NEW MEXICO LIFE INSURANCE EXAM
QUESTIONS |GUARANTEED ACCURATE
ANSWERS |LATEST VERSION 2026\27
What is an insurance contract that identifies individuals by relationship to a
specific organization? -ACCURATE ANSWER group insurance
When an insured under a group life insurance plan in NM elects the conversation
option, the new policy is issued -ACCURATE ANSWER Without requiring
evidence of insurability
What is another name for a Keogh plan -ACCURATE ANSWER HR 10 plan
An insurance policy may be issued with a preferred insurance premium in all these
situations EXEPT -ACCURATE ANSWER Living in a rural area
All of these statements concerning group credit life insurance are false EXEPT -
ACCURATE 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 -ACCURATE 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? -
ACCURATE ANSWER implied authority
,When the superintendent believes an agent is causing substantial and material
harm, the superintendent has the authority to -ACCURATE ANSWER issue a
cease and desist order against the agent
Who normally pays the premiums for group credit life insurance? -ACCURATE
ANSWER borrower
For policyholders in the same risk classification, it is unlawful to -ACCURATE
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 -ACCURATE
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 -ACCURATE ANSWER Conditional receipt
Which situation would not require the insureds consent when a life insurance
policy is issued -ACCURATE ANSWER A policy is purchased by a parent for a
minor child
A business becoming incorporated is an example of risk ____. -ACCURATE
ANSWER to transfer
The Superintendent may suspend an agent's license when the agent -ACCURATE
ANSWER Rebates a portion of the commission to the insured
, What would be considered an advantage of purchasing term life insurance? -
ACCURATE 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 -ACCURATE ANSWER Insurer
The policy provision that permits an employee to change from group life coverage
to an individual life policy is called the -ACCURATE ANSWER Conversation
provision
A qualified profit-sharing plan is designed to -ACCURATE ANSWER distribute a
portion of company earnings to its employees
What is the maximum number of employees (earning at least 5k) that an employer
can have in order to start SIMPLE retirement plan -ACCURATE ANSWER 100
A policy owner with a terminal illness who sells his life insurance policy to a third
party is called a -ACCURATE ANSWER Viator
The Medical information Bureau consists of members from which group -
ACCURATE ANSWER insurance companies
A life insurance policy's waiver of premium rider has the ability to -ACCURATE
ANSWER Relieve the insured of premium payments following an initial waiting
period after the insured becomes totally disabled
QUESTIONS |GUARANTEED ACCURATE
ANSWERS |LATEST VERSION 2026\27
What is an insurance contract that identifies individuals by relationship to a
specific organization? -ACCURATE ANSWER group insurance
When an insured under a group life insurance plan in NM elects the conversation
option, the new policy is issued -ACCURATE ANSWER Without requiring
evidence of insurability
What is another name for a Keogh plan -ACCURATE ANSWER HR 10 plan
An insurance policy may be issued with a preferred insurance premium in all these
situations EXEPT -ACCURATE ANSWER Living in a rural area
All of these statements concerning group credit life insurance are false EXEPT -
ACCURATE 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 -ACCURATE 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? -
ACCURATE ANSWER implied authority
,When the superintendent believes an agent is causing substantial and material
harm, the superintendent has the authority to -ACCURATE ANSWER issue a
cease and desist order against the agent
Who normally pays the premiums for group credit life insurance? -ACCURATE
ANSWER borrower
For policyholders in the same risk classification, it is unlawful to -ACCURATE
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 -ACCURATE
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 -ACCURATE ANSWER Conditional receipt
Which situation would not require the insureds consent when a life insurance
policy is issued -ACCURATE ANSWER A policy is purchased by a parent for a
minor child
A business becoming incorporated is an example of risk ____. -ACCURATE
ANSWER to transfer
The Superintendent may suspend an agent's license when the agent -ACCURATE
ANSWER Rebates a portion of the commission to the insured
, What would be considered an advantage of purchasing term life insurance? -
ACCURATE 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 -ACCURATE ANSWER Insurer
The policy provision that permits an employee to change from group life coverage
to an individual life policy is called the -ACCURATE ANSWER Conversation
provision
A qualified profit-sharing plan is designed to -ACCURATE ANSWER distribute a
portion of company earnings to its employees
What is the maximum number of employees (earning at least 5k) that an employer
can have in order to start SIMPLE retirement plan -ACCURATE ANSWER 100
A policy owner with a terminal illness who sells his life insurance policy to a third
party is called a -ACCURATE ANSWER Viator
The Medical information Bureau consists of members from which group -
ACCURATE ANSWER insurance companies
A life insurance policy's waiver of premium rider has the ability to -ACCURATE
ANSWER Relieve the insured of premium payments following an initial waiting
period after the insured becomes totally disabled
