FINAL EXAM NEW MEXICO LIFE
ONLY QUESTIONS AND
ANSWERS 2026 - 2027
After the extended term life nonforfeiture option is chosen, the
available insurance will be - ANSWERS-level term for a stated period
of time
Which type of policy can group term life insurance normally be
converted to? - ANSWERS-An individual permanent life insurance
policy
A policyowner pays first annual premium for $50,000 life insurance
policy and dies one month after the policy effective date. Which of
these statements is normally true? - ANSWERS-Beneficiary receives
$50,000 income tax-free
A life insurance policy provision that has ability to reduce the death
benefit is called the - ANSWERS-Accelerated benefit (living)
Which of these is NOT relevant when determining the amount of
personal life insurance needed? - ANSWERS-Local unemployment
rate
,Which of the following is NOT guaranteed in a whole life policy? -
ANSWERS-Dividend scale
A life insurance agent licensed in NM is authorized to - ANSWERS-
Solicit receive and forward application to insurer
What would be valid reason for naming a trust as the beneficiary of a
life insurance policy as opposed to naming an individual? -
ANSWERS-Management of proceeds would be provided
Which of these is NOT used as selection criteria in the underwriting
process of a life insurance application? - ANSWERS-national origin
A cease and desist order issued by the superintendent against an agent
- ANSWERS-Prohibits a specific practice listed in the order
When a ten year renewable term life insurance policy issued at age 45
is renewed, the premium rate will be the current rate for -
ANSWERS-Ten year term insurance for a person aged 55
When a sum of money undergoes capital liquidation, that sum will -
ANSWERS-decrease in size
A terminally ill policyowner decides to sell his life insurance policy at
a discount to help support his family. This scale is called a(n) -
ANSWERS-Viaticle settlement
, The grace period for a life insurance policy with an annual premium
is usually - ANSWERS-30 says
An insurance application requires an applicant to make a full, accurate
disclosure of the risk factor involved. Using this criteria, an insurance
policy is considered what type of contract? - ANSWERS-Contract of
utmost good faith
What is the face amount of a $50,000 graded death benefit life
insurance policy when the policy issued? - ANSWERS-Under 50k
initially, but increases overtime
Which of the following outlines the authority given to the producer on
behalf of the insurer? - ANSWERS-Producer contract
A policyowner is permitted to take out a policy loan on a whole life
policy at what point? - ANSWERS-When the policy has a cash value
In a speech to a local association, an agent incorrectly stated that XYZ
insurance company is in financial difficulty and not paying claims.
The agent is guilty of - ANSWERS-Deflamation
What is an insurance contract that identifies individuals by
relationship to a specific organization? - ANSWERS-group insurance
ONLY QUESTIONS AND
ANSWERS 2026 - 2027
After the extended term life nonforfeiture option is chosen, the
available insurance will be - ANSWERS-level term for a stated period
of time
Which type of policy can group term life insurance normally be
converted to? - ANSWERS-An individual permanent life insurance
policy
A policyowner pays first annual premium for $50,000 life insurance
policy and dies one month after the policy effective date. Which of
these statements is normally true? - ANSWERS-Beneficiary receives
$50,000 income tax-free
A life insurance policy provision that has ability to reduce the death
benefit is called the - ANSWERS-Accelerated benefit (living)
Which of these is NOT relevant when determining the amount of
personal life insurance needed? - ANSWERS-Local unemployment
rate
,Which of the following is NOT guaranteed in a whole life policy? -
ANSWERS-Dividend scale
A life insurance agent licensed in NM is authorized to - ANSWERS-
Solicit receive and forward application to insurer
What would be valid reason for naming a trust as the beneficiary of a
life insurance policy as opposed to naming an individual? -
ANSWERS-Management of proceeds would be provided
Which of these is NOT used as selection criteria in the underwriting
process of a life insurance application? - ANSWERS-national origin
A cease and desist order issued by the superintendent against an agent
- ANSWERS-Prohibits a specific practice listed in the order
When a ten year renewable term life insurance policy issued at age 45
is renewed, the premium rate will be the current rate for -
ANSWERS-Ten year term insurance for a person aged 55
When a sum of money undergoes capital liquidation, that sum will -
ANSWERS-decrease in size
A terminally ill policyowner decides to sell his life insurance policy at
a discount to help support his family. This scale is called a(n) -
ANSWERS-Viaticle settlement
, The grace period for a life insurance policy with an annual premium
is usually - ANSWERS-30 says
An insurance application requires an applicant to make a full, accurate
disclosure of the risk factor involved. Using this criteria, an insurance
policy is considered what type of contract? - ANSWERS-Contract of
utmost good faith
What is the face amount of a $50,000 graded death benefit life
insurance policy when the policy issued? - ANSWERS-Under 50k
initially, but increases overtime
Which of the following outlines the authority given to the producer on
behalf of the insurer? - ANSWERS-Producer contract
A policyowner is permitted to take out a policy loan on a whole life
policy at what point? - ANSWERS-When the policy has a cash value
In a speech to a local association, an agent incorrectly stated that XYZ
insurance company is in financial difficulty and not paying claims.
The agent is guilty of - ANSWERS-Deflamation
What is an insurance contract that identifies individuals by
relationship to a specific organization? - ANSWERS-group insurance
