Practice Exam NM Life and Health Insurance
questions and answers 2025\2026 A+ Grade
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the
investment?
- correct answer The annuitant will receive the higher of either the guaranteed minimum rate or current
rate
Which of the following is true regarding taxation of dividends in participating policies?
- correct answer Dividends are not taxable.
J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent was
vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides
that he does not want the policy. When would J need to return the policy to the insurer in order to
receive a full refund of premium paid?
- correct answer February 28th, or 10 days after the time the policy is delivered.
The appointing insurer must file a notice of agent appointment with the Superintendent within how
many days from the date the agency contract is executed or the first insurance application is submitted?
- correct answer 15 days
The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to change
the beneficiary before the insured's death, the proceeds of the policy will go to
- correct answer The insured's estate.
In health insurance, if a doctor charges $50 more than what the insurance company considers usual,
customary and reasonable, the extra cost
- correct answer Is not covered.
The two types of assignments are
- correct answer Absolute and collateral.
questions and answers 2025\2026 A+ Grade
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the
investment?
- correct answer The annuitant will receive the higher of either the guaranteed minimum rate or current
rate
Which of the following is true regarding taxation of dividends in participating policies?
- correct answer Dividends are not taxable.
J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent was
vacationing at the time the policy was issued, so J did not receive the policy until February 18. J decides
that he does not want the policy. When would J need to return the policy to the insurer in order to
receive a full refund of premium paid?
- correct answer February 28th, or 10 days after the time the policy is delivered.
The appointing insurer must file a notice of agent appointment with the Superintendent within how
many days from the date the agency contract is executed or the first insurance application is submitted?
- correct answer 15 days
The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to change
the beneficiary before the insured's death, the proceeds of the policy will go to
- correct answer The insured's estate.
In health insurance, if a doctor charges $50 more than what the insurance company considers usual,
customary and reasonable, the extra cost
- correct answer Is not covered.
The two types of assignments are
- correct answer Absolute and collateral.
