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NY LIFE INSURANCE AGENT/BROKER EXAM SERIES 17-51
Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: All of the following are factors that an underwriter could use to select and classify risk EXCEPT
Answer:
National origin.
Question 2: What does "level" refer to in level term insurance?
Answer:
Premium.Question 3: When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by
Answer:
A paramedic or examining physician at the insurer's expense.
Question 4: Which of the following is TRUE about credit life insurance?
Answer:
Creditor is the policyowner.Question 5: When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would
Answer:
Lower the insured's premium.
Question 6: Which concept is associated with "exclusion ratio"?
Answer:
Annuity payments Question 7: All of the following are TRUE statements regarding the accumulation at interest option EXCEPT
Answer:
The interest is not taxable since it remains inside the insurance policy.Question 8: Which of the following types of insurance policies is most commonly used in credit life insurance?
Answer:
Decreasing term Question 9: For the protection of public interest, the Superintendent may examine the books and records of any of the following EXCEPT
Answer:
Policyowners Question 10: If a retirement plan or annuity is "qualified," this means
Answer:
It is approved by the IRS.Question 11: An insured has chosen the Joint and 2/3 Survivor settlement option. What does this mean to the beneficiaries?
Answer:
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.Question 12: An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Answer:
Limited-pay Life.
Question 13: A policyowner cancels his life policy but instructs the insurance company to transfer the cash value of his policy to an annuity. This nontaxable transaction is
Answer:
1035 exchange Question 14: An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Answer:
Illegal under any circumstances.Question 15: Which of the following has the right to convert the existing term coverage to permanent insurance?
Answer:
Policyowner Question 16: An annuity owner is funding an annuity that will supplement her retirement.Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Answer:
Equity Indexed Annuity.Question 17: Which of the following will NOT be considered unfair discrimination by insurers?
Answer:
Discriminating in benefits and coverages based on the insured's habits and lifestyle.Question 18: When calculating the amount a policyowner may borrow from a variable life policy, what must be subtracted from the policy's cash value?
Answer:
Outstanding loans and interest.Question 19: An individual was involved in a head-on collision while driving home one day. His injuries were not serious, and he recovered. However, he decided that in order to never be involved in another accident, he would not drive or ride in a car ever again. Which method of risk management does this describe?
Answer:
Avoidance.
Question 20: A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
Answer:
Proof of insurability is not required.Question 21: The Superintendent may refuse to renew a license if a licensee is receiving more than 10% of the aggregate commissions from controlled business in how many months?
Answer:
12 Question 22: Which of the following may NOT be included in an insurance company's advertisement?
Answer:
The name of a specific agent.Question 23: An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident, and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Answer:
Pay the full death benefit and refund excess premium.Question 24: When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information?
Answer:
Application.Question 25: Monty has late-stage leukemia and is now under hospice care. He is expected to live for only a few more weeks. His medical bills are extensive, so he needs an additional source of funding. What life insurance provision would pay part of his death benefit early, in order to provide extra funding for his medical bills?
Answer:
Accelerated Death Benefit.
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