NYS Life Insurance License Questions With 100 % Correct Answers | latest

According to the HIPAA Privacy Rule, what is protected health information (PHI)? - All individually identifiable health information about the insured, such as demographic data that relates to past, present or future physical or mental health or conditions, or payment information. An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? - mutal And annuity has two distinct periods. What are they called, and what happens during each? - The accumulation period, also known as pay-in period, is the period of time over which the annuitant makes payments (premiums) into an annuity. The annuity period, also referred to as the annuitization period, liquidation period, or pay-out period, is the time when money is distributed to the annuitant. Apparent Authroity - perceived authority Authorities that regulate variable life policy's - Variable life insurance products are dually regulated by the state and federal government: the securities and exchange commission, the financial industry regulatory authority, and the state department of insurance. Common personal uses of life insurance - Survivor protection, estate creation and conservation, cash accumulation, and liquidity Death benefit options in universal life policies - Option A is the level death benefit option, and Option B is increasing death benefit option. Elements of insurable risk - Loss must be (1) due to chance, (2) definite and measurable, (3) statistically predictable, (4) not catastrophic, (5) with large loss exposure, and (6) insurance cannot be mandatory Four elements of an insurance contract - Agreement - offer and acceptance, consideration, competent parties, and legal purposeHow are dividends taxed in participating policies? - Dividends are the return of unused premiums, so they are not considered income for tax purposes. However, if dividends are left with the insurer to accumulate interest, the interest earned on the dividend account is subject to taxation as ordinary income each year interest is earned. How are income payments from a 403(b) plan taxed? - Funds contributed are excluded from the employee's current taxable income, but are taxable upon withdrawal How are life insurance death proceeds taxed? - If taken as a lump sum, proceeds are tax free. If other than lump sum, principal is tax free and interest is taxable. How can an insurance company use the information in obtains from the MIB? - It can use MIB information to conduct further investigations into an applicants current insurability. How do annuities differ from life insurance policies? - Annuities liquidate an estate (life insurance creates an estate). Annuities pay income to the annuitant while he or she is still living; life insurance pays the death benefit. How does a substandard risk policy differ from a standard risk? - Substandard risk applicants are not acceptable at standard rates because of physical conditions, personal or family history of disease, occupation, or dangerous habits. These policies could be used with the premium rated-up. How does continuous premium street life differ from 20 year limited pay life? - The premiums for straight life will be spread over the insured's lifetime, thus enabling the insurance company to charge a lower annual premium. When the premium-paying period is condensed to 20 years, a higher annual premium is required. How does inflation affect the purchasing power of a fixed annuity? - Inflation can erode the purchasing power of income payments How long will a life annuity with 15 year period certain pay benefits? - For the life of the annuity: however, if he or she dies shortly after the annuity payments begin, the payment of the beneficiary will only last 15 years.How soon can payments begin in a deferred annuity? - In a deferred annuity, income payments begin sometime after one year from the date of purchase. In a fixed annuity, how are the guaranteed and current interest rate related? - During the accumulation phase, the insurer will invest the principal, and give the annuitant a guaranteed interest rate based on a minimum rate as specified in the annuity, or the current interest rate, whichever is higher. indemnify - To "restore" an insured to the same financial status as before the loss Information gathered in parts one and two of the application - Part one of the application includes general questions about the applicant, including name, age, address, birthdate, gender, income, marital status, and occupation. Part two includes medical information about prospective insured