2026 NY LIFE, ACCIDENT, AND HEALTH INSURANCE
AGENT/BROKER EXAM SERIES 17-55| 200
QUESTIONS & CORRECT ANSWERS (WITH
RATIONALES) | GRADED A+
Variable universal life insurance – Answer If you think variable universal
life insurance is just some aspects of universal and variable life insurance
policies mashed together...well, you're mostly right.
A variable universal life insurance policy takes the best (or worst,
depending on how you look at it) of the other two policies: you can
adjust the premium and death benefit amount while investing the cash
value in the policy's cash value.
But variable universal life insurance also comes with many of the same
elements as the other two. Again, this policy is more complicated than
most people need, and it isn't your best investment or insurance option.
Simplified issue life insurance – Answer Typically when you apply for
life insurance, you go through a paramedical exam as part of the
underwriting process so the insurer can find out how risky you are to
insure. Ultimately, it helps them set your premium rate.
With simplified issue life insurance, though, you can skip the medical
exam. That's the "simplified" part of this policy type. Known as a "no
exam policy," a simplified issue policy gets you life insurance without
the health exam.
You're not out of the woods completely, though. You don't need to go
through the medical exam, but you do need to fill out a health
questionnaire, Answering questions like if you smoke, have been
diagnosed with serious illnesses, and so on.
,People in poor health may have to take the exam if they have too many
health issues, and they could flat-out be denied by insurers. For those
healthier people in a hurry, though, it might be a good option to skip
scheduling the paramedical exam, which adds some time to the
underwriting process.
But with this benefit comes a major financial drawback.
With a term life insurance policy, your premium rates are directly tied to
your chances of outliving your policy. If you're young and/or healthy,
you'll pay lower rates than someone who is older and/or in poor health.
That's why the medical exam is important. Since there is no medical
exam with simplified issue life insurance, the policies tend to be more
expensive than term policies.
Guaranteed issue life insurance - AnswerGuaranteed issue life insurance
takes the concept of simplified issue life insurance - forgoing the health
exam - and takes it a step further in that you don't have to Answer any
questions about your health, either. As long as you can pay the premium,
the insurer will cover you, needing only your age, sex, and state of
residence.
That makes it appealing for older people, whose declining health makes
it prohibitively expensive to get coverage with another insurance types.
Guaranteed issue life insurance is useful for elderly applicants, but
others can likely get more life insurance coverage at a lower cost with a
different
Process 2103 (d-i) - Answer1. The Superintendent may issue a license to
any person, firm or corporation who has complied with the requirements
,of the Insurance Code, authorizing the licensee to act as agent of any
authorized insurer. Every individual applicant for a license under this
section and every proposed sub-licensee must be 18 years of age or
older at the time of issuance of such license. The person must submit to
and pass a written examination required by the Superintendent.
Producer Definition (2101(k)) - AnswerAn insurance producer means an
insurance agent, insurance broker, reinsurance intermediary, excess lines
broker, or any other person required to be licensed under the insurance laws
of this state to sell, solicit or negotiate insurance.
Who Should be Licensed (2101(k)(1)) - Answer1. The term "insurance
producer" does not include: An officer, director or employee of a
licensed insurer, fraternal benefit society or health maintenance
organization or of a licensed insurance producer, provided that the
officer, director or employee does not receive any commission on
policies written or sold to insure risks residing, located or to be
performed in this state and:
(a) the
officer, director or employee's activities are executive,
administrative, managerial, clerical or a combination of these, and are
only indirectly related to the sale, solicitation or negotiation of
insurance;
(b) theofficer, director or employee's function relates to underwriting,
loss control, Inspection or the processing, adjusting, investigating or
settling of a claim on a contract of Insurance; or (c) the officer, director
or employee is acting in the capacity of a special agent or agency
supervisor assisting licensed insurance producers where the person's
activities are limited to providing technical advice and assistance to
, licensed insurance producers and do not include the sale, solicitation or
negotiation of insurance.
AGENT/BROKER EXAM SERIES 17-55| 200
QUESTIONS & CORRECT ANSWERS (WITH
RATIONALES) | GRADED A+
Variable universal life insurance – Answer If you think variable universal
life insurance is just some aspects of universal and variable life insurance
policies mashed together...well, you're mostly right.
A variable universal life insurance policy takes the best (or worst,
depending on how you look at it) of the other two policies: you can
adjust the premium and death benefit amount while investing the cash
value in the policy's cash value.
But variable universal life insurance also comes with many of the same
elements as the other two. Again, this policy is more complicated than
most people need, and it isn't your best investment or insurance option.
Simplified issue life insurance – Answer Typically when you apply for
life insurance, you go through a paramedical exam as part of the
underwriting process so the insurer can find out how risky you are to
insure. Ultimately, it helps them set your premium rate.
With simplified issue life insurance, though, you can skip the medical
exam. That's the "simplified" part of this policy type. Known as a "no
exam policy," a simplified issue policy gets you life insurance without
the health exam.
You're not out of the woods completely, though. You don't need to go
through the medical exam, but you do need to fill out a health
questionnaire, Answering questions like if you smoke, have been
diagnosed with serious illnesses, and so on.
,People in poor health may have to take the exam if they have too many
health issues, and they could flat-out be denied by insurers. For those
healthier people in a hurry, though, it might be a good option to skip
scheduling the paramedical exam, which adds some time to the
underwriting process.
But with this benefit comes a major financial drawback.
With a term life insurance policy, your premium rates are directly tied to
your chances of outliving your policy. If you're young and/or healthy,
you'll pay lower rates than someone who is older and/or in poor health.
That's why the medical exam is important. Since there is no medical
exam with simplified issue life insurance, the policies tend to be more
expensive than term policies.
Guaranteed issue life insurance - AnswerGuaranteed issue life insurance
takes the concept of simplified issue life insurance - forgoing the health
exam - and takes it a step further in that you don't have to Answer any
questions about your health, either. As long as you can pay the premium,
the insurer will cover you, needing only your age, sex, and state of
residence.
That makes it appealing for older people, whose declining health makes
it prohibitively expensive to get coverage with another insurance types.
Guaranteed issue life insurance is useful for elderly applicants, but
others can likely get more life insurance coverage at a lower cost with a
different
Process 2103 (d-i) - Answer1. The Superintendent may issue a license to
any person, firm or corporation who has complied with the requirements
,of the Insurance Code, authorizing the licensee to act as agent of any
authorized insurer. Every individual applicant for a license under this
section and every proposed sub-licensee must be 18 years of age or
older at the time of issuance of such license. The person must submit to
and pass a written examination required by the Superintendent.
Producer Definition (2101(k)) - AnswerAn insurance producer means an
insurance agent, insurance broker, reinsurance intermediary, excess lines
broker, or any other person required to be licensed under the insurance laws
of this state to sell, solicit or negotiate insurance.
Who Should be Licensed (2101(k)(1)) - Answer1. The term "insurance
producer" does not include: An officer, director or employee of a
licensed insurer, fraternal benefit society or health maintenance
organization or of a licensed insurance producer, provided that the
officer, director or employee does not receive any commission on
policies written or sold to insure risks residing, located or to be
performed in this state and:
(a) the
officer, director or employee's activities are executive,
administrative, managerial, clerical or a combination of these, and are
only indirectly related to the sale, solicitation or negotiation of
insurance;
(b) theofficer, director or employee's function relates to underwriting,
loss control, Inspection or the processing, adjusting, investigating or
settling of a claim on a contract of Insurance; or (c) the officer, director
or employee is acting in the capacity of a special agent or agency
supervisor assisting licensed insurance producers where the person's
activities are limited to providing technical advice and assistance to
, licensed insurance producers and do not include the sale, solicitation or
negotiation of insurance.
