Simulate Your Exam #1

All of the following are requirements of eligibility for Social Security disability income benefits

Being age 65

Which of the following is TRUE about a class designation?

Beneficiaries are not identified by name.

In terms of renewability, Medicare supplement insurance plans must be

Guaranteed renewable.

At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized?

65

A hospital indemnity policy will pay

A benefit for each day the insured is in a hospital.

Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer's right to change premium amounts?

Continuation provision

The gatekeeper of an HMO helps

Control specialist costs.

When must an IRA be completely distributed when a beneficiary is not named?

December 31 of the year that contains the fifth anniversary of the owner's death.

If a retirement plan or annuity is "qualified," this means

It is approved by the IRS.

Which of the following statements is TRUE concerning the Accidental Death Rider?

It will pay double or triple the face amount.

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

trade organization employment

A small hardware store owner is involved in a car accident that renders him totally disabled for half a year.

Business overhead expense policy

When an insurer offers services like preadmission testing, second opinions regarding surgery, and preventative care, which term would best apply?

Case management provision

According to OBRA, what is the minimum number of employees required to constitute a large group?

100

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

200,000

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated.

The main purpose of ERISA is to ensure that

Employees receive the pension and other benefits promised by their employers.

The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the

Entire contract.

Life insurance death proceeds are

Generally not taxed as income.

The automatic premium loan provision is activated at the end of the

Grace Period

An association could buy group insurance for its members if it meets all of the following requirements EXCEPT

Has at least 50 members.

Your client has a Social Insurance Supplement (SIS) rider on his disability policy. After he becomes disabled, he receives payments from the company. Shortly thereafter, he also begins receiving Social Security benefit payments. Which of the following will happen?

The SIS payment will be reduced dollar-for-dollar by the Social Security benefit payment.

which of the following is true regarding variable annuities?

The annuitant assumes the risk on investment

Which of the following statements about group life is correct?

The cost of coverage is based on the ratio of men and women in the group.

In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?

45 days

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

Acute care in a hospital

Welfare benefits include all of the following EXCEPT

Holiday Pay

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?

50,000

most health insurance policies include all of the following except

Accidental injury

Which of the following is NOT part of the consent form to an HIV-related test given in New York?

Applicant's sexual history

In order for a nonresident licensee to become a resident producer in New York, the licensee must

Apply within 90 days of becoming a resident

What type of health insurance would be used to cover children at a Girl Scout Camp?

Blanket Insurance

Medicaid is sponsored by what kind of sources?

Both state and federal

which of the following types of ltc is not provided in an institutional setting?

Home health care

If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a

Joint life annuity.

All of the following statements concerning Medicaid are correct EXCEPT

Medicaid is a state funded program that provides health care to persons over age 65, only.

To sign up for a Medicare prescription drug plan, individuals must first be enrolled in

Medicare Part A

Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs?

Metal level classification

Regarding the free-look provision, the insurance company

Must allow the policyowner to return the policy for a full refund.

All of the following are factors that an underwriter could use to select and classify risk EXCEPT

National Origin

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

Other-insured rider

Medicare Part A services do NOT include which of the following?

Outpatient Hospital Treatment

When calculating the amount a policyowner may borrow from a variable life policy, what must be subtracted from the policy's cash value?

Outstanding loans and interest

Which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?

Owner's Rights

Which of the following must be present in all Medicare supplement plans?

Plan A

the risk of loss may be classified as

Pure risk and speculative risk

What type of care is Respite care?

Relief for a major care giver

to sell variable life insurance policies, an agent must receive all of the following except

SEC registration

All of the following are beneficiary designations EXCEPT

Specified

Which of the following types of annuities will generally provide the highest monthly income?

Straight life

Which of the following groups would most likely be covered under a blanket accident policy?

Students at a public school

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?

The application was processed without a valid license.

A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid?

The benefits will be coordinated.

How do employer contributions to a Health Savings Account affect the insured's taxes?

The employer contributions are not included in the individual insured's taxable income.

which statement accurately describes group disability income insurance?

The extent of benefits is determined by the insured's income

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21.

Not all losses are insurable, and there are certain requirements that must be met before a risk is a proper subject for insurance. These requirements include all of the following EXCEPT

The loss may be intentional.

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

The name of the primary and secondary beneficiaries

An individual purchased a Medicare supplement policy in March and decided to replace it 2 months later. His history of coronary artery disease is considered a pre-existing condition. Which of the following is true?

The pre-existing condition waiting period fulfilled in the old policy will be transferred to the new policy, the new one picking up where the old one left off.

Which of the following is NOT true of life settlements?

The seller must be terminally ill.

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

Whether an insurable interest exists between the individuals.

Can an individual who belongs to a POS plan use an out-of-network physician?

Yes, and they may use any preferred physician, even if not part of the HMO

Are insurance company underwriters allowed to discriminate?

Yes, but not unfairly

If a business owner becomes totally disabled, a Business Overhead Expense policy will pay all of the following EXCEPT

loss of the owners income

Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis?

Adult day care

All of the following are essential benefits required to be included in all health plans purchased in the Marketplace EXCEPT

Adult dental care.

What documentation grants express authority to an agent? (Choose from the following options)

Agent's contract with the principal

New York law allows for which of the following groups to provide blanket accident and health insurance?

All of the above

The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT

Individual tax deduction for premiums paid.

Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?

Installments for a fixed period

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

Insurer's guaranteed minimum rate of interest

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

Insurers guaranteed minimum rate of interest

Which of the following statements is NOT correct concerning the COBRA Act of 1985?

It requires all employers, regardless of the number or age of employees, to provide extended group health coverage.

A health insurance plan which involves financing, managing, and delivery of health care services and involves a group of providers who share in the financial risk of the plan or who have an incentive to deliver cost effective service, is called

Managed care plan

The Waiver of Cost of Insurance rider is found in what type of insurance?

Universal Life

The main difference between immediate and deferred annuities is

When the income payments begin.

When would a 20-pay whole life policy endow?

When the insured reaches age 100

When is the insurability conditional receipt given?

When the premium is paid at the time of the application

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

Assets

What is the minimum font size for a disclosure statement for a Medicare supplement insurance policy?

12 point

The time limit of certain defenses provision prohibits insurers from denying a claim due to misrepresentation, as long as the policy has been in force for at least

2 years

when a health insurance policy is purchased in the state of new York, the insured may return the policy to the insurer and receive a premium refund within the maximum period of

20 days

A Straight Life policy has what type of premium?

A level annual premium for the life of the insured

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Equal to the original policy for as long as the cash values will purchase.

.If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

Erase the incorrect answer and record the correct answer.

All of the following are true about the insurance Frauds Prevention Act EXCEPT,

Every insurer must file a fraud prevention plan within 150 days.

Which of the following statements is true regarding LTC insurance?

Every policy must offer nonforfeiture benefits to the applicant.

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? (Choose from the following options)1. Extended term2. Fixed amount3. Fixed period4. Life income period certain

Fixed amount

an insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. the insured is still able to perform his current job. to what extent will he receive presumptive disability benefits?

Full benefits