comprehensive exam
interest
Taxation applies to any ________ on the cash value paid out as a withdrawal of a Universal Life policy.
immediate
The Needs Analysis Approach always assumes the death of the insured to be:
501 (c) (3)
A non-school employer can set up a TSA plan for their employees under which of the following IRC section?
A Renewable with adjustable premiums, by classification only The Guaranteed Renewable Provision does allow the insurer to adjust premiums upon renewal, but by class only, not on an individual basis. A class of insureds is based on age or other uniform, nondiscriminatory method.
Guaranteed Renewable means: A Renewable with adjustable premiums, by classification only B Renewable with guaranteed premium C Renewable only at the option of the insurer D Renewable with adjustable premiums determined by frequency of claim
59 1/2
Unless an exception applies, a tax penalty is assessed for withdrawals from annuities of tax-deferred earnings prior to age ______.
When a transfer of ownership takes place while the insured was alive
Unless an exception applies, life insurance proceeds are income taxable in which of the following circumstances?
If the primary and contingent beneficiary die prior to the insured
A Tertiary Beneficiary is the person who receives a death benefit payment in which of the following scenarios?
Self-Insured
A type of provider that consists of employers who pay claims out of their own funds instead of funding claims as an insurer is known as what type of provider?
A Reduced Paid-Up Reduced Paid-Up is a Nonforfeiture Option, not a Settlement Option.
All of the following are Settlement Options, except: A Reduced Paid-Up B Fixed Amount C Fixed Period D Life Income Joint and Survivor
Tax-free distributions
All of the following are benefits an annuity can provide that other investment or savings products cannot, except:
TRICARE for life it is like a Medicare Supplement, so it is secondary to Medicare. All of the other plans are designed to be primary insure
All of the following are primary plans, EXCEPT:
Renewable and convertible features
All of the following are traditional whole life policy nonforfeiture values, except:
Conversion can take place at any time (There is a conversion period!)
All of the following regarding convertible term life insurance is true, except:
The insurer charges an annual premium for this rider which creates a pool of money from which to pay out the benefit The benefit comes from the acceleration of the death benefit, so no additional coverage or cost is involved. The rider merely explains the terms and conditions associated with exercising the rights in the rider.
All of the following statements regarding the Living Needs Rider are true, except:
D Offer Core Benefit Plan A if it sells any of the other plans An insurer selling Medicare Supplement insurance must also make Plan A available if it offers any of the other plans.
An insurer offering Medicare Supplements to senior clients must: A Offer at least one of the other standardized plans in addition to Core Benefit Plan A B Select three standardized plans that it will offer C Offer all of the standardized plans D Offer Core Benefit Plan A if it sells any of the other plans
Simplified Employee Pension (SEP)
Chad and Sue have successfully owned and operated their bakery for 10 years and have decided to plan for their retirement. They are not incorporated and have no full-time employees, and want a qualified plan to maximize the tax advantages while at the same time not bog them down with paperwork. Which of the following plans would be their best option?
March 1
Each insurer authorized to transact insurance business in New York must file an annual financial statement with the Superintendent on or before:
The overall policy performance has something to do with the stock market in general
Equity Universal, Variable, and Variable Universal all have which of the following characteristics in common?
Failure to repay a loan or loan interest will void a life insurance policy:
Failure to repay a loan or loan interest will void a life insurance policy:
The premiums are tax deductible read the damn question next time lol
Harry and Sally were equal partners in a catering business worth $400,000. They entered into a buy-sell agreement that provided funding whether one of them died or was disabled. The annual premium for each of the disability insurance policies was $2,000. All of the following statements are correct, except: A The premiums are tax deductible B Harry and Sally would receive the policy benefit, which each would use to buy out the disabled partner, on an income tax free basis C Harry and Sally are each respectively named as the beneficiary on the policy which each of them owns D Harry and Sally each own the policy on the other partner
On his own life at certain specified ages without proof of insurability
If Greg's policy has a Guaranteed Insurability rider, it means that he can purchase more insurance:
C 5 days after the Superintendent refuses to issue the renewal license and has given notice of the refusal to the applicant a renewal application for a business entity is filed before July 1 of the year of expiration, the expiring license will continue in full force until the renewal license is issued, or 5 days after the Superintendent refuses to issue the renewal license and has given notice of the refusal to the applicant.
If a renewal application for a business entity is filed before July 1 of the year of expiration, the expiring license will continue in full force until the renewal license is issued, or: A Upon the date the Superintendent refuses to issue the renewal license and has given notice of the refusal to the applicant B 10 days after the Superintendent refuses to issue the renewal license and has given notice of the refusal to the applicant C 5 days after the Superintendent refuses to issue the renewal license and has given notice of the refusal to the applicant D 15 days after the Superintendent refuses to issue the renewal license and has given notice of the refusal to the applicant
utmost good faith
If an applicant fails to present all material facts, or a producer fails to fully describe the terms of the contract, which principle has been violated?
The greater of the insured's monthly earnings at the time of loss or the insured's average earnings for the previous 2 years
In New York, the loss-of-time benefits for disability income cannot exceed:
2 yrs
In New York, the suicide exclusion is valid for what period of time?
C The face amount of the policy The face amount of the policy is paid out to the beneficiary. The endowment value is paid out to the policyowner.
In all cases upon the insured's death, the beneficiary receives which of the following? A The policy's rider values B The policy's cash values C The face amount of the policy D A refund of premiums
5% Licensed insurance agents and brokers may retain commissions and underwriting fees paid for insurance written on their own property and risks; however, the total amount received cannot exceed 10% of the total net commissions paid to the licensee in the calendar year.
In regards to rebating, an insurance producer may have their license suspended or revoked by earning commissions for business written on their own property and risks if the commissions received are more than what percentage of the licensee's net aggregate commissions during the preceding 12 months?
subscribers
Individuals covered under a Blue Cross/Blue Shield HMO plan are typically referred to as:
Gramm-Leach Bliley Act
Nonpublic personal information obtained in connection with a life settlement contract is subject to which applicable law relating to confidentiality of non-public personal information, including?
C It is prepaid through FICA taxes and is automatic when that worker qualifies for Social Security retirement benefits ('fully insured') you knew this too so let this be a lesson to READ QUESTIONS CAREFULLY
Of the following listed choices, which is true as it pertains to Medicare Part A? A It covers all prescription drugs B Provides coverage for outpatient services C It is prepaid through FICA taxes and is automatic when that worker qualifies for Social Security retirement benefits ('fully insured') D All recipients pay a monthly premium
Discounted fee for service negotiated in advance
PPO plans pay providers based on a:
1000
The mortality rate is based on mortality tables which show life expectancy and the death rate per _______ people living in the U.S.
Extended term
The nonforfeiture option that provides coverage for the shortest duration is:
The Spendthrift Clause The question is defining the Spendthrift Clause. If benefits were paid out in a lump-sum rather than held by the insurance company, creditors could go after the funds in satisfaction of any outstanding debts.
The provision which denies the beneficiary the right to commute, alienate, or assign his/her interest in the policy proceeds is:
Make standardized health insurance contracts available to small group and uninsured workers
The purpose of the Healthy New York program is to:
The applicant has the right to challenge the inaccurate or incomplete information
What happens if an applicant discovers that there has been inaccurate or incomplete information in any report used during the underwriting process for life insurance?
$5000
What is the maximum penalty that can be imposed under the Insurance Frauds Prevention Act for a single violation?
A non-qualified plan
What type of retirement plan is not required to have a vesting schedule, is not approved by the IRS, can discriminate in favor of highly compensated employees, and can benefit the employer?
B 4 years When a testimonial refers to benefits received under a policy, the following must be retained by the insurer for inspection for a period of 4 years, or until the next examination of the insurer is filed, whichever is longer: Specific claim data, including claim number; date of loss; and other pertinent information.
When a testimonial refers to benefits received under a policy, specific claim data must be retained by the insurer for inspection for a period of at least how long? A 6 months B 4 years C 90 days D 2 years
insuring clause
Which clause in a contract would state that Jim is covered by XYZ insurer for a monthly benefit of $2,000 in the event of disability?
Benefits are paid directly to the insured individual
Which is not correct concerning a Blue Cross and Blue Shield Plan?
An insurance agent, insurance broker, reinsurance intermediary, excess lines broker, or any other person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance
Which of the following best defines a producer?
Business Overhead expense
Which of the following business disability plans can create a taxable event:
D A professional employer organization with 75 persons A professional employer organization must have at last 100 persons insured on the date of issue to be eligible.
Which of the following is not an eligible group for group health or blanket insurance in New York? A A labor union insuring 50% of all eligible members B An individual employer group, consisting of the employer's 5 employees C A customer group with $30,000 indemnity payable to each covered person D A professional employer organization with 75 persons
D An innocent person who cooperates with a fraud investigation is immune from civil liability Insurers are required to formulate a fraud prevention plan. The Superintendent can impose a civil penalty up to $5,000, in addition to the amount of claim. A person is not subject to civil liability for providing information relating to suspected fraudulent insurance transactions in the absence of fraud or bad faith.
Which of the following statements about the Insurance Frauds Prevention Act is TRUE? A The Act was designed specifically to eliminate arson B The Superintendent can impose a civil penalty up to $50,000, in addition to the amount of the claim C Insurers have the option to formulate a fraud prevention plan D An innocent person who cooperates with a fraud investigation is immune from civil liability
Entire Contract Clause,Limit on Certain Defense(Incontestable),Reinstatement,Notice of Claims,Claim for Provision,Proof of Loss,Time of Payment of Claims,Payment of Claims,Assignment of Benefits,Physical Exam and Autopsy,Legal Actions,Change of Beneficiary
Which of these is a Mandatory Uniform Provision?
The benefits received from a group Disability Income Policy paid entirely by the employer are fully taxable as income to the employee When an employer pays the full cost of disability income insurance for the employee, any benefit received is fully taxable to the employee.
Which statement is true regarding taxation of health insurance? A The benefits received from a group Disability Income Policy paid entirely by the employer are fully taxable as income to the employee B The benefits received from a Major Medical Insurance Policy are usually subject to federal income tax C The benefits received from a group Accidental Death and Dismemberment Policy are taxable to the recipient D The benefits received from a personally owned Disability Income Policy are subject to federal income taxes
Benefit Period
With Long-Term Care Insurance coverage, the longer the _________is, the higher the premium is.
