New York Life, Accident, and Health Updated Exam Review, Questions and Answers_100% Already Graded A+

+ An accident and health policy that provides reimbursement benefits makes them payable to? - CORRECT ANSWER-Insured Which of the following is NOT part of an insurance contract - CORRECT ANSWER-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? - CORRECT ANSWER-$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? - CORRECT ANSWER-March 23, 2010 A domestic insurance company in NY must - CORRECT ANSWER-formed under the laws of New York What types of life insurance are normally used for key employee indemnification? - CORRECT ANSWER-Term, whole, and universal life insurance Distributions from a Health Savings Account (HSA) for qualified medical expenses are - CORRECT ANSWER-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 - CORRECT ANSWER-$50.00 insured have to pay $25 deductible plus $25 coinsurance Under a Modified Endowment Contract, what are the likely tax consequences? - CORRECT ANSWER-Pre-death distributions will become taxable An agent license is NOT required when - CORRECT ANSWER-Referring insurance The taxable portion of each annuity payment is calculated using which method? - CORRECT ANSWER-Exclusion Ratio All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT - CORRECT ANSWER-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? - CORRECT ANSWER-Long Term Care Insurance premiums Under the Affordable Care Act, how would a grandfathered health plan lose its grandfathered status - CORRECT ANSWER-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? - CORRECT ANSWER-Cost of living benefit What is the purpose of a Disability Income Benefit? - CORRECT ANSWER-Provide money for living expenses The open enrollment period for Medicare Supplements begins at what age? - CORRECT ANSWER-Age 65 An individual covered under a Blue Cross Blue Shield plan is called? - CORRECT ANSWER-Subscriber Someone needing custodial care at home would require which type of coverage? - CORRECT ANSWER-Long-term Care Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? - CORRECT ANSWER-Accumulation at Interest Option