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| Section | Weight | Objectives |
|---|---|---|
| General Insurance Principles | 15-20% | - Underwriting principles - Agent/broker duties and ethics - Fair claims settlement practices - Ethical sales practices - Insurance contract fundamentals |
| Accident and Health Insurance | 25-30% | - Health insurance policy types (individual, group, HMOs) - Long-term care insurance basics - Dental and vision insurance basics - Disability income insurance - Medical expense coverage - Major medical coverage |
| New York State Regulations | 20-25% | - Replacement and churn rules - Fiduciary responsibilities - Licensing requirements and procedures - NYS Insurance Law requirements - Consumer protection regulations - Advertising regulations |
| Life Insurance Fundamentals | 25-30% | - Dividends and nonforfeiture options - Policy types and provisions - Policy riders and endorsements - Beneficiary designations - Policy reinstatement |
Question 1
Which of the following CORRECTLY identifies the favorable income tax treatment afforded to annuities?
A. Annual earnings are partially income tax exempt.
B. Gains are taxed only on distribution.
C. Annual earnings are partially income tax deductible.
D. The entire distribution is taxed at the owner ' s rate of taxation.
Question 2
Which of the following products is designed to pay benefits that can provide a stream of retirement income to the purchaser?
A. modified endowment contract
B. annuity contract
C. tax-deferred growth
D. variable life insurance
Question 3
A policyowner may choose to have his/her life insurance policy dividends do all of the following EXCEPT
A. purchase additional insurance protection.
B. be paid to the policyowner in cash.
C. reduce the policy premium.
D. accumulate without interest.
Question 4
A single contract for group medical insurance issued to an employer is known as
A. a master policy.
B. a group policy.
C. a certificate policy.
D. an employer policy.
Question 5
According to Health Insurance Portability and Accountability Act (HIPAA), when can a group health policy renewal be denied?
A. The size of the group has increased by more than 10%.
B. Participation or contribution rules have been violated.
C. Participation or contribution rules have been changed.
D. There have been too many claims in the previous year.
Solutions:
| Question 1 Answer: B | Question 2 Answer: B | Question 3 Answer: D | Question 4 Answer: A | Question 5 Answer: B |
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