insurance test study

If an individual's license has been revoked, how soon can he or she obtain a new license?

After 1 year of the revocation

name 5 examples of qualified plans

IRA 401k HR-10 (Keogh) SEP SIMPLE

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

What is the purpose of the New York State Partnership for LTC?

. It combines LTC insurance and Medicaid to help people prepare for nursing home care.

what are the conciquences of withdrawing money from an IRA prior to age 59 1/2?

10% penalty

Who can make a fully deductible contribution to a traditional IRA?

A single filer with no employer-sponsored retirement plan

the main difference between immediate and deferred annuities is

An immediate annuity begins paying out as soon as the buyer makes a lump-sum payment to the insurer. A deferred annuity begins payments on a future date set by the buyer.

The LEAST expensive first-year premium is found in which of the following policies?

Annually Renewable Term

Which of the following types of agent authority is also called "perceived authority"?

Apparent

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.

Representations are written or oral statements made by the applicant which

Are considered true to the best of the applicant's knowledge

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

Case management provision

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

Contributions made by employers are exempt from federal income and payroll taxes

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.

Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled?

Disability Buy-Sell.

Under a typical health insurance policy, claims that result from injuries while the insured was intoxicated or under the influence of drugs are generally

Excluded.

Agents selling variable life products must be registered with

FINRA, have a securities license, and must be licensed within the state to sell life insurance.

In a direct transfer, how is money transferred from one retirement plan to a traditional IRA?

From trustee to trustee

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?

Hospital Indemnity policy

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 and survivor annuity.

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?

Joint life policies

when can Medicaid estate recovery not take place?

if there s a surviving spouse a child under 21 a child that is blind or permanently disabled states choose when to cancel if it will cause undue hardships

The form used to establish the terms for both parties when a person sells his life insurance policy to a 3rd unrelated person is called a

Life Settlement Contract.

Which of the following programs expands individual public assistance programs for people with insufficient income and resources?

Medicaid

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

Metal level classification.

is an insurance license required for people that aren't involved with the actual sale of insurance?

No

.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?

Open panel

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

Paid-up additions.

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

Plan A

Who guarantees a conventional fully-insured group plan?

The insurer

If an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash value is reduced to nothing.

What is the purpose of a Medicare Carve-out or Supplements?

They act as excess insurance paying those covered expenses not paid by Medicare because of previous disabilities.

In disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the

Waiting or "Elimination" Period

Stranger-originated life insurance policies are in direct opposition to the principle of

insurable interest

Stranger-originated life insurance policies are in direct opposition to the principle of

insurable interest.

what are the activities of daily living? (ADLs)

bathing dressing toileting transferring positions continence eating

Simple plans are available to how many employees

no more than 100

Under which provision can a physician submit claim information prior to providing treatment?

prospective review

what type of plan is a 401k?

qualified profit sharing plan

for a plan to be qualified, who must it benefit most?

the employees

Why is an equity indexed annuity considered to be a fixed annuity?

they have a guaranteed rate of return that cannot change or decrease during the lifetime of your plan.

When must insurable interest exist in a life insurance policy?

At the time of application

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?

Premiums are not tax deductible as a business expense.

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

The beneficiary

Which of the following is NOT a characteristic of a group long-term disability plan?

The benefit can be up to 50% of one's yearly income.

Which of the following statements is TRUE concerning irrevocable beneficiaries?

They can be changed only with the written consent of that beneficiary.

what is the Medicaid estate recovery act?

a program through which a state's Medicaid agency seeks reimbursement of all long term care costs for which it paid for a Medicaid beneficiary

at the very least, states must seek recovery for services provided to the following:

after the death of anyone 55 or older anyone in a medical institution

what is a non resident?

an agent or broker that is registered in a different state but is licensed or authorized to conduct business in New York

When an annuity is written, whose life expectancy is taken into account?

annuitant

What is the purpose of a fixed-period settlement option?

distributes the death benefit plus any earned interest over a specific period of time.

what form of payments must the contributions to a traditional Roth IRA be made?

in cash

the interest earned on policy dividends is

taxable

what does promulgate mean?

to make put, or put into action (laws, court decrees)

What are the 7 types of licenses that are issued by New York?

-Insurance agent -insurance broker -consultant -adjuster -nonresident -temporary

Under the New York State Disability Benefit Law, no employee may be entitled to benefits for more than how many weeks after 52 consecutive calendar weeks or during any one period of disability?

26 weeks

The Superintendent can examine an authorized fraternal benefit society and property/casualty insurance company once every

3 years

The Omnibus Budget Reconciliation Act of 1990 (OBRA) requires that large group health plans must provide primary coverage for disabled individuals under

3. Age 65 who are not retired.

.The annuitant dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

3. The beneficiary will receive the greater of the money paid into the annuity or the cash value.

What is the maximum age for qualifying for a catastrophic plan?

30

A policy with a 31-day grace period implies

31 days before the policy will lapse if not paid on time

Attempting to determine how much insurance a family would require based upon their financial objectives is known as

Human life value approach

Who represents the insured in the investigating of a claim?

Public adjuster

an insured has a heart attack 40 days after his new health insurance policy goes into effect. he has a quadruple bypass surgery and a long hospital stay. as a result the insurer cancels the policy with a written notice 80 days after the effective policy date. which of the following is true?

The insurer is cancelling the insured's policy on illegal grounds. An insurer can cancel a policy within 90 days of the effective coverage date, but it cannot cancel coverage based on a claim that was made prior to cancellation

Agent A offers a prospective client two tickets to a Yankees baseball game with the condition that the client will purchase a family life insurance policy. This practice is known as

rebating

A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as

usual customary and reasonable

which of the following statements is not true regarding business overhead expense policies?

usually limited to 6 months

is survivorship considered second to die?

yes

Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months?

30 months

The Omnibus Budget Reconciliation Act of 1990 (OBRA) requires that large group health plans must provide primary coverage for disabled individuals under

59 1/2

Benefit periods for individual short-term disability policies will usually continue from

6 months to 2 years.

what is the penaltie for excessive contributions to an IRA?

6%

Under the Affordable Care Act, a special enrollment period allows an individual to enroll in a qualified health plan within how many days of a qualifying event?

60 days

According to the Medical Loss Ratio (MLR), what is the minimum percentage of health coverage premium that must be applied to actual medical care in an individual health plan?

80%

what produces evaluations of insurers financial status often used by state departments of insurance?

AM best

Employer contributions made to a qualified plan

Are subject to vesting requirements.

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Automatic premium loan

Which rider, when added to a disability income policy, provides for changes in the benefits payable based on changes in the consumer price index?

Cost of living adjustment rider

Which of the following does NOT have to be disclosed in a long-term care (LTC) policy?

The aggregate amount of premium due ALL LTC policies must disclose and exsplain the renewibility provisions, with regard to life insurance policies that provide an accelerated benefit for (LTC) the policy must include a statement to the effect that receipt of the accelerated benfits may be taxable and that the insured should seek assistance from a personal tax advisor.

what is a long term care policy? (LTC)

provide care for individuals that are no longer able to care for themselves. the must provide for at least 12 months in a setting that isn't a hospital