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New Mexico Life, Health, Accident Actual Verified
Exam Questions And Answers Practice Questions
with Solutions Newest | Already Graded A+||Newest
Exam!!
What does Insurable Interest mean? - Answer-You must
have a valid reason to insure someone.
Why do people buy life insurance? - Answer-To help their
family pay for expenses, debts, or future needs
Who is the Policyowner? - Answer-The person who
controls and pays for the insurance.
What is Term Life Insurance? - Answer-Insurance for a set
period with no savings.
What is Whole Life Insurance? - Answer-Permanent
insurance with cash value savings.
What is Universal Life Insurance? - Answer-Flexible
premiums and benefits.
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What is a Life Insurance Rider? - Answer-An add-on for
extra benAn extra feature you can add to your life
insuranceefits or coverage.
What Does the Waiver of Premium Rider Do? - Answer-
Stops premiums if you're disabled.
What is an Accidental Death Benefit Rider? - Answer-Pays
extra if you die in an accident.
Why Add a Long-Term Care Rider? - Answer-Helps pay for
care when you can't do daily activities.
: What is a Life Insurance Rider? - Answer-An add-on for
extra benefits or coverage.
What does the Waiver of Premium Rider do? - Answer-
Stops premium payments if you're disabled.
What is an Accidental Death Benefit Rider? - Answer-Pays
extra if you die in an accident.
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What does the Long-Term Care Rider cover? - Answer-
Costs of nursing home or in-home care.
What is a Lump Sum Settlement Option? - Answer-Money
is given all at once to beneficiaries.
What is the Cash Surrender Option? - Answer-Cancel the
policy and take the cash value.
How can Policy Dividends be used? - Answer-Cash
payment, reduce premiums, or buy more insurance.
What is the Life Income Option? - Answer-Payments made
for the rest of the beneficiary's life.
What is the Entire Contract Clause? - Answer-The policy
and application are the whole agreement.
What is the Grace Period? - Answer-30-31 days to pay a
missed premium without losing coverage.
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What is the Incontestability Clause? - Answer-A: Prevents
policy challenges after 2 years for mistakes.
What is Risk? - Answer-The chance of something bad
happening.
What is a Peril? - Answer-The thing that causes the bad
event.
What are the 3 types of hazards? - Answer-Physical,
Moral, and Morale.
How does insurance help people? It transfers big risks to
an insurer. - Answer-
What is the purpose of underwriting? - Answer-To evaluate
risk and decide eligibility for insurance.
What is the Medical Information Bureau (MIB)? - Answer-A
group that collects health info to prevent fraud.
What happens if you lie on an application? - Answer-Your
policy might be canceled, or claims denied.
New Mexico Life, Health, Accident Actual Verified
Exam Questions And Answers Practice Questions
with Solutions Newest | Already Graded A+||Newest
Exam!!
What does Insurable Interest mean? - Answer-You must
have a valid reason to insure someone.
Why do people buy life insurance? - Answer-To help their
family pay for expenses, debts, or future needs
Who is the Policyowner? - Answer-The person who
controls and pays for the insurance.
What is Term Life Insurance? - Answer-Insurance for a set
period with no savings.
What is Whole Life Insurance? - Answer-Permanent
insurance with cash value savings.
What is Universal Life Insurance? - Answer-Flexible
premiums and benefits.
,2|Page
What is a Life Insurance Rider? - Answer-An add-on for
extra benAn extra feature you can add to your life
insuranceefits or coverage.
What Does the Waiver of Premium Rider Do? - Answer-
Stops premiums if you're disabled.
What is an Accidental Death Benefit Rider? - Answer-Pays
extra if you die in an accident.
Why Add a Long-Term Care Rider? - Answer-Helps pay for
care when you can't do daily activities.
: What is a Life Insurance Rider? - Answer-An add-on for
extra benefits or coverage.
What does the Waiver of Premium Rider do? - Answer-
Stops premium payments if you're disabled.
What is an Accidental Death Benefit Rider? - Answer-Pays
extra if you die in an accident.
,3|Page
What does the Long-Term Care Rider cover? - Answer-
Costs of nursing home or in-home care.
What is a Lump Sum Settlement Option? - Answer-Money
is given all at once to beneficiaries.
What is the Cash Surrender Option? - Answer-Cancel the
policy and take the cash value.
How can Policy Dividends be used? - Answer-Cash
payment, reduce premiums, or buy more insurance.
What is the Life Income Option? - Answer-Payments made
for the rest of the beneficiary's life.
What is the Entire Contract Clause? - Answer-The policy
and application are the whole agreement.
What is the Grace Period? - Answer-30-31 days to pay a
missed premium without losing coverage.
, 4|Page
What is the Incontestability Clause? - Answer-A: Prevents
policy challenges after 2 years for mistakes.
What is Risk? - Answer-The chance of something bad
happening.
What is a Peril? - Answer-The thing that causes the bad
event.
What are the 3 types of hazards? - Answer-Physical,
Moral, and Morale.
How does insurance help people? It transfers big risks to
an insurer. - Answer-
What is the purpose of underwriting? - Answer-To evaluate
risk and decide eligibility for insurance.
What is the Medical Information Bureau (MIB)? - Answer-A
group that collects health info to prevent fraud.
What happens if you lie on an application? - Answer-Your
policy might be canceled, or claims denied.
