New York Life, Accident, and Health Insurance Agent Exam
(148 Questions) With Verified Answers
An accident and health policy that provides reimbursement benefits makes them payable to? -
Insured
Which of the following is NOT part of an insurance contract - Certificate of Authority
-Policy
-Application
-Riders
An insured under a Major Medical expense plan with a zero deductible and 80/20 coinsurance
provision files a $1,000 claim. How much of this claim is the insured responsible for? - $200
insured only responsible for 20% coinsurance
According to the Affordable Care Act, any plan in existence prior to which date is considered a
grandfathered plan? - March 23, 2010
A domestic insurance company in NY must - formed under the laws of New York
What types of life insurance are normally used for key employee indemnification? - Term, whole,
and universal life insurance
Distributions from a Health Savings Account (HSA) for qualified medical expenses are - Tax-free
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will
she have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for
$125 - $50.00
,insured have to pay $25 deductible plus $25 coinsurance
Under a Modified Endowment Contract, what are the likely tax consequences? - Pre-death
distributions will become taxable
An agent license is NOT required when - Referring insurance
The taxable portion of each annuity payment is calculated using which method? - Exclusion Ratio
All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT -
Reduction of Premium
-Extended Term Insurance
-Cash Surrender
-Reduced Paid-Up Insurance
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income
is tax deductible. Which maybe considered a medical expense under this rule? - Long Term Care
Insurance premiums
Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status
- The insurer significantly raises co-insurance charges, deductibles, or co-payment charges
Which disability policy provision would address any concerns of the value of the benefits
decreasing over time? - Cost of living benefit
What is the purpose of a Disability Income Benefit? - Provide money for living expenses
The open enrollment period for Medicare Supplements begins at what age? - Age 65
, An individual covered under a Blue Cross Blue Shield plan is called? - Subscriber
Someone needing custodial care at home would require which type of coverage? - Long-term Care
Which dividend option would an insurer invest the policyowner's money and add any interest
earnings as the dividends accrue? - Accumulation at Interest Option
Group dental plans will frequently place a limit on annual benefits in order to minimize - Adverse
Selection
Suitability - obtaining information from the applicant to determine whether an insurance or
annuity product is appropriate
Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make
- The amount contributed by the owner
-the amount contributed by the employer
-the underlying account investments used
-the medical expenses paid for by HSA
What happens if the insurer discovers that the insured's age was accidentally misstated on an
application for an individual life insurance policy - Benefits will be calculated according to how
much coverage the premium paid would have purchased for the correct age
In contrast to a guaranteed renewable policy, a noncancellable policy - may never raise premiums
Within how many days must a rollover be completed in order to avoid being taxed as current
income - 60 days
(148 Questions) With Verified Answers
An accident and health policy that provides reimbursement benefits makes them payable to? -
Insured
Which of the following is NOT part of an insurance contract - Certificate of Authority
-Policy
-Application
-Riders
An insured under a Major Medical expense plan with a zero deductible and 80/20 coinsurance
provision files a $1,000 claim. How much of this claim is the insured responsible for? - $200
insured only responsible for 20% coinsurance
According to the Affordable Care Act, any plan in existence prior to which date is considered a
grandfathered plan? - March 23, 2010
A domestic insurance company in NY must - formed under the laws of New York
What types of life insurance are normally used for key employee indemnification? - Term, whole,
and universal life insurance
Distributions from a Health Savings Account (HSA) for qualified medical expenses are - Tax-free
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How much will
she have to pay if she, not having met any of her deductible, visits the doctor and receives a bill for
$125 - $50.00
,insured have to pay $25 deductible plus $25 coinsurance
Under a Modified Endowment Contract, what are the likely tax consequences? - Pre-death
distributions will become taxable
An agent license is NOT required when - Referring insurance
The taxable portion of each annuity payment is calculated using which method? - Exclusion Ratio
All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT -
Reduction of Premium
-Extended Term Insurance
-Cash Surrender
-Reduced Paid-Up Insurance
The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income
is tax deductible. Which maybe considered a medical expense under this rule? - Long Term Care
Insurance premiums
Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status
- The insurer significantly raises co-insurance charges, deductibles, or co-payment charges
Which disability policy provision would address any concerns of the value of the benefits
decreasing over time? - Cost of living benefit
What is the purpose of a Disability Income Benefit? - Provide money for living expenses
The open enrollment period for Medicare Supplements begins at what age? - Age 65
, An individual covered under a Blue Cross Blue Shield plan is called? - Subscriber
Someone needing custodial care at home would require which type of coverage? - Long-term Care
Which dividend option would an insurer invest the policyowner's money and add any interest
earnings as the dividends accrue? - Accumulation at Interest Option
Group dental plans will frequently place a limit on annual benefits in order to minimize - Adverse
Selection
Suitability - obtaining information from the applicant to determine whether an insurance or
annuity product is appropriate
Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make
- The amount contributed by the owner
-the amount contributed by the employer
-the underlying account investments used
-the medical expenses paid for by HSA
What happens if the insurer discovers that the insured's age was accidentally misstated on an
application for an individual life insurance policy - Benefits will be calculated according to how
much coverage the premium paid would have purchased for the correct age
In contrast to a guaranteed renewable policy, a noncancellable policy - may never raise premiums
Within how many days must a rollover be completed in order to avoid being taxed as current
income - 60 days
