New York State Life Insurance Series
17-51 Detailed Exam Study Questions
with Expert Graded A+ Answers |
Guarantee Pass
1. According to the entire contract provision, what document must be made
part of the insurance policy? - ANSWER Copy of the original application
2. Following a career change, an insured is no longer required to perform many
physical activities, so he has implemented a program where he walks and
jogs for 45 minutes each morning. The insured has also eliminated most
fatty foods from his diet. Which method of dealing with risk does this
scenario describe? - ANSWER Reduction.
3. Most agents try to collect the initial premium for submission with the
application. When an agent collects the initial premium from the applicant,
the agent should issue the applicant a - ANSWER Premium receipt.
4. An agent selling variable annuities must be registered with - ANSWER
FINRA
5. All of the following are dividend options EXCEPT - ANSWER Fixed-
period installments.
6. Which type of life insurance policy generates immediate cash value? -
ANSWER Single Premium.
,7. Which of the following will NOT be considered unfair discrimination by
insurers? - ANSWER Discriminating in benefits and coverages based on the
insured's habits and lifestyle.
8. When J. applied for a life insurance policy, the agent informed him that a
medical exam would be required. The exam may be completed by -
ANSWER A paramedic or examining physician at the insurer's expense.
9. In insurance policies, contract ambiguities are automatically ruled in the
favor of the insured. What privilege does the insurer have in order to balance
this? - ANSWER The right to determine the wording of a policy.
10.Which statement is NOT true regarding a Straight Life policy? - ANSWER
Its premium steadily decreases over time, in response to its growing cash
value.
11.In group life policies, a certificate of insurance is given to - ANSWER Each
insured person.
12.Death benefits payable to a beneficiary under a life insurance policy are
generally - ANSWER Not subject to income taxation by the Federal
Government.
13.Annually renewable term policies provide a level death benefit for a
premium that - ANSWER Increases annually.
14.All of the following are true regarding the guaranteed insurability rider
EXCEPT - ANSWER This rider is available to all insureds with no
additional premium.
,15.Which of the following is true about warranties? - ANSWER They are
guaranteed to be true.
16.An insured has chosen the Joint and 2/3 Survivor settlement option. What
does this mean to the beneficiaries? - ANSWER The surviving beneficiary
will continue receiving 2/3 of the benefit paid when both beneficiaries were
alive.
17.Which of the following will NOT be an appropriate use of a deferred
annuity? - ANSWER Creating an estate.
18."Whose responsibility is it to make certain that an application for insurance
is filled out completely and correctly?" - ANSWER The producer
19.A policyowner cancels his life policy but instructs the insurance company to
transfer the cash value of his policy to an annuity. This nontaxable
transaction is - ANSWER 1035 exchange
20.Which of the following will be included in a policy summary? - ANSWER
Premium amounts and surrender values
21.Which of the following statements is TRUE concerning irrevocable
beneficiaries? - ANSWER They can be changed only with the written
consent of that beneficiary.
22.If an insured withdraws a portion of the face amount in the form of
accelerated benefits because of a terminal illness, how will that affect the
payable death benefit from the policy? - ANSWER The death benefit will
be smaller.
, 23.Which of the following is a statement that is guaranteed to be true, and if
untrue, may breach an insurance contract? - ANSWER Warranty
24.For the protection of public interest, the Superintendent may examine the
books and records of any of the following EXCEPT - ANSWER
Policyowners
25.An individual was involved in a head-on collision while driving home one
day. His injuries were not serious, and he recovered. However, he decided
that in order to never be involved in another accident, he would not drive or
ride in a car ever again. Which method of risk management does this
describe? - ANSWER Avoidance.
26.When an insurer begins underwriting procedures for an applicant, what will
be the main source for its underwriting information? - ANSWER
Application.
27.Which is NOT true about beneficiary designations? - ANSWER The
beneficiary must have insurable interest in the insured.
28.Monty has late-stage leukemia and is now under hospice care. He is
expected to live for only a few more weeks. His medical bills are extensive,
so he needs an additional source of funding. What life insurance provision
would pay part of his death benefit early, in order to provide extra funding
for his medical bills? - ANSWER Accelerated Death Benefit.
29.Because an agent is using stationery with the logo of an insurance company,
applicants for insurance assume that the agent is authorized to transact on
behalf of that insurer. What type of agent authority does this describe? -
ANSWER Apparent.
17-51 Detailed Exam Study Questions
with Expert Graded A+ Answers |
Guarantee Pass
1. According to the entire contract provision, what document must be made
part of the insurance policy? - ANSWER Copy of the original application
2. Following a career change, an insured is no longer required to perform many
physical activities, so he has implemented a program where he walks and
jogs for 45 minutes each morning. The insured has also eliminated most
fatty foods from his diet. Which method of dealing with risk does this
scenario describe? - ANSWER Reduction.
3. Most agents try to collect the initial premium for submission with the
application. When an agent collects the initial premium from the applicant,
the agent should issue the applicant a - ANSWER Premium receipt.
4. An agent selling variable annuities must be registered with - ANSWER
FINRA
5. All of the following are dividend options EXCEPT - ANSWER Fixed-
period installments.
6. Which type of life insurance policy generates immediate cash value? -
ANSWER Single Premium.
,7. Which of the following will NOT be considered unfair discrimination by
insurers? - ANSWER Discriminating in benefits and coverages based on the
insured's habits and lifestyle.
8. When J. applied for a life insurance policy, the agent informed him that a
medical exam would be required. The exam may be completed by -
ANSWER A paramedic or examining physician at the insurer's expense.
9. In insurance policies, contract ambiguities are automatically ruled in the
favor of the insured. What privilege does the insurer have in order to balance
this? - ANSWER The right to determine the wording of a policy.
10.Which statement is NOT true regarding a Straight Life policy? - ANSWER
Its premium steadily decreases over time, in response to its growing cash
value.
11.In group life policies, a certificate of insurance is given to - ANSWER Each
insured person.
12.Death benefits payable to a beneficiary under a life insurance policy are
generally - ANSWER Not subject to income taxation by the Federal
Government.
13.Annually renewable term policies provide a level death benefit for a
premium that - ANSWER Increases annually.
14.All of the following are true regarding the guaranteed insurability rider
EXCEPT - ANSWER This rider is available to all insureds with no
additional premium.
,15.Which of the following is true about warranties? - ANSWER They are
guaranteed to be true.
16.An insured has chosen the Joint and 2/3 Survivor settlement option. What
does this mean to the beneficiaries? - ANSWER The surviving beneficiary
will continue receiving 2/3 of the benefit paid when both beneficiaries were
alive.
17.Which of the following will NOT be an appropriate use of a deferred
annuity? - ANSWER Creating an estate.
18."Whose responsibility is it to make certain that an application for insurance
is filled out completely and correctly?" - ANSWER The producer
19.A policyowner cancels his life policy but instructs the insurance company to
transfer the cash value of his policy to an annuity. This nontaxable
transaction is - ANSWER 1035 exchange
20.Which of the following will be included in a policy summary? - ANSWER
Premium amounts and surrender values
21.Which of the following statements is TRUE concerning irrevocable
beneficiaries? - ANSWER They can be changed only with the written
consent of that beneficiary.
22.If an insured withdraws a portion of the face amount in the form of
accelerated benefits because of a terminal illness, how will that affect the
payable death benefit from the policy? - ANSWER The death benefit will
be smaller.
, 23.Which of the following is a statement that is guaranteed to be true, and if
untrue, may breach an insurance contract? - ANSWER Warranty
24.For the protection of public interest, the Superintendent may examine the
books and records of any of the following EXCEPT - ANSWER
Policyowners
25.An individual was involved in a head-on collision while driving home one
day. His injuries were not serious, and he recovered. However, he decided
that in order to never be involved in another accident, he would not drive or
ride in a car ever again. Which method of risk management does this
describe? - ANSWER Avoidance.
26.When an insurer begins underwriting procedures for an applicant, what will
be the main source for its underwriting information? - ANSWER
Application.
27.Which is NOT true about beneficiary designations? - ANSWER The
beneficiary must have insurable interest in the insured.
28.Monty has late-stage leukemia and is now under hospice care. He is
expected to live for only a few more weeks. His medical bills are extensive,
so he needs an additional source of funding. What life insurance provision
would pay part of his death benefit early, in order to provide extra funding
for his medical bills? - ANSWER Accelerated Death Benefit.
29.Because an agent is using stationery with the logo of an insurance company,
applicants for insurance assume that the agent is authorized to transact on
behalf of that insurer. What type of agent authority does this describe? -
ANSWER Apparent.
