PRACTICE TEST QUESTIONS AND ANSWERS
Which of the following are NOT fundable by annuities?
a) Death benefits
b) Cash accumulation for any reason
c) A person's retirement
d) Estate liquidation
a) Death benefits
Annuities are most commonly used to fund a person's retirement, but they can
technically be used to accumulate cash for any reason. Annuities can also be used to
liquidate an estate. Annuities do not provide death benefits; those are provided by life
insurance.
Which of the following employees insured under a group life plan would be
allowed to convert to individual insurance of the same coverage once the plan is
terminated?
a) Those who have no history of claims
b) Those who have been insured under the plan for at least 5 years
c) Those who have worked in the company for at least 3 years
d) Those who have dependents
b) Those who have been insured under the plan for at least 5 years
If the master contract is terminated, every individual who has been on the plan for at
least 5 years will be allowed to convert to individual insurance of the same coverage.
An employee insured under a group health plan has been paying $25 monthly
premium for his group health coverage. The employer has been contributing $75,
for the total monthly cost of $100. If the employee leaves the company, what
would be his maximum monthly premium for COBRA coverage?
a) $100
b) $102
c) $25
d) $25.50
b) $102
The employer is permitted to collect a premium from the terminated employee at a rate
of no more than 102% of the individual's group premium rate (in this scenario, 102% of
$100 total premium is $102). The 2% charge is to cover the employer's administrative
costs.
In which of the following scenarios will repayment of funds take place per the
Medicaid Estate Recovery Act?
a) The mother of a 10-year-old died after receiving 8 months of Medicaid
,payments
b) Before her death, a 23-year-old was living in a long-term nursing facility paid
for with Medicaid funds
c) A Medicaid recipient is survived by his wife
d) The 22-year-old son of a Medicaid recipient is blind
b) Before her death, a 23-year-old was living in a long-term nursing facility paid for with
Medicaid funds
Estate recovery cannot take place if the Medicaid recipient, at the time of his or her
death, has a surviving spouse, a child younger than 21 or a child who is blind or
permanently disabled.
The Patient Protection and Affordable Care Act includes all of the following
provisions EXCEPT
a) Coverage for preventive benefits.
b) Individual tax deduction for premiums paid.
c) Right to appeal.
d) No lifetime dollar limits.
b) Individual tax deduction for premiums paid.
The Act does not offer tax deductions for health insurance premiums. All the other
provisions are included in the Act.
Who can request changes in premium payments, face value, loans, and policy
plans?
a) Agent
b) Policyowner
c) Contingent Beneficiary
d) Beneficiary
b) Policyowner
Mandatory provisions give these rights to the policyowner.
When a health insurance policy is purchased in the state of New York, the insured
may cancel the policy and receive a premium refund within
a) 90 days.
b) 10 days.
c) 20 days.
d) 30 days.
c) 20 days.
The Free Look Provision allows for an insured to review his/her policy once it has been
delivered; if the insured decides to return it within a certain time period, the premium will
be refunded. The Free Look time period varies from state to state. In New York the
insured can review the policy from anywhere between 10 and 20 days.
, Which of the following individuals must pass the written examination to be
licensed as an agent?
a) A ticket selling airline representative for one-time issuance of baggage or
accident insurance.
b) An individual seeking to be a representative of a fraternal benefit society as its
agent.
c) A producer previously licensed in New Jersey who is applying for a New York
license 120 days after becoming a resident of this state.
d) A licensee who was licensed on July 1, 1987, to represent any assessment
corporation.
c) A producer previously licensed in New Jersey who is applying for a New York license
120 days after becoming a resident of this state.
Each of the above do not need to take the written examination, except for a previously
licensed agent in New Jersey who has allowed more than 90 days to lapse since
becoming a resident of New York.
When a replacement is involved, a replacing insurance company is responsible
for all of the following EXCEPT
a) Include a policy summary on the proposed life insurance in the communication
with the existing company.
b) Obtain from the producer a list of the applicant's life insurance or annuity
contracts to be replaced.
c) Provide a copy of the Important Notice Regarding Replacement of Life
Insurance to the applicant.
d) Send the existing insurance company a written notice of replacement.
c) Provide a copy of the Important Notice Regarding Replacement of Life Insurance to
the applicant.
Providing a copy of the Important Notice Regarding Replacement is a producer's
responsibility.
The purpose of managed care health insurance plans is to
a) Control health insurance claims expenses.
b) Provide for the continuation of coverage when an employee leaves the plan.
c) Provide access to the largest number of physicians as possible.
d) Coordinate benefits.
a) Control health insurance claims expenses.
Managed care is a system of delivering health care and health care services,
characterized by arrangements with selected providers, programs of ongoing quality
control and utilization review and financial incentives for members to use providers and
procedures covered by the plan.
What amount can co-insurance not exceed in New York's major medical plans?
Which of the following are NOT fundable by annuities?
a) Death benefits
b) Cash accumulation for any reason
c) A person's retirement
d) Estate liquidation
a) Death benefits
Annuities are most commonly used to fund a person's retirement, but they can
technically be used to accumulate cash for any reason. Annuities can also be used to
liquidate an estate. Annuities do not provide death benefits; those are provided by life
insurance.
Which of the following employees insured under a group life plan would be
allowed to convert to individual insurance of the same coverage once the plan is
terminated?
a) Those who have no history of claims
b) Those who have been insured under the plan for at least 5 years
c) Those who have worked in the company for at least 3 years
d) Those who have dependents
b) Those who have been insured under the plan for at least 5 years
If the master contract is terminated, every individual who has been on the plan for at
least 5 years will be allowed to convert to individual insurance of the same coverage.
An employee insured under a group health plan has been paying $25 monthly
premium for his group health coverage. The employer has been contributing $75,
for the total monthly cost of $100. If the employee leaves the company, what
would be his maximum monthly premium for COBRA coverage?
a) $100
b) $102
c) $25
d) $25.50
b) $102
The employer is permitted to collect a premium from the terminated employee at a rate
of no more than 102% of the individual's group premium rate (in this scenario, 102% of
$100 total premium is $102). The 2% charge is to cover the employer's administrative
costs.
In which of the following scenarios will repayment of funds take place per the
Medicaid Estate Recovery Act?
a) The mother of a 10-year-old died after receiving 8 months of Medicaid
,payments
b) Before her death, a 23-year-old was living in a long-term nursing facility paid
for with Medicaid funds
c) A Medicaid recipient is survived by his wife
d) The 22-year-old son of a Medicaid recipient is blind
b) Before her death, a 23-year-old was living in a long-term nursing facility paid for with
Medicaid funds
Estate recovery cannot take place if the Medicaid recipient, at the time of his or her
death, has a surviving spouse, a child younger than 21 or a child who is blind or
permanently disabled.
The Patient Protection and Affordable Care Act includes all of the following
provisions EXCEPT
a) Coverage for preventive benefits.
b) Individual tax deduction for premiums paid.
c) Right to appeal.
d) No lifetime dollar limits.
b) Individual tax deduction for premiums paid.
The Act does not offer tax deductions for health insurance premiums. All the other
provisions are included in the Act.
Who can request changes in premium payments, face value, loans, and policy
plans?
a) Agent
b) Policyowner
c) Contingent Beneficiary
d) Beneficiary
b) Policyowner
Mandatory provisions give these rights to the policyowner.
When a health insurance policy is purchased in the state of New York, the insured
may cancel the policy and receive a premium refund within
a) 90 days.
b) 10 days.
c) 20 days.
d) 30 days.
c) 20 days.
The Free Look Provision allows for an insured to review his/her policy once it has been
delivered; if the insured decides to return it within a certain time period, the premium will
be refunded. The Free Look time period varies from state to state. In New York the
insured can review the policy from anywhere between 10 and 20 days.
, Which of the following individuals must pass the written examination to be
licensed as an agent?
a) A ticket selling airline representative for one-time issuance of baggage or
accident insurance.
b) An individual seeking to be a representative of a fraternal benefit society as its
agent.
c) A producer previously licensed in New Jersey who is applying for a New York
license 120 days after becoming a resident of this state.
d) A licensee who was licensed on July 1, 1987, to represent any assessment
corporation.
c) A producer previously licensed in New Jersey who is applying for a New York license
120 days after becoming a resident of this state.
Each of the above do not need to take the written examination, except for a previously
licensed agent in New Jersey who has allowed more than 90 days to lapse since
becoming a resident of New York.
When a replacement is involved, a replacing insurance company is responsible
for all of the following EXCEPT
a) Include a policy summary on the proposed life insurance in the communication
with the existing company.
b) Obtain from the producer a list of the applicant's life insurance or annuity
contracts to be replaced.
c) Provide a copy of the Important Notice Regarding Replacement of Life
Insurance to the applicant.
d) Send the existing insurance company a written notice of replacement.
c) Provide a copy of the Important Notice Regarding Replacement of Life Insurance to
the applicant.
Providing a copy of the Important Notice Regarding Replacement is a producer's
responsibility.
The purpose of managed care health insurance plans is to
a) Control health insurance claims expenses.
b) Provide for the continuation of coverage when an employee leaves the plan.
c) Provide access to the largest number of physicians as possible.
d) Coordinate benefits.
a) Control health insurance claims expenses.
Managed care is a system of delivering health care and health care services,
characterized by arrangements with selected providers, programs of ongoing quality
control and utilization review and financial incentives for members to use providers and
procedures covered by the plan.
What amount can co-insurance not exceed in New York's major medical plans?
