New York Laws and rules
According to the Affordable Care Act, what is the maximum amount an individual can contribute to a Flexible Savings Account? - $500 - $1,500 - $2,500 - $3,500
$2,500
Jermaine's individual health policy has recently lapsed. Upon reinstatement, he must wait ____ days before coverage for illness is available: - 7 - 10 - 14 - 21
10 days
Group accident and health insurance policies issued in New York must generally include an unmarried dependent child who is ____ years old or younger: - 18 - 19 - 20 - 21
19
A life insurance policy becomes incontestable after it has been in force for: - 1 (year) - 2 - 3 - 4
2 years
After a disability policy has been in force for ___ year(s), it is considered incontestable. - 1 - 2 - 3 - 4
2 years
An agents commission for the sale of medicare supplement policy in the first year following its effective date cannot exceed ___ of the commission paid for selling or servicing the policy in the second year. - 100% - 200% - 300% - 400%
200%
Which of the following is NOT an eligible dependent on an Accident and Health policy: - 27 y/o married child - 25 y/o married child - 19 y/o full time student - unmarried disabled child
27 year old married child
Within _____ days after policy delivery, both Medicare Supplement and Long-Term Care policies can be returned for a 100% premium refund: - 15 - 20 - 25 - 30
30 days
An insurer may exclude preexisting conditions on a Medicare Supplement Policy for ____ months: - 6 - 8 - 10 - 12
6
All Agents shall maintain full and correct transaction records of business done by them for a period of AT LEAST - 2 (years) - 4 - 6 - 8
6 years
An insurance consultant is BEST defined as a(n): - agent who charges fees for advice - agent who introduces a policyowner to a 3rd party for a potential sale of a life insurance policy - person who gives motivation seminars to an insurers sales team - individual who underwrites insurance policies
Agent who charged fees for advice
A life settlement intermediary is a(n): - Association which maintains a facility that displays offers and counter offers for purchasers or sellers of life settlement contracts - person, who for a fee, solicits or negotiated a life settlement contract between a policyowner and a life settlement provider - person who enters into a life settlement contract with the policy owner - policyowner who sells his/her life insurance to a third party
Association which maintains a facility that displays offers and counter offers for purchasers or sellers of life settlement contracts
How are health plans classified according to the Affordable Care Act? - 1st tier, 2nd tier, 3rd tier, 4th tier - Bronze, Silver, Gold, Platinum - Standard, above average, good, superior - Plan A, B, C, D
Bronze, Silver, Gold, Platinum
Which of the following is required for the renewal of an agent's insurance license? - passing an examination - college credits - continuing education - pre licensing education
Continuing education
Which of the following is considered to be an act of misrepresentation: - sharing commissions with other licensed producers - replacing an existing policy with a new one - giving back part of a producer's commission as an incentive for a sale - Falsifying the terms, benefits advantages, or conditions of an insurance policy
Falsifying the terms, benefits, advantages, or conditions of an insurance policy
In New York, a long-term care policy must be _____ renewable? - contingently - conditionally - guaranteed - optionally
Guaranteed
An insurer is REQUIRED to offer which of the following to each long-term care applicant at the time of purchase? - lifetime level premiums - conditional renewability - deflation protection - inflation protection
Inflation protection
New York Disability benefits Law provides cash payments to workers unable to work because of. - Injury or illness that occurred on the job - Injuries only that occurred off the job - Illnesses only that occurred on the job - Non work related injuries or illnesses
Injury or illness that occurred on the job
The identity of the ____ must be made clear in every heath insurance advertisement: - governor - insured - insurer - superintendent
Insurer
A life settlement broker is someone who is: - not licensed to negotiate a life settlement option - also considered an attorney - licensed to negotiate a life settlement contract - also considered an accountant
Licensed to negotiate a life settlement contract
John the policy owner sells his life insurance policy to help pay for the cost of his terminal illness. This transaction is called a: - accelerated death benefit - cash value loan - life settlement - nonforfeiture option
Life Settlement
A policyowner and a life settlement provider can have a life settlement negotiated through a(n): - associate settlement purchaser - life settlement broker - registered investor - independent adjuster
Life settlement broker
According to the Affordable Care Act, any plan in existence prior to which date is considered a grandfathered plan? - March 23, 2010 - March 23, 2011 - March 23, 2012 - March 23, 2013
March 23, 2010
An agents secretary who solicits prospects on the telephone: - is an example of the illegal act called twisting - must be bonded through the state - must be licensed as an agent - is not required to be licensed as an agent
Must be licensed as an agent
If an agent is advertising a life insurance policy, the agent MUST disclose the: - insurers AM best rating - name of actual insurer - insurers better business rating - name of the parent company
Name of the actual insurer
All of the following are typically included in a life insurance policy illustration EXCEPT: - premium of policy - names of beneficiaries - interest charged for policy loans - cash surrendered value in 20 years
Names of the beneficiaries
When replacing a life insurance policy, an agent must provide the applicant with a: - notice regarding replacement - notice regarding reinstatement - notice regarding reduction - notice regarding retention
Notice Regarding Replacement
An agent who sells an individual life insurance policy in New York MUST deliver to the policyowner a(n): - AM best rating - financial report from the previous year - policy summary and buyers guide - letter showing NAIV compliance
Policy summary and Buyers guide
Replacement regulation is designed to protect - insurers - policyowners - beneficiaries - agents
Policyowners from misrepresentations and loss of benefits
A life insurance agent is required to give a disclosure notice about information practices to an applicant or proposed insured: - after the insurer requests a full medical exam - when the insurer requests an attending physicians report - prior to or at the time of signing the application - at time of policy delivery
Prior to or at the time of signing the application
Insurance agent Kelly offers a prospect a $1,000 shopping card if an insurance policy is purchased through her. What illegal activity is this an example of? - defamation - twisting - rebating - coercion
Rebating
An agent license is not required when: - selling insurance - referring insurance - negotiating insurance - soliciting insurance
Referring insurance
Long-term care policies sold in New York may NOT exclude coverage for: - substance abuse - self-inflicted injuries - acts of war - senile dementia
Senile dementia
Carol filled out a life insurance application and was given a policy illustration that showed future premiums being paid out of non guaranteed values. This illustration Must disclose that: - the premiums will never increase - dividends are guaranteed - she will no longer be obligated to continue premium payments after a minimum of cash value accrues - she may need to resume premium payments, depending on actual results
She may need to resume premium payments, depending on actual results
According the the affordable care act (ACA), what metal tier is required to have an actuarial value of 70% with covered individuals paying 30% through deductibles, co-pats, and other cost sharing features? - bronze plan - silver plan - gold plan - platinum plan
Silver plan
An agent has recently died and leaves behind a spouse. In order for the agents business to continue, the superintendent may issue to the agents spouse an: - permanent insurance license - temporary insurance license - interim insurance license - supplementary insurance license
Temporary insurance license
When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement? - the head underwriter - the applicant only - the agent only - the agent and the applicant
The agent and the applicant
Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status? - the insurer applies a lifetime dollar limit on essential health benefits - the insurer does not Re-apply for grandfathered status - the insurer raises premiums across the board by 50% - the insurer significantly raises co-insurance charges, deductibles, or co-payment charges
The insurer significantly raises co-insurance charges, deductibles, or co-payment charges
Life insurance replacement can be best defined as: - converting existing term coverage to a permanent policy - a transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered - accepting a reduced paid-up policy - reducing the face value of an existing policy
a transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered
The ______ is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant: - agent - underwriter - applicant - insurer
agent
Which of the following is included in the entire contract according to the entire contract provision? - investigative report - occupational rating - clauses - application
application
Which of the following is NOT considered to be an act of fraud: - collecting a premium for insurance that is not provided - collecting a charge for insurance that is less than the charge applicable to that insurance - Misappropriate or unreasonably withhold premiums or returned premiums - Willfully collecting a premium that exceeds the amount of the actual premium
collecting a charge for insurance that is less than the charge applicable to that insurance
John the agent made public statements that falsely portrayed an insurer as insolvent. John would be likely found guilty of - twisting - defamation - rebating - coercion
defamation
A client told an intentional lie to an insurer in order to receive a favorable premium. This is an example of: - rebating - boycotting - fraud - misrepresentation
fraud
Who is required to notify the agent in the event of appointment termination: - insurer - Superintendent - governor - Attorney General
insurer
When an agent is determining the suitability of an annuity for a client, which of these is NOT usually taken into consideration: - financial experience - annual income - age - number of dependents
number of dependents
Suitability is best described as: - converting a term policy to a whole life policy - obtaining info from the applicant to determine whether an insurance or annuity product is appropriate - properly applying the insurers underwriting guidelines to an applicant - delivering the Buyers Guide and Policy Summary to the applicant
obtaining information from the applicant to determine whether an insurance or annuity product is appropriate
All Health Benefit Plans issued after January 1, 2014 must provide - long-term care - dental care - adult vision - preventative health services
preventative health services
An example of endodontic treatment is a - bridge - crown -filling - root canal
root canal
Under the affordable care act, a large employer that does NOT provide health insurance and owes an employer mandate penalty must pay an annual penalty, which is calculated by multiplying $2,000 by - the # of full time employees minus 20 - the # of full time employees minus 30 - the # of subsidized employees minus 10 - the total # of full time employees
the number of full time employees minus 30