NY STATE INSURANCE LICENSE PRACTICE EXAM

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NY STATE INSURANCE LICENSE PRACTICE EXAM

QUESTIONS/ANSWERS EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The PRIMARY purpose of the replacement rule is to:

• protect the renewal commission of the original agent
• protect policyowners from misrepresentations and loss of benefits
• protect company home offices from loss of in-force business
• inform consumers of the availability of additional coverages

Answer:

• protect policyowners from misrepresentations and loss of benefits

Question 2: Under what circumstances must an agent's insurance business records be provided to the New York Superintendent of Insurance?

• Only by an order of a state court

2.By authorization of the National Association of Insurance Commissioners

• Upon request of the Superintendent
• Under no circumstances due to privacy considerations

Answer:

• Upon request of the Superintendent

Question 3: If a benefit plan is offered on an Exchange, what must the insurance company offer, with regard to that plan, outside of the Exchange?

• The same benefit plan at a discounted rate
• The same benefit plan at an increased rate
• The insurance company is not obligated to offer the same plan, at the same rate, outside of

the exchange

• The insurance company must offer the same plan

Answer:

• The insurance company must offer the same plan

Question 4: No existing insurance license will be revoked until

• The licensee has been afforded a right to a hearing on the charges
• At least three violations have occurred
• A jury has decided upon such action
• A cease and desist order has been issued

Answer:

• The licensee has been afforded a right to a hearing on the charges

Question 5: When must the Superintendent be notified of an agent using an assumed name?

• Before using the assumed name
• After using the same name
• Superintendent only needs to be notified if agent is a nonresident
• Superintendent does not need to be notified

Answer:

• Before using the assumed name

Question 6: When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement?

• The home office underwriter
• An officer of the insurance company
• A notary public
• The agent and the applicant

Answer:

• The agent and the applicant

Question 7: Tim had an on-the-job accident and collects benefits from his individual disability income policy. What factor could possibly reduce these benefits?

• State and federal income taxes
• Benefits he receives from workers compensation
• Total household income
• Assistance he receives from friends and family

Answer:

• Benefits he receives from workers compensation

Question 8: An insurable risk requires

• that the chance for both a loss or gain exists
• the loss must be catastrophic
• that the chance of loss be calculable
• that the loss must be incalculable

Answer:

• that the chance of loss be calculable

Question 9: Which of the following does a Medicare Advantage enrollee typically pay for?

• Retainer fee
• Annual deductibles
• Small co-pay per visit or per service
• Capitation

Answer:

• Small co-pay per visit or per service

Question 10: A prepaid dental plan has an agreement in place with a network of dentists which

• allows the dentists to determine the deductible and coinsurance amounts
• accepts an established amount as payment in full for the dental services rendered
• requires all the dentists to be located within the same state
• must cover 100% of all orthodontic treatments

Answer:

• accepts an established amount as payment in full for the dental services rendered

Question 11: The agreement in which hospitals and physician groups in a specific area contract with an insurance company to provide medical care at predetermined costs is

• Preferred Provider Organization (PPO)
• Health Maintenance Organization (HMO)
• Designated Provider Organization (DPO)
• Professional Service Organization (PSO)

Answer:

• Preferred Provider Organization (PPO)