PSI Practice Exam

Which mode is not an option? a- Annually b- Semi-Annual c- Bi-Weekly d- Quarterly

C

A single contract for group medical insurance issued to an employer is known as a A- group policy B- an employer policy C- a master policy D- none of the above

C

A policy may contain provisions excluding or restricting coverage as specified in the event of death under all of the following EXCEPT: A- A fair paying passenger traveling with commercial transportation B- licensed pilots of personal aircraft C- war or active war D- suicide

A

Who gets certificate of insurance for group health insurance? A- employee B- employer C- sponsor D- HMO

A

A lIfe Insurance rider which reimburses expenses incurred in a convalescent or nursing home facility is A. Disability. B. Long-Term Care. C. Accidental Death. D. Cost of Living.

B

Which of the following is NOT a requirement to become a resident producer in New York? A. Live in New York for a period of 6 months or more. B. Successfully passing a licensing examination.. C. Be at least 18 years of age. D. Be competent and trustworthy.

A

Types of life insurance used to cover key employee indemnification A- universal life, term, whole B- joint, permanent, credit C- limited pay, group D- decreasing

A

When trying rings, woman left her ring on countertop and returned to find it missing she experienced a A- loss B- hazard C- peril D- transfer of risk

A

Which approach considers the insured's feature stream of income? A. Human life value approach B. Cost comparison approach C. Living benefit approach D. Needs approach

A

Which nonforfeiture option allows insurer to purchase less coverage for life? A- Reduced paid up B- cash surrender C- extended term D- settlement

A

Which of the following best describes annually renewable term insurance? a) It is level term insurance. b) It requires proof of insurability at each renewal. c) It provides an annually increasing death benefit. d) Neither the premium nor the death benefit is affected by the insured's age.

A

Which of the following is an example of a limited-pay life policy? a) Straight Life b) Life Paid-up at age 65 c) Renewable Term to age 70 d) Level Term Life

B

Individuals who are eligible for Medicare on the first day of the month in which they turn age 65 are automatically enrolled in A. Part A B. Part B. C. Part C. D. Part D.

A

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) Adjusted to the insured's age at the time of renewal. b) Determined by the health of the insured. c) Based on the issue age of the insured. d) Discounted.

A

Which of the following products is designed to pay benefits that can provide a stream of retirement income to the purchaser? A. Annuity contract B. Tax deferred growth C. Variable life insurance D. Modified endowment contract

A

All of the following are considered a risk except the A. Nature of the insured's occupation B. Amount of the insured charges for services C. Location of the insurance business D. Proximity of the insured's location to an emergency service

B

The renewal period for a producer's license is a. A. 1-year term. B. 2-year term. C. 3-year term. D. 4-year term.

B

An Insured wants to purchase a policy with three key elements: flexible premium, death benefit,and the choice of how the cash value will be invested. The Insured should purchase A.adjustable life. B.universal term life. C. variable universal life. D.graded premium whole life.

C

An individual purchased a $100,000 Joint Life policy that covered his life and the life of his wife. Eight years later, he died in an automobile accident. How much will the wife receive from the policy? a) Nothing b) $50,000 c) $100,000 d) $200,000

C

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

C

An insurance contract is a contract of utmost good faith because the insurer relies on the truthfulness of the applicant and the insured relies on the insurance promise to A. Issue a policy B. File reports with the insurance department C. Pay the claims D. Charge a fair premium

C

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called a) Supplemental add on. b) Cost of living. c) Guaranteed insurability. d) Waiver of cost of insurance.

C

The entity that has the power to revoke a producers insurance license is the A. Insurer B. Local agency C. Department of insurance D. National Association of insurance commissioner (NAIC)

C

To avoid tax consequences a rollover from a traditional IRA to another IRA must be done within A 30 days B 45 days C 60 days D 90 days

C

What is New York states required grace period for an annuity contract? A 15 days B 20 days C 31 days D 60 days

C

What is the tax consequence of amounts received from a Traditional IRA after the money was left in the tax-deferred account by the beneficiary? a) Capital gains tax on distributions and no penalty b) Capital gains tax on distributions plus 10% penalty c) Income tax on distributions and no penalty d) Income tax on distributions plus 10% penalty

C

What type of insurance would be used for a Return of Premium rider? a) Level term b) Decreasing term c) Increasing term d) Annually renewable term

C

When must the Buyer's Guide be delivered to the proposed insured? a) At policy delivery b) At the time the first premium is paid c) At the time of application d) At the time the appointment is set for the first presentation

C

Which is the name of the policy that combines a universal life policy with investment choices? A. Interest-sensitive universal life policy B. Straight universal life policy C. Variable universal life policy D. Flexible universal life policy

C

And an insured individual purchase a disability policy with a waiver of premium rider on January 1. The individual is disabled on June 1, on July 1 he receives proof of permanent and total disability, and submit a claim. He begins receiving benefits on July 15. When are his premiums waived? A. January 1 B. June 1 C. July 1 D. July 1

B

A payor benefit rider would be found on which type of policy? A- Whole life B- juvenile life C- adjustable D- joint and survivor

B

An insured has elected to get $20,000 per month until the principle and interest on his life policy has been paid out . Which option has he elected? A- interest only B- fixed amount C- Fixed period D- Life income

B

Group disability income insurance usually involves A- higher premiums than individual disability policies B- providing benefits for non occupational illness and injuries C- a requirement that all employees participate D- workers who are individually uninsurable cause of their high risk

B

If there is a conflict between a policy provision and state statutes the policy must be A- reviewed by the insurance commissioner B- must meet minimum statute requirements C- can be submitted as written D- supersedes state statutes

B

In accidental injury insurance, the insurance policy, the endorsements, and any relevant papers attached to make up A- completed application B- entire contract C- notice of coverage D- uniform mandatory policy provision

B

Non-statutory group short term disability benefits are typically paid A- daily B- weekly C- biweekly D- monthly

B

The insured's long-term care insurance policy will refund a portion of the premiums if they die during the term of the policy this is because the policy has a. A. Reduced paid up option B. Return of premium benefits C. Waiver of premium benefits D. Cash surrender value options

B

Which policy allows for partial surrender? A- Modified whole life B- universal life C- variable whole life D- term life

B

According to health insurance portability and accountability act Hipaa, when can a group health policy renewal be denied? A. There have been too many claims in the previous year B. The size of the group has increased by more than 10% C. Participation or contribution rules have been violated D. Participation or contribution rules have been changed

C

Dividends are not subject to taxation because A- dividends are guaranteed policy benefits B- they are considered prepaid policy on equity C- they are considered cash reductions of policy premiums D- death benefit proceeds paying dividends is equivalent to return of premium

C

Installing deadbolt locks on the doors of a home is an example of which method of handling risk? a) Self-insurance b) Avoidance c) Reduction d) Transfer

C

On or after January 1st 2014 employers with no more than 25 full-time employees with average annual wages of less than $50,000 may be eligible for a tax credit of up to how much of the premiums paid by employer? A- .1 B- .25 C- .5 D- .7

C

The Commission paid for long term care policy during all renewal years must be the same A- As provided for any year of renewal B- at same time rate as new commission C- in the second year D- in the first year

C

The type of care that is continuous 24 hour care provided by licensed medical professional under the Direct supervision of a physician is A. Custodial care B. Intermediate nursing care C. Skilled nursing care D. Respite care

C

What is New York required grace period for annuity contract? A- 15 days B- 20 days C- 31 days D- 60 days

C

What type of annuity is guaranteed level benefit payments? A- Variable B- Limited C- fixed D- Universal

C

When a producer doesn't have an agreement with an insurer for payment they will be reimbursed an A- absolute fee B- a relative fee C- usual, customary, & reasonable fee (UCR) D- non scheduled plan customary fee

C

A comprehensive medical expense insurance policy combines which of the following coverages under one contract? A- Disability income and accidental death B- major medical coverage and accidental death C- disability income with basic hospital and surgical coverages D- basic hospital and surgical coverages with major medical coverage

D

A section 457 deferred compensation plans provided specifically for employees of A- sole proprietors B- religious C- nonprofit D- States and counties

D

If term life insurance is renewable, the policyholder is purchasing the right to renew the policy A- with proof of insurability B- without an increase in premium at renewal C- for an unlimited number of times D- without showing proof of insurability

D

In a hospital indemnity plan an elimination period refers to the number of days A- for which the insured can receive benefits for hospital visit B- for which the insured can receive benefits for term of plan C- an insured must wait before becoming eligible to receive benefits for term of plan D- an insured must wait before becoming eligible to receive benefits for each hospital stay

D

Which of the following is true about applying for Medicare supplement policies outside open enrollment? A- Coverage will be issued on a guaranteed basis B- it is not possible to get coverage after the initial enrollment period C- Coverage will be issued with longer elimination periods and higher deductibles D- there is no guarantee that a company will sell you coverage if you do not meet underwriting guidelines

D

An annuity that guarantees a given number of income payments, whether or not the annuitant is alive to receive them, is referred to as A. A life annuity certain B. An Assured life annuity C. A guaranteed survivor annuity D. An irrevocable endowed annuity

A

For contract to be valid it must A- involve consideration B- be offered C- be written D- none of the abov

A

In health insurance policy the reinstatement provision is A- mandatory B- optional C- elective D- not required

A

Life expectancy is used in the calculation of which of the following? a) Life settlements b) Cash values c) Extended term d) Dividends

A

Stranger-originated life insurance policies are in direct opposition to the principle of a) Insurable interest. b) Law of large numbers. c) Good faith. d) Indemnity.

A

The accelerated benefits provision will provide for an early payment of the death benefit when the insured a) Becomes terminally ill. b) Needs to borrow money. c) Has earned enough credits. d) Becomes disabled.

A

Two attorneys operate their practice as a partnership. They want to start a program through their practice that will provide retirement benefits for themselves and three employees. They would likely choose a) HR-10 (Keogh plan). b) Section 457 Deferred Compensation plan. c) 403(b) plan. d) 401(k) plan.

A

What is the disadvantage of a fixed annuity? A- Could experience a decrease in purchasing power of their payments over a period of years due to inflation B- there is no guaranteed specific benefit amount to annuitant C- the insured invests payments in variable securities and return fluctuates with uncertain economic market D- payments continue only for a maximum of two years after death

A

Which entity can revoke a producer's license? A- Department of Insurance B- local agency C- insurer D- NAIC

A

Which of the following is a health insuring Corp. provider of specialty care? A- Neurologist B- the director C- administrative nurse D- PPO director

A

Which of the following types of benefits are provided under most long term care policies? A- Fixed dollar amount for each day of care B- specific benefit type based on the type of services rendered C- all physician approved necessary medical expenses D- a fluctuating dollar amount based on duration and type of care

A

Who may terminate an agent appointment? A- the insurer B- agent C- policy owner D- insured

A

With the exception of nonpayment of premiums or fraud, no insurance policy shall be contestable after it has been enforced during the lifetime of the insured for. A. Two years B. Three years C. Four years D. Five years

A

The paid-up addition dividend option uses the dividend to do which of the following? a) Purchase a smaller amount of the same type of insurance as the original policy. b) Purchase a one-year term insurance in the amount of the cash value. c) Reduce the next year's premium. d) Accumulate additional savings for retirement.

B

To sell variable life insurance policies, an agent must receive all of the following EXCEPT a) A securities license. b) SEC registration. c) FINRA registration. d) A life insurance license

B

Who of the following is required to be licensed as an insurer producer? A. An underwriter at an insurer B. An officer or Director of a license insurer C. An administrator of a group plan D. An individual selling a policy for commission

D

An insurance company sells an insurance policy over the phone in response to a TV ad. Which of the following best describes this act? a) Insurance telemarketing b) Direct response marketing c) Independent agency marketing d) Illegal

B

If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about a) Which individual will pay the premium. b) Whether an insurable interest exists between the individuals. c) The gender of the applicant. d) The type of policy requested.

B

What is the benefit of choosing extended term as a nonforfeiture option? a) It can be converted to a fixed annuity. b) It has the highest amount of insurance protection. c) It matures at age 100. d) It allows for coverage to continue beyond maturity date.

B

Which of the following is TRUE regarding the annuity period? a) It is the period of time during which the annuitant makes premium payments into the annuity. b) It may last for the lifetime of the annuitant. c) During this period of time the annuity payments grow interest tax deferred. d) It is also referred to as the accumulation period.

B

For how long are producers required to keep records of producer compensation disclosures provided to the purchasers of insurance? a) 1 year b) 2 years c) 3 years d) 5 years

C

What does an employee who has permanent kidney failure become eligible for Medicare coverage? A. Once off group plan B. Once off disability C. Age 65 and older D. At any age

D

What type of insurance policy is characterized by premiums that are fully paid up within a stated period, after which no further premiums are required? A. Lump sum insurance B. Basic installment insurance C. Prepaid premium insurance D. Limited payment life insurance

D

Which of the following is true about warranties? a) If they aren't true, the insurer must file with the court to void the policy. b) They are true to the best of the agent's knowledge. c) They are true to the best of the applicant's knowledge. d) They are guaranteed to be true.

D

Sam gets new a job and enrolls in health benefits. Sam for six years has diabetes and an insulin pump. When will claims related to her pre-existing condition be covered? A- Immediately B- 90 days C- 12 months D- after proving he has been completely free for six months

A

Group long-term disability benefit amounts are usually limited to what percentage of the participant's income? A. 40 B. 60 C. 80 D. 100

B

The dividend option where the insurer issues the policy owner a check for a dividend amount is called a A. Reduce premium dividend option B. Cash dividend option C. One year dividend option D. Paid up option

B

According to the affordable care act essential health benefits do not include which of the following categories? A maternity and newborn care B routine vision care for adults C preventive and wellness services D mental health and substance use disorder

C

In health insurance policy, an insured has an out-of-pocket limit of $10,000, a deductible of $500, and an 80%/20% coinsurance. Uninsured incurs $50,000 of covered losses in an accident. How much will the insurer have to pay? A. 35,500 B. 39,600 C. 40,000 D. 49,500

C

The health insuring corporation must offer emergency health services in A- non emergent situations B- only when provided by in network C- outside and inside the insureds service area D- at minimum of 24 hours six days per week

C

Which of the following correctly identifies the favorable income tax treatment afforded to annuities? A- Annual earnings are partially income tax deductible B- annual earnings of partially income tax exempt C- gains are taxed only on distribution D- the entire distribution is taxed at the owners rate of taxation

C

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will a) Pay the policy proceeds up to an established limit. b) Not pay the policy proceeds under any circumstances. c) Automatically pay the policy proceeds. d) Pay the policy proceeds only if it would have issued the policy.

D

All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT a) It will pay the benefit only for a designated period of time. b) The payments are not guaranteed for life. c) The insurer determines the amount for each payment. d) It is a life contingency option.

D

If an individual's license has been revoked, how soon can he or she obtain a new license? a) Once it is revoked, the license cannot be reinstated. b) After 60 days of the revocation c) Within 12 months, based on the original violation d) After 1 year of the revocation

D

Medicare Part B insurance is partially funded by A- Social Security taxes B- employment taxes C- employer contributions D- user premiums

D

Penalties that may be levied by Department of Insurance for committing insurance fraud do not include: A- fines B- license revocation C- license suspension D- probation

D

Policy proceeds can be obtained in a lump sum and invested to create A. a Cleanup Fund. B. a Readjustment Fund C. a Viatical Settlement. D. an Estate.

D

Primary difference between pre certification provision and concurrent review is that A- only pre certification provision is designed to be cost containment measure B- involves a review by the physician C- requires consent of patient D- occurs before treatment is provided

D

The cost of long-term care policy is based on all of the following except A. Age B. health condition C. level of benefit provided D. personal income

D

Which is a characteristic of the level premium term life insurance? A- Provides lower benefits B- used for cash value C- matches level amount of protection on insured life expectancy D- cost of insurance is averaged throughout the life of the contract

D

Which of the following is the form of risk if an entity chooses to set aside funds for self insurance? A. Retention B. Avoidance C. Control D. Transfer

A

What characteristic makes whole life permanent protection? a) Guaranteed death benefit b) Coverage until death or age 100 c) Guaranteed level premium d) Living benefits

B

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost? a) Consideration b) Indemnity c) Reasonable expectations d) Stop-loss

B

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled? a) Waiver of Premium b) Payor Benefit c) Jumping Juvenile d) Juvenile Premium Provision

B

An insured who had a life insurance policy for $1 million died. In filing the claim, his wife and children discovered that there was no beneficiary named on the policy. What will happen to the death benefit in this case? a) The insurer will retain the benefit. b) The benefit will go to the insured's estate. c) The benefit will be divided among his children. d) The benefit will be automatically paid to the insured's surviving family.

B

How does reinsurance benefit the insurer? a) It allows the insurer to charge higher premiums. b) It helps protect the insurer against catastrophic losses. c) It offers a way to differentiate between policies. d) It frees the insurer of all liabilities.

B

Without written consent a policy owner cannot change the beneficiary if he has named A. A contingent beneficiary B. A revocable beneficiary C. A permanent beneficiary D. An irrevocable beneficiary

D

Which of the following is NOT a standard exclusion in life insurance policies? a) Hazardous avocation b) War and military service c) Disability d) Aviation

C

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insured's death? a) A business partner of the insured b) The wife of the insured c) The former wife of the insured d) A minor son of the insured

D

All of the following statements apply to the surrender of an annuity contract EXCEPT A.the right to surrender is available on immediate annuities. B. surrender charges will reduce the contract payout amount. C.the owner has the right to surrender the contract during the accumulation period. surrender D.charges diminish over a stated number of years and will eventually disappear.

A

An illustration used in the sale of a life insurance policy must include a label stating a) "Life insurance illustration" b) "Representation of insurance" c) "Guaranteed values" d) "Subject to change"

A

Under a medical expense policy all of the following are common exclusions except A. Physical therapy B. Occupational injuries C. Cosmetic surgery D. Medical treatment outside the US

A

When underwriting group life insurance the underwriter A. Typically evaluates the group as a whole B. Requires every group member to be recovered C. Evaluate the group of an individual bases D. Requires medical information from each individual

A

Which of the following is NOT true regarding a nonqualified retirement plan? a) It needs IRS approval. b) Contributions are not currently tax deductible. c) It can discriminate in benefits and selecting participants. d) Earnings grow tax deferred.

A

If a term life policy is convertible, that means that at the end of the policy term, the policyowner may convert coverage to a) Another term life policy. b) A whole life policy. c) An annuity. d) A Modified Endowment Contract.

B

Under the affordable care act insurer must offer plan within health insurance exchanges that meet distinct levels of coverages. What metal tier is required to have in it Actuarial value of 70% with covered individuals paying 30% through deductibles, co-pays and other cost sharing features? A. Gold plan B. Silver plan C. Bronze plan D. Platinum plan

B

Which of the following is true regarding the spendthrift clause in life insurance policies? a) It is the same as the irrevocable settlement clause. b) It can protect the policy proceeds from creditors of the beneficiary. c) It allows the beneficiary to select a different settlement option. d) It is only used when the beneficiary is a minor.

B

Which of the following will be eligible for a tax-sheltered annuity? a) The elderly b) Public school teachers c) Military personnel d) Insured's dependents under the age of 21

B

The requirement that agents not commingle insurance monies with their own funds is known as a) Express authority. b) Accepted accounting principal. c) Fiduciary responsibility. d) Premium accountability.

C

Which of the following best describes the aleatory nature of an insurance contract? a) Policies are submitted to the insurer on a take-it-or-leave-it basis. b) Exchange of unequal values c) Only one of the parties being legally bound by the contract d) Ambiguities are interpreted in favor of the insured

B

Which of the following is NOT true regarding the accumulation period of an annuity? a) It is also known as the pay-in period. b) It would not occur in a deferred annuity. c) It is the period during which the annuity payments earn interest. d) It is the period over which the annuitant makes payments into an annuity.

B

A single premium immediate annuity Is MOST often used for A. retirement income. B. children's college expenses. C. mortgage payments. D. vacation expenses.

A

What is the purpose of the policy review when an agent delivers a new life insurance policy to the insured? A.to confirm that the insured understands all aspects of the policy B.to give the agent a chance to sell another policy to the insured C.to allow the insured to return the policy for a refund of the premium D.to permit the parties to revise the policy provisions, terms, and conditions

A

When an accident and health policy requires payment of an additional premium to provide coverage for a newborn, how many days after the birth is the first payment due? A. 60 B. 31 C. 14 D. 10

B

The MAIN difference between occupational coverage and nonoccupational coverage is that occupational coverage A.does not provide full coverage. B. is mainly for those in hazardous occupations. C.covers both on- and off-the-job injuries. D.does not take into account the risks associated with the insured's job.

C

Insurance that is designed to pay the balance of a loan if the Insured dies before the loan has been repaid in full is A. life settlement. B. whole life. C. universal life. D. credit life.

D

According to the Affordable Care Act, an insurer may rescind coverage under a health benefit plan when A.the insured attempts to add more than 3 additional dependents. B.the insured makes an intentional misrepresentation of a material fact. C.an insurer adds benefits to a plan offered on another tier at a comparable price. D.more than 30% of individuals covered under the plan qualify for additional tax credits.

B

In a life settlement contract, who does the life settlement broker represent? a) The insurer b) The owner c) The beneficiary d) The life settlement intermediary

B

In accidental injury insurance, the insurance policy, the endorsements, and any relevant papers attached to the policy make up the: A. Completed application B. Entire contract C. Uniform mandatory policy provisions D. Notice of coverage

B

The Healthy New York Program Is designed to A.provide life insurance to large group employers. B.provide affordable health insurance coverage to small employers. C.generate revenues for New York State Government. D.promote good nutrition in New York State schools.

B

Which of the following is TRUE about credit life insurance? a) The debtor is the policy beneficiary. b) The creditor is the policyowner. c) The debtor is the annuitant. d) The creditor is the insured.

B

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called a) Fixed amount. b) Joint life. c) Joint and survivor. d) Fixed period.

C

Which of the following is not an essential health benefit category under the affordable care act? A. Emergency services B. Laboratory services C. Alternative medicine D. Maternity and newborn care

C

A key person insurance policy can pay for which of the following? a) Costs of training a replacement b) Loss of personal income c) Workers compensation d) Hospital bills of the key employee

A

Individual buying disability is concerned his benefits decrease overtime period which provision would address this? A- Cost of living rider B- inflation rider C- additional monthly benefit D- none of the above

A

Medicaid provides which coverage that Medicare does not? A- Custodial care B- ambulance service C- inpatient psychiatric care D- inpatient hospital service

A

Which is example of presumptive disability? A- Loss of hand B- loss of one foot C- loss of sight D- loss of three toes

C

Which of the following is true about applying for Medicare supplement policy outside open enrollment? A.Coverage will be issued on a guaranteed issue basis B.It is not possible to get coverage after the initial Enrollment period C. Coverage will be issued with longer elimination periods And higher deductibles D. There is no guarantee a company will sell you coverage if you do not meet underwriting guidelines

D

When managing a health insurance plan for group, the insurers administrative cost for each person A- varies among all group members B- equals the cost of insuring each member individually C- is less than the cost of each member was individually insured D- is more than the cost of each member was individually insured

C

Which of the following correctly identifies the favorable income tax treatment afforded to annuities? A- Annual earnings are partially income tax deductible B- annual earnings are partially income tax exempt C- gains are taxed only on distribution D- the entire distribution is taxed at owners rate of taxation

C

Which of the following is a characteristic of conversion from group to permanent life A- Proof of insurability is required B- conversion must be to term C- conversion must be within 31 days of termination D- premium will be for age they were first covered by group

C

Long-term care policies must cover which of the following conditions? A. Alcoholism or drug addiction B. Acts of war while serving in the military C. Self-inflicted injuries D. Alzheimer's disease

D

The settlement option that pays a specified amount to the annuitant but pays no residual value to a beneficiary is known as A- interest only B- installment refund C- Fixed period D- Life income

D

Waiting period for disability insurance is to A- determine illness B- calculate medical expense C- determine payout eligibility D- exclude payments for short term illness

D

Which of the following dividend options will increase the death benefit? A. Guaranteed insurability. B. Accelerated endowment. C. Paid-up additions. D. Extended term.

C

Who bears the investment risk in variable life insurance products? a) FINRA b) The insurer c) The policyowner d) The investment company

C

What pays during the waiting period for government benefits when the insured's income is terminated by illness, sickness, or accident? A- Immediate payment rider B- social insurance supplement C- supplemental compensation rider D- deferred compensation rider

B

When marketing to groups for health insurance, who should be issued a certificate as proof of coverage? A. Sponsor B. Employee C. Employer D. HMO

B

Which is not excluded in a long term care policy? A- Alcoholism B- Alzheimer's C- non cognitive mental disorders D- treatment caused by partial by participation in criminal behavior

B

What is a life settlement contract? A bona fide business succession planning arrangement B an assignment of a policy as collateral for a loan made by a licensed financial institution C The pain of predetermined surrender benefit by the insurer of the policy D. An agreement to pay a policy owner less than The expected death benefit

D

In New York State insurable interest in the life of another person must exist A. At the time the contract is made B. At the time of the claim C. From the effective date to the time of the claim D. Five years after the policy has been in effect

A

In this state a temporary license may be issued for all of the following reasons EXCEPT a) An agent's retirement. b) The death of an agent. c) An agent's disability. d) An agent's time in the military service

A

According to New York law, hearings ordered by the Superintendent must be a) Held at least once a month. b) Attended by at least 2 insurance company representatives. c) Held before a quorum consisting of 10 people. d) Open to the public.

D

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have? a) Universal life b) Adjustable life c) Term life d) Limited pay

A

In an insurance contract, the principle of utmost good faith means a) Each party relies upon the truthfulness of the other. b) The policyowner will be indemnified in case of loss. c) The contract involves only the policyowner and the insurer. d) Each party is equally responsible for the value of the policy.

A

Which of the following correctly identifies the favorable income tax treatment afforded to annuities? A. Annual earnings are partially income tax deductible B. Annual earnings are partially income tax exempt C. Gains are taxed only on distribution D. The entire distribution is taxed at the owner rate of taxation

C

The type of life insurance generally use to cover key employee indemnification are A. Universal, term and whole life insurance B. Joint, permanent, and credit life insurance C. Limited pay, adjustable, and group life insurance D. Decreasing term life insurance

A

Which of the following types of benefits are provided under most long-term care policies? A. A fixed dollar amount for each day of care B. A specific benefit tape based on the type of service rendered C. All physician approved necessary medical expenses D. A fluctuating dollar amount based on duration and type of care provided

A

Mortality is based on a large risk pool of.. A. Income and time B. People and time C. Geographic area and time D. Family history and hobbies

B

Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? a) Lump-sum approach b) Human life value approach c) Needs approach d) Blackout approach

B

A 65-year-old employee who works for an employer with 24 employees is disabled on the job. The employee has fully recovered and returned to work Which health coverage is primary? A.Medicaid B an individual plan C.workers' compensation D.his employer's group plan

D

If term life insurance is renewable the policy owner has the right to renew the policy A with proof of insurability B without an increase in premiums at renewal C for unlimited number of times D without showing proof of insurability

D