NYS LIFE, ACCIDENT, AND HEALTH
INSURANCE EXAM QUESTIONS &
DETAILED CORRECT ANSWERS
PASSED 100%
Which type of life insurance policy is best suited for paying off the outstanding balance
of a 30-year mortgage in the event of the insured's death? - CORRECT ANSWER 30-
year decreasing term.
How many days notice does the ACA require insurers to give before rescinding
coverage? - CORRECT ANSWER 30
A signed good health statement may be requested by a life producer at the time of -
CORRECT ANSWER Policy Delivery
Carol purchases a whole life policy that provides a choice of dividend options. This
policy is required to include a statement that the dividends are - CORRECT ANSWER
Not Guaranteeed
Tim is confined to a nursing home but doesn't have a terminal illness. Which life
insurance rider is designed to help pay for this type of expense? - CORRECT
ANSWER Long-term care benefit rider
An insured is covered under a group long-term disability policy. Under this type of
policy, the definition of disability based on any occupation typically applies - CORRECT
ANSWER After two years of disability
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No
further payments are permitted and the income stream begins in 15 years. This contract
is a(n) - CORRECT ANSWER Single premium deferred annuity
Which of these is NOT a factor that influences group health insurance underwriting? -
CORRECT ANSWER Physical exams of group members
What is the grace period required for an individual accident and health insurance policy
with monthly premiums? - CORRECT ANSWER 10 days
In regards to technology and the ACA, which of the following statements is correct? -
CORRECT ANSWER States which operate with an Exchange must offer an internet-
based portal
,Insurable interest involves what assumption? - CORRECT ANSWER One person
benefits from another person's continued life
Which of these policies is considered a whole life policy? - CORRECT ANSWER Single
premium life
Which of the following would be considered an unfair claims settlement practice? -
CORRECT ANSWER Misrepresenting pertinent policy provisions relating to coverage
after a loss
A policyowner is permitted to take out a policy loan on a whole life policy at what point?
- CORRECT ANSWER When the policy has a cash value
Which of these is NOT a factor during the health insurance underwriting process? -
CORRECT ANSWER Former residence
New York workers compensation laws exclude benefits for disabilities caused by -
CORRECT ANSWER Intentional, self-inflicted injuries occurring on the job
When premiums are determined, one factor would be the expenses of the - CORRECT
ANSWER Insurer
Scott has a life insurance policy in which the dividends are left with the insurance
company. This particular policy may be paid up when the cash value plus accumulated
dividends - CORRECT ANSWER equal the net single premium for the same face
amount at the insured's attained age
During open enrollment for Medicare Supplement coverage, an applicant MUST be at
least - CORRECT ANSWER There is no minimum age requirement
What happens to the cash value of a market value adjusted annuity if it's surrendered
prior to the end of the stated guarantee period? - CORRECT ANSWER Subject to
market value adjustment
Which of the following contracts offer deferred taxation, flexible payments, a guaranteed
interest rate, and death benefits equal to the cash value? - CORRECT ANSWER
Flexible premium fixed annuity
Tonya has been diagnosed with kidney failure and has group accident and health
insurance through her large employer. Which of these accident and health plans will be
primary during the months following her diagnosis? - CORRECT ANSWER Her
employer's group accident and health plan
Which statement regarding the certificate of insurance is accurate? - CORRECT
ANSWER It indicates evidence of an employee's insurance coverage
, According to the ACA, the proportion of premium revenues spent on clinical services
and quality improvements is called the - CORRECT ANSWER Medical loss ratio
Which of the following statements regarding the Fair Credit Reporting Act is correct? -
CORRECT ANSWER If credit, insurance, or employment was denied because of an
unfavorable report, the consumer must be advised
According to the ACA, insurers can no longer deny health coverage due to pre-exsisting
conditions unless that plan is a - CORRECT ANSWER Grandfathered plan
Which item must be considered by an agent when determining the suitability of an
annuity recommendation? - CORRECT ANSWER The client's financial status
An applicant submits a life insurance application where an investigative consumer
report is used in the underwriting process. Which of these statements is true? -
CORRECT ANSWER Applicant has a right to receive a copy of the report
If group Health benefit levels are too high, what could be the end result? - CORRECT
ANSWER Overutilization of the plan
A life insurance producer licensed in New York is authorized to - CORRECT ANSWER
Solicit, receive and forward applications to the insurer
A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a - CORRECT ANSWER Risk retention group
Any employee insured under a group life insurance plan is normally - CORRECT
ANSWER Covered with term life insurance
A life insurance guaranteed insurability rider gives the insured the right, without proving
insurability, to - CORRECT ANSWER Periodically purchase additional insurance
A policy owner has decided to replace an existing life insurance policy with a new one.
The existing life policy should be terminated - CORRECT ANSWER After the new life
policy has been issued and delivered to the policy owner
Which of the following is NOT a function of accident and health insurance? -
CORRECT ANSWER Pays a death benefit as a result of natural causes
What typically changes at the re-entry option date found in some term life policies? -
CORRECT ANSWER Premium
When an illustration is used in the sale of a life insurance policy, the illustration MUST
contain a statement signed by the - CORRECT ANSWER Agent
INSURANCE EXAM QUESTIONS &
DETAILED CORRECT ANSWERS
PASSED 100%
Which type of life insurance policy is best suited for paying off the outstanding balance
of a 30-year mortgage in the event of the insured's death? - CORRECT ANSWER 30-
year decreasing term.
How many days notice does the ACA require insurers to give before rescinding
coverage? - CORRECT ANSWER 30
A signed good health statement may be requested by a life producer at the time of -
CORRECT ANSWER Policy Delivery
Carol purchases a whole life policy that provides a choice of dividend options. This
policy is required to include a statement that the dividends are - CORRECT ANSWER
Not Guaranteeed
Tim is confined to a nursing home but doesn't have a terminal illness. Which life
insurance rider is designed to help pay for this type of expense? - CORRECT
ANSWER Long-term care benefit rider
An insured is covered under a group long-term disability policy. Under this type of
policy, the definition of disability based on any occupation typically applies - CORRECT
ANSWER After two years of disability
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No
further payments are permitted and the income stream begins in 15 years. This contract
is a(n) - CORRECT ANSWER Single premium deferred annuity
Which of these is NOT a factor that influences group health insurance underwriting? -
CORRECT ANSWER Physical exams of group members
What is the grace period required for an individual accident and health insurance policy
with monthly premiums? - CORRECT ANSWER 10 days
In regards to technology and the ACA, which of the following statements is correct? -
CORRECT ANSWER States which operate with an Exchange must offer an internet-
based portal
,Insurable interest involves what assumption? - CORRECT ANSWER One person
benefits from another person's continued life
Which of these policies is considered a whole life policy? - CORRECT ANSWER Single
premium life
Which of the following would be considered an unfair claims settlement practice? -
CORRECT ANSWER Misrepresenting pertinent policy provisions relating to coverage
after a loss
A policyowner is permitted to take out a policy loan on a whole life policy at what point?
- CORRECT ANSWER When the policy has a cash value
Which of these is NOT a factor during the health insurance underwriting process? -
CORRECT ANSWER Former residence
New York workers compensation laws exclude benefits for disabilities caused by -
CORRECT ANSWER Intentional, self-inflicted injuries occurring on the job
When premiums are determined, one factor would be the expenses of the - CORRECT
ANSWER Insurer
Scott has a life insurance policy in which the dividends are left with the insurance
company. This particular policy may be paid up when the cash value plus accumulated
dividends - CORRECT ANSWER equal the net single premium for the same face
amount at the insured's attained age
During open enrollment for Medicare Supplement coverage, an applicant MUST be at
least - CORRECT ANSWER There is no minimum age requirement
What happens to the cash value of a market value adjusted annuity if it's surrendered
prior to the end of the stated guarantee period? - CORRECT ANSWER Subject to
market value adjustment
Which of the following contracts offer deferred taxation, flexible payments, a guaranteed
interest rate, and death benefits equal to the cash value? - CORRECT ANSWER
Flexible premium fixed annuity
Tonya has been diagnosed with kidney failure and has group accident and health
insurance through her large employer. Which of these accident and health plans will be
primary during the months following her diagnosis? - CORRECT ANSWER Her
employer's group accident and health plan
Which statement regarding the certificate of insurance is accurate? - CORRECT
ANSWER It indicates evidence of an employee's insurance coverage
, According to the ACA, the proportion of premium revenues spent on clinical services
and quality improvements is called the - CORRECT ANSWER Medical loss ratio
Which of the following statements regarding the Fair Credit Reporting Act is correct? -
CORRECT ANSWER If credit, insurance, or employment was denied because of an
unfavorable report, the consumer must be advised
According to the ACA, insurers can no longer deny health coverage due to pre-exsisting
conditions unless that plan is a - CORRECT ANSWER Grandfathered plan
Which item must be considered by an agent when determining the suitability of an
annuity recommendation? - CORRECT ANSWER The client's financial status
An applicant submits a life insurance application where an investigative consumer
report is used in the underwriting process. Which of these statements is true? -
CORRECT ANSWER Applicant has a right to receive a copy of the report
If group Health benefit levels are too high, what could be the end result? - CORRECT
ANSWER Overutilization of the plan
A life insurance producer licensed in New York is authorized to - CORRECT ANSWER
Solicit, receive and forward applications to the insurer
A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a - CORRECT ANSWER Risk retention group
Any employee insured under a group life insurance plan is normally - CORRECT
ANSWER Covered with term life insurance
A life insurance guaranteed insurability rider gives the insured the right, without proving
insurability, to - CORRECT ANSWER Periodically purchase additional insurance
A policy owner has decided to replace an existing life insurance policy with a new one.
The existing life policy should be terminated - CORRECT ANSWER After the new life
policy has been issued and delivered to the policy owner
Which of the following is NOT a function of accident and health insurance? -
CORRECT ANSWER Pays a death benefit as a result of natural causes
What typically changes at the re-entry option date found in some term life policies? -
CORRECT ANSWER Premium
When an illustration is used in the sale of a life insurance policy, the illustration MUST
contain a statement signed by the - CORRECT ANSWER Agent
