PSI - NY Life, Accident and Health Practice
Exam 17-55, Just my cards + 199+ 75 (
TEST) (LOT)
401k - Tax Sheltered Annuities - ANS-A 401(k) plan is a tax-advantaged, defined-contribution
retirement account offered by many employers to their employees. It is named after a section of
the U.S. Internal Revenue Code. Workers can make contributions to their 401(k) accounts
through automatic payroll withholding, and their employers can match some or all of those
contributions. The investment earnings in a traditional 401(k) plan are not taxed until the
employee withdraws that money, typically after retirement. In a Roth 401(k) plan, withdrawals
can be tax-free.
A 401(k) plan is a company-sponsored retirement account that employees can contribute to.
Employers may also make matching contributions.
There are two basic types of 401(k)s—traditional and Roth—which differ primarily in how they're
taxed.
In a traditional 401(k), employee contributions reduce their income taxes for the year they are
made, but their withdrawals are taxed. With a Roth, employees make contributions with post-tax
income, but can make withdrawals tax-free.
457 Plan - ANS-Non-qualified, deferred compensation plan established by state and local
governments for tax-exempt government agencies and tax exempt employees.
While governmental 457 plans have special catch-up provisions for those age 50 or older, they
enjoy an even greater contribution amount in the three years before retirement. The catch-up
provisions three years prior to retirement will amount to double the normal amount for allowable
maximum contributions. Until withdrawn, 457 plan contributions and all earnings remain
untaxed. The 457 plan assets of tax-exempt employers are subject to the claims of the
employer's creditors, but those of plans sponsored by governmental entities are not. Plan
distributions may occur at retirement; on separation from employment; as the result of an
unforeseeable emergency; and at death. Distributions may be taken as a lump sum, in annual
installments, or as an annuity. In 2002 and later years, proceeds from a governmental 457 plan
may be transferred to an IRA or a new employer's 401(k), 403(b) or 457 plan that accepts
transfers from an old employer's plan. On withdrawal from an IRA or from the new plan, the
distribution will be subject to immediate taxation at ordinary income tax rates.
a 10% excise tax is normally applied to an early withdrawal from an IRA according to HIPAA,
This tax will not be applied if the withdrawal is used for medical expenses that exceed ____ of
the individuals adjusted gross income - ANS-7.5%
,A beneficiary has just received a claim payment for a life insurance policy which of the following
is TRUE regarding the federal income tax liability owed?
- A flat tax of 1-% is owed on all proceeds
- Federal income tax is owed if proceeds exceed 250,000
- No federal income tax is owed on life insurance proceeds
- Tax liability owed depends on the type of life insurance policy - ANS-
A change in an insurance application requires - ANS-an initial made by the applicant
A client told an international lie to an insurer in order to receive a favorable premium. This is an
example of - ANS-Fraud
A common exclusion with vision plans is
- Eyeglass frames
- The examination
- Contact Lenses
- Lasik surgery - ANS-Lasik surgery
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT - ANS-Medical underwriting exam
A disability elimination period is best described as
- Time deductible
- dollar deductible
- Eligibility period
- Probation period - ANS-Time deductible
For long-term disability insurance, the elimination period is like a time-based deductible: It's the
waiting period before benefits begin, starting the day you become ill or injured. The typical
elimination period is 90 days. You can alter the cost of your policy by changing its elimination
period
A disability income policy can prevent an insured from earning a higher income than if he/she
were working by utilizing - ANS-Benefit limits
A disability policy where the premiums are due monthly require a grace period of (days)
7
10
15
20 - ANS-10
A disablitlly policy owner is injured and becomes totally disabled. The benefits pay for 2 years,
starting from the date of the injury, What is this time period called? - ANS-Benefit period
A group conversion option may be used in all the following instances EXCEPT - ANS-a
life-changing event, such as marriage, divorce, or childbirth
A group disbablity income plan that pays tax free benefits to covered employer is considered
- Non-contributory
- Partially contributory
- Group Contributory
- Fully contributory - ANS-Fully contributory
A guaranteed issue insurance policy as no
- Initial premium requirement
- Incontestable period
,- Waiting period
- Medical underwriting - ANS-- Medical underwriting
Guaranteed issue insurance - That means regardless of your health, you cannot be declined or
turned down. However, guaranteed issue life insurance generally offers low death benefit
options with higher than normal premiums.
A health insurance policy where. the insured has the right to terminate the policy for reasons
other than the insureds health is called
- Limited renewable
- Conditionally Renewable
- Guaranteed renewable
- Conditionally Cancelable - ANS-Conditionally Renewable
A Hospital or medical expense policy will typically cover dental treatment expenses under which
circumstance
- After the annual limit of dental policy's coverage is reached
- Dental treatment is needed to repair an injury
- Cosmetic dental treatment is preformed
- If treatment is preformed at a in network provider. - ANS-Dental treatment is needed to repair
an injury
A insurer may exclude preexisting conditions on a medicare supplement policy for __ Months
6
8
10
12 - ANS-12
A life insurance agent is required to give a disclosure notice about information practices to an
applicant or proposed insured.
- After the insured requests a full medical exam
- When the insured requests an attending physicians report
-Prior to or at the time of signing the application
- At time of policy delivery - ANS-Prior to or at the time of signing the application
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the - ANS-Reinsurer
A life settlement broker is someone who is - ANS-Licensed to negotiate a life settlement contact
A life settlement intermediary is a
- Association which maintains a facility that displays offers and counteroffers for purchases or
sellers of life settlement contacts
- Person who, for a fee, solicits or negotiates a life settlement contract between a policy owner
and a life settlement provider
- Person who enters into a life settlement contract with the policy owner.
- Association which maintains a facility that displays offerers and counteroffers for purchases or
sellers of life settlement contract.
- Policy owner who sells his/her life insurance police to a third party - ANS-Association which
maintains a facility that displays offerers and counteroffers for purchases or sellers of life
settlement contract.
, A limited payment whole life policy provides
- Protection for 20 years
- Lifetime protection
- Protection for more than one person
- Discounted premiums - ANS-Lifetime protection
A long term care policy typically provides all of the following levels of care EXECPT
- Skilled care
- Intermediate care
- acute care
- Custodial care - ANS-Acute Care
Acute care is a branch of secondary health care where a patient receives active but short-term
treatment for a severe injury or episode of illness, an urgent medical condition, or during
recovery from surgery. In medical terms, care for acute health conditions is the opposite from
chronic care, or longer term care
A master contract and certificate of coverage can be found in which type of policy?
-Long term
-Medicaid
- Group
- Medicare - ANS-Group
A medical provider that accepts medicare assignment must
- Accept payment based upon a defined medicare schudelue and bill the insured for any
difference
- Accept payment based upon a defined medicare schudleue and negotiate any excess fees
- Accept payment based upon a defined medicare schudleue and bill no more than 15% of the
excess charges
- Accept payment based upon a defined medicare schedule as payment in full. - ANS-Accept
payment based upon a defined medicare schedule as payment in full.
A medicare supplant policy must NOT contain benefits which
- Charge additional premiums
- Duplicate medicare benefits
- Cover more than medicare coverage
- Are covered by worker's compensation - ANS-Duplicate medicare benefits
A medicare supplement policy is
- Government insurance designed to provide healthcare to the elderly
- Designed to provide prescription drug coverage to the elderly
- Designed to fill in the gaps of Part A and Part B medicare
- A supplement to medicare advantage part C - ANS-Designed to fill in the gaps of Part A and
Part B medicare
A pharmacy benefit covers prescription drugs derived from a list called a
- Administrative drug list
- Drug formulary
Exam 17-55, Just my cards + 199+ 75 (
TEST) (LOT)
401k - Tax Sheltered Annuities - ANS-A 401(k) plan is a tax-advantaged, defined-contribution
retirement account offered by many employers to their employees. It is named after a section of
the U.S. Internal Revenue Code. Workers can make contributions to their 401(k) accounts
through automatic payroll withholding, and their employers can match some or all of those
contributions. The investment earnings in a traditional 401(k) plan are not taxed until the
employee withdraws that money, typically after retirement. In a Roth 401(k) plan, withdrawals
can be tax-free.
A 401(k) plan is a company-sponsored retirement account that employees can contribute to.
Employers may also make matching contributions.
There are two basic types of 401(k)s—traditional and Roth—which differ primarily in how they're
taxed.
In a traditional 401(k), employee contributions reduce their income taxes for the year they are
made, but their withdrawals are taxed. With a Roth, employees make contributions with post-tax
income, but can make withdrawals tax-free.
457 Plan - ANS-Non-qualified, deferred compensation plan established by state and local
governments for tax-exempt government agencies and tax exempt employees.
While governmental 457 plans have special catch-up provisions for those age 50 or older, they
enjoy an even greater contribution amount in the three years before retirement. The catch-up
provisions three years prior to retirement will amount to double the normal amount for allowable
maximum contributions. Until withdrawn, 457 plan contributions and all earnings remain
untaxed. The 457 plan assets of tax-exempt employers are subject to the claims of the
employer's creditors, but those of plans sponsored by governmental entities are not. Plan
distributions may occur at retirement; on separation from employment; as the result of an
unforeseeable emergency; and at death. Distributions may be taken as a lump sum, in annual
installments, or as an annuity. In 2002 and later years, proceeds from a governmental 457 plan
may be transferred to an IRA or a new employer's 401(k), 403(b) or 457 plan that accepts
transfers from an old employer's plan. On withdrawal from an IRA or from the new plan, the
distribution will be subject to immediate taxation at ordinary income tax rates.
a 10% excise tax is normally applied to an early withdrawal from an IRA according to HIPAA,
This tax will not be applied if the withdrawal is used for medical expenses that exceed ____ of
the individuals adjusted gross income - ANS-7.5%
,A beneficiary has just received a claim payment for a life insurance policy which of the following
is TRUE regarding the federal income tax liability owed?
- A flat tax of 1-% is owed on all proceeds
- Federal income tax is owed if proceeds exceed 250,000
- No federal income tax is owed on life insurance proceeds
- Tax liability owed depends on the type of life insurance policy - ANS-
A change in an insurance application requires - ANS-an initial made by the applicant
A client told an international lie to an insurer in order to receive a favorable premium. This is an
example of - ANS-Fraud
A common exclusion with vision plans is
- Eyeglass frames
- The examination
- Contact Lenses
- Lasik surgery - ANS-Lasik surgery
A consumer report used to determine eligibility for insurance may include all of the following
EXCEPT - ANS-Medical underwriting exam
A disability elimination period is best described as
- Time deductible
- dollar deductible
- Eligibility period
- Probation period - ANS-Time deductible
For long-term disability insurance, the elimination period is like a time-based deductible: It's the
waiting period before benefits begin, starting the day you become ill or injured. The typical
elimination period is 90 days. You can alter the cost of your policy by changing its elimination
period
A disability income policy can prevent an insured from earning a higher income than if he/she
were working by utilizing - ANS-Benefit limits
A disability policy where the premiums are due monthly require a grace period of (days)
7
10
15
20 - ANS-10
A disablitlly policy owner is injured and becomes totally disabled. The benefits pay for 2 years,
starting from the date of the injury, What is this time period called? - ANS-Benefit period
A group conversion option may be used in all the following instances EXCEPT - ANS-a
life-changing event, such as marriage, divorce, or childbirth
A group disbablity income plan that pays tax free benefits to covered employer is considered
- Non-contributory
- Partially contributory
- Group Contributory
- Fully contributory - ANS-Fully contributory
A guaranteed issue insurance policy as no
- Initial premium requirement
- Incontestable period
,- Waiting period
- Medical underwriting - ANS-- Medical underwriting
Guaranteed issue insurance - That means regardless of your health, you cannot be declined or
turned down. However, guaranteed issue life insurance generally offers low death benefit
options with higher than normal premiums.
A health insurance policy where. the insured has the right to terminate the policy for reasons
other than the insureds health is called
- Limited renewable
- Conditionally Renewable
- Guaranteed renewable
- Conditionally Cancelable - ANS-Conditionally Renewable
A Hospital or medical expense policy will typically cover dental treatment expenses under which
circumstance
- After the annual limit of dental policy's coverage is reached
- Dental treatment is needed to repair an injury
- Cosmetic dental treatment is preformed
- If treatment is preformed at a in network provider. - ANS-Dental treatment is needed to repair
an injury
A insurer may exclude preexisting conditions on a medicare supplement policy for __ Months
6
8
10
12 - ANS-12
A life insurance agent is required to give a disclosure notice about information practices to an
applicant or proposed insured.
- After the insured requests a full medical exam
- When the insured requests an attending physicians report
-Prior to or at the time of signing the application
- At time of policy delivery - ANS-Prior to or at the time of signing the application
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the - ANS-Reinsurer
A life settlement broker is someone who is - ANS-Licensed to negotiate a life settlement contact
A life settlement intermediary is a
- Association which maintains a facility that displays offers and counteroffers for purchases or
sellers of life settlement contacts
- Person who, for a fee, solicits or negotiates a life settlement contract between a policy owner
and a life settlement provider
- Person who enters into a life settlement contract with the policy owner.
- Association which maintains a facility that displays offerers and counteroffers for purchases or
sellers of life settlement contract.
- Policy owner who sells his/her life insurance police to a third party - ANS-Association which
maintains a facility that displays offerers and counteroffers for purchases or sellers of life
settlement contract.
, A limited payment whole life policy provides
- Protection for 20 years
- Lifetime protection
- Protection for more than one person
- Discounted premiums - ANS-Lifetime protection
A long term care policy typically provides all of the following levels of care EXECPT
- Skilled care
- Intermediate care
- acute care
- Custodial care - ANS-Acute Care
Acute care is a branch of secondary health care where a patient receives active but short-term
treatment for a severe injury or episode of illness, an urgent medical condition, or during
recovery from surgery. In medical terms, care for acute health conditions is the opposite from
chronic care, or longer term care
A master contract and certificate of coverage can be found in which type of policy?
-Long term
-Medicaid
- Group
- Medicare - ANS-Group
A medical provider that accepts medicare assignment must
- Accept payment based upon a defined medicare schudelue and bill the insured for any
difference
- Accept payment based upon a defined medicare schudleue and negotiate any excess fees
- Accept payment based upon a defined medicare schudleue and bill no more than 15% of the
excess charges
- Accept payment based upon a defined medicare schedule as payment in full. - ANS-Accept
payment based upon a defined medicare schedule as payment in full.
A medicare supplant policy must NOT contain benefits which
- Charge additional premiums
- Duplicate medicare benefits
- Cover more than medicare coverage
- Are covered by worker's compensation - ANS-Duplicate medicare benefits
A medicare supplement policy is
- Government insurance designed to provide healthcare to the elderly
- Designed to provide prescription drug coverage to the elderly
- Designed to fill in the gaps of Part A and Part B medicare
- A supplement to medicare advantage part C - ANS-Designed to fill in the gaps of Part A and
Part B medicare
A pharmacy benefit covers prescription drugs derived from a list called a
- Administrative drug list
- Drug formulary
