NYS Life, Accident, and Health State Exam Simulator

First-time homebuyers are able to withdraw up to how much from their qualified IRAs without incurring the 10% early withdrawal penalty?

$10,000

With regard to the use of nonpublic personal information, the phrase opt out means

Customers must be given the chance to stop disclosure

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

Which of the following does NOT meet the requirements of "skilled nursing care"?

Must be provided exclusively in a hospital

Which of these is NOT used as selection criteria in the underwriting process of a life insurance application?

National origin

Medicare Supplement insurance requires an individual to be at least how old for open enrollment?

No minimum age

A Guaranteed Renewable provision allows

Premiums which can only be increased per rate class

Home health care benefits typically do NOT include coverage for

Prescription drugs

In New York, reducing benefits for a newborn child under an accident and health plan is

Prohibited in any form

Which of these is NOT considered the responsibility of a producer during the underwriting process?

Selecting the final approval date

Which of these situations would NOT potentially involve a prison sentence under Federal law?

Selling insurance with a nonresident license

Assets that back the non-guaranteed values of variable life insurance products are held in which account?

Separate account set up by the insurer

Medicare Part A covers which type of care?

Skilled nursing facility 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 Disabilty

The term "life settlement broker" may refer to

Someone who is licensed to negotiate a life settlement contract

Claims settlement practices of insurers are regulated by

State insurance departments

Who regulates an insurer's claim settlement practices?

State insurance departments

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

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

The interest credited to cash values of personally-owned non-qualified annuities is considered

Tax-deferred

Which group is the DO Not Call Registry designed to protect against?

Telemarketers

Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for

The policy is surrendered for less than what was paid into it

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

Under which circumstance can an insurance company offer group Health insurance?

The sponsoring group provides an employer-employee relationship

At what point are death proceeds pain in a joint life insurance policy?

When the first insured dies

A life insurance policy can be reinstated upon meeting company requirements within a maximum of

3 years

A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The total premiums paid had totaled $16,000. What were the federal income tax consequences to the policy owner on receipt of the cash value?

$16,000 was received tax-free and $4,000 as ordinary income

An insured has a $25,000 whole life insurance policy with $6,000 cash value available. Under the extended term nonforfeiture option, what is the amount of insurance available to the insured?

$25,000

A father and his 6-year old son currently have no life insurance coverage. What is the maximum amount of life insurance that the father can take out on his son?

$50,000 (A minor under the age of 14 and 6 months may not exceed $50,00)

What is the maximum Social Security Disability benefit amount an insured can receive?

100% of the insured's Primary Insurance Amount (PIA)

Part A Medicare includes coverage for all of the following services EXCEPT

120 days of Skilled Nursing Facility care

An individual accident and health insurance policy with premiums paid monthly has a minimum grace period of

10 days

A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of

10% (Penalty taxes on premature distributions prior to age 59 1/2)

Starting in 2016, businesses with up to _____ employees will be defined by the ACA as a "small business".

100

What minimum percentages of all eligible employees must participate in a group life insurance plan if the premiums are completely paid for by the employer?

100%

The grace period for a life insurance policy with an annual premium is usually

31 days

After the first year commission is paid on a Medicare Supplement policy, renewal commissions must be provided for at least

5 years (Must be the same as previous subsequent (renewal) years)

How long can an insurer legally defer paying the cash value of a surrendered life insurance policy?

6 months

What is the actuarial value of a bronze level health plan?

60

Emergency health care coverage for Medicare enrollees traveling abroad is

A Medicare Supplement additional benefit

Life stat elements between a policy owner and a life settlement provider are negotiated through

A life settlement broker

Which of the following would NOT be appropriate for an immediate annuity?

A parents saving for a child's college

In New York, a group accident and health certificate of insurance must contain

A summary of policy features and benefits

Which of the following statements accurately describes the "time limit on certain defenses"?

After a stated period of time, claims cannot be denied due to material misrepresentations on the application

What is a major difference between private commercial insurers and HMO's?

An HMO combines medical care delivery and funding in one organization

An insurer operating in the U.S. but headquartered outside the U.S. is

An alien insurer

A description of a qualified plan's insurance contract may be found in which ERISA reporting form?

Annual Return/Report (Form 5500)

Which statement is INCORRECT concerning a tax-sheltered annuity (TSA)?

Annual investment gains are included in participant's gross income

In a qualified retirement plan, the yearly contributions to an employee's account

Are restricted to maximum limits set by the IRS

The Affordable Care Act (ACA) established "exchanges" in order to

Assist individuals and small businesses when making their health insurance purchases

If disability income policy contains a cost-of-living adjustment rider, benefits must typically be increased

At least once per year from when the benefits begin. (Cost-Of-Living Adjustment (COLA) rider is an optional add-on to a long term disability insurance policy)

A reciprocal insurer typically has an administrator who manages the premiums collected from the group's members. This administrator is called a(n)

Attorney-in-fact

An agent must secure an appointment with an insurer

Before soliciting insurance applications for that insurer

A policyowner has decided to replace an existing life insurance policy with a new one. The existing life policy should be terminated

Before the new life policy has been issued and delivered to the policyowner

When must the Superintendent be notified of an agent using an assumed name?

Before using the assumed name

In a disability buy-sell agreement, the policies funding the agreement are owned by the

Business entity (which is also the premium payer and beneficiary)

A Health Reimbursement Arrangement MUST be established

By the employer

According to the Affordable Care Act, new Health Insurance Marketplace are established by the

CCIIO (The Center for Consumer Information and Insurance Oversight)

Which of the following is NOT an allowable exclusion for long-term care insurance policies?

Care for incurable conditions

Which statement regarding universal life insurance is correct?

Cash value accumulations have a guaranteed minimum interest rate

What is a Pap test designed to detect?

Cervical cancer

In regards to the Affordable Care Act (ACA), which of these is NOT a role of health insurance exchange?

Contact the employer if an employee stops coverage under a plan offered in exchange

An annuity's accumulation period may

Continue after the purchase payments stop

Reductions in coverage are omen feature of ____ in Health insurance policies.

Cost containment

Which of these life insurance policies does NOT contain a cash value provision?

Decreasing term life

In a speech to a local association, an agent incorrectly stated that XYZ Insurance Company is in financial difficulty and not paying claims. The agent may be guilty of

Defamation

New York law requires the Human Immunodeficiency Virus (HIV) consent form to

Disclose the types of individuals or organizations that may receive a copy of the test results

An employer has a group life coverage for his employees. How would an employee in poor health be treated in this situation?

Eligible for the same type of coverage as the other employees

Non-occupational disability coverage is designed for

Employees who suffer non-work related disabilities, since work-related disabilities are covered by Worker's Compensation

Terry suffers an injury at his workplace which is covered by workers compensation. Terry also has a medical expense insurance policy. Under medical expense insurance policies, losses that are covered by workers compensation are typically

Excluded from coverage

Death benefits from a life insurance policy are normally considered to be

Exempt from federal income tax

Long Term Care policies will usually pay for eligible benefits using which of the following methods?

Expense incurred

Which benefit supplement added to a life insurance policy insures an entire family?

Family term rider

Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted?

Fixed amount installment option

An individual long-term policy must be renewable

For life

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

Insurable interest in one's own life is legally considered as

Generally unlimited

When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?

Give notice, explain, and allow opting out

Which of the following statements is NOT true concerning the relationship between group health insurance plans and Medicare? (Assuming the business has more than 20 employees)

Group Health Coverage Is NOT Available For Workers Over The Age of 65

The administrator for a corporate pension plan bought an accumulation annuity contract for its 2,000 employees. All 2,000 participating employees received certificates of participation. What kind of contract is this?

Group deferred annuity

What is the name of the rider that provides an additional purchase option in a life insurance policy?

Guaranteed insurability rider

According to the Affordable Care Act, coverage may be rescinded

If intentionally false statements were offered

When long-term care insurance is replaced, the insurer issuing the new policy cannot

Impose a new pre-existing conditions exclusion

A health insurance underwriter will most likely view alcohol abuse as a(n)

Increased exposure to risk

When group benefits under COBRA have expired, a fully insured group policy can be converted to a(n)

Individual health policy

Which of these statements is NOT true regarding a cash value loan against a life insurance policy?

Interest payments made by policyowner are deductible

In what way are insurance policies said to be aleatory?

Involves the potential for the unequal exchange of value

An accelerated (living) benefit rider in a life insurance policy may provide funds to an insured who

Is expected to remain in a nursing home for life

What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured?

Joint life

What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?

Less than the policy's face amount

An association which maintains a facility that displays offers and counteroffers for purchase or sellers of life settlement contracts is known as a

Life settlement intermediary

Which of these is NOT relevant when determining the amount of personal life insurance needed?

Local unemployment rates

Custodial care is normally covered under

Long-term care insurance

Employees generally receive workers compensation benefits for

Lost wages and medical expenses due to occupational accidents

When determining the suitability of an annuity for a consumer, the insurance provider is obligated to

Make reasonable efforts to fit the annuity with the consumer's needs

Which of the following relationships demonstrates insurable interest in the absence of economic interest?

Marriage partners

Which of the following is TRUE about a qualified retirement plan that is "top heavy"?

More than 60% of plan assets are in key employee accounts

A life insurance company just paid a $100,000 death benefit to a beneficiary. When the insured died, the cash value was $15,000 and total premiums-paid equaled $10,000. How much of the proceeds will be added to the beneficiary's gross income for federal income tax purposes?

Nothing

An insured is covered with a health insurance policy. If the insured would like to cancel the policy, he/she must

Notify the insurance company in writing

Under the New York Disability Benefits Law, cash payments are provided to workers who are unable to work because of injury or illness that

Occurred on the job

Insurable interest involves what assumption?

One person benefits from another person's continued life

Employers often purchase life insurance on a key employee in order to

Pay for finding and training a replacement if the employee dies prematurely

Which would NOT be a location where skilled nursing care is provided?

Personal residence

A health insurance applicant is notified that a physical examination is required. Which of the following statements is correct?

Physical examinations are performed at the expense of the insurer

Which of these plans allow a participant to choose either a network or non-network provider at the time when medical care is needed?

Point-of-service

A signed good health statement may be requested by a life producer at the time of

Policy delivery

Which of the following statements BEST describes disability buy-sell insurance policies?

Policy proceeds are typically received income tax-free

What happens to a life insurance policy when the policy loan balance exceeds the cash value?

Policy will no longer be in force

Replacement rules are designed primarily to protect the interest of the

Policyowner

A disability income insurance policy was recently issued with a rating. What does this mean?

Policyowner will be charged an additional premium

A Medicare Supplement policy is required to do which of the following?

Provide a 30 day free-look period

The Healthy New York Program is designed to

Provide affordable health insurance coverage to small employers

Which of the following could be a future use of the cash value that builds in a recently-purchased whole life insurance policy?

Provides supplemental income in 35 years

An admitted company is one that is

Qualified and licensed to do business in New York

How are qualified Roth IRA distributions normally treated for tax purposes?

Received income tax-free

An insured covered under a Disability Income policy is disabled and collecting benefits for a period of two months. He returns to work and is again disabled from the same cause, whereupon benefits continue to be paid. This is an example of which of the following?

Recurrent disability

What happens to the death benefit of a life insurance policy if the insured elects a partial payment from the accelerated (living) benefit provision?

Reduced

Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?

Reimbursement

An insurer has a contractual agreement which transfers a portion of its risk exposure to another insurer. What type of contract arrangement is this?

Reinsurance contract

Statements made by an insured on an accident and health insurance application are considered to be

Representations

What is the insurer responsible for when a producer is acting within the scope of authority granted in the agency contract?

Responsible for acts by the producer that are authority only

Which of the following can be defined as "the potential for loss"?

Risk

Which of the following describes the act of insuring a risk against possible loss?

Risk Transfer

What does a fixed life annuity offer protection against?

Savings depletion due to longevity

Security laws passed by Congress are enforced by which Federal agency?

Security and Exchange Commission

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

When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement?

The agent and the applicant

When disability buy-sell insurance benefits exceed a partner's cost basis, which of the following is correct?

The full amount is non-taxable to the partner

Which statement regarding a fixed period settlement option is correct?

The installment payment amount is determined by the total number of installments

What is taken into consideration when defining "total disability" in a disability income insurance policy?

The insured's education, training, and experience

In New York, an insurer providing small employer group medical plans may discontinue an employer's coverage if

The insurer no longer offers the plan to any employer

When the New York Superintendent of Insurance examines a licensee's insurance records, the primary purpose is to determine

The licensee's compliance with state insurance law regulations

Unless it is regarding fraud, which of the following statements about the contestability of a life insurance policy is true?

The policy can usually only be contested by the insurer during the first two years of the contract

When does the owner's contractual rights begin under an individual annuity contract?

Time of purchase

Why does New York law require an insurance agent to examine the existing Medicare Supplement policies of a prospective insured?

To determine the suitability of potential changes

The reason for backdating a policy is

To obtain a premium rate based on an earlier age

A hold-harmless clause is an example of risk

Transfer

What is the effect of the market value adjustment in a market value adjustment annuity?

Transfer some of the investment risk to the policyowner

Which reinsurance contract between two insurers involves an automatic sharing of the risks assumed?

Treaty reinsurance (Each party automatically accepts specific percentages of the insurer's business)

Typically, states will permit the grouping of two or more small employers in the same industry for obtaining group health insurance at a favorable rate. This grouping of employers is known as a multiple employer

Trust

Replacing a policy when it is NOT in the best interest of the client is known as

Twisting

When does interest income for a flexible premium deferred annuity get reported for federal income taxes?

Upon receiving distributions from the contract

Under what circumstances must an agent's insurance business records be provided to the New York Superintendent of Insurance?

Upon request of the Superintendent

An insurance policy that can also be classified as a securities product is called

Variable life

Which of the following best describes the presumptive disability provision?

Waives the typical total disability requirements

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

Does the Superintendent have the ability to examine the business records of insurance companies and agencies?

Yes, because of the powers granted through state statutes