New Mexico Life and Health final exam part 1
with verified detailed solutions
An insurance policy that can also be classified as a securities product is called? - correct
answer✔✔Variable Life
Which of these pays an income to two or more annuitants until the death of the last
annuitant - correct answer✔✔Joint and survivor annuity
In NM a long term care policy may offer coverage - correct answer✔✔In which benefits are
based on a individuals ability to perform the activities of daily living
Insurance agent Kelly offers insured a $500.00 shopping card if they purchase an insurance
product through her. What is this an Example of? - correct answer✔✔Rebating which is an
unfair trade practice
When an insured under a group life insurance plan in NM elects the conversion option, the
new policy is issued? - correct answer✔✔Without requiring evidence of insurability.
An agent who publicily and erroneously announces that an insurance company is insolvent
may be found guilty of? - correct answer✔✔Defamation!
Pointing out to a prospecting Client that the life insurance policy you are presenting is
covered by the New Mexico Life and Health Insurance Guaranty Association is - correct
answer✔✔Prohibited By Law
What is a "functional assessment" for long-term care benefits? - correct answer✔✔A review
of the insured's ability to perform the activities of daily living.
, Which of these would NOT likely qualify as a presumptive disability? choices; 1- loss of
sight in one eye 2- loss of both hands 3- loss of hearing 4- loss of speech - correct
answer✔✔Loss of sight in one eye.
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
- correct answer✔✔Mandatory income tax witholding on the amount transferred.
Which of the following is NOT an objective of the National Association of Insurance
Commissioners?
1- Encourage Uniformity in state insurance laws
2- Protect the interest of policyowners and consumers
3-Regulate state insurance Commissioners
4-Promote efficiency in the administration of state insurance laws - correct
answer✔✔Regulate state insurance Commissioners
What typically changes at the re-entry option date found in some term life policies? - correct
answer✔✔Premium
What is considered a valid reason for an insurers refusal to pay policy proceeds directly to a
minor? - correct answer✔✔Minors are normally not capable of handling money in a
reasonable manner.
Individual and group health insurance typically exclude coverage for which of the
following? - correct answer✔✔Cosmetic surgery.
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further
payments are permitted and the income stream begins in 15 years. This cantract is a(n) -
correct answer✔✔Single premium defferred annuity
with verified detailed solutions
An insurance policy that can also be classified as a securities product is called? - correct
answer✔✔Variable Life
Which of these pays an income to two or more annuitants until the death of the last
annuitant - correct answer✔✔Joint and survivor annuity
In NM a long term care policy may offer coverage - correct answer✔✔In which benefits are
based on a individuals ability to perform the activities of daily living
Insurance agent Kelly offers insured a $500.00 shopping card if they purchase an insurance
product through her. What is this an Example of? - correct answer✔✔Rebating which is an
unfair trade practice
When an insured under a group life insurance plan in NM elects the conversion option, the
new policy is issued? - correct answer✔✔Without requiring evidence of insurability.
An agent who publicily and erroneously announces that an insurance company is insolvent
may be found guilty of? - correct answer✔✔Defamation!
Pointing out to a prospecting Client that the life insurance policy you are presenting is
covered by the New Mexico Life and Health Insurance Guaranty Association is - correct
answer✔✔Prohibited By Law
What is a "functional assessment" for long-term care benefits? - correct answer✔✔A review
of the insured's ability to perform the activities of daily living.
, Which of these would NOT likely qualify as a presumptive disability? choices; 1- loss of
sight in one eye 2- loss of both hands 3- loss of hearing 4- loss of speech - correct
answer✔✔Loss of sight in one eye.
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
- correct answer✔✔Mandatory income tax witholding on the amount transferred.
Which of the following is NOT an objective of the National Association of Insurance
Commissioners?
1- Encourage Uniformity in state insurance laws
2- Protect the interest of policyowners and consumers
3-Regulate state insurance Commissioners
4-Promote efficiency in the administration of state insurance laws - correct
answer✔✔Regulate state insurance Commissioners
What typically changes at the re-entry option date found in some term life policies? - correct
answer✔✔Premium
What is considered a valid reason for an insurers refusal to pay policy proceeds directly to a
minor? - correct answer✔✔Minors are normally not capable of handling money in a
reasonable manner.
Individual and group health insurance typically exclude coverage for which of the
following? - correct answer✔✔Cosmetic surgery.
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further
payments are permitted and the income stream begins in 15 years. This cantract is a(n) -
correct answer✔✔Single premium defferred annuity
