New Mexico Life Insurance Final Exam with precise detailed
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solutions
What is an insurance contract that identifies individuals by relationship to a specific
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organization? - correct answer✔✔group insurance ||\\//|| ||\\//|| ||\\//|| ||\\//||
When an insured under a group life insurance plan in NM elects the conversation option,
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the new policy is issued - correct answer✔✔Without requiring evidence of insurability
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What is another name for a Keogh plan - correct answer✔✔HR 10 plan
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An insurance policy may be issued with a preferred insurance premium in all these
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situations EXEPT - correct answer✔✔Living in a rural area ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
All of these statements concerning group credit life insurance are false EXEPT - correct
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answer✔✔The face amount is based on the outstanding loan balance ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Risk ____ is the process of analyzing exposures that create risk and designing programs to
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handle them - correct answer✔✔management ||\\//|| ||\\//|| ||\\//|| ||\\//||
XYZ Insurance Company gives direct authority to its producers to sell insurance through an
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agency contract, but nothing is stated regarding the collection of premiums. Which
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authority grants the producer the right to collect premiums? - correct answer✔✔implied ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
authority
When the superintendent believes an agent is causing substantial and material harm, the
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superintendent has the authority to - correct answer✔✔issue a cease and desist order ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
against the agent ||\\//|| ||\\//||
, Who normally pays the premiums for group credit life insurance? - correct
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answer✔✔borrower
For policyholders in the same risk classification, it is unlawful to - correct
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answer✔✔Charge different premiums ||\\//|| ||\\//||
What happens to the cash value of a market value adjusted annuity if it's surrendered prior
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to the end of the stated guarantee period - correct answer✔✔Subject to market value
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adjustment
What must be given to a life insurance applicant when the agent receives an application
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and the initial premium - correct answer✔✔Conditional receipt
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Which situation would not require the insureds consent when a life insurance policy is
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issued - correct answer✔✔A policy is purchased by a parent for a minor child
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A business becoming incorporated is an example of risk ____. - correct answer✔✔to
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transfer
The Superintendent may suspend an agent's license when the agent - correct
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answer✔✔Rebates a portion of the commission to the insured ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
What would be considered an advantage of purchasing term life insurance? - correct
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answer✔✔The initial premium is lower compared to an equivalent amount of whole life ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
coverage
When an insurance appointment with an agent is terminated, the party must notify the
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agent of the termination is the - correct answer✔✔Insurer
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solutions
What is an insurance contract that identifies individuals by relationship to a specific
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
organization? - correct answer✔✔group insurance ||\\//|| ||\\//|| ||\\//|| ||\\//||
When an insured under a group life insurance plan in NM elects the conversation option,
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
the new policy is issued - correct answer✔✔Without requiring evidence of insurability
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
What is another name for a Keogh plan - correct answer✔✔HR 10 plan
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An insurance policy may be issued with a preferred insurance premium in all these
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
situations EXEPT - correct answer✔✔Living in a rural area ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
All of these statements concerning group credit life insurance are false EXEPT - correct
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔The face amount is based on the outstanding loan balance ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Risk ____ is the process of analyzing exposures that create risk and designing programs to
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
handle them - correct answer✔✔management ||\\//|| ||\\//|| ||\\//|| ||\\//||
XYZ Insurance Company gives direct authority to its producers to sell insurance through an
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
agency contract, but nothing is stated regarding the collection of premiums. Which
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
authority grants the producer the right to collect premiums? - correct answer✔✔implied ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
authority
When the superintendent believes an agent is causing substantial and material harm, the
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
superintendent has the authority to - correct answer✔✔issue a cease and desist order ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
against the agent ||\\//|| ||\\//||
, Who normally pays the premiums for group credit life insurance? - correct
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔borrower
For policyholders in the same risk classification, it is unlawful to - correct
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔Charge different premiums ||\\//|| ||\\//||
What happens to the cash value of a market value adjusted annuity if it's surrendered prior
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
to the end of the stated guarantee period - correct answer✔✔Subject to market value
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
adjustment
What must be given to a life insurance applicant when the agent receives an application
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
and the initial premium - correct answer✔✔Conditional receipt
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Which situation would not require the insureds consent when a life insurance policy is
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
issued - correct answer✔✔A policy is purchased by a parent for a minor child
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A business becoming incorporated is an example of risk ____. - correct answer✔✔to
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
transfer
The Superintendent may suspend an agent's license when the agent - correct
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔Rebates a portion of the commission to the insured ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
What would be considered an advantage of purchasing term life insurance? - correct
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔The initial premium is lower compared to an equivalent amount of whole life ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
coverage
When an insurance appointment with an agent is terminated, the party must notify the
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
agent of the termination is the - correct answer✔✔Insurer
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