NY Life and Health Insurance
How long is the grace period of an individual insurance policy
1 month (31 Days)
A life producer applying for a life settlement broker license may be exempt from the pre-licensing education and examination requirement if the producer has held an active life insurance license for at least how many years
1 year
Core benefits are included in all Medicare supplemental policies. What percentage of Part B coinsurance is required?
20%
An agent's first-year commission CANNOT exceed what percentage of the renewal commission for servicing a Medicare Supplement policy in its second year?
200%
Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months?
30 months
To attain "fully insured" status under social security, an individual must have earned how many credits
40
According to the Medical Loss Ratio (MLR), what is the minimum percentage of health coverage premium that must be applied to actual medical care in a large group health plan?
85%
An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of
A STOIL policy
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
the entire contract includes all of the following except
A buyers guide
The benefits for group disability plans are based on
A percentage of workers income
which of the following individuals is eligible for a health savings account
A person insured under a high deductible health plan
Which of the following documents delivered to the policy owner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
A policy summary
which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy
An accidental death rider
which of the following is NOT a personal use of life insurance?
An individual buys insurance to fund a buy-sell agreement
if an insurer meets the states financial requirements and is approved to transact business in the state, it is considered to be
Authorized
which of the following statements regarding Business Overhead Expense policies is NOT true
Benefits are usually limited to six months
all of the following apply to short-term disability plans EXCEPT
Both group and individual plans are renewable (Short-term disability plans are not renewable)
which of the following would describe a legal document which would dictate who can put a deceased partner's share of a business and for what amount?
Buy-sell agreement
How are state Insurance Guaranty Associations funded?
By their members- authorized insurers
which of the following is not a typical type of Long-Term care coverage?
Child Day care
what term is used to describe when the medical caregiver provides services to only members or subscribers of a health organization, and contractually is not allowed to treat other patients
Closed panel
which is the purpose of the gatekeeper in an HMO?
Controlling costs
When must an IRA be completely distributed when a beneficiary is not named?
December 31st of the year that contains the fifth anniversary of the owner's death
A producer must do all of the following when delivering a new policy to the insured EXCEPT
Disclose commissions earned from the sale of the policy
The main purpose of ERISA is to ensure that
Employees receive the pension and other benefits promised by their employers.
How are HMO territories typically divided?
Geographic areas
which act was introduced to reduce the cost of health care by utilizing preventive care?
HMO Act of 1973
which of the following is an eligibility requirement for all Social Security Disability Income Benefits
Have attained fully insured status
which of the following is an eligibility requirement for all Social Security Disability income benefits?
Have attained fully insured status
Which of the following types of LTC is NOT provided in an institutional setting?
Home Health Care
An agent has recently changed his email address. What must the agent do to comply with the regulation for change of address?
Inform the Department within 30 days
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
Installments for a fixed period
to purchase insurance, the policy owner must face the possibility of losing money or something of value in the event of loss. What is this concept called?
Insurable interest
which health insurance provision ensures that multiple policies that provide the same benefits on an expensive-incurred basis pay a proportionate share of a claim?
Insurance with other insurers
Which of the following best describes life annuity with period certain option?
It guarantees benefit payments for life of the annuitant and for a specified period for the beneficiary
Which of the following is correct regarding credit life insurance?
It insures the life of the debtor
The annual open enrollment period for state insurance exchanges runs from November through
January
which statement is required to be printed on the first page of a health insurance policy, which signals to the insured that the policy's benefits are limited?
Limited Policy Notice
all of the following statements concerning Medicare are correct EXCEPT
Medicaid is a state funded program that provides health care to persons over age 64, only. (Medicare us a government funded, both state and federal, program designed to provided health care to poor people of all ages)
which of the following statements is NOT correct regarding Medicare?
Medicare Advantage must be provided through HMOs
the coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called
Nonoccupational coverage
how many pairs of glasses in a 12 month period will a vision expense insurance plan cover?
One
A core Medicare supplement policy (Plan A) will cover all of the following expenses EXCEPT
Part A deductibles
which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
Payor benefit
An Equity Indexed Annuity will grow based upon
Performance of a recognized index
all of the following are examples of risk retention except
Premiums
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
The family term rider incorporates
Spouse term and children's term
life settlement contracts must be approved by which of the following?
The Superintendent of Insurance
In which of the following cases would an any occupation disability income policy pay the benefits?
The insured is unable to perform any jobs in the field related to the insured's education and experience.
An insurer wants to create a brochure to advertise its company, so a professional advertising company creates the material. several months later a client threatens to sue the insurer for false advertising because of misleading information. Who is legally responsible for the false material?
The insurer
when an applicant applies for medicare supplement insurance, whose responsibility is it to confirm whether the applicant has an accident or sickness insurance policy in force
The insurer's
All of the following are true of key person insurance EXCEPT
The plan is funded by permanent insurance only
Which of the following is true about warranties?
They are guaranteed to be true.
which of the following policies can be described as a flexible premium adjustable life policy?
Universal life
which of the following would be required to become licensed as an insurance producer
a customer service representative who solicits no more than one policy a year
A subscriber has been treated for a medical condition by his primary care physician for 3 months with experimental remedies without a significant health improvement before being referred to a specialist. Which of the following types of plans does the subscriber have?
a gatekeeper HMO plan to control the costs
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
a policy is reissued with a reduction in cash value
all of the following are correct about the required provisions of a health insurance policy EXCEPT
a reinstated policy provides immediate coverage for an illness. (Accidental injury is covered immediately NOT sickness)
What is the amount a physician or supplier bills for a particular service or supply?
actual charge
in order to get a nonresident license is this state, an agent must
apply and pay a fee to nonresident state that reciprocates
which of the following features of the indexed Whole Life policy is NOT fixed
cash value growth
What type of an interest rate is guaranteed in universal life policies?
contract intrest rate
On a major medical insurance policy, the amount that an insured must pay on a claim before the insurer will pay is known as
deductible
which of the following is a correct statement about annuities?
fixed annuities do not provide protection against inflation
which of the following is NOT correct concerning taxation of disability income benefits?
if paid but the individual, the premiums are tax deductible
Under what circumstances will the contingent beneficiary receive the death benefit
if the primary beneficiary dies before the insured
under what circumstances will the contingent beneficiary receive the death benefit
if the primary beneficiary dies before the insured
Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by her insurer. What is the name of this agreement?
insuring clause
The mode of premium payment
is defined as the frequency and the amount of the premium payment
which of the following is true regarding pure life annuity settlement option
it provides the highest monthly benefit
If a retirement plan or annuity is "qualified", this means
it satisfies IRS requirements for favorable tax treatment
which of the following is considered a presumptive disability under a disability income policy?
loss of two limbs
which of the following statements is INCORRECT
medicare and medigap polices provide coverage for long term custodial or nursing home care
cash value guarantees in a whole life policy are called
nonforfeiture values
Which Universal Life option has a gradually increasing cash value and a level death benefit?
option A
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
option B
which document helps ensure that full and fair discloser is provided to the recipient of the policy?
outline of coverage
Which dividend option will increase the death benefit
paid-up additions
in insurance what is the term used for the cause of a loss
peril
Regarding the PPACA health care tax credit, which of the following is true?
persons receiving medicaid are not eligible
the needs approach to calculating the amount of life insurance needed is based on
predicated needs of a family after the premature death of the insured
what is the difference between a straight life policy and a 20-pay whole life policy?
premium payment period
which of the following is an entity that can be hired by an employer to handle all its employee management tasks?
professional employer organization
The Healthy New York program was created to make standardized health insurance coverage to
qualifying small employers
what effect will the long term care (LTC) rider have on the death
reduce the death benefit
what must states do after the death of a person who received medicaid benefits, according to the Medicaid estate recovery act?
seek repayment of funds that were paid
All of the following are beneficiary designations EXCEPT
specified
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
suspension of license
which of the following is permissible reason for an insurance company to contest payment of a claim based on statements in the application
the application contains material misstatements
In life insurance, which of the following is NOT required to have an insurable interest in the insured
the beneficiary
if the annuitant dies during the accumulation period, who will receive the annuity benefits?
the beneficiary either the amount paid into the plan or the cash value- whichever is greater
which of the following statements is true regarding thrift plans?
the employer contributes a certain amount for each dollar contributed by the employee
all of the following are true of credit life except
the insured names the beneficiary
All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
the interest is not taxable since it remains inside the insurance policy
which of the following is not true regarding insurance consultants
they may own share in the insurers they represent
Medicare is a health insurance program for all the following individuals except
those with low income and low assets
For which of the following reasons can be a temporary license be issued?
to service the existing business
the renewable provision allows the policy owner to renew the coverage at the expiration date
without evidence of insurability
