Pre-Final Exam - New York Life, Accident and Health Exam
(Latest 2022 – 2023) Verified & Correct Solutions
What happens when an initial offer is answered with a counteroffer? - Initial offer is void
According to the Affordable Care Act (ACA), dependent children may remain on their parent's plan
until what age? - Age 26
The premiums paid by an employer for his employee's group life insurance are usually considered
to be - tax-deductible to the employer
A family group accident and health insurance policy must continue coverage for each unmarried
child at least until age - 19
A life insurance beneficiary died after receiving only six payments under the policy's life income
settlement option. What happens with the remaining balance of the death proceeds? - Kept by the
insurance company
When an individual is planning to protect his family with life insurance, one method of doing so is
called needs analysis. What exactly does needs analysis involve? - Identifies the needs of an
individual and the individual's dependents
A retired couple would like to maximize the income derived from their combined life savings and
have it payable until they both die. Which annuity would be their best choice? - Joint and survivor
annuity
Major medical plans typically exclude coverage for which of the following benefits? - Custodial care
Which of the following BEST describes a "partial disability"? - Unable to perform one or more job
duties
,Under an adjustable life insurance policy, which of the following may NOT be changed without
further underwriting? - The person insured
An agent's license in New York must be renewed every - Two years
A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one
month after the policy effective date. Which of these statements is normally true? - Beneficiary
receives $50,000 income tax-free
According to the Affordable Care Act (ACA), the proportion of premium revenues spent on clinical
services and quality improvements is called the - Medical Loss Ratio
A material change in a modified endowment contract (MEC) results in - the seven pay test, adjusted
for cash value, applies again
How many days notice does the Affordable Care Act require insurers to give before rescinding
coverage? - 30
What determines how much an annuitant is paid for a variable annuity? - The market value
variations of the securities backing it
Accident and health insurance standard provisions require that - The policy, endorsements, and
attached papers constitute the entire contract
Agreements made by terminally ill persons to sell their life insurance policies at a discount in order
to pay medical expenses are called - Life Settlements
An employee requested that the balance of her 401(k) account be sent directly to her in one lump
sum. Upon receipt of the distribution, she immediately had the funds rolled over into an IRA. What
, is the tax consequence of the distribution sent to this employee? - Distribution is subject to federal
income tax withholding
A characteristic of preferred provider organizations (PPO) is - If service is obtained outside the
PPO, benefits are reduced and costs increase
Which of the following accurately describes a participating insurance policy? - Policyowners may be
entitled to receive dividends
What are reasonable and customary charges for health insurance primarily based on? - Average
charges within a geographic region
No existing insurance license will be revoked until - The licensee has been afforded a right to a
hearing on the charges
What is considered interstate travel under the Federal Fraud and False Statements Act? - Puerto
Rico
Claims settlement practices of insurers are regulated by - State insurance departments
Under the New York Disability Benefits Law, cash payments are provided to workers who are
unable to work because of injury or illness that - Occurred on the job
A policyowner suffers a covered accident and health insurance loss on June 30 and submits the
proof of loss to the insurer July 10. If the policyowner cancelled the coverage on July 2, how will the
insurance company handle the claim? - Claim must be paid after proof of loss is received
Claim must be paid after proof of loss is received - Paid-up policy that offers lifetime protection
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