contains the fifth anniversary of the owner's death

D

A hospital indemnity policy will pay a) Income lost while the insured is in the hospital. b) All expenses incurred by the stay in the hospital. c) Any expenses incurred by the stay in the hospital, minus coinsurance payments and deductibles. d) A benefit for each day the insured is in a hospital.

D

According to agency law, the agent always represents the a) Client. b) Public. C)State Insurance Department D) Insurance company. Under agency law, the agent legally represents

D

All of the following are true of credit life EXCEPT a) The death benefit cannot exceed the amount of the loan. b) The premium payment is included in the loan payment c) The creditor is the policyowner. d) The insured names the beneficiary,

D

All of the following are true of the Survivorship Life policy EXCEPT a) The death benefit is not paid until the last death. b) The premium would be lower than in a joint life policy. c) It can insure more than 2 lives. d) The premium is based on the age of each insured.

D

In a defined contribution plan, a) The benefit is known and the contribution is unknown. b) The contribution and the benefit are unknown. c) The contribution and the benefit are known. d) The contribution is known and the benefit is unknown. I

D

The Human Life Value approach to determining Life Insurance needs is based upon which of the following ideas? a) Replacement of assets b) Specific needs for college education c) Retirement needs d)Loss of the breadwinner's income

D

The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT a) Right to appeal. b) No litetime dollar limits c) Coverage for preventive beners D) Individual tax deduction for premiums paid

D

When an insured reinstated his major medical policy, he was involved in an accident that required hospitalization. When would this accident be covered upon reinstatement of the policy? a) After 10 days b) After 31 days c) It would not be covered. d) Immediately

D

Which of the following is NOT a characteristic of variable insurance and annuities? A) Cash value accumulates based on the performance of stocks. b) Benefits are not guaranteed C) Cash value is adjusted for inflation. D) Benefits are determined solely based on the policy premium

D

Which of the following is NOT true regarding insurance consultants? a) They offer insurance advice to the public for a fee. b) They are required to pass a written examination. c) The Superintendent must recognize the candidate as trustworthy and competent before issuing a consultant's license. D) They may own shares in the insurers they represent.

D

Who does the spendthrift clause in a life insurance policy protect? a) The insured b) The policyowner c) The creditors d) The beneficiary

D

According to the entire contract provision, what document must be made part of the insurance policy? a)Copy of the original application b)Buyer's Guide c)Agent's report d)Outline of coverage

a

In group insurance, the primary purpose of the Coordination of Benefits provision is to a) Prevent claimants from profiting from an injury or sickness. b) Prevent lawsuits between insurance companies involved in the claim. c) Ensure the payment of claims by all health insurance policies that are in effect at the time of the claim. d) Encourage hospitals to keep their charges reasonable.

a

Regarding the PPACA health care tax credit, which of the following is true? a) Persons receiving Medicaid are not eligible. b) Tax credits are based upon a taxpayer's or family's expected annual medical expenses. c) All wage earners who purchase a health care insurance are eligible for the tax credit. d) Tax credits are sent to the tax payer to reduce monthly insurance premiums.

a

Under HIPAA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy? a)An individual who was previously covered by group health insurance for 6 months is eligible. b)An individual who has used up COBRA continuation coverage is eligible. c)An individual who doesn't qualify for Medicare may be eligible. d)The gap of coverage for eligibility is a period of 63 or less days.

a

Which of the following time periods is the general enrollment period for Medicare Part B. a) January 1 through March 31 each year b) March 1 through May 31 each year c) January 1 through January 31 each year d) March 1 through March 31 each year

a

All of the following entities regulate variable life policies EXCEPT a)The Insurance Department. b)The Guaranty Association. c)Federal government. d)The SEC.

b

The death protection component of Universal Life Insurance is always a)Decreasing Term b)Annually Renewable Term c)Whole Life d)Adjustable Life

b

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)Indemnity contract b)Open panel c)Closed panel d)Restrictive rights

b

When must agents submit license renewal applications to the Superintendent? a)Within 10 business days of their birthdays b)At least 60 days before the license expires c)By the last day of February of every year d)At least 30 days before the anniversary of the day they received their licenses

b

According to the proof of loss provision, which of the following must be specified in a contract that provides disability benefits? a)A disclaimer that no benefits will be paid if proof of loss is not furnished b)Specific losses that are covered and not covered c)When and how an insured may prove a loss d)How a claim can be invalidated

c

Issue age policy premiums increase in response to which of the following factors? a)Inflation b)Age c)Increased benefits d)Increased deductible

c

Which nonforfeiture option has the highest amount of insurance protection? a)Decreasing Term b)Reduced Paid-up c)Extended Term d)Conversion

c

Which of the following is an approved written document that identifies procedures in place to keep the insurer's Information System safe? a)Privacy Disclosure b)Consumer Report c)Cybersecurity Policy d)Certificate of Coverage

c

Which of the following is true regarding health insurance? a)It provides death benefit coverage. b)It only covers expenses related to health care. c)It could provide payments for loss of income. d)Disability coverage is excluded.

c

All of the following statements about Medicare supplement insurance policies are correct EXCEPT a)They cover Medicare deductibles and copayments. b)They supplement Medicare benefits. c)They are issued by private insurers. d)They cover the cost of extended nursing home care.

d

An insurance agent was born in 1983. He obtained his New York insurance license in 2014. When will the agent's license expire?a)January 1st every even-numbered year b)Every year on the license issue date c)Every 2 years on the license issue date d)On the agent's birthday every odd-numbered year

d

In order for an alumni association to be eligible to purchase group health insurance for its members, all of these statements must be true EXCEPT when the association a) Has a constitution, by-laws, and must hold at least annual meetings. b) Is organized for reasons other than buying insurance. c) Has at least 100 members. Has been active for five years minimum. d)Has been active for five years minimum.

d

The law states that an insurer is allowed to pay the entire Death Benefit to the insured if they qualify to use the Accelerated Death Benefit Rider; however, most insurers limit the amount of the Death Benefit paid to a)60% b)75% c)30% d)50%

d

What option allows the insured to periodically increase benefit levels without providing evidence of insurability? a)Guarantee renewable b)Annual increase c)Level premium d)Guarantee of insurability

d

Which of the following policies would be classified as a traditional level premium contract? a)Adjustable Life b)Universal Life c)Variable Universal Life d)Straight Life

d