PRE-FINAL EXAM - NEW YORK LIFE, ACCIDENT AND

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PRE-FINAL EXAM - NEW YORK LIFE, ACCIDENT AND

HEALTH

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: 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?

Answer:

Claim must be paid after proof of loss is received Question 2: Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for

Answer:

The policy is surrendered for less than what was paid into it

Question 3: Claim must be paid after proof of loss is received

Answer:

Paid-up policy that offers lifetime protection Question 4: Which health policy clause specifies the amount of benefits to be paid?

Answer:

Insuring

Question 5: Which of the following is considered a Limited accident and health plan?

HMO PPO Cancer plan Major medical plan

Answer:

Cancer plan Question 6: Major medical plans typically exclude coverage for which of the following benefits?

Answer:

Custodial care Question 7: Under an adjustable life insurance policy, which of the following may NOT be changed without further underwriting?

Answer:

The person insured Question 8: Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called

Answer:

Life Settlements

Question 9: Which is an example of an unfair claims settlement practice?

Attempting to negotiate the payment of claims where coverage or liability is in question Denying claims on the basis of specific policy provisions Including an arbitration provision in the insurer's policies Offering settlements that are less than the fair value to offset insurer expenses

Answer:

Offering settlements that are less than the fair value to offset insurer expenses

Question 10: The interest paid during an annuity's payout period is considered

Answer:

Taxable as ordinary income

Question 11: The premiums paid by an employer for his employee's group life insurance are usually considered to be

Answer:

tax-deductible to the employer

Question 12: What is the actuarial value of a bronze level health plan?

Answer:

60 Question 13: A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a

Answer:

risk retention group Question 14: A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision?

Answer:

partial disability Question 15: Laura added a children's rider to her life insurance policy. What type of coverage was added?

Answer:

Level term

Question 16: Which of the following is NOT guaranteed in a whole life policy?

Answer:

Dividend scale

Question 17: A characteristic of preferred provider organizations (PPO) is

Answer:

If service is obtained outside the PPO, benefits are reduced and costs increase

Question 18: According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a(n)

Answer:

Grandfathered plan Question 19: Straight whole life insurance can be accurately described in all of these statements

EXCEPT

Answer:

Policy protection normally expires at age 65 Question 20: The policy provision that permits an employee to change from group life coverage to an individual life policy is called the

Answer:

conversion provision Question 21: In what situation could an insurance policy's coverage be modified?

Answer:

Applicant is a substandard risk

Question 22: Home health care benefits typically do NOT include coverage for

Answer:

Prescription medication Question 23: In New York, reducing benefits for a newborn child under an accident and health plan is

Answer:

Prohibited in any form

Question 24: An individual long-term policy must be renewable

Answer:

For life Question 25: Emily is disabled. In order to become eligible for Social Security disability income benefits, she must be

Answer:

fully insured, according to Social Security