Exam FX 150 Questions and Answers 2022/2023;simulator
exam with complete solution
#1 What is another name for an Administrative-Services Only Arrangement
Third-Party Administrator
#3 Which of the following statements is True concerning the Accidental Death
Rider ?
It will pay double or triple the face amount
# 4 On a disability income policy that contains the "Own Occupation" definition of
total disability, the insured will be entailed to benefits if they cannot perform?
Their regular job
# 5 At what age dose individuals qualify for Medicare?
65
#6 Which of the following is NOT true regarding the Life with Guaranteed
Minimum Annuity settlement option?
It does NOT guarantee that the entire principle will be paid out
#7 According to the Nonforfeiture law, if the owner decides to surrender a
deferred annuity prior to annualization, the owner is entailed to witch of the
following ?
Guaranteed Surrender value
#8 With of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life
and health insurance.
#10 Which of the following is a short-term annuity that limits the amount paid to a
certain fixed period or until a certain fixed amount is liquidated?
Annuity Certain
#11 What type of health insurance policy provides an employer with funds to train
a replacement if a valued employee become disabled?
Key Person Disability
#12 The Superintendent may refuse to renew a license if a licensee is receiving
more than 10% of the aggregate commissions from controlled business in how
many months?
12
#14 Attempting to determine how much insurance a family would require based
upon their financial objectives is know as ?
Needs Approach
#15 Which of the following is NOT covered under Plan A in Medicap insurance?
The Medicare Part A deductible
#16 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.
#17 According to the Insurance Frauds Privation Act, will the person who
suspects a fraudulent transaction be penalized for reporting it to the
Superintendent?
,No, as long as the act is reported in good faith
#20 Employer contributions made to a qualified plan
Are subject to vesting requirements
#21 Which of the following Life Insurance polices would be considered interest
sensitive?
Universal Life
#22 Which of the following is correct about group health insurance policy issued
in New York?
It cannot exclude newborn children from coverage
#25 Which of the following is NOT true regarding Workers Compensation?
Benefits are offered by the insurer
#28 An insurer offers a policy very similar to Medicare, although it differs slightly.
An agent tells an applicant that the policy is Medicare, since the polices are so
similar anyway. Which of the following is true?
The practice is illegal
#29 Which of the following factors about the insured determines the amount of
disability benefit that the insured will receive?
Income
#30 Prior to purchasing a Medigap policy, a person must be enrolled in which of
the following?
Parts A and B Medicare
#32 For the reported losses of an inured group to become more likely to equal the
statistics probability of loss for that particular class, the insured group must
become
Larger
#33 How is emergency care covered for a member of an HMO?
A member of an HMO can receive care in or out of the HMO service area, but care is
preferred in the service area.
#34 In cases where a covered employee is eligible for Medicare benefits to treat
end-stage renal disease (ESRD) with dialysis or kidney transplant, which of the
following is correct?
Medicare is the secondary payer during the first 30 months of treatment
#35 An applicant is discussing his options for Medicare supplement coverage
with his agent. The applicant is 65 years old and has just enrolled in Medicare
Part A and Part B. What is the insurance company obligated to do?
Offer the supplement policy on a guaranteed issue basis
#36 Which of the following would NOT be considered an insurance producer?
An insurer's officer
#37 When is the annual open enrollment for state insurance exchanges?
November 1 through January 31
#38 (come back to write it)
The insured should contact the insurer to confirm her actual Social Security befit
amount. The SIS rider should pay the difference between the rider amount and the
actual benefit
#39 Which of the following entities has the authority to make changes to an
insurance policy?
, Insurer's executive officer
#40 The law states that an insurer is allowed to pay the entire Death Benefit to the
insured if they qualify to use the Accelerated Death Benefits Rider, however most
insurers limit the amount of the Death Benefit paid to
50%
#41 All of the following are characteristics of a group life insurance plan EXCEPT
There is a requirement to prove insurability on the part of the participants
#42 The continuing education (CE) requirement in this state.
Consists of completing 15 hours of counting education each biennium
#45 Which of the following factors is NOT considered by an underwriter when
determining the premium rates for an individual seeking insurance?
Race
#46 A small hardware store owner is involved in a car accident that renders him
totally disabled for half a year. Which type of insurance would help him pay for
expenses of the company during the time of his disability?
Business overhead expense policy
#47 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%
#50 Which of the following is an entity that can be hired by an employer to handle
all its employee management tasks?
Professional Employer Organization
#51 In a life settlement contract, who does the life settlement broker represent?
The owner
#52 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?
Common Disaster Clause
#53 According to the Coordination of Benefits (COB) provisions in health
insurance in this state. If insurer overpaid on a claim, the insurer may recover the
excess from all of the following EXCEPT
The Insurance Guaranty Association
#54 Which of the following does NOT have to be disclosed in a long term care
(LTC) policy?
The aggregate amount of premiums due
#55 Which of the following must be present in all Medicare
Plan A
#56 A participating insurance policy may do which of the following?
Pay dividends to the policyowner
#57 Which of the following is INCORRECT concerning Medicaid?
It is solely a federally administered program
#58 Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
#60 The Superintendent may refuse to issue a license in all of the following
situations EXCEPT if the proposed licensee
Is from another state
exam with complete solution
#1 What is another name for an Administrative-Services Only Arrangement
Third-Party Administrator
#3 Which of the following statements is True concerning the Accidental Death
Rider ?
It will pay double or triple the face amount
# 4 On a disability income policy that contains the "Own Occupation" definition of
total disability, the insured will be entailed to benefits if they cannot perform?
Their regular job
# 5 At what age dose individuals qualify for Medicare?
65
#6 Which of the following is NOT true regarding the Life with Guaranteed
Minimum Annuity settlement option?
It does NOT guarantee that the entire principle will be paid out
#7 According to the Nonforfeiture law, if the owner decides to surrender a
deferred annuity prior to annualization, the owner is entailed to witch of the
following ?
Guaranteed Surrender value
#8 With of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life
and health insurance.
#10 Which of the following is a short-term annuity that limits the amount paid to a
certain fixed period or until a certain fixed amount is liquidated?
Annuity Certain
#11 What type of health insurance policy provides an employer with funds to train
a replacement if a valued employee become disabled?
Key Person Disability
#12 The Superintendent may refuse to renew a license if a licensee is receiving
more than 10% of the aggregate commissions from controlled business in how
many months?
12
#14 Attempting to determine how much insurance a family would require based
upon their financial objectives is know as ?
Needs Approach
#15 Which of the following is NOT covered under Plan A in Medicap insurance?
The Medicare Part A deductible
#16 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.
#17 According to the Insurance Frauds Privation Act, will the person who
suspects a fraudulent transaction be penalized for reporting it to the
Superintendent?
,No, as long as the act is reported in good faith
#20 Employer contributions made to a qualified plan
Are subject to vesting requirements
#21 Which of the following Life Insurance polices would be considered interest
sensitive?
Universal Life
#22 Which of the following is correct about group health insurance policy issued
in New York?
It cannot exclude newborn children from coverage
#25 Which of the following is NOT true regarding Workers Compensation?
Benefits are offered by the insurer
#28 An insurer offers a policy very similar to Medicare, although it differs slightly.
An agent tells an applicant that the policy is Medicare, since the polices are so
similar anyway. Which of the following is true?
The practice is illegal
#29 Which of the following factors about the insured determines the amount of
disability benefit that the insured will receive?
Income
#30 Prior to purchasing a Medigap policy, a person must be enrolled in which of
the following?
Parts A and B Medicare
#32 For the reported losses of an inured group to become more likely to equal the
statistics probability of loss for that particular class, the insured group must
become
Larger
#33 How is emergency care covered for a member of an HMO?
A member of an HMO can receive care in or out of the HMO service area, but care is
preferred in the service area.
#34 In cases where a covered employee is eligible for Medicare benefits to treat
end-stage renal disease (ESRD) with dialysis or kidney transplant, which of the
following is correct?
Medicare is the secondary payer during the first 30 months of treatment
#35 An applicant is discussing his options for Medicare supplement coverage
with his agent. The applicant is 65 years old and has just enrolled in Medicare
Part A and Part B. What is the insurance company obligated to do?
Offer the supplement policy on a guaranteed issue basis
#36 Which of the following would NOT be considered an insurance producer?
An insurer's officer
#37 When is the annual open enrollment for state insurance exchanges?
November 1 through January 31
#38 (come back to write it)
The insured should contact the insurer to confirm her actual Social Security befit
amount. The SIS rider should pay the difference between the rider amount and the
actual benefit
#39 Which of the following entities has the authority to make changes to an
insurance policy?
, Insurer's executive officer
#40 The law states that an insurer is allowed to pay the entire Death Benefit to the
insured if they qualify to use the Accelerated Death Benefits Rider, however most
insurers limit the amount of the Death Benefit paid to
50%
#41 All of the following are characteristics of a group life insurance plan EXCEPT
There is a requirement to prove insurability on the part of the participants
#42 The continuing education (CE) requirement in this state.
Consists of completing 15 hours of counting education each biennium
#45 Which of the following factors is NOT considered by an underwriter when
determining the premium rates for an individual seeking insurance?
Race
#46 A small hardware store owner is involved in a car accident that renders him
totally disabled for half a year. Which type of insurance would help him pay for
expenses of the company during the time of his disability?
Business overhead expense policy
#47 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%
#50 Which of the following is an entity that can be hired by an employer to handle
all its employee management tasks?
Professional Employer Organization
#51 In a life settlement contract, who does the life settlement broker represent?
The owner
#52 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?
Common Disaster Clause
#53 According to the Coordination of Benefits (COB) provisions in health
insurance in this state. If insurer overpaid on a claim, the insurer may recover the
excess from all of the following EXCEPT
The Insurance Guaranty Association
#54 Which of the following does NOT have to be disclosed in a long term care
(LTC) policy?
The aggregate amount of premiums due
#55 Which of the following must be present in all Medicare
Plan A
#56 A participating insurance policy may do which of the following?
Pay dividends to the policyowner
#57 Which of the following is INCORRECT concerning Medicaid?
It is solely a federally administered program
#58 Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
#60 The Superintendent may refuse to issue a license in all of the following
situations EXCEPT if the proposed licensee
Is from another state
