NY-Life-Accident-and-Health Dumps with Practice Exam Questions Answers

The correct answer is the named living primary beneficiaries . In life insurance beneficiary designations, per capita means “by the head,” or equally among the living members of the named class or group . When policy proceeds are distributed per capita, each living beneficiary at the same beneficiary level receives an equal share of the death benefit. If one of the named primary beneficiaries dies before the insured, that deceased beneficiary’s share is not passed to that beneficiary’s estate or descendants unless the policy specifically provides otherwise. Instead, the proceeds are divided equally among the remaining living primary beneficiaries .

This is what distinguishes per capita from per stirpes . Under per stirpes, the share of a deceased beneficiary would pass down to that beneficiary’s descendants. But under per capita, only the surviving named beneficiaries in the class receive the proceeds.

The other options are incorrect because a deceased beneficiary’s estate does not automatically receive the share, the children of a deceased primary beneficiary are not paid under per capita unless specifically named, and contingent beneficiaries are paid only if no primary beneficiaries survive. Therefore, D is correct.

Insurance is designed to address pure risk , which is a situation that involves only the possibility of loss or no loss —there is no opportunity for gain. Examples of pure risk include the risk of premature death, disability, sickness, or accidental injury . These are the types of uncertain events that can create financial hardship and are therefore suitable for insurance because they are accidental, measurable, and not intentionally created for profit.

By contrast, speculative risk involves the possibility of loss, no loss, or gain , such as investing in stocks or starting a business. Because speculative risk includes a chance of profit and is often influenced by voluntary decision-making and market behavior, it is generally not insurable in traditional insurance contracts.

“Physical” and “legal” are not classifications of risk types used to define what insurance covers. “Physical hazard” is a condition that increases the chance of loss, and “legal hazard” can refer to legal environment factors, but neither describes the fundamental risk category insurance is built to cover. Therefore, insurance is defined as covering pure risk .

Medicare is a federal health insurance program primarily available to individuals age 65 and older , as well as certain younger individuals with disabilities. Medicare is divided into several parts, each covering different types of healthcare services. Medicare Part A , also known as Hospital Insurance , covers inpatient hospital care, skilled nursing facility care, hospice care, and some limited home health services.

Individuals who qualify for Medicare—especially those already receiving Social Security retirement benefits —are typically automatically enrolled in Medicare Part A when they reach age 65. Coverage generally begins on the first day of the month in which the individual turns 65 (or the prior month if their birthday falls on the first day of the month). Because most individuals have paid Medicare taxes through payroll contributions during their working years, Part A usually requires no monthly premium .

Medicare Part B (Medical Insurance), which covers physician services, outpatient care, and preventive services, requires a monthly premium and may require active enrollment if the individual is not automatically enrolled. Part C refers to Medicare Advantage plans offered by private insurers, and Part D provides prescription drug coverage. Therefore, the part of Medicare that eligible individuals are automatically enrolled in is Medicare Part A .

When an injury or illness is work-related (“on the job”) , the primary payer for medical expenses and related benefits is workers’ compensation . Workers’ compensation laws are designed to provide benefits for occupational injuries and diseases, including payment for necessary medical treatment and, when applicable, lost-time/indemnity benefits. This priority applies regardless of the employee’s age and is not determined by the size of the employer’s group plan (the “24 employees” detail is often relevant to certain coordination rules such as Medicare secondary payer, but it does not override workers’ compensation responsibility for job-related injuries). The fact that the employee has recovered and returned to work does not change which coverage is primary for the injury event—medical bills connected to that occupational injury are still handled first under workers’ compensation. Medicaid is needs-based coverage and would not be primary when another legally responsible payer exists. Likewise, an individual plan or the employer’s group plan typically coordinates benefits only after workers’ compensation for occupational claims.

The correct answer is C. The shorter the payment period, the higher the annual premium. In whole life insurance, the relationship between the premium-paying period and the premium amount is straightforward: when premiums are compressed into a shorter time span , each premium payment must be higher in order to fully fund the same lifetime coverage and guaranteed policy values. New York State Department of Financial Services consumer guidance explains that a limited payment whole life policy provides lifetime protection but requires premiums for only a limited number of years, and because the premiums are paid over a shorter span of time, the premium payments will be higher than under an ordinary whole life plan.

This is why options such as 10-pay life, 20-pay life, or pay-to-age-65 whole life generally have higher annual premiums than traditional straight life policies, where premiums are spread over a longer period. Therefore, A is false because payment period directly affects premium level. B is the opposite of the correct rule. D is also false because a longer payment period generally allows the cost to be spread out, resulting in a lower annual premium than a shorter-pay version of the same policy.