NYS Life, accident, and health insurance Exam
$15,000 - ANS-Beth is a surgeon who has an own-occupation disability income policy. She was
injured six months ago and has been unable to return to her practice. Her monthly benefit from
the policy is $15,000. During this time, Beth has been working part-time at a local boutique and
receives $2,000 monthly. What is her ongoing monthly benefit while she is unable to perform her
surgical duties?
$25,000 - ANS-An insured has a $25,000 whole life insurance policy with $6,000 cash value
available. Under the extended term nonforfeiture option, what is the amount of insurance
available to the insured?
$300 - ANS-An insured files for an accident and health insurance policy claim eight days after
the premium due date. The benefit payable is $500 and the overdue premium is $200.
Assuming that the policy pays on a first-dollar basis and contains the unpaid premium provision,
how much will the insurer pay?
$5,000 - ANS-An individual working part-time has a gross income of $5,000 for the year. If this
individual has an IRA, what is the maximum deductible IRA contribution allowable?
$50,000 - ANS-The maximum amount of life insurance coverage that a parent can initially take
out on their minor child is
$800 - ANS-Larry has a Major Medical Expense policy for his family with a $1,000 per family/per
year deductible and an 80/20 coinsurance provision. If Larry's family files four claims of $400,
$800, $100, and $700 in one year, how much will the insurance company pay?
$960,000 - ANS-An individual is insured under a major medical plan with a $1,000,000 lifetime
benefit. The plan has a $500 deductible and an 80% coinsurance. If the insured suffers a
$50,500 medical expense during the calendar year, what is the remaining lifetime benefit?
1 year - ANS-How long is individual medical expense insurance normally written for?
10 days - ANS-What is the grace period required for an individual accident and health insurance
policy with monthly premiums?
10% - ANS-A "premature" distribution from a modified endowment contract (MEC) incurs a
penalty tax of
10% penalty is applied to withdrawals prior to age 59 1/2 - ANS-Which of these statements
about traditional individual retirement accounts is accurate?
,100 - ANS-Starting in 2016, businesses with up to ___ employees will be defined by the ACA as
a "small business".
100 - ANS-What is the maximum number employees (earning at least $5,000) that an employer
can have in order to start a SIMPLE retirement plan?
100% - ANS-John received a one-time distribution of $50,000 from his modified endowment
contract (MEC). Prior to that, the contract's cash value was $150,000, the contract investment
amount was $100,000, and the death benefit was $500,000. What percentage of the $50,000
distribution was taxable as ordinary income?
100% - ANS-Mary is the sole proprietor of her business and has a family health plan. She would
like to deduct the premiums from her taxes. What percentage of her premiums are tax
deductible?
12 months - ANS-Individuals seeking Social Security disability income benefits must have a
disability that will eventually lead to death, or be expected to last at least
18 months - ANS-Under HIPAA, medical plan late enrollees may be excluded for pre-existing
conditions for a maximum of
19 - ANS-An unmarried child under a family group accident and health policy must be provided
coverage until the age of
2 - ANS-A survivorship life insurance policy usually covers how many lives?
2-50 employees - ANS-A small employer group is an employer that employs how many?
20 - ANS-Employees are required to work at least ___ hours per week to become eligible for a
small employer health plan
20% - ANS-Mary has a HSA. Distributions that she has made for anything other than qualified
medical expenses are considered taxable and subject to a penalty of
20% - ANS-Nonqualified medical expense distributions from a HSA have tax penalty of
26 - ANS-According to the ACA, dependent children may remain on their parent's plan until
what age?
3 - ANS-Upon meeting company requirements, a lapsed life insurance policy may be reinstated
within ____ year(s)
30 - ANS-How many days notice does the ACA require insurers to give before rescinding
coverage?
, 30 - ANS-When a Medicare Supplement policy is replaced, the policy owner will have a free
look period of ___ days.
30-year decreasing term. - ANS-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?
31 - ANS-Kate received a group accident and health termination notice. How many days does
she have to apply for a converted policy?
60 - ANS-What is the actuarial value of a bronze level health plan?
71 and 73 - ANS-Which of the co-annuitants listed below would receive the largest monthly
benefit payments in a joint and 100% survivor annuity?
90 - ANS-When initially issued, a temporary producer license in New York is valid for ___ days.
A false statement could lead to loss of coverage - ANS-After an applicant reads and signs an
insurance application, he/she should be conscious of the fact that
a federal health insurance program for individuals over the age of 65 or permanently disabled -
ANS-Medicare can be described as
A felony - ANS-An attempt to defraud an insurance company is considered
A life policy that covers the life of a minor - ANS-What is a juvenile life insurance policy?
A Medicare Supplement - ANS-A health plan offered by private insurance companies is
A Medicare Supplement additional benefit - ANS-Emergency health care coverage for Medicare
enrollees traveling abroad is
A Medicare Supplement core benefit - ANS-Which of the following describes coverage for the
Medicare Part B coinsurance?
a percentage of weekly earnings up to to a stated maximum - ANS-Short term group disability
income benefits are
A specific illness or event - ANS-What do Limited accident and health policies normally cover?
A statement that the policy is limited - ANS-New York requires advertisements for accident and
health insurance policies covering ONLY a specified illness to prominently display
