NYS Life, accident, and health insurance
Exam test with correct answers
A "premature" distribution from a modified endowment contract (MEC) incurs a penalty
tax of - CORRECT ANSWERS-10%
A certificate of coverage for a group health policy is best described as - CORRECT
ANSWERS-proof of coverage for the employee
A comprehensive group policy also covers expenses related to vision care. Which of the
following is not typically covered under a vision plan? - CORRECT ANSWERS-Cataract
surgery
A comprehensive major medical health insurance policy contains an Eligible Expenses
provision which identifies the types of health care services that are covered. All of the
following health care services are typically covered EXCEPT for - CORRECT
ANSWERS-Experimental and investigative services
A copy of all Medicare Supplement advertisements must be submitted for approval to -
CORRECT ANSWERS-The Superintendent of Insurance
A disability income insurance policy was recently issued with a rating. What does this
mean? - CORRECT ANSWERS-Policyowner will be charged an additional premium
A family counseling benefit is typically offered under which of these coverages? -
CORRECT ANSWERS-Hospice care
A group health insurance policy is a contract between an - CORRECT ANSWERS-
Employer and insurance company
A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a - CORRECT ANSWERS-Risk retention group
A health insurer MUST provide a proof of loss form - CORRECT ANSWERS-within 15
days of receipt of the notice of loss
A health plan offered by private insurance companies is - CORRECT ANSWERS-A
Medicare Supplement
,A Health Reimbursement Arrangement MUST be established - CORRECT ANSWERS-
By the employer
A large corporation pension plan purchased an accumulation annuity contract where all
of the participating employees received certificates of participation. What is this contract
called? - CORRECT ANSWERS-Group deferred annuity
A life insurance guaranteed insurability rider gives the insured the right, without proving
insurability, to - CORRECT ANSWERS-Periodically purchase additional insurance
A life insurance illustration showing future premiums being paid out of nonguaranteed
values must disclose that - CORRECT ANSWERS-The policy owner may need to
resume premium payments depending on actual results
A life insurance policy provision that has the ability to reduce the death benefit is called
the - CORRECT ANSWERS-accelerated (living) benefit
A life insurance policy that includes a return of premium rider will pay the beneficiary
how much upon the insured's death? - CORRECT ANSWERS-Total premiums paid plus
the policy face amount
A life insurance producer licensed in New York is authorized to - CORRECT
ANSWERS-Solicit, receive and forward applications to the insurer
A life insurance producer's underwriting duties may include - CORRECT ANSWERS-
seeking additional information requested by the insurance company
A life policy that has premiums that are lower than normal during the early years is
called - CORRECT ANSWERS-Modified life
A life settlement broker is someone who is - CORRECT ANSWERS-Licensed to
negotiate a life settlement contract
A major medical expense plan typically includes coverage for hospital room and board.
Which of the following is normally covered under the category "room and board"? -
CORRECT ANSWERS-General nursing care
A major medical expense policy typically does NOT - CORRECT ANSWERS-Pay
surgeon fees on a first-dollar basis
A material change in a modified endowment contract (MEC) results in - CORRECT
ANSWERS-The seven pay test, adjusted for cash value, applies again
A Medicare Supplement policy is required to do which of the following? - CORRECT
ANSWERS-Provide a 30 day free-look period
, A policy owner and a life settlement provider can have a life settlement negotiated
through a - CORRECT ANSWERS-life settlement broker
A policy owner has decided to replace an existing life insurance policy with a new one.
The existing life policy should be terminated - CORRECT ANSWERS-After the new life
policy has been issued and delivered to the policy owner
A policy owner 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? - CORRECT ANSWERS-Partial disability
A policyowner is permitted to take out a policy loan on a whole life policy at what point?
- CORRECT ANSWERS-When the policy has a cash value
A pre-existing condition exclusion in an accident and health insurance policy pertains to
- CORRECT ANSWERS-prior health matters
A preferred provider plan and an indemnity plan are similar in what way? - CORRECT
ANSWERS-Both pay on a fee-for-service basis
A prepaid dental plan has an agreement in place with a network of dentists which -
CORRECT ANSWERS-accepts an established amount as payment in full for the dental
services rendered
A reciprocal insurer typically has an administrator who manages the premiums collected
from the group's members. This administrator is called a - CORRECT ANSWERS-
attorney-in-fact
A signed good health statement may be requested by a life producer at the time of -
CORRECT ANSWERS-Policy Delivery
A small employer group is an employer that employs how many? - CORRECT
ANSWERS-2-50 employees
A survivorship life insurance policy usually covers how many lives? - CORRECT
ANSWERS-2
ABC Corporation purchases and is beneficiary of an individual disability income
insurance policy on a key employee. Which of the following statements is true? -
CORRECT ANSWERS-Benefits are received tax-free by the company.
ABC Partnership is a business with a limited number of partners. Which disability buy-
sell agreement is best suited for this business? - CORRECT ANSWERS-Cross
purchase agreement
Exam test with correct answers
A "premature" distribution from a modified endowment contract (MEC) incurs a penalty
tax of - CORRECT ANSWERS-10%
A certificate of coverage for a group health policy is best described as - CORRECT
ANSWERS-proof of coverage for the employee
A comprehensive group policy also covers expenses related to vision care. Which of the
following is not typically covered under a vision plan? - CORRECT ANSWERS-Cataract
surgery
A comprehensive major medical health insurance policy contains an Eligible Expenses
provision which identifies the types of health care services that are covered. All of the
following health care services are typically covered EXCEPT for - CORRECT
ANSWERS-Experimental and investigative services
A copy of all Medicare Supplement advertisements must be submitted for approval to -
CORRECT ANSWERS-The Superintendent of Insurance
A disability income insurance policy was recently issued with a rating. What does this
mean? - CORRECT ANSWERS-Policyowner will be charged an additional premium
A family counseling benefit is typically offered under which of these coverages? -
CORRECT ANSWERS-Hospice care
A group health insurance policy is a contract between an - CORRECT ANSWERS-
Employer and insurance company
A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a - CORRECT ANSWERS-Risk retention group
A health insurer MUST provide a proof of loss form - CORRECT ANSWERS-within 15
days of receipt of the notice of loss
A health plan offered by private insurance companies is - CORRECT ANSWERS-A
Medicare Supplement
,A Health Reimbursement Arrangement MUST be established - CORRECT ANSWERS-
By the employer
A large corporation pension plan purchased an accumulation annuity contract where all
of the participating employees received certificates of participation. What is this contract
called? - CORRECT ANSWERS-Group deferred annuity
A life insurance guaranteed insurability rider gives the insured the right, without proving
insurability, to - CORRECT ANSWERS-Periodically purchase additional insurance
A life insurance illustration showing future premiums being paid out of nonguaranteed
values must disclose that - CORRECT ANSWERS-The policy owner may need to
resume premium payments depending on actual results
A life insurance policy provision that has the ability to reduce the death benefit is called
the - CORRECT ANSWERS-accelerated (living) benefit
A life insurance policy that includes a return of premium rider will pay the beneficiary
how much upon the insured's death? - CORRECT ANSWERS-Total premiums paid plus
the policy face amount
A life insurance producer licensed in New York is authorized to - CORRECT
ANSWERS-Solicit, receive and forward applications to the insurer
A life insurance producer's underwriting duties may include - CORRECT ANSWERS-
seeking additional information requested by the insurance company
A life policy that has premiums that are lower than normal during the early years is
called - CORRECT ANSWERS-Modified life
A life settlement broker is someone who is - CORRECT ANSWERS-Licensed to
negotiate a life settlement contract
A major medical expense plan typically includes coverage for hospital room and board.
Which of the following is normally covered under the category "room and board"? -
CORRECT ANSWERS-General nursing care
A major medical expense policy typically does NOT - CORRECT ANSWERS-Pay
surgeon fees on a first-dollar basis
A material change in a modified endowment contract (MEC) results in - CORRECT
ANSWERS-The seven pay test, adjusted for cash value, applies again
A Medicare Supplement policy is required to do which of the following? - CORRECT
ANSWERS-Provide a 30 day free-look period
, A policy owner and a life settlement provider can have a life settlement negotiated
through a - CORRECT ANSWERS-life settlement broker
A policy owner has decided to replace an existing life insurance policy with a new one.
The existing life policy should be terminated - CORRECT ANSWERS-After the new life
policy has been issued and delivered to the policy owner
A policy owner 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? - CORRECT ANSWERS-Partial disability
A policyowner is permitted to take out a policy loan on a whole life policy at what point?
- CORRECT ANSWERS-When the policy has a cash value
A pre-existing condition exclusion in an accident and health insurance policy pertains to
- CORRECT ANSWERS-prior health matters
A preferred provider plan and an indemnity plan are similar in what way? - CORRECT
ANSWERS-Both pay on a fee-for-service basis
A prepaid dental plan has an agreement in place with a network of dentists which -
CORRECT ANSWERS-accepts an established amount as payment in full for the dental
services rendered
A reciprocal insurer typically has an administrator who manages the premiums collected
from the group's members. This administrator is called a - CORRECT ANSWERS-
attorney-in-fact
A signed good health statement may be requested by a life producer at the time of -
CORRECT ANSWERS-Policy Delivery
A small employer group is an employer that employs how many? - CORRECT
ANSWERS-2-50 employees
A survivorship life insurance policy usually covers how many lives? - CORRECT
ANSWERS-2
ABC Corporation purchases and is beneficiary of an individual disability income
insurance policy on a key employee. Which of the following statements is true? -
CORRECT ANSWERS-Benefits are received tax-free by the company.
ABC Partnership is a business with a limited number of partners. Which disability buy-
sell agreement is best suited for this business? - CORRECT ANSWERS-Cross
purchase agreement
