PSI - NY Life, Accident and Health Practice Exam 17-55, Just my cards + 199+ 75 GRADED A+
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PSI - NY Life, Accident and Health
Institution
PSI - NY Life, Accident And Health
PSI - NY Life, Accident and Health
Practice Exam 17-55, Just my cards +
199+ 75 GRADED A+
401k - Tax Sheltered Annuities - CORRECT ANSWER--A 401(k) plan is a taxadvantaged, defined-contribution retirement account offered by many employers to
their employees. It is named after a section of t...
PSI - NY Life, Accident and Health
Practice Exam 17-55, Just my cards +
199+ 75 GRADED A+
401k - Tax Sheltered Annuities - CORRECT ANSWER--A 401(k) plan is a tax-
advantaged, defined-contribution retirement account offered by many employers to
their employees. It is named after a section of the U.S. Internal Revenue Code.
Workers can make contributions to their 401(k) accounts through automatic payroll
withholding, and their employers can match some or all of those contributions. The
investment earnings in a traditional 401(k) plan are not taxed until the employee
withdraws that money, typically after retirement. In a Roth 401(k) plan, withdrawals
can be tax-free.
A 401(k) plan is a company-sponsored retirement account that employees can
contribute to. Employers may also make matching contributions.
There are two basic types of 401(k)s—traditional and Roth—which differ primarily in
how they're taxed.
In a traditional 401(k), employee contributions reduce their income taxes for the year
they are made, but their withdrawals are taxed. With a Roth, employees make
contributions with post-tax income, but can make withdrawals tax-free.
457 Plan - CORRECT ANSWER--Non-qualified, deferred compensation plan
established by state and local governments for tax-exempt government agencies
and tax exempt employees.
While governmental 457 plans have special catch-up provisions for those age 50 or
older, they enjoy an even greater contribution amount in the three years before
retirement. The catch-up provisions three years prior to retirement will amount to
double the normal amount for allowable maximum contributions. Until withdrawn,
457 plan contributions and all earnings remain untaxed. The 457 plan assets of tax-
exempt employers are subject to the claims of the employer's creditors, but those of
plans sponsored by governmental entities are not. Plan distributions may occur at
retirement; on separation from employment; as the result of an unforeseeable
emergency; and at death. Distributions may be taken as a lump sum, in annual
installments, or as an annuity. In 2002 and later years, proceeds from a
governmental 457 plan may be transferred to an IRA or a new employer's 401(k),
403(b) or 457 plan that accepts transfers from an old employer's plan. On withdrawal
from an IRA or from the new plan, the distribution will be subject to immediate
taxation at ordinary income tax rates.
a 10% excise tax is normally applied to an early withdrawal from an IRA according to
HIPAA, This tax will not be applied if the withdrawal is used for medical expenses
that exceed ____ of the individuals adjusted gross income - CORRECT ANSWER--
7.5%
,A beneficiary has just received a claim payment for a life insurance policy which of
the following is TRUE regarding the federal income tax liability owed?
- A flat tax of 1-% is owed on all proceeds
- Federal income tax is owed if proceeds exceed 250,000
- No federal income tax is owed on life insurance proceeds
- Tax liability owed depends on the type of life insurance policy - CORRECT
ANSWER--
A change in an insurance application requires - CORRECT ANSWER--an initial
made by the applicant
A client told an international lie to an insurer in order to receive a favorable premium.
This is an example of - CORRECT ANSWER--Fraud
A common exclusion with vision plans is
- Eyeglass frames
- The examination
- Contact Lenses
- Lasik surgery - CORRECT ANSWER--Lasik surgery
A consumer report used to determine eligibility for insurance may include all of the
following EXCEPT - CORRECT ANSWER--Medical underwriting exam
A disability elimination period is best described as
- Time deductible
- dollar deductible
- Eligibility period
- Probation period - CORRECT ANSWER--Time deductible
For long-term disability insurance, the elimination period is like a time-based
deductible: It's the waiting period before benefits begin, starting the day you become
ill or injured. The typical elimination period is 90 days. You can alter the cost of your
policy by changing its elimination period
A disability income policy can prevent an insured from earning a higher income than
if he/she were working by utilizing - CORRECT ANSWER--Benefit limits
A disability policy where the premiums are due monthly require a grace period of
(days)
7
10
15
20 - CORRECT ANSWER--10
A disablitlly policy owner is injured and becomes totally disabled. The benefits pay
for 2 years, starting from the date of the injury, What is this time period called? -
CORRECT ANSWER--Benefit period
A group conversion option may be used in all the following instances EXCEPT -
CORRECT ANSWER--a life-changing event, such as marriage, divorce, or childbirth
,A group disbablity income plan that pays tax free benefits to covered employer is
considered
- Non-contributory
- Partially contributory
- Group Contributory
- Fully contributory - CORRECT ANSWER--Fully contributory
A guaranteed issue insurance policy as no
- Initial premium requirement
- Incontestable period
- Waiting period
- Medical underwriting - CORRECT ANSWER--- Medical underwriting
Guaranteed issue insurance - That means regardless of your health, you cannot be
declined or turned down. However, guaranteed issue life insurance generally offers
low death benefit options with higher than normal premiums.
A health insurance policy where. the insured has the right to terminate the policy for
reasons other than the insureds health is called
- Limited renewable
- Conditionally Renewable
- Guaranteed renewable
- Conditionally Cancelable - CORRECT ANSWER--Conditionally Renewable
A Hospital or medical expense policy will typically cover dental treatment expenses
under which circumstance
- After the annual limit of dental policy's coverage is reached
- Dental treatment is needed to repair an injury
- Cosmetic dental treatment is preformed
- If treatment is preformed at a in network provider. - CORRECT ANSWER--Dental
treatment is needed to repair an injury
A insurer may exclude preexisting conditions on a medicare supplement policy for __
Months
6
8
10
12 - CORRECT ANSWER--12
A life insurance agent is required to give a disclosure notice about information
practices to an applicant or proposed insured.
- After the insured requests a full medical exam
- When the insured requests an attending physicians report
-Prior to or at the time of signing the application
- At time of policy delivery - CORRECT ANSWER--Prior to or at the time of signing
the application
A life insurance company has transferred some of its risk to another insurer. The
insurer assuming the risk is called the - CORRECT ANSWER--Reinsurer
, A life settlement broker is someone who is - CORRECT ANSWER--Licensed to
negotiate a life settlement contact
A life settlement intermediary is a
- Association which maintains a facility that displays offers and counteroffers for
purchases or sellers of life settlement contacts
- Person who, for a fee, solicits or negotiates a life settlement contract between a
policy owner and a life settlement provider
- Person who enters into a life settlement contract with the policy owner.
- Association which maintains a facility that displays offerers and counteroffers for
purchases or sellers of life settlement contract.
- Policy owner who sells his/her life insurance police to a third party - CORRECT
ANSWER--Association which maintains a facility that displays offerers and
counteroffers for purchases or sellers of life settlement contract.
A limited payment whole life policy provides
- Protection for 20 years
- Lifetime protection
- Protection for more than one person
- Discounted premiums - CORRECT ANSWER--Lifetime protection
A long term care policy typically provides all of the following levels of care EXECPT
- Skilled care
- Intermediate care
- acute care
- Custodial care - CORRECT ANSWER--Acute Care
Acute care is a branch of secondary health care where a patient receives active but
short-term treatment for a severe injury or episode of illness, an urgent medical
condition, or during recovery from surgery. In medical terms, care for acute health
conditions is the opposite from chronic care, or longer term care
A master contract and certificate of coverage can be found in which type of policy?
-Long term
-Medicaid
- Group
- Medicare - CORRECT ANSWER--Group
A medical provider that accepts medicare assignment must
- Accept payment based upon a defined medicare schudelue and bill the insured for
any difference
- Accept payment based upon a defined medicare schudleue and negotiate any
excess fees
- Accept payment based upon a defined medicare schudleue and bill no more than
15% of the excess charges
- Accept payment based upon a defined medicare schedule as payment in full. -
CORRECT ANSWER--Accept payment based upon a defined medicare schedule as
payment in full.
A medicare supplant policy must NOT contain benefits which
- Charge additional premiums
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