Pre-Final Exam - New York Life, Accident
and Health with complete solutions
What happens when an initial offer is answered with a counteroffer? - answer Initial offer is void
According to the Affordable Care Act (ACA), dependent children may remain on their parent's
plan until what age? - answer Age 26
The premiums paid by an employer for his employee's group life insurance are usually
considered to be - answer tax-deductible to the employer
A family group accident and health insurance policy must continue coverage for each unmarried
child at least until age - answer 19
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? - answer
Kept 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? - answer Identifies 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? - answer
Joint and survivor annuity
Major medical plans typically exclude coverage for which of the following benefits? - answer
Custodial care
Pre-Final Exam - New York Life, Accident and Health with complete solutions
,Which of the following BEST describes a "partial disability"? - answer Unable to perform one or
more job duties
Under an adjustable life insurance policy, which of the following may NOT be changed without
further underwriting? - answer The person insured
An agent's license in New York must be renewed every - answer Two 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? - answer
Beneficiary 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 - answer Medical Loss Ratio
A material change in a modified endowment contract (MEC) results in - answer the 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? - answer 30
What determines how much an annuitant is paid for a variable annuity? - answer The market
value variations of the securities backing it
Accident and health insurance standard provisions require that - answer The 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 - answer Life Settlements
Pre-Final Exam - New York Life, Accident and Health with complete solutions
, 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? - answer
Distribution is subject to federal income tax withholding
A characteristic of preferred provider organizations (PPO) is - answer If service is obtained
outside the PPO, benefits are reduced and costs increase
Which of the following accurately describes a participating insurance policy? - answer
Policyowners may be entitled to receive dividends
What are reasonable and customary charges for health insurance primarily based on? - answer
Average charges within a geographic region
No existing insurance license will be revoked until - answer The 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? - answer
Puerto Rico
Claims settlement practices of insurers are regulated by - answer State 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 - answer Occurred 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? - answer Claim must be paid after proof of loss is
received
Pre-Final Exam - New York Life, Accident and Health with complete solutions
and Health with complete solutions
What happens when an initial offer is answered with a counteroffer? - answer Initial offer is void
According to the Affordable Care Act (ACA), dependent children may remain on their parent's
plan until what age? - answer Age 26
The premiums paid by an employer for his employee's group life insurance are usually
considered to be - answer tax-deductible to the employer
A family group accident and health insurance policy must continue coverage for each unmarried
child at least until age - answer 19
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? - answer
Kept 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? - answer Identifies 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? - answer
Joint and survivor annuity
Major medical plans typically exclude coverage for which of the following benefits? - answer
Custodial care
Pre-Final Exam - New York Life, Accident and Health with complete solutions
,Which of the following BEST describes a "partial disability"? - answer Unable to perform one or
more job duties
Under an adjustable life insurance policy, which of the following may NOT be changed without
further underwriting? - answer The person insured
An agent's license in New York must be renewed every - answer Two 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? - answer
Beneficiary 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 - answer Medical Loss Ratio
A material change in a modified endowment contract (MEC) results in - answer the 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? - answer 30
What determines how much an annuitant is paid for a variable annuity? - answer The market
value variations of the securities backing it
Accident and health insurance standard provisions require that - answer The 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 - answer Life Settlements
Pre-Final Exam - New York Life, Accident and Health with complete solutions
, 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? - answer
Distribution is subject to federal income tax withholding
A characteristic of preferred provider organizations (PPO) is - answer If service is obtained
outside the PPO, benefits are reduced and costs increase
Which of the following accurately describes a participating insurance policy? - answer
Policyowners may be entitled to receive dividends
What are reasonable and customary charges for health insurance primarily based on? - answer
Average charges within a geographic region
No existing insurance license will be revoked until - answer The 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? - answer
Puerto Rico
Claims settlement practices of insurers are regulated by - answer State 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 - answer Occurred 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? - answer Claim must be paid after proof of loss is
received
Pre-Final Exam - New York Life, Accident and Health with complete solutions
