NY Life and Health

Guaranteed

A new employee who meets HIPAA eligibility requirements must be issued health coverage on what basis? Nondiscriminatory Indemnity Guaranteed Noncancellable

100

According to OBRA, what is the minimum number of employees required to constitute a large group? 50 100 15 20

No documentation

A 37-year-old owns a policy with a Guaranteed Insurability Rider. The policyowner would like to increase the benefit amount offered by the policy. What documentation will be required? Medical records Attending physician's report No documentation Proof of insurability

The amount of the distribution is reduced by the amount of a 20% withholding tax.

A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? The amount of the distribution is reduced by the amount of a 20% withholding tax. No taxes are due since the plan participant is over age 59 1/2. There is a 10% early withdrawal penalty. The amount distributed is subject to ordinary income tax.

Guaranteed and Current.

A Universal Life insurance policy has two types of interest rates that are called Option A and Option B. Fixed and Variable. Minimum and Target. Guaranteed and Current.

40

A candidate for a life and health agent license would need to complete how many hours of prelicensing education? 20 40 50 90

Costs of training a replacement

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

Cost of Living Rider

A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change? Value Adjustment Rider Return of Premium Rider Inflation Rider Cost of Living Rider

Immediate annuity

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits? Deferred interest annuity Immediate annuity Variable annuity Flexible payment annuity

If the primary beneficiary predeceases the insured

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit? If the primary beneficiary predeceases the insured The primary and contingent beneficiaries share death benefits equally With the primary beneficiary's written consent If the insured died from accidental means

Pay the death benefit

An insured purchases a policy in 2008 and died in 2013. The insurance company discovers at that time that the insured concealed information during the application process. What can they do? Sue for the right to not pay the death benefit Pay the death benefit Refuse to pay the death benefit because of the fraud Pay a decreased death benefit

Cash option

An insured receives an annual life insurance dividend check. What term best describes this arrangement? Reduction of Premium Annual Dividend Provision Accumulation at Interest Cash option

Predicted needs of the family after the insured's death.

Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Insured's annual expenses. Effect of inflation on income over time. Predicted needs of the family after the insured's death. Insured's current and future income.

$50,000

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? $5,000 $7,500 $10,000 $50,000

Live at least to his life expectancy.

If an annuitant selects the straight life annuity settlement option, in order to receive all of the money out of the contract, it would be necessary to Name another annuitant. Live at least to his life expectancy. Die before his life expectancy. Name a beneficiary.

20 employees.

COBRA applies to employers with at least 50 employees. 20 employees. 80 employees. 60 employees.

Settlement option.

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a Rollover. Settlement option. Nontaxable exchange. Nonforfeiture option.

Suitability.

Insurance producers must ensure that contracts they recommend are in the best interest of the insured. This is called Approval. Underwriting. Suitability. Client protection.

Residual disability

Disability income policies can provide coverage for a loss of income when returning to work after recovering from total disability. What is the name of this policy? Income replacement Residual disability Recurrent disability Partial disability

Seek higher returns.

Equity indexed annuities Are more risky than variable annuities. Are security instruments. Invest conservatively. Seek higher returns.

2 plans

Every small employer carrier must actively offer to small employers at least how many health benefit plans? One plan 2 plans 3 plans There is no minimum.

Tax deductible.

For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are Partially tax deductible depending on the income level. Tax deductible. Deducted based on the income level. Never tax deductible.

By their members - authorized insurers

How are state Insurance Guaranty Associations funded? By the Department of Insurance By NAIC By the Government By their members - authorized insurers

Agree to follow the PPO standards and charge the appropriate fees.

How can a new physician be added to the PPO's approved list? Pay an annual fee for being on the PPO list. New physicians are only added once a year, and are selected by the PPO's Board of Directors. Agree to follow the PPO standards and charge the appropriate fees. Fill out the appropriate paperwork and wait the 12 month pre-certification period.

The primary care physician refers the member.

How does a member of an HMO see a specialist? The member is allowed to choose his or her own specialist. The primary care physician refers the member. The insurer chooses the specialist. HMOs do not cover specialists.

Small employer

If a firm has 50 employees at the point it applies for health coverage, what is its classification? Participating plan Large group Small employer Partnership

Business Continuation

Joe, Larry, and Curly own a small business. They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two will be able to buy the partner's shares. Which term best describes this arrangement? Business Continuation Shares Distribution Business Partner Disability Provision Buy-up Distribution

Life settlements

Life expectancy is used in the calculation of which of the following? Cash values Extended term Dividends Life settlements

The Superintendent of Insurance

Life settlement contracts must be approved by which of the following? The state's attorney general The Superintendent of Insurance The policyowner The NAIC

Income assistance for work-related injury.

Medicaid provides all of the following benefits EXCEPT Eyeglasses. Family planning services. Income assistance for work-related injury. Home health care services.

Accidental injury.

Most health insurance policies exclude all of the following EXCEPT Intentional injury. Injury due to war. Accidental injury. Occupational injury.

Attending physician

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care? Licensed practical nurses Community-based organization professionals Attending physician Registered nurses

50 or more.

One of the differences between group underwriting and individual underwriting is that there is little or no medical information required regarding plan participants in groups of 25 or more. Fewer than 50. 50 or more. 100 or more.

During the open enrollment period

Other than for a qualified life event, when can a change be made in benefits for a Flexible Spending Account (FSA)? Within 3 months of the cause of the change No changes can be made once the policy is issued During the open enrollment period At any time as necessary

Address of his principal office

Steven prints a pamphlet to advertise his life insurance business. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. What else must he include? There is nothing else that Steven must include. List of his credentials as a producer State licensing information Address of his principal office

Insurable interest.

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

The individual mandate.

The Affordable Care Act requires all U.S. citizens and legal residents to have qualifying health care coverage. This is known as The Insurance Marketplace. Safe Harbor mandate. Special enrollment. The individual mandate.

The IRS.

The annual contribution limit of a Dependent Care Flexible Spending Account is set by The insured. The IRS. The employer. The insurer.

Convertible Term Policy.

The type of policy that can be changed from one that does not accumulate cash value to the one that does, is a Whole Life Policy. Convertible Term Policy. Renewable Term Policy. Decreasing Term Policy.

High-deductible health plan.

To be eligible for a Health Savings Account, an individual must be covered by a Nonqualified plan. Health plan with no deductible. High-deductible health plan. Low-deductible health plan.

18 months

To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan? 5 years 12 months 63 days 18 months

HR-10 (Keogh Plan).

Two attorneys at law and 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 403(b) plan. 401(k) plan. HR-10 (Keogh Plan). Section 457 Deferred Compensation Plan.

60 days.

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? 10 days 30 days 60 days 90 days

100%

Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing? 25% 50% 80% 100%

Respond to the consumer's complaint.

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must Defend the report if the agency feels it is accurate. Change the report. Send an actual certified copy of the entire report to the consumer. Respond to the consumer's complaint.

7 days

Under the New York State Disability Benefit Law, for an employed individual, disability benefits will be payable after a waiting period of 60 days. 3 days. 7 days. 31 days.

Health care accounts and Dependent care accounts

What are the 2 types of Flexible Spending Accounts? Medical savings accounts and Dependent care accounts Medical savings accounts and Health reimbursement accounts Health care accounts and Dependent care accounts Health care accounts and Health reimbursement accounts

20%

What is a penalty tax for nonqualified distributions from a health savings account? 8% 10% 12% 20%

Third-party administrator

What is another name for an Administrative-Services Only arrangement? Third-party administrator A modified fully insured plan Modified endowment contract Self-funding

25%

What is the maximum amount of coinsurance in New York's major medical plans? 25% 35% 40% 50%

Discriminating in benefits and coverages based on the insured's habits and lifestyle

Which of the following will NOT be considered unfair discrimination by insurers? Assigning different risk classifications to applicants based on gender identity Discriminating in benefits and coverages based on the insured's habits and lifestyle Charging applicants with similar health histories different premiums based on their ethnicity Cancelling individual coverage based on the insured's marital status

An insurer's officer

Which of the following would NOT be considered an insurance producer? An insurance broker A reinsurance intermediary An insurance agent An insurer's officer

An application on which the medical information is completed by the applicant and the agent only

Which of the following would be considered a nonmedical insurance application? An application on which the medical information is completed by the applicant and the agent only An application that does not ask any questions about the applicant's medical history An application submitted with the Agent's Report Any application for life insurance

A salaried employee who advertises and solicits insurance

Which of the following would be required to be licensed as an insurance producer? An insurance company director who performs executive, administrative and managerial duties A salaried employee who advertises and solicits insurance A person whose activities are limited to producing insurance advertisements A salaried full-time employee who furnishes information for group insurance

Target premium

Which of the following would help prevent a universal life policy from lapsing? Corridor of insurance Target premium Face amount Adjustable premium

1035 exchange.

A policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. This nontaxable transaction is called Premature distribution. Rollover. 1035 exchange. Qualified distribution.

Limited Policy Notice

A policyowner is reading a statement on the first page of his health insurance policy, which says "this is a limited policy." What is the name of this statement? Policy Limitation Notice Statute of Limitations Limited Benefit Statement Limited Policy Notice

Revocable beneficiary.

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the Primary beneficiary. Irrevocable beneficiary. Revocable beneficiary. Secondary beneficiary.

Other-insured rider

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the Other-insured rider. Change of insured rider. Juvenile rider. Payor rider.

The application was processed without a valid license.

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 spouse's license had expired. The application is valid as submitted. The application was processed without a valid license. The application is not valid as submitted.

Certain groups of employees only.

A tax-sheltered annuity is a special tax-favored retirement plan available to Certain age groups only. Certain groups depending on factors such as race, gender, and age. Certain groups of employees only. Anyone.

The Insurance Guaranty Association.

According to the Coordination of Benefits (COB) provision in health insurance in this state, if insurer overpaid on a claim, the insurer may recover the excess from all of the following EXCEPT Another organization involved in the claim. The person to whom the benefit has been paid. The Insurance Guaranty Association. The other insurer.

Death of a spouse

According to the Future Increase Option Rider (FIO), which of the following is NOT a qualifying event to increase an insured's benefit level? Birth of a child Death of a spouse Age 40 Marriage

Risks with higher probability of loss seeking insurance more often than other risks.

Adverse selection is a concept best described as Underwriters slanting the odds in favor of the company. Poor choices of applicants to be covered. Only offering coverage to good risks. Risks with higher probability of loss seeking insurance more often than other risks.

The interest is not taxable since it remains inside the insurance policy.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT The annual dividend is retained by the company. The interest is credited at a rate specified by the policy. The policyholder has the right to withdraw the accumulations at any time. The interest is not taxable since it remains inside the insurance policy.

Specified.

All of the following are beneficiary designations EXCEPT Primary. Specified. Tertiary. Contingent.

Funding against general company financial loss.

All of the following are business uses of life insurance EXCEPT Funding business continuation agreements. Funding against general company financial loss. Compensating executives. Funding against financial loss caused by the death of a key employee.

Preventive services.

All of the following are considered to be supplemental benefits under an HMO plan EXCEPT Prescription drugs. Preventive services. Long-term care. Mental health care.

Adult dental care.

All of the following are essential benefits required to be included in all health plans purchased in the Marketplace EXCEPT Pediatric vision care. Adult dental care. Hospitalization. Maternity care.

Being age 65.

All of the following are requirements of eligibility for Social Security disability income benefits EXCEPT Fully insured status. Waiting period of 5 months. Being age 65. Inability to perform any gainful work.

Coverage applies both on and off the job.

All of the following are true about group disability Income insurance EXCEPT The longer the waiting period, the lower the premium. Coverage applies both on and off the job. Benefits are usually short term. The waiting period starts at the onset of the injury or sickness.

It can be distributed through a life insurance policy.

All of the following are true in regards to 24 Hour Coverage EXCEPT It can be distributed through a life insurance policy. Employees are covered around the clock. It reduces litigation concerning cause of injury or disease. Gaps in coverage are reduced as employees have both occupational and nonoccupational policies.

The Guaranty Association.

All of the following entities regulate variable life policies EXCEPT The SEC. The Insurance Department. The Guaranty Association. Federal government.

They cover the cost of extended nursing home care.

All of the following statements about Medicare supplement insurance policies are correct EXCEPT They cover the cost of extended nursing home care. They cover Medicare deductibles and copayments. They supplement Medicare benefits. They are issued by private insurers.

Benefits are paid to the borrower's beneficiary.

All of the following statements are correct regarding Credit Life Insurance EXCEPT Benefits are paid to the borrower's beneficiary. The amount of insurance permissible is limited per borrower. Premiums are usually paid by the borrower. Benefits are paid to the creditor.

It is a life contingency option.

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

Employer contributions are not tax deductible.

All of the following statements are true regarding tax-qualified annuities EXCEPT Tax accumulation is deferred. They must be approved by the IRS. Withdrawals are taxed. Employer contributions are not tax deductible.

Taxation on accumulation

All of the following would be different between qualified and nonqualified retirement plans EXCEPT IRS approval requirements Taxation on accumulation Taxation of withdrawals Taxation of contributions

There will be a tax.

An HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense. Which of the following is true? There will be a 20% penalty. There will be a tax. There will be no taxes and no penalties. There will be a tax and a 20% penalty.

At the time of application or upon delivery of the policy

At what point must an Outline of Coverage be delivered? At any point up to 30 days after policy delivery At the time of application only Upon delivery of the policy only At the time of application or upon delivery of the policy

Reciprocity

An agent in another state wants to become an agent in New York. The other state gives the same privileges to New York agents wanting to be licensed in that state as it does its own agents. New York, therefore, extends the privileges of its agents to the prospective agent of the other state. What is this called? Equanimity Reciprocity Equality Fair exchange

Warn the applicant about the 10-day free-look period.

An agent is completing an application for a long-term care policy. The agent is required to do all of the following EXCEPT Provide the applicant with the Outline of Coverage. Ask where the applicant has another LTC policy in force. Warn the applicant about the 10-day free-look period. Make sure the policy is appropriate for the applicant's needs.

Suspension of license

An agent misrepresents the details of an insured's new insurance contract that will be replacing the current contract. Which of the following will most likely happen? Reduction in commissions Suspension of license Charges of fraud against the agent Annulment of the policy

Rebating

An agent who gives special favors or advantages in dividends or other benefits is guilty of Twisting. Defamation. Misrepresentation. Rebating.

Adjustment in the death benefit

An applicant for insurance misstates her age at the time her life insurance application is taken. This misstatement may result in Adjustment in the death benefit. No change. Automatic lapse. Recession of the policy.

$102

An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage? $25.50 $100 $102 $25

The insured may choose to convert to term or permanent individual coverage.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? The insured may choose to convert to term or permanent individual coverage. The insured would not need to prove insurability for a conversion policy. The insured may convert coverage to an individual policy within 31 days. The premium for individual coverage will be based upon the insured's attained age.

$8,000, 60 days

An employee quits her job where she has a balance of $10,000 in her qualified plan. The balance was paid out directly to the employee in order for her to move the funds to a new account. If she decides to rollover her plan to a Traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax-free rollover? $10,000, 30 days $8,000, 60 days $8,000, 30 days $10,000, 60 days

The insurer will pay the full death benefit from the group policy to the beneficiary.

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen? The insurer will pay nothing because the employee has terminated his group insurance and hasn't started the individual one. The insurer will pay the full death benefit from the group policy to the beneficiary. The insurer will pay a reduced death benefit to the beneficiary. The insurer will pay the death benefit minus one month's premium.

A firm who acts on behalf of the insurer

An independent adjuster may include which of the following? Attorney at law A firm who acts on behalf of the insurer Officer, director or regular salaried employee of an insurer Adjustment bureau or association owned by the insurers

The date of medical exam

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date? The date of policy delivery The date of issue The date of application The date of medical exam

Guaranteed renewable option

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? Dividend options Guaranteed renewable option Nonforfeiture options Guaranteed insurability option

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.

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? Because this is a new policy, the pre-existing condition waiting period starts over. 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. Coronary artery disease coverage will be permanently excluded from the new policy. In replacement, pre-existing conditions must be waived, so sickness relating to coronary artery disease will be covered upon the policy's effective date.

On the agent's birthday every odd-numbered year

An insurance agent was born in 1973. He obtained his New York insurance license in 2008. When will the agent's license expire? Every 2 years on the license issue date On the agent's birthday every odd-numbered year January 1st every even-numbered year Every year on the license issue date

3%

An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minimum interest is set at 3%. During an economic downswing, the investments only drew 2.5%. What interest rate will the insurer pay to its policyholders? 3% regardless of what the investment draws since that's the guaranteed rate 2.5% 3% 3% this payment. The overpayment this time will be subtracted from the next time the rate exceeds 3%.

Donut hole

An insured has Medicare Part D coverage. He has reached his initial benefit limit and must now pay 50% of his prescription drug costs. What is the term for this gap in coverage? Donut hole Bridge Blackout period Latency period

The insurer is cancelling the insured's policy on illegal grounds.

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 must pay a small benefit amount. The insured must now pay all of the costs related to his heart attack and find a new insurer. The insurer waited too long to cancel the coverage. The insurer is cancelling the insured's policy on illegal grounds.

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies. The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive. The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid over time. The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first beneficiary dies.

Full benefits

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 for 2 years No benefits Full benefits Partial benefits

Medical Reimbursement Benefit.

An insured severely burns her hand, but is not classified as disabled. Which of the following types of coverage would cover at least a portion of the insured's medical expenses? Accidental Death & Dismemberment Partial Disability Medical Reimbursement Benefit Medical Expense Compensation

Relation of earnings to insurance

An insurer is preparing to pay disability income benefits to an insured. In order to prevent overinsurance, the insurer monitors the income of the insured before submitting payment. Which rule corresponds to this behavior? Income tracking Income monitoring phase Relation of earnings to insurance Overinsurance prevention

Yes, but not unfairly

Are insurance company underwriters allowed to discriminate? Yes, but only for gender Yes, but not unfairly No, higher risks pay higher premium No, discrimination is an unfair practice

65

At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized? 55 59 1/2 62 65

Nothing

If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare? Apply for coverage through the state Appear for a physical at the Social Security office Apply at a local Social Security office Nothing

An unfair trade practice.

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered An unfair trade practice. A misrepresentation. A required disclosure. A legal representation of the Association.

At least 3 years

If compensation is authorized, it must be made in writing, including the amount of compensation and signed by the person to be charged. How long must a copy of this record be kept? At least 3 years At least 5 years At least 1 year At least 2 years

60 days

If the insurance provided on an individual ceases because of termination of employment or of membership in the class eligible for coverage, the individual will be entitled to have an individual life policy issued without evidence of insurability, if application is made within what time period after termination? 10 days 31 days 60 days 90 days

More expensive.

In a POS plan, benefits for covered services when self-referring (without having your primary care physician arrange for the service) are generally Self-referral is not allowed. More expensive. Less expensive. The same cost.

The contribution is known and the benefit is unknown.

In a defined contribution plan, The benefit is known and the contribution is unknown. The contribution and the benefit are unknown. The contribution and the benefit are known. The contribution is known and the benefit is unknown.

From trustee to trustee

In a direct rollover, how is the money transferred from one plan to the new one? From the original plan to the original custodian From trustee to trustee From trustee to the participant From the participant to the new plan

The beneficiary.

In a group life insurance policy, the employer may select all of the following EXCEPT The type of insurance. The amount of insurance. The premium payor. The beneficiary.

Assets.

In a replacement situation, all of the following must be considered EXCEPT Assets. Benefits. Limitations. Exclusions.

5 years.

In addition to examinations that are specifically authorized by the Insurance Code, the Superintendent may examine each domestic life insurer as often as it is deemed necessary for the protection of the consumers. The Code requires examination of domestic life insurers every 3 years. 4 years. 5 years. 2 years.

No tax

In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received? State income tax No tax Policy tax Federal income tax

Broader in general.

In comparison to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide a coverage that is More limited in general. More limited in duration. Broader in duration. Broader in general.

Elimination period.

In disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as the Qualification period. Enrollment period. Probationary period. Elimination period.

Handling insurer funds in a trust capacity.

In insurance transactions, fiduciary responsibility means Being liable with respect to payment of claims. Commingling premiums with agent's personal funds. Handling insurer funds in a trust capacity. Maintaining a good credit record.

Occasional nursing or rehabilitative care

In long-term care insurance, what type of care is provided with intermediate care? Occasional nursing or rehabilitative care Nonmedical daily care Daily care, but not nursing care Intensive care

Apply within 90 days of becoming a resident.

In order for a nonresident licensee to become a resident producer in New York, the licensee must Pass a written exam. Apply within 90 days of becoming a resident. Wait 6 months and close out all existing business. Fulfill New York's prelicensing requirements.

12 months.

In order to collect Social Security disability benefits, the claimant must be able to demonstrate that the disability will last at least 24 months. Until age 65. For life. 12 months.

Conservative investments like bonds

In reference to fixed annuities, what comprises most of a life insurance company's general account? Conservative investments like bonds Aggressive stocks and bonds Company stock S&P 500 index

All providers will have the same coverage options and conditions for each plan.

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean? All plans must include basic benefits A-N. Coverage options and conditions are developed for average individuals. All providers will have the same coverage options and conditions for each plan. Coverage options and conditions comply with the law, but will vary from provider to provider.

An agent's retirement.

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

In an institutional setting

In which of the following locations would skilled care most likely be provided? At a physician's office In an institutional setting At the patient's home In an outpatient setting

Before her death, a 23-year-old was living in a long-term nursing facility paid for with Medicaid funds

In which of the following scenarios will repayment of funds take place per the Medicaid Estate Recovery Act? Before her death, a 23-year-old was living in a long-term nursing facility paid for with Medicaid funds A Medicaid recipient is survived by his wife The 22-year-old son of a Medicaid recipient is blind The mother of a 10-year-old died after receiving 8 months of Medicaid payments

A mutual insurer.

Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is A fraternal insurer. A stock company. A mutual insurer. A reciprocal company.

Insurance companies from adverse selection by high risk persons.

The Medical Information Bureau (MIB) was created to protect Medical examiners that perform insurance physical examinations. Insurance companies from adverse selection by high risk persons. Insurance departments from lawsuits by policyowners. Insureds from unreasonable underwriting requirements by the insurance companies.

Annually on or before March 1st.

The New York Superintendent has the responsibility to make sure each entity transacting insurance in this state remains solvent. Insurers are required to file a statement with the Superintendent Semiannually on or before January and June 1st. Every 2 years by the renewal date. Annually on or before March 1st. Biannually on or before April 1st.

15% of the agent's annual commission is from business sold to the agent's family.

The Superintendent will not renew an agent or broker's license upon finding that the license has been used to write controlled business. Which of the following would be a violation of controlled business practices? 5% of the agent's annual commission is from policies sold to the agent's business associates. 40% of the agent's commission in the last month comes from business sold to friends and family members. 15% of the agent's annual commission is from business sold to the agent's family. 25% of the agent's commissions come from policies sold to one client.

Income at the time of the application.

The amount of disability benefits that an insured receives often depends upon the insured's Income at the time of the application. Marital status at the time of the application. Number of children at the time of the application. Medical history at the time of the application.

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? As of the first of the month after the policy issue As of the policy issue date As of the application date As of the policy delivery date

Control specialist costs.

The gatekeeper of an HMO helps Determine who will be allowed to enroll in an HMO program. Prevent double coverage. Determine which doctors can participate in an HMO plan. Control specialist costs.

$100,000

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive? $0 $50,000 (50% of the policy value) $100,000 $300,000 (triple the amount of policy value)

Net premium plus expenses.

Which of the following best describes gross annual premium? Expense premium Net premium plus expenses Annual loading Basic insurance rate plus commissions

The method of premium payment.

The insuring clause of a disability policy usually states all of the following EXCEPT The method of premium payment. The identities of the insurance company and the insured. That insurance against loss is provided. The types of losses covered.

Incontestability clause.

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the Incontestability clause. Reinstatement clause. Insuring clause. Misstatement of Age clause.

Need.

The primary eligibility requirement for Medicaid benefits is based upon Need. Whether the claimant is insurable on the private market. Age. Number of dependents.

Control health insurance claims expenses.

The purpose of managed care health insurance plans is to Control health insurance claims expenses. Provide for the continuation of coverage when an employee leaves the plan. Provide access to the largest number of physicians as possible. Coordinate benefits.

The producer

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom? The applicant The producer The beneficiary of the applicant The insurance company

Favorable tax treatment.

What is the advantage of having a qualified annuity? Higher dividends Favorable tax treatment No filing with the IRS Receiving a lump-sum settlement tax free

It has the highest amount of insurance protection.

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

It allows employers with low claims experience to get lower premiums.

What is the benefit of experience rating? It helps employers with high claims experience to get group coverage. It helps employees with low claims experience to become exempt from group premiums. It allows employers with high claims experience to obtain insurance. It allows employers with low claims experience to get lower premiums.

Common Disaster Clause

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident? Nonforfeiture Clause Common Disaster Clause Spendthrift Clause Settlement Clause

Early detection through regular checkups

What is the goal of the HMO? Limiting the deductibles and coinsurance to reduce costs Providing health services close to home Early detection through regular checkups Providing free health services

$5,000

What is the maximum fine for violating a cease and desist order? $5,000 $10,000 $1,000 $2,500

$2500

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? Revocation of license $2,500 $1,000 $100 per violation

As long as the policy is in force

What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application? 90 days after the effective policy date 6 months after the effective policy date 1 year after the effective policy date As long as the policy is in force

1 year

What is the maximum period that an insurer would pay benefits in accordance with an Additional Monthly Benefit rider? For the duration of the disability or the contract, depending on which ends first 1 month 1 year 2 years

They pay deductibles or copayments that are not paid by Medicare.

What is the purpose of a Medicare Carve-out or Supplements? They pay deductibles or copayments that are not paid by Medicare. They act as replacement insurance for Medicaid. They pay for excess expenses not paid by Medicare because of pre-existing conditions. They act as excess insurance paying those covered expense not paid by Medicare because of previous disabilities.

To lessen the risk of financial loss because of the death of a key employee

What is the purpose of key person insurance? To insure retirement benefits are available to all key employees To maintain an account that insures the owner of a company remains solvent To lessen the risk of financial loss because of the death of a key employee To provide health insurance to the families of key employees

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

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. It provides permanent in home nursing care for those who qualify, meeting age and health requirements. It provides public health care for children. It provides Medicaid for people too young to qualify.

6 months

What is the waiting period on a Waiver of Premium rider in life insurance policies? 30 days 3 months 5 months 6 months

Cash value

What limits the amount that a policyowner may borrow from a whole life insurance policy? Amount stated in the policy Face amount Cash value Premiums paid

Grace period

What required provision protects against unintentional lapse of the policy? Assignment Payment of premiums Reinstatement Grace period

Open panel

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? Indemnity contract Open panel Closed panel Restrictive rights

Basic Coverage Benefit Plan

What type of benefit plan is a managed plan that is developed in conjunction with the Health Benefit plan committee? Catastrophic Coverage Benefit Plan Small Employee Carrier Plan Open Care Plan Basic Coverage Benefit Plan

Visits by a registered nurse

What types of services may NOT be provided under the long-term care's assisted living care? Linens and personal laundry service Assistance with dressing and bathing Reminders regarding medication Visits by a registered nurse

Claims will be paid as contracted provided the proof is furnished as soon as possible.

What will happen if it is impossible for an injured insured to produce proof of disability in the time specified in a contract that provides disability benefits? After the deadline, benefits will be reduced by a percentage every week proof is not furnished. Claims will be paid as contracted provided the proof is furnished as soon as possible. The insured must submit to a doctor's examination before benefits will be paid. The insurance company has the right to cancel the policy.

20 days.

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 10 days. 20 days. 30 days. 90 days.

Lower the insured's premium.

When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would Lower the insured's premium. Shorten the contestability period. Eliminate pre-existing conditions. Help him meet a sales quota for that period.

Remain on the group health insurance plan and defer eligibility for Medicare until retirement

When an employee is still employed upon reaching age 65 and eligibility for Medicare, which of the following is the employee's option? Enroll in Medicare when eligible; otherwise, Medicare benefits will be forfeited. Wait until the next birthday to enroll Remain on the group health insurance plan and defer eligibility for Medicare until retirement Enroll in Medicare, while the company must provide additional retirement benefits

For 31 days.

When an employee terminates coverage under a group insurance policy, coverage continues in force For 60 days. Until the employee can obtain coverage under a new group plan. Until the employee notifies the group insurance provider that coverage conversion policy is issued. For 31 days.

When the premium is paid at the time of application

When is the insurability conditional receipt given? After the application has been approved and the premium has been paid When an insured individual needs to obtain an insurability receipt for tax purposes. If the application is approved before the premium is paid When the premium is paid at the time of application

At least 60 days before the license expires

When must agents submit license renewal applications to the Superintendent? Within 10 business days of their birthdays At least 60 days before the license expires By the last day of February of every year At least 30 days before the anniversary of the day they received their licenses

A statement of good health

When the policy premium wasn't submitted with the application, what should the agent obtain from the insured upon policy delivery? A unilateral contract A statement of good health A medical report A conditional contract

Option A

Which Universal Life option has a gradually increasing cash value and a level death benefit? Term insurance Option B Option A Juvenile life

Disability Buy-Sell

Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled? Disability Buy-Sell Proprietary Transfer Absolute assignment Transfer of Ownership

Income lost by the insured's inability to work

Which benefits would a disability plan most likely pay? Medical expenses associated with a disability Income lost by the insured's inability to work Rehabilitation costs Copayments

Outline of Coverage

Which document helps ensure that full and fair disclosure is provided to the recipient of a policy? Policy Summary Statute of Limitations Outline of Coverage Benefit Limitations

Indemnity

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? Stop-loss Consideration Reasonable expectations Indemnity

Reduced paid-up

Which nonforfeiture option provides coverage for the longest period of time? Paid-up option Accumulated at interest Reduced paid-up Extended term

Payment is limited to a certain period of time.

Which of the following applies to partial disability benefits? An insured is entitled to a principal sum benefit for the partial loss of a limb. Payment is based on termination of employment. Benefits are reduced once an insured is no longer under a doctor's care. Payment is limited to a certain period of time.

Subscribers

Which of the following are responsible for making premium payments in an HMO plan? Insureds Payors Subscribers Producers

It is level term insurance.

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

Life with Guaranteed Minimum will pay the remaining principal to the beneficiary.

Which of the following best describes the difference between Pure Life and Life with Guaranteed Minimum settlement options? In Life with Guaranteed Minimum, payments can be made in installments. Pure Life guarantees to pay out all the proceeds. Pure Life is not a life contingency option. Life with Guaranteed Minimum will pay the remaining principal to the beneficiary.

The amount of contributions made by the employer is determined by an actuarial formula.

Which of the following characteristics applies to defined benefit plans but not defined contribution plans? They are subject to the rules of ERISA. The amount of contributions made by the employer is determined by an actuarial formula. They are qualified plans. Employers can choose not to make contributions for a particular year.

An employer is covered by both a workers compensation and a medical insurance coverage.

Which of the following choices defines 24-hour coverage? Coverage for the first 24 hours after the policy is issued. An employer is covered by both a workers compensation and a medical insurance coverage. A life insurance policy Workers compensation coverage outside of work

Routine and preventative maintenance

Which of the following components of dental insurance does NOT require the payment of a deductible? Cosmetic dentistry Routine and preventive maintenance Routine and major restorative care Orthodontic care

The aggregate amount of premiums due

Which of the following does NOT have to be disclosed in a long-term care (LTC) policy? Any limitations or conditions of eligibility for LTC benefits Any riders or endorsements The aggregate amount of premiums due The meaning of the terms "reasonable" and "customary"

Insurer's executive officer

Which of the following entities has the authority to make changes to an insurance policy? Department of Insurance Broker Producer Insurer's executive officer

Percentage of participation

Which of the following factors would be an underwriting consideration for a small employer carrier? Health status Medical history of the employees Percentage of participation Claims experience

Health Maintenance Organization plan

Which of the following health care plans would most likely provide the insured/subscriber with comprehensive health care coverage? Basic medical expense plan Health Maintenance Organization plan Group dental insurance plan Medical-surgical expense plan

Consumer report

Which of the following includes information regarding a person's credit, character, reputation, and habits? Insurability report Agent's report Consumer report Consumer history

Allison is insured by a High Deductible Health Plan (HDHP)

Which of the following individuals is eligible for a Health Savings Account? Margaret is 68 years old Suzie is a dependent on her parent's tax returns Tomas is insured by a Low Deductible Health Plan (LDHP) Allison is insured by a High Deductible Health Plan (HDHP)

It is solely a federally administered program.

Which of the following is INCORRECT concerning Medicaid? It provides medical assistance to low-income people who cannot otherwise provide for themselves. It pays for hospital care, outpatient care, and laboratory and X-ray services. The federal government provides about 56 cents for every Medicaid dollar spent. It is solely a federally administered program.

The insurer can increase the policy premium on an individual basis.

Which of the following is NOT a feature of a guaranteed renewable provision? Coverage is not renewable beyond the insured's age 65. The insured's benefits cannot be reduced. The insurer can increase the policy premium on an individual basis. The insured has a unilateral right to renew the policy for the life of the contract.

The insurer may terminate the contract only at renewal for certain conditions.

Which of the following is NOT a feature of a noncancellable policy? The insured has the right to renew the policy for the life of the contract. The insurer may terminate the contract only at renewal for certain conditions. The premiums cannot be increased beyond the amount stated in the policy. The guarantee to renew coverage usually applies until the insured reaches certain age.

Creditor requiring that a debtor buys insurance from a certain insurer

Which of the following is NOT allowed in credit life insurance? Creditor having a collateral assignment on the policy Creditor requiring that a debtor has a life insurance Creditor becoming a policy beneficiary. Creditor requiring that a debtor buys insurance from a certain insurer

Debtor in creditor.

Which of the following is NOT an example of insurable interest? Employer in employee Child in parent Debtor in creditor Business partners in each other

A producer discusses the advantages of a universal life policy and how the flexible premium allows the owner to control the cash value and death benefit income.

Which of the following is NOT considered Business of Life Settlement? A producer tracks the progress of a life settlement contract he has submitted to a life settlement provider. A producer discusses the advantages and disadvantages of a life settlement contract for a client. A producer discusses the advantages of a universal life policy and how the flexible premium allows the owner to control the cash value and death benefit income. A producer mails life settlement advertising to a client outside of the state.

Making comparisons between different policies

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices? Making misleading oral statements about a policy Stating that the insurance policy is a share of stock Exaggerating the benefits provided in the policy Making comparisons between different policies

The Medicare Part A deductible

Which of the following is NOT covered under Plan A in Medigap insurance? The first three pints of blood each year The Medicare Part A deductible Approved hospital costs for 365 additional days after Medicare benefits end The 20% Part B coinsurance amounts for Medicare approved services

Acute care in a hospital

Which of the following is NOT covered under a long-term care policy? Adult day care Hospice care Home health care Acute care in a hospital

Applicant's sexual history

Which of the following is NOT part of the consent form to an HIV-related test given in New York? Applicant's sexual history The purpose of the test A person to whom test results may be disclosed The description of the test

Reimbursement

Which of the following is NOT provided by an HMO? Reimbursement Services Financing Patient care

The name of the primary and secondary beneficiaries

Which of the following is NOT required on an illustration used in the sale of a life insurance policy? Underwriting or rating classification upon which the illustration is based The name of the primary and secondary beneficiaries Generic name of policy Name of insurer

The application given to a prospective insured

Which of the following is NOT the consideration in a policy? The premium amount paid at the time of application The promise to pay covered losses The application given to a prospective insured Something of value exchanged between parties

They earn lower interest rates than fixed annuities.

Which of the following is NOT true regarding Equity Indexed Annuities? They earn lower interest rates than fixed annuities. The insurance company keeps a percentage of the returns. They have guaranteed minimum interest rates. They are less risky than variable annuities.

It needs IRS approval.

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

Benefits stop at the annuitant's death.

Which of the following is NOT true regarding an annuity certain? Benefits stop at the annuitant's death. It will pay until a fixed amount is liquidated. There are no life contingencies. It is a short-term annuity.

This is a form of insurance that covers part-time workers.

Which of the following is NOT true regarding partial disability? The insured can still report to work and receive benefits. Benefit payments are typically 50% of the total disability benefit. An insured would qualify if he couldn't perform some of his normal job duties. This is a form of insurance that covers part-time workers.

It has a tax benefit for both employer and employee.

Which of the following is TRUE of a qualified plan? It may discriminate in favor of highly paid employees. It may allow unlimited contributions. It has a tax benefit for both employer and employee. It does not need to have a vesting schedule.

The annuitant assumes the risks on investment

Which of the following is TRUE regarding variable annuities? A person selling variable annuities is required to have only a life agent's license. The annuitant assumes the risks on investment. The funds are invested in the company's general account. The company guarantees a minimum interest rate.

Trade organization employment

Which of the following is a type of covered employment under the New York State Disability Benefit Law? Trade organization employment Services performed for a state agency Maritime employment Casual employment

Have attained fully insured status

Which of the following is an eligibility requirement for all Social Security Disability Income benefits? Be at least age 50 Have attained fully insured status Be disabled for at least 1 year Have permanent kidney failure

Life Paid-up at Age 65

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

Gatekeeper

Which of the following is another name for a primary care physician in an HMO? Specialist Gatekeeper Subscriber Referring physician

The program is divided into four parts (A-D).

Which of the following is correct about Medicare? The program provides complete medical care at no cost. The program is divided into four parts (A-D). Part B is available to the insured at no cost. It is a federal program for welfare recipients.

Admitted

Which of the following is the closest term to an authorized insurer? Certified Licensed Legal Admitted

They are guaranteed to be true.

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

Its goal is to channel patients to providers that discount services.

Which of the following is true of a PPO? Claim forms are completed by members on each claim. No copayment fees are involved. Its goal is to channel patients to providers that discount services. A most common type of PPO is the staff model.

Care can be provided outside of the service area.

Which of the following is true regarding inpatient hospital care for HMO members? Care can be provided outside of the service area. Care can only be provided in the service area. Services for treatment of mental disorders are unlimited. Inpatient hospital care is not part of HMO services.

They only cover specific accidents or diseases.

Which of the following is true regarding limited health insurance policies? They are limited to those enrolled in a group health plan. They cover every need of a health insurance policy holder. They only cover specific accidents or diseases. They cover all sickness or accidents that are not specifically excluded.

A licensed life insurance agent of the same insurer involved with the sale of the transaction

Which of the following may share in the commissions from the sale of a life insurance policy? A licensed life insurance agent of the same insurer involved with the sale of the transaction An unlicensed trainee who is making a joint call with a licensed supervisor who closes the sale Any licensed agent who helps to arrange the sale A friend of the soliciting agent who is licensed with a different insurance company

Per capita

Which of the following methods to designate a beneficiary literally means "by the head?" Tertiary Contingent Per capita Per stirpes

Monthly.

Which of the following premium modes would result in the highest annual cost for an insurance policy? Monthly Quarterly Semi-annual Annual

Payor Benefit Rider

Which of the following riders would NOT cause the Death Benefit to increase? Cost of Living Rider Accidental Death Rider Payor Benefit Rider Guaranteed Insurability Rider

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

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. The premiums are higher than in an individual policy because there is no medical exam. The group sponsor receives a Certificate of Insurance. The policy can be converted to an individual term insurance policy.

Part B coverage is provided free of charge when an individual turns age 65.

Which of the following statements is INCORRECT concerning Medicare Part B coverage? Participants under Part B are responsible for an annual deductible. Part B will pay 80% of covered expenses, subject to Medicare's standards for reasonable charges. It is a voluntary program designed to provide supplementary medical insurance to cover physician services, medical services and supplies not covered under Part A. Part B coverage is provided free of charge when an individual turns age 65.

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

Which of the following statements is NOT correct concerning the COBRA Act of 1985? It covers terminated employees and/or their dependents for up to 36 months after a qualifying event. It applies only to employers with 20 or more employees that maintain group health insurance plans for employees. COBRA stands for Consolidated Omnibus Budget Reconciliation Act. It requires all employers, regardless of the number or age of employees, to provide extended group health coverage.

Defamation

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? Defamation Undercutting Twisting Slandering

Home health care

Which of the following types of LTC is NOT provided in an institutional setting? Home health care Custodial care Skilled nursing care Intermediate care

Decreasing term.

Which of the following types of insurance policies is most commonly used in credit life insurance? Increasing term Whole life Equity indexed life Decreasing term

Universal life

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? Variable life Adjustable life Universal life Flexible life

Substandard risk.

Which of the following types of risk will result in the highest premium? Substandard risk Standard risk Preferred risk All risks pay equal premiums

Insurer's guaranteed minimum rate of interest

Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity? Statewide predetermined annual interest rate Insurer's guaranteed minimum rate of interest Investment performance of the company Investment performance of the insured

The Medical Information Bureau

Which of the following would provide an underwriter with information concerning an applicant's health history? The Medical Information Bureau A medical examination The agent's report The inspection report

Cost of living adjustment rider

Which rider, when added to a disability income policy, provides for changes in the benefits payable based on changes in the consumer price index? Social Security rider Guaranteed insurability rider Cost of living adjustment rider Waiver of premium rider

Single payment or periodic payments

Which two terms are associated directly with the way an annuity is funded? Renewable or convertible Single payment or periodic payments Increasing or decreasing Immediate or deferred

Indemnity

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

Single Premium

Which type of life insurance policy generates immediate cash value? Decreasing Term Continuous Premium Single Premium Level Term

The individual member

Who chooses a primary care physician in an HMO? HMO subscribers do not have a primary care physician The insurer A referral physician The individual member

The Superintendent

Who has the authority to regulate the issuance and sale of variable contracts? The issuance and sale of variable contracts is not regulated The Superintendent The president of the insurance company The State Treasurer

Insurer

Who is responsible for making sure that agents are properly trained in the use of the suitability standards for LTC policies? Commissioner Each individual agent Guaranty Association Insurer

3 days

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? 3 days 5 days 10 days 14 days

Annuity certain.

Your client plans to retire at age 50. He would like to purchase an annuity that would provide income from the time he retires to the age when social security and other pension funds become available. What settlement option should he consider? Annuity certain Fixed annuity Refund Life Variable annuity

Limited pay whole life

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? Interest-sensitive whole life Life annuity with period certain Increasing term Limited pay whole life