Download New York State Life Insurance Series 17-51 answered correct. and more Exams Nursing in PDF only on Docsity!
51 answered correct.
New York State Life Insurance Series 17-
51 answered correct.
are considered a return of unearned premium which is why are they are paid out income tax free. - Answer Dividends Accelerated Death Benefit The prognosis of a physician must be a life expectancy of ___ months or less. - Answer 24 Highest authority for insurance regulation. No interference from federal regulation, unless federal law specifically provides otherwise. - Answer The individual states Premiums are allocated to the insurer's general account. The insurer has the investment risk, and fixed annuities pay out a fixed level income benefit payment. - Answer Fixed Annuities payments are level an annuity product that features fixed interest rate guarantees combined with an interest rate adjustment factor that can cause the surrender value to fluctuate in response to market conditions. - Answer Market Value Adjustment Annuity Viatical Settlement life expectancy - Answer 2 years or less A type of coverage with a small face amount, typically purchased to pay the burial expenses of the insured is called ____. - Answer Pre-need With an _____ death benefit, the beneficiary will receive the face amount plus the cash value as of the date of death. - Answer Option B Pays the face amount of the policy and provides a level death benefit. As the cash value increases, the company's risk decreases. A universal life policy must include an amount at risk. If the cash value approaches the face amount, the death benefit must increase so as to provide for this amount at risk. This minimum separation between the cash value and the death benefit is called the "risk corridor." This corridor of insurance is automatic and does not require insurability. This prevents the policy from maturing too early. Pays the face amount of the policy and provides a level death benefit. As the cash value increases, the company's risk decreases. A universal life policy must include an amount at risk. If the cash value approaches the face amount, the death benefit must increase so as to provide for this amount at risk. This minimum separation between the cash value and the death benefit is called the "risk corr - Answer Option A
51 answered correct.
An insurance company must adhere to the __________ when gathering information about an applicant from third parties. - Answer Fair Credit Reporting Act (FCRA) The business enters into an agreement to purchase the deceased's interest in the business - Answer Entity Purchase Plan When both parties must perform certain duties and follow certain rules of conduct to make a contract enforceable, this is known as a(n) __________ contract. - Answer conditional Not deductible and proceeds are income tax free - Answer Buy-sell agreement life insurance premiums are: This insurance is normally Decreasing Term and the amount of insurance reduces as the obligation reduces The amount of the insurance benefit must not exceed the total amount of indebtedness The insurance is either a form of individual coverage on the life of a debtor, or a form of group insurance issued to a creditor providing coverage for debtors - Answer Credit Life Insurance Adjustable Premiums - Answer Indeterminate Premium Whole Life The 3 nonforfeiture options are Cash Surrender, Reduced Paid-Up, and Extended Term They add flexibility to a cash value policy They protect the policyowner against total loss of benefits if the policy should lapse or be cancelled - Answer Nonforfeiture Options Lowest Term Life Insurance Policy in 1st-year annual premium, all other factors being equal - Answer 1- year Interest earned on dividends left on deposit with the insurer - Answer Income Tax due triggers when: The Underwriter Decides to reclassify the risk reviewing an application - Answer The premium could increase or decrease when Help fund college for a child or grandchild in an tax-efficient and effective manner Through systematic withdrawals or proper settlement option selection - Answer Annuity can
51 answered correct.
If the _____ and the ___ are the same person, the death benefit will be included in the insured's estate. - Answer policyowner; insured Home Office Underwriters can issue coverage in the following ways - Answer Standard, Preferred, Substandard The provision that limits the amount of time an insurer has to challenge a claim and void the contract upon proof of a material misstatement is called the ____________ clause. - Answer Incontestability A statement that is guaranteed to be true, and if not the contract will be void, is referred to as: - Answer Warranty Loading includes - Answer Medical exam costs, Operating expenses, Producer commissions ____ earn compensation for advice versus the sale of a policy, and that advice must be provided under terms that are disclosed and agreed to in writing. They cannot recommend insurance, annuities, or securities where they would have personal gain. - Answer Consultants The technical name of the person who makes a policy assignment is the: - Answer Assignor In order to act as an agent for an insurance company, a licensed producer must be: - Answer Appointed The conversion period is also a grace period. In the event a terminated or ineligible employee dies during the conversion period, whether they were going to elect individual coverage or not, a death claim will be paid by the group policy, less the premium due for the benefit. - Answer Amount, less any premiums due Annuities uses unit values rather than dollars to account for its value - Answer Variable An insured goes to the bank for a business start-up loan. Asking for more security, the bank agrees to accept a(n) __________ on a permanent life insurance policy owned by the customer. Partial transfer of the death benefit - Answer Collateral Assignment exempts a disabled policyowner from paying premiums during disability, requires that disability be permanent and total before taking effect. - Answer The waiver of premium rider when the beneficiary is not directly identified by name. - Answer class designation
51 answered correct.
allows for the policy's death benefit to keep up with inflation without having to prove insurability but with an increase in premium to reflect the added risk to the insurer. - Answer The Cost of Living Rider Policies with premiums that vary by amount and frequency - Answer 61 day grace period Which Whole Life policy is designed to provide a substantial immediate cash value? - Answer Single Premium Whole Life Policy allows the Insurer to pay to a relative or anyone it deems entitled to the benefits in the absence of a designated beneficiary. - Answer The Facility of Payment Clause Used when the partners of a business purchase life insurance on each other. At the death of one of the partners, policy proceeds are used to purchase that person's interest in the business from their heirs. Each partner owns insurance on each of the other partners. - Answer Cross Purchase Plan immediate lump sum in the event of premature death - Answer Life insurance If money is paid to change the ownership on a policy covering an insured who is not terminally ill, this is referred to as a(n) __________. - Answer Life settlement Age of the insured is the age on the policy issue date - Answer Original Insured's age at any point in time used at renewal or conversion - Answer Attained date Insurance coverage begins - Answer Effective date Insurance coverage ends - Answer Expiration date An increasing term policy which allows the insurer to pay out the policy's death benefit plus the cumulative premiums paid. - Answer Return of Premium Rider any transaction in which new life insurance or annuity is to be purchased, and the agent knows, or should know, that the existing contract(s) will be assigned as collateral for loan or subject to borrowing exceeding 50% of the cash value. - Answer Replacement In a whole life policy, cash value must be made available to borrow against after _____ years. - Answer 3
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nonforfeiture option. Coverage, although reduced in face value, will continue to age 100.
- Answer Reduced Paid-Up It is designed to rule in such situations. If a contingent beneficiary is named and is alive, he or she receives the proceeds. Otherwise they are paid to the insured's estate. - Answer Common Disaster Clause payments are made for the lifetime of the recipient. Upon death, if a recipient has not received an amount equal to the total death benefit, the balance is refunded to the beneficiary, either in a lump sum (cash refund), or in installments (installment refund). - Answer Life Refund Has the right to name and change beneficiaries. Beneficiaries don't sign on the application as beneficiaries - Answer Policyowner Instead of revoking or suspending an insurance license, the Superintendent may impose an aggregate penalty of up to what dollar amount for all offenses? - Answer Penalty sum of not exceeding $2,500, $500 per offense If the beneficiary is concerned about a payout for a particular period of time, the _______ settlement option should be selected. - Answer Fixed Period The premium is determined by the insurer and remains fixed and level throughout the contract The owner may select which separate account they want their premium to be invested in The policy provides for both a general account and a separate account - Answer Variable whole life: If a beneficiary has the choice and is interested in capital conservation, then which of the following settlement options should be chosen? - Answer Interest Only The issuance or circulation of any illustration or statement indicating that a corporation is permitted to transact any business not authorized by its certificate of authority constitutes - Answer False Advertising the insured must provide evidence of insurability and all back premiums plus interest must be paid. - Answer Reinstating a lapsed policy Provide a steady stream of income to an individual, typically retirement. It protects against outliving one's retirement income by providing an income for life. - Answer Annuity purpose
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Term premiums increase as the insured's age increases. - Answer Annual Renewable Term Premiums 100% eligible employees 75% eligible employees - Answer Noncontributory Group Life Plan Contributory Group Life Plan When an insured decides to change her mode of premium payment from annually to monthly, the total premium due would: - Answer Increase Retirement: up to age 67 monthly income equal to PIA. Covered workers receive retirement benefits as early as age 62 Death Benefit: A one time lump sum payment of $255 in total may be made after the taxpayer's death Survivor Benefits: Payable to eligible dependents of fully insured deceased workers. - Answer Social Security Youngest child age 16 and the spouse is eligible for retirement benefits at age 60. - Answer Blackout Period Covered worker's Primary Insurance Amount - Answer Survivors Benefits is based on Owned by employer, creditor, or association - Answer Group Insurance Plan Each covered entity must maintain records regarding the cybersecurity program, including schedules and data supporting their compliance for - Answer 5 Years Managing risk in sharing, transfer, avoidance, reduction, or retention - Answer Insurance Agents are subject to fiduciary requirements. An agent may not commingle the insurer's funds with their personal funds without express permission. An agent may withdraw funds from the premium fund account under certain circumstances. - Answer State laws of Agents A person cannot willfully make a verbal statement (or issue, circulate, write, or print a statement) that is untrue and intended to negatively describe the financial condition, standing, or solvency of any insurer authorized to transact insurance in New York. In addition, a person may not conspire with or advise another to make such a statement. - Answer Defamation
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any time within the first seven years of a policy (or of a material change to a policy, such as a death benefit increase or decrease) if the sum of premiums paid exceeds the amount of premiums that would be paid in a 7-pay contract. - Answer 7-Pay Test Modified Endowment Contract During the accumulation phase, if the contract owner dies, the value of the annuity is - Answer included in the owner's estate for valuation. Any excess premium can be refunded by the insurer within ____ after the end of the contract year. - Answer 60 days For individuals, premiums are considered a ____ and are not deductible. They are paid with after-tax dollars. This establishes a cost basis in the policy for tax purposes. - Answer Personal Expense All employer-paid premiums for amounts of group life insurance over $__________ are reported as taxable income to the employee. - Answer $50, The key word is time. Any time the policyowner specifies payments to be guaranteed for a specific period regardless of who may receive the payments, the ____ Settlement Option has been chosen. - Answer Fixed Period
