Pre-final exam - new york life, accident and health Questions And Answers Rated A+ New Update Assured Satisfaction

A "premature" distribution from a modified endowment contract (MEC) incurs a penalty tax of - 10% A characteristic of preferred provider organizations (PPO) is - If service is obtained outside the PPO, benefits are reduced and costs increase A copy of all Medicare Supplement advertisements must be submitted for approval to - The Superintendent of Insurance A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy? - Business Overhead Expense A family group accident and health insurance policy must continue coverage for each unmarried child at least until age - 19 A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a - risk retention group A Health Reimbursement Arrangement MUST be established - by the employer 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? - Kept by the insurance company A life insurance policy in New York becomes incontestable after it has been in force for - 2 years A life insurance producer licensed in New York is authorized to - Solicit, receive and forward applications to the insurerA material change in a modified endowment contract (MEC) results in - the seven pay test, adjusted for cash value, applies again 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? - Beneficiary receives $50,000 income tax-free 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? - Claim must be paid after proof of loss is received A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? - partial disability A prepaid dental plan has an agreement in place with a network of dentists which - accepts an established amount that is considered full payment for services rendered