Final exam New Mexico Life Only questions and
answers 2025\2026 A+ Grade
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
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
The policy provision that permits an employee to change from group life coverage to an individual life
policy is called the
- correct answer Conversation provision
answers 2025\2026 A+ Grade
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
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
The policy provision that permits an employee to change from group life coverage to an individual life
policy is called the
- correct answer Conversation provision
