Pre-Final Exam - New York Life,
Accident and Health
What happens when an initial offer is answered with a counteroffer? - ANSInitial offer is void
According to the Affordable Care Act (ACA), dependent children may remain on their
parent's plan until what age? - ANSAge 26
The premiums paid by an employer for his employee's group life insurance are usually
considered to be - ANStax-deductible to the employer
A family group accident and health insurance policy must continue coverage for each
unmarried child at least until age - ANS19
A life insurance beneficiary died after receiving only six payments under the policy's life
income settlement option. What happens with the remaining balance of the death proceeds?
- ANSKept by the insurance company
When an individual is planning to protect his family with life insurance, one method of doing
so is called needs analysis. What exactly does needs analysis involve? - ANSIdentifies the
needs of an individual and the individual's dependents
A retired couple would like to maximize the income derived from their combined life savings
and have it payable until they both die. Which annuity would be their best choice? -
ANSJoint and survivor annuity
Major medical plans typically exclude coverage for which of the following benefits? -
ANSCustodial care
Which of the following BEST describes a "partial disability"? - ANSUnable to perform one or
more job duties
Under an adjustable life insurance policy, which of the following may NOT be changed
without further underwriting? - ANSThe person insured
An agent's license in New York must be renewed every - ANSTwo years
A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one
month after the policy effective date. Which of these statements is normally true? -
ANSBeneficiary receives $50,000 income tax-free
According to the Affordable Care Act (ACA), the proportion of premium revenues spent on
clinical services and quality improvements is called the - ANSMedical Loss Ratio
, A material change in a modified endowment contract (MEC) results in - ANSthe seven pay
test, adjusted for cash value, applies again
How many days notice does the Affordable Care Act require insurers to give before
rescinding coverage? - ANS30
What determines how much an annuitant is paid for a variable annuity? - ANSThe market
value variations of the securities backing it
Accident and health insurance standard provisions require that - ANSThe policy,
endorsements, and attached papers constitute the entire contract
Agreements made by terminally ill persons to sell their life insurance policies at a discount in
order to pay medical expenses are called - ANSLife Settlements
An employee requested that the balance of her 401(k) account be sent directly to her in one
lump sum. Upon receipt of the distribution, she immediately had the funds rolled over into an
IRA. What is the tax consequence of the distribution sent to this employee? -
ANSDistribution is subject to federal income tax withholding
A characteristic of preferred provider organizations (PPO) is - ANSIf service is obtained
outside the PPO, benefits are reduced and costs increase
Which of the following accurately describes a participating insurance policy? -
ANSPolicyowners may be entitled to receive dividends
What are reasonable and customary charges for health insurance primarily based on? -
ANSAverage charges within a geographic region
No existing insurance license will be revoked until - ANSThe licensee has been afforded a
right to a hearing on the charges
What is considered interstate travel under the Federal Fraud and False Statements Act? -
ANSPuerto Rico
Claims settlement practices of insurers are regulated by - ANSState insurance departments
Under the New York Disability Benefits Law, cash payments are provided to workers who are
unable to work because of injury or illness that - ANSOccurred on the job
A policyowner suffers a covered accident and health insurance loss on June 30 and submits
the proof of loss to the insurer July 10. If the policyowner cancelled the coverage on July 2,
how will the insurance company handle the claim? - ANSClaim must be paid after proof of
loss is received
Claim must be paid after proof of loss is received - ANSPaid-up policy that offers lifetime
protection
Accident and Health
What happens when an initial offer is answered with a counteroffer? - ANSInitial offer is void
According to the Affordable Care Act (ACA), dependent children may remain on their
parent's plan until what age? - ANSAge 26
The premiums paid by an employer for his employee's group life insurance are usually
considered to be - ANStax-deductible to the employer
A family group accident and health insurance policy must continue coverage for each
unmarried child at least until age - ANS19
A life insurance beneficiary died after receiving only six payments under the policy's life
income settlement option. What happens with the remaining balance of the death proceeds?
- ANSKept by the insurance company
When an individual is planning to protect his family with life insurance, one method of doing
so is called needs analysis. What exactly does needs analysis involve? - ANSIdentifies the
needs of an individual and the individual's dependents
A retired couple would like to maximize the income derived from their combined life savings
and have it payable until they both die. Which annuity would be their best choice? -
ANSJoint and survivor annuity
Major medical plans typically exclude coverage for which of the following benefits? -
ANSCustodial care
Which of the following BEST describes a "partial disability"? - ANSUnable to perform one or
more job duties
Under an adjustable life insurance policy, which of the following may NOT be changed
without further underwriting? - ANSThe person insured
An agent's license in New York must be renewed every - ANSTwo years
A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one
month after the policy effective date. Which of these statements is normally true? -
ANSBeneficiary receives $50,000 income tax-free
According to the Affordable Care Act (ACA), the proportion of premium revenues spent on
clinical services and quality improvements is called the - ANSMedical Loss Ratio
, A material change in a modified endowment contract (MEC) results in - ANSthe seven pay
test, adjusted for cash value, applies again
How many days notice does the Affordable Care Act require insurers to give before
rescinding coverage? - ANS30
What determines how much an annuitant is paid for a variable annuity? - ANSThe market
value variations of the securities backing it
Accident and health insurance standard provisions require that - ANSThe policy,
endorsements, and attached papers constitute the entire contract
Agreements made by terminally ill persons to sell their life insurance policies at a discount in
order to pay medical expenses are called - ANSLife Settlements
An employee requested that the balance of her 401(k) account be sent directly to her in one
lump sum. Upon receipt of the distribution, she immediately had the funds rolled over into an
IRA. What is the tax consequence of the distribution sent to this employee? -
ANSDistribution is subject to federal income tax withholding
A characteristic of preferred provider organizations (PPO) is - ANSIf service is obtained
outside the PPO, benefits are reduced and costs increase
Which of the following accurately describes a participating insurance policy? -
ANSPolicyowners may be entitled to receive dividends
What are reasonable and customary charges for health insurance primarily based on? -
ANSAverage charges within a geographic region
No existing insurance license will be revoked until - ANSThe licensee has been afforded a
right to a hearing on the charges
What is considered interstate travel under the Federal Fraud and False Statements Act? -
ANSPuerto Rico
Claims settlement practices of insurers are regulated by - ANSState insurance departments
Under the New York Disability Benefits Law, cash payments are provided to workers who are
unable to work because of injury or illness that - ANSOccurred on the job
A policyowner suffers a covered accident and health insurance loss on June 30 and submits
the proof of loss to the insurer July 10. If the policyowner cancelled the coverage on July 2,
how will the insurance company handle the claim? - ANSClaim must be paid after proof of
loss is received
Claim must be paid after proof of loss is received - ANSPaid-up policy that offers lifetime
protection
