Pre-Final Exam - New York Life, Accident and
Health/ 150 Q&A/ 2024-2025.
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
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
Page 1 of 18
,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
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
Page 2 of 18
, 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
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
Page 3 of 18
Health/ 150 Q&A/ 2024-2025.
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
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
Page 1 of 18
,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
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
Page 2 of 18
, 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
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
Page 3 of 18
