Life Insurance Chapter 20

What category of LTC Partnership plan allows the plan owner to retain personal assets equal to what was paid by LTC Partnership Plan?

Dollar for Dollar Asset Protection Plan

What is the name of the federal act that allows Medicaid to recover reimbursements of Medicaid expenditures from the estate of a deceased Medicaid recipient?

Medicaid Estate Recovery Act - OBRA 93

Offering a bribe or something of value as an inducement to purchase insurance best describes:

Rebating

Tim is the father of a 2 year old son and wishes to purchase life insurance for his child. Tim is currently covered by a $50,000 Universal life insurance policy, as well as a $300,000 level term policy. What is the maximum amount of life insurance protection Tim may purchase to cover his son?

$87,500

A Viator may rescind a policy agreement within 30 days of a policy transaction or within ___ days after receiving their settlement; whichever is later.

15

Agent licenses are issued for ___ years.

2

Within how many days does a life insurance company have to respond to a Viatical Settlement Provider that is attempting to verify coverage or policy information?

30 days

In New York, a life insurance contract cannot be backdated for more than:

6 months

How long is the free look period on a life insurance policy that replaces an existing contract?

60 days

Regarding insurance advertising in this state, which of the following statements is NOT TRUE? A. Testimonials may be given by actors and are not regulated. B. All advertising must be approved by the Insurance Department prior to use. C. Deceptive wording is not allowed. D. The full company name and address must be listed on all advertising.

A

Regarding insurance advertising, which of the following statements is NOT TRUE? A. Testimonials may be given by actors and are not regulated. B. All advertising must be approved by the state insurance department prior to use. C. Deceptive wording is not allowed. D. The full company name and address must be listed on all advertising.

A

Which of the following actions does not fall under the definition of transacting insurance? A. Receiving agent commissions B. Negotiating insurance contracts C. Soliciting insurance contracts D. Addressing matters that arise either before or after a sale is made.

A

A Notice Regarding Replacement form must be provided to a client no later than the time of:

Application

All of the following Continuing Education delivery modes are acceptable in New York except: A. Approved classroom courses B. Self-study C. Self-study with a proctored final exam D. Internet with a proctored final exam

B

Which statement below is NOT TRUE when discussing insurance department hearings? A. Witnesses and records can be subpoenaed. B. Testifying falsely under oath is called misrepresentation. C. A 30-day notice must be provided. D. Attorneys can be present.

B

Which statement regarding the Privacy Protection Act is NOT TRUE? A. Upon request, an insurer must inform a policyowner with information within 30 days. B. If proven incorrect, policy records must be corrected within 60 days. C. Shared information must be disclosed going back 2 years. D. An applicant must be informed of the sources from which information may be gathered.

B

All are true statements regarding New York LTC Partnership plans except: A. If issued, the policy must cover pre-existing conditions after the plan has been in effect for 6 months. B. The plan must provide at least 24 months of coverage. C. Elimination periods cannot exceed 60 days. D. The plan must provide benefits for home care, skilled nursing, assisted living, adult day care and hospice care .

C

True statements about newborn coverage provisions include all of the following except: A. If coverage is court ordered, the insurer must allow immediate enrollment without requiring evidence of insurability. B. Children are covered from the moment of birth or adoption, without regard to medical impairments. C. Newborn child provisions only apply to group health policies. D. Newborn child provisions apply to both group and individual policies.

C

Which of the following forms provides a simplified description of an insurance policy, outlining both the advantages and disadvantages of the contract in a generic fashion? A. Policy Cost Comparison B. Policy Summary C. Buyer's Guide D. Policy Illustration

C

Which statement regarding the Life Insurance Guarantee Corporation is false? A. The maximum benefit provided is $500,000 per policyholder or beneficiary. B. The purpose of the Corporation is to protect against the financial impairment of a company, and its' inability to pay claims. C. Participation in the Corporation can be used in an insurer's advertisements if approved by the Insurance Department. D. The Corporation is managed by the state

C

What term is used to describe a premium rating system that uses identical premium rates for all subscribers in an area regardless of loss experience?

Community Rating

An agent is not required to follow replacement regulation procedures when replacing which of the following policies? A. Variable Life B. Annuities C. Term Life D. None of the above

D

Notice regarding HIV/AIDS testing would NOT include: A. The purpose of exam B. How the results are evaluated and used C. Confidentiality Rights D. How the applicant is to pay for the cost of the exam

D

Plan A Core benefits found on a Medicare Supplement policy would include all the following EXCEPT: A. Part A co-payments B. Part A -- 3-pint blood deductible C. An additional 365 days of hospital confinement D. Part B deductible

D

True statements regarding group health conversion would include all the following except: A. Conversion requires no evidence of insurability. B. The conversion option is generally available to the insured and their spouse and dependent children. C. The conversion option is available for medical plans if an employee terminates their employment. D. The conversion option is available even when an existing contract is replaced by one providing essentially the same benefits.

D

Unless listed as a felony, what is the penalty for violating an Unfair Trade Act? A. A monetary fine of up to $500 per violation, not to exceed $2,500. B. Possible restitution. C. Possible revocation or suspension of license. D. All answers are correct.

D

Which of the following characteristics may be used to discriminate or charge higher premiums for insurance coverage? A. Sexual preference B. Race C. Beneficiary designation D. Sex

D

An agent producer who intentionally makes false statements regarding the financial condition of another agent or insurer best describes which of the following Unfair Trade Practices?

Defamation

True statements regarding NYS Disability benefits would include all of he following except: A. Provides non-occupational disability benefits from illness or injury. B. The program is funded by both employer and employee contributions. C. Benefits are payable for no more than 26 weeks in any 52 week period. D. For a disabled employee, benefits begin on the 14th day following their disability.

D

Which of the following actions is required in order to obtain a Non-resident insurance license in New York? A. The applicant must have a resident license in another state that also offers reciprocity with New York agents. B. The applicant's resident license must be in good standing. C. Must complete an application and pay a fee. D. All of the actions mentioned above are required.

D

Which of the following statements is false? A. No person, firm, association or corporation may act as an agent until licensed. B. It is a misdemeanor to attempt to sell insurance without a license. C. No agent may receive any compensation without a license. D. An agent has 15 days to produce their license upon request.

D

Which of the following statements regarding the Fraud Protection Act in New York is not true? A. The monetary penalty for this violation is a fine of up to $5,000 and restitution for the false claim. B. The purpose of this act is to protect the public against individuals who make abusive and fraudulent claims. C. Individuals who assist others in the submission of fraudulent claims are also guilty of violating this act. D. None of the answers are incorrect

D

Which statement is incorrect regarding a Temporary License issued in New York? A. It is issued without the holder having to take a state examination. B. It allows the holder to receive renewal commissions on existing business. C. It is generally issued for 90 day periods. D. It is only issued to suitable persons that can prove a financial connection to the deceased or disabled agent.

D

Which statement regarding agent licensing is incorrect? A. If an agent license has been lapsed for more than 2 years, the individual seeking the license must re-take a state exam. B. An license application must be submitted within 2 years of passing the state examination. C. Course completion certificates never expire. D. An individual who wishes to obtain their Life only license must complete at least 40 hours of approved pre-licensing training.

D

An insurance company that is owned by the policyowners best describes a:

Mutual Companies