NY Life, Accident, and Health Insurance Agent/Broker
EXAM QUESTIONS AND VERIFIED ACCURATE
SOLUTION |GET IT 100% ACCURATE
Certificate of Authority (1102) - ANSWER-The certificate of authority is an insurer's license to transact
insurance in this state as an authorized insurer.
Change of Address (All Addresses, including Email) - (2134; Reg. 5, Part 21.4; Reg. 6, Part 22.3; Reg. 7,
Part 23.4) - ANSWER-Licensees must inform the Superintendent by a means acceptable to the
Superintendent of a change of business or residence address within 30 days of the change. This also
includes e-mail addresses.
Characteristics of Group Plans - ANSWER-differs from individual insurance in several respects. A
distinctive characteristic is the coverage of many persons under one contact. A master contract is
formed between the insurer and the group policy owner for the benefit of the individual members. In
most plans, the group policy owner is the employer. Employees receive a certificate of insurance that
shows they are insured. A second characteristic is that group insurance usually costs less that
comparable insurance purchased individually. Employers usually pay part or all of the cost, which
reduces or eliminates premium payments by the employees. In addition, administrative and marketing
expenses are reduced as a result of mass distribution methods. Another characteristic is that individual
evidence of insurability is usually not required. Group selection of risks is used, not individual selection.
The insurer is concerned with the insurability of the group as a whole rather with the insurability of the
single member within the group.
Term insurance is the most common form of group life insurance. Group term life is typically provided in
the form of yearly renewable term insurance. When group term insurance is provided through your
employer, the employer usually pays for most (and in some cases all) of the premiums. The amount of
your coverage is typically equal to one or two times your annual salary.
Group term coverage remains in force until your employment is terminated or until the specific term of
coverage ends. You may have the option of converting your group coverage to an individual policy if you
leave your employer. However, most people choose not to do this because these conversion premiums
tend to be much higher than premiums for comparable policies available to individuals. Typically, only
those who are otherwise uninsurable take advantage of this co
Child Health Plus - ANSWER-provides free or low-cost health insurance to children under the age of 19
who do not qualify for Medicaid and do not have other health insurance coverage.
,Eligibility - To be eligible for either Children's Medicaid or Child Health Plus, children must be under the
age of 19 and be residents of New York State. Whether a child qualifies for Children's Medicaid or Child
Health Plus depends on gross family income.
Benefits -
Well-child care.
Immunizations.
Treatment for illness or injury.
Inpatient hospital medical or surgical care.
Short-term physical therapy; occupational therapy,
Radiation therapy.
Therapeutic outpatient services (chemotherapy, hemodialysis).
Inpatient and outpatient treatment for alcoholism and substance abuse, and mental health.
Prescription and non-prescription drugs if ordered by a physician.
Emergency care.
Emergency ground transportation.
Emergency, preventative and routine dental care. Limited orthodontic services are available for children
with a severe medical condition such as cleft lip or cleft palate.
Preventive and routine vision care (including eyeglasses).
Speech and hearing services (with limits).
Durable medical equipment.
Hospice services.
Children's term rider - ANSWER-allows you to add term life insurance coverage on all children - natural,
adopted and stepchildren. You may find this to be an affordable way to extend the benefits of your
policy to your children. Coverage is typically available for children 15 days of age to 18-25 years of age,
depending on carrier.
Some of these common riders and endorsements come standard and may be automatically included
with your policy at no additional charge, while others require you to pay an additional premium. There
are also specific riders that can only be added at the time the contract is written and can't be endorsed
,onto the policy once it has been issued. Because life insurance products and companies differ, not all
riders and endorsements presented here are offered under every life insurance policy contract or
offered by every insurer.
Classes (per stirpes/per capita) - ANSWER-The estate planning terms "per stirpes distributions" and "per
capita distributions" are commonly used in last wills and testaments and revocable living trusts. They
describe how you want your property to be left to your beneficiaries.
Per stirpes indicates that if any of your beneficiaries aren't living at the time of your death, their share of
the estate will pass to their descendants. Per capita distributions can only go to the named beneficiaries
and in equal shares.
The term per stirpes is Latin for "by representation" or "by class." It means that each living beneficiary in
a class of beneficiaries will receive an equal share.
If a beneficiary is deceased and survived by any descendants, that beneficiary's descendants would take
what their deceased parent would have taken "by representation."
Per capita is Latin for "by total headcount" or "by a total number of individuals." All the living members
of the identified group will receive an equal share if the beneficiaries are to share in a distribution per
capita
COBRA (Consolidated Omnibus Budget Reconciliation Act) - ANSWER-gives workers and their families
who lose their health benefits the right to choose to continue group health benefits provided by their
group health plan for limited periods of time under certain circumstances such as voluntary or
involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other
life events. Qualified individuals may be required to pay the entire premium for coverage up to 102% of
the cost to the plan.
generally requires that group health plans sponsored by employers with 20 or more employees in the
prior year offer employees and their families the opportunity for a temporary extension of health
coverage (called continuation coverage) in certain instances where coverage under the plan would
otherwise end.
Commissions and compensation - ANSWER-A sales commission is a sum of money paid to an employee
upon completion of a task, usually selling a certain amount of goods or services. Employers sometimes
, use sales commissions as incentives to increase worker productivity. A commission may be paid in
addition to a salary or instead of a salary.
Common disaster clause - ANSWER-Provision in most life insurance policies (and some wills) under
which the primary beneficiary of the policy (or will) must survive the insured (or testator) by a certain
number (usually from 60 to 90) days to qualify to receive the policy's (or will's) benefits.
Conditional Receipt - ANSWER-a document given to someone who applies for an insurance contract and
has provided the initial premium payment. This receipt means that the person can only be insured if he
or she meets the standards of insurability and is given approval by the insurance company.
Consultants (2107) - ANSWER-The Superintendent may issue an insurance consultant's license to any
person, firm, association or corporation who or which has complied with the requirements of this
chapter with respect to either: life insurance, meaning all of those kinds of insurance authorized. Any
such license issued to a firm or association shall authorize only the members of such firm or association
named in such license as sub-licensees to act individually as consultants there under, and any such
license issued to a corporation shall authorize only the officers and directors thereof named in such
license as sub-licensees to act individually as consultants there under.
Continuous premium (straight life) - ANSWER-Straight life insurance is a type of permanent life
insurance that provides a guaranteed death benefit and has fixed premiums. Also known as whole or
ordinary life insurance, the policy has a term length that lasts your entire life. This is different from term
life insurance which expires after a set number of years.
As a form of permanent life insurance, straight life insurance comes with a cash value account that will
grow over the life of the plan. The cash value component of a life insurance policy is separate from the
death benefit. Each month, part of the premium that you pay for a straight life policy will be added to
the cash value account. The rest of the premium goes towards the company's costs for providing
insurance
Controlled Business (2103(i)) - ANSWER-The Superintendent may refuse to issue, suspend, or revoke a
license if an applicant receives more than 10% of the aggregate net commissions during a 12- month
period from insurance sold to a licensee's spouse or other family members or business associates or
their immediate family.
Convertible term - ANSWER-A convertible life insurance policy is simply a term life insurance policy that
can convert to a permanent life insurance policy. Here's how it works: Let's say a 35-year-old man buys a
EXAM QUESTIONS AND VERIFIED ACCURATE
SOLUTION |GET IT 100% ACCURATE
Certificate of Authority (1102) - ANSWER-The certificate of authority is an insurer's license to transact
insurance in this state as an authorized insurer.
Change of Address (All Addresses, including Email) - (2134; Reg. 5, Part 21.4; Reg. 6, Part 22.3; Reg. 7,
Part 23.4) - ANSWER-Licensees must inform the Superintendent by a means acceptable to the
Superintendent of a change of business or residence address within 30 days of the change. This also
includes e-mail addresses.
Characteristics of Group Plans - ANSWER-differs from individual insurance in several respects. A
distinctive characteristic is the coverage of many persons under one contact. A master contract is
formed between the insurer and the group policy owner for the benefit of the individual members. In
most plans, the group policy owner is the employer. Employees receive a certificate of insurance that
shows they are insured. A second characteristic is that group insurance usually costs less that
comparable insurance purchased individually. Employers usually pay part or all of the cost, which
reduces or eliminates premium payments by the employees. In addition, administrative and marketing
expenses are reduced as a result of mass distribution methods. Another characteristic is that individual
evidence of insurability is usually not required. Group selection of risks is used, not individual selection.
The insurer is concerned with the insurability of the group as a whole rather with the insurability of the
single member within the group.
Term insurance is the most common form of group life insurance. Group term life is typically provided in
the form of yearly renewable term insurance. When group term insurance is provided through your
employer, the employer usually pays for most (and in some cases all) of the premiums. The amount of
your coverage is typically equal to one or two times your annual salary.
Group term coverage remains in force until your employment is terminated or until the specific term of
coverage ends. You may have the option of converting your group coverage to an individual policy if you
leave your employer. However, most people choose not to do this because these conversion premiums
tend to be much higher than premiums for comparable policies available to individuals. Typically, only
those who are otherwise uninsurable take advantage of this co
Child Health Plus - ANSWER-provides free or low-cost health insurance to children under the age of 19
who do not qualify for Medicaid and do not have other health insurance coverage.
,Eligibility - To be eligible for either Children's Medicaid or Child Health Plus, children must be under the
age of 19 and be residents of New York State. Whether a child qualifies for Children's Medicaid or Child
Health Plus depends on gross family income.
Benefits -
Well-child care.
Immunizations.
Treatment for illness or injury.
Inpatient hospital medical or surgical care.
Short-term physical therapy; occupational therapy,
Radiation therapy.
Therapeutic outpatient services (chemotherapy, hemodialysis).
Inpatient and outpatient treatment for alcoholism and substance abuse, and mental health.
Prescription and non-prescription drugs if ordered by a physician.
Emergency care.
Emergency ground transportation.
Emergency, preventative and routine dental care. Limited orthodontic services are available for children
with a severe medical condition such as cleft lip or cleft palate.
Preventive and routine vision care (including eyeglasses).
Speech and hearing services (with limits).
Durable medical equipment.
Hospice services.
Children's term rider - ANSWER-allows you to add term life insurance coverage on all children - natural,
adopted and stepchildren. You may find this to be an affordable way to extend the benefits of your
policy to your children. Coverage is typically available for children 15 days of age to 18-25 years of age,
depending on carrier.
Some of these common riders and endorsements come standard and may be automatically included
with your policy at no additional charge, while others require you to pay an additional premium. There
are also specific riders that can only be added at the time the contract is written and can't be endorsed
,onto the policy once it has been issued. Because life insurance products and companies differ, not all
riders and endorsements presented here are offered under every life insurance policy contract or
offered by every insurer.
Classes (per stirpes/per capita) - ANSWER-The estate planning terms "per stirpes distributions" and "per
capita distributions" are commonly used in last wills and testaments and revocable living trusts. They
describe how you want your property to be left to your beneficiaries.
Per stirpes indicates that if any of your beneficiaries aren't living at the time of your death, their share of
the estate will pass to their descendants. Per capita distributions can only go to the named beneficiaries
and in equal shares.
The term per stirpes is Latin for "by representation" or "by class." It means that each living beneficiary in
a class of beneficiaries will receive an equal share.
If a beneficiary is deceased and survived by any descendants, that beneficiary's descendants would take
what their deceased parent would have taken "by representation."
Per capita is Latin for "by total headcount" or "by a total number of individuals." All the living members
of the identified group will receive an equal share if the beneficiaries are to share in a distribution per
capita
COBRA (Consolidated Omnibus Budget Reconciliation Act) - ANSWER-gives workers and their families
who lose their health benefits the right to choose to continue group health benefits provided by their
group health plan for limited periods of time under certain circumstances such as voluntary or
involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other
life events. Qualified individuals may be required to pay the entire premium for coverage up to 102% of
the cost to the plan.
generally requires that group health plans sponsored by employers with 20 or more employees in the
prior year offer employees and their families the opportunity for a temporary extension of health
coverage (called continuation coverage) in certain instances where coverage under the plan would
otherwise end.
Commissions and compensation - ANSWER-A sales commission is a sum of money paid to an employee
upon completion of a task, usually selling a certain amount of goods or services. Employers sometimes
, use sales commissions as incentives to increase worker productivity. A commission may be paid in
addition to a salary or instead of a salary.
Common disaster clause - ANSWER-Provision in most life insurance policies (and some wills) under
which the primary beneficiary of the policy (or will) must survive the insured (or testator) by a certain
number (usually from 60 to 90) days to qualify to receive the policy's (or will's) benefits.
Conditional Receipt - ANSWER-a document given to someone who applies for an insurance contract and
has provided the initial premium payment. This receipt means that the person can only be insured if he
or she meets the standards of insurability and is given approval by the insurance company.
Consultants (2107) - ANSWER-The Superintendent may issue an insurance consultant's license to any
person, firm, association or corporation who or which has complied with the requirements of this
chapter with respect to either: life insurance, meaning all of those kinds of insurance authorized. Any
such license issued to a firm or association shall authorize only the members of such firm or association
named in such license as sub-licensees to act individually as consultants there under, and any such
license issued to a corporation shall authorize only the officers and directors thereof named in such
license as sub-licensees to act individually as consultants there under.
Continuous premium (straight life) - ANSWER-Straight life insurance is a type of permanent life
insurance that provides a guaranteed death benefit and has fixed premiums. Also known as whole or
ordinary life insurance, the policy has a term length that lasts your entire life. This is different from term
life insurance which expires after a set number of years.
As a form of permanent life insurance, straight life insurance comes with a cash value account that will
grow over the life of the plan. The cash value component of a life insurance policy is separate from the
death benefit. Each month, part of the premium that you pay for a straight life policy will be added to
the cash value account. The rest of the premium goes towards the company's costs for providing
insurance
Controlled Business (2103(i)) - ANSWER-The Superintendent may refuse to issue, suspend, or revoke a
license if an applicant receives more than 10% of the aggregate net commissions during a 12- month
period from insurance sold to a licensee's spouse or other family members or business associates or
their immediate family.
Convertible term - ANSWER-A convertible life insurance policy is simply a term life insurance policy that
can convert to a permanent life insurance policy. Here's how it works: Let's say a 35-year-old man buys a
