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| Section | Weight | Objectives |
|---|---|---|
| Life Insurance Fundamentals | 25-30% | - Dividends and nonforfeiture options - Policy reinstatement - Policy riders and endorsements - Beneficiary designations - Policy types and provisions |
| General Insurance Principles | 15-20% | - Insurance contract fundamentals - Fair claims settlement practices - Underwriting principles - Agent/broker duties and ethics - Ethical sales practices |
| Accident and Health Insurance | 25-30% | - Long-term care insurance basics - Disability income insurance - Major medical coverage - Medical expense coverage - Health insurance policy types (individual, group, HMOs) - Dental and vision insurance basics |
| New York State Regulations | 20-25% | - NYS Insurance Law requirements - Replacement and churn rules - Licensing requirements and procedures - Consumer protection regulations - Fiduciary responsibilities - Advertising regulations |
1. If a policyowner surrenders a policy for its cash value, when is a tax liability incurred?
A) The policy is exchanged for a policy of equal value.
B) The cash value exceeds all premiums paid.
C) The policy is transferred to a third party.
D) The cash value is less than premiums paid.
2. In a health insurance policy, an insured has an out-of-pocket limit of $10,000, a deductible of $500, and an
80%/20% coinsurance. The insured incurs $50,000 of covered losses in an accident. How much will the insurer have to pay?
A) $49,500
B) $39,600
C) $35,500
D) $40,000
3. The cause of a loss is called
A) a peril.
B) a hazard.
C) a risk.
D) an exposure.
4. Which of the following producers, who have been licensed for a full biennial period, MUST complete continuing education requirements as a condition of renewing a license in New York?
A) Baggage agents
B) Independent adjusters
C) Personal Lines agents
D) Travel accident agents
5. What is an insurer ' s liability when it is discovered after an insured dies that the insured ' s age on the policy was misstated?
A) The insurer must pay the full amount of the policy, minus any additional premiums the insurance company would have paid based on the insured ' s actual age.
B) The insurer must pay a prorated amount of the policy based on the amount of insurance the insured ' s premiums would have bought if purchased at the correct age.
C) The insurer is not liable to pay any amount due to the insured ' s misstatement of age.
D) The insurer must pay the full amount as stated in the policy, as age is not considered a relevant factor.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: B |
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