New Mexico Life and Health Insurance Actual
Exam Questions And Answers Questions with
Solutions Newest 2026-2027 | Already Graded A+
1. Long-term care insurance applications MUST contain plain and unambiguous
health questions. The exception to this rule would be applications for:
A. Group coverage
B. Guaranteed issue
C. Conversion policies
D. Employer-sponsored plans
• ANSWER-B
2. An agent’s license may only be suspended or revoked if the agent:
A. Violates any insurance regulation
B. Fails to pay renewal fees
C. Has been afforded a right to a hearing
D. Receives three consumer complaints
• ANSWER-C
3. A business may purchase an annuity for all of the following reasons EXCEPT:
A. Funding a qualified retirement plan
B. Informally funding a non-qualified deferred compensation plan
C. Providing executive retirement benefits
D. Funding a split-dollar life insurance arrangement
• ANSWER-B
4. The State Guaranty Association guarantees:
,A. That policy values will earn a minimum interest rate
B. That premiums will never increase
C. That a claim will be paid if an admitted insurer becomes insolvent
D. That all policyholders receive dividends
• ANSWER-C
5. Which of the following would most likely purchase an immediate annuity?
A. A 30-year-old saving for retirement
B. A family with young children
C. A retiree having a lump sum to invest
D. A business owner funding a buy-sell agreement
• ANSWER-C
6. Jerome is covered by a disability income policy that does NOT provide benefits
for losses occurring as the result of his employment. What kind of coverage is this?
A. Occupational coverage
B. Nonoccupational coverage
C. Blanket coverage
D. Partial disability coverage
• ANSWER-B
7. During the liquidation phase of an annuity contract, to whom are the income
benefits normally payable?
A. The contract owner
B. The beneficiary
C. The annuitant
D. The policyholder's estate
• ANSWER-C
,8. Larry wants to purchase an individual disability income policy to provide
continuous income while disabled. He is also covered by a two-month wage
continuation benefit from his employer. What should the policy elimination period
be for his individual policy?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
• ANSWER-B
9. Insurance crimes which affect interstate commerce are prosecuted by the:
A. State Insurance Commissioner
B. Federal Bureau of Investigation
C. U.S. Attorney General
D. National Association of Insurance Commissioners
• ANSWER-C
10. Which of the following is covered by a basic dental indemnity plan?
A. Orthodontics
B. Crowns and bridges
C. Non-surgical periodontal treatment
D. Cosmetic dentistry
• ANSWER-C
11. Which health policy clause specifies the amount of benefits to be paid?
A. Consideration clause
B. Insuring clause
C. Entire contract clause
D. Benefit clause
• ANSWER-B
, 12. The exclusion ratio determines:
A. The amount of premium that is tax-deductible
B. The amount of an annuity payment subject to income tax
C. The maximum benefit period for a long-term care policy
D. The percentage of claims an insurer may deny
• ANSWER-B
13. An example of endodontic treatment is a:
A. Dental cleaning
B. Tooth extraction
C. Root canal
D. Dental filling
• ANSWER-C
14. The interest paid during an annuity’s payout period is considered:
A. Tax-exempt income
B. Capital gains
C. Taxable as ordinary income
D. Tax-deferred until death
• ANSWER-C
15. A reciprocal insurer typically has an administrator who manages the premiums
collected from the group's members. This administrator is called a(n):
A. Subscriber
B. Member-manager
C. Attorney-in-fact
D. Reciprocity officer
• ANSWER-C
Exam Questions And Answers Questions with
Solutions Newest 2026-2027 | Already Graded A+
1. Long-term care insurance applications MUST contain plain and unambiguous
health questions. The exception to this rule would be applications for:
A. Group coverage
B. Guaranteed issue
C. Conversion policies
D. Employer-sponsored plans
• ANSWER-B
2. An agent’s license may only be suspended or revoked if the agent:
A. Violates any insurance regulation
B. Fails to pay renewal fees
C. Has been afforded a right to a hearing
D. Receives three consumer complaints
• ANSWER-C
3. A business may purchase an annuity for all of the following reasons EXCEPT:
A. Funding a qualified retirement plan
B. Informally funding a non-qualified deferred compensation plan
C. Providing executive retirement benefits
D. Funding a split-dollar life insurance arrangement
• ANSWER-B
4. The State Guaranty Association guarantees:
,A. That policy values will earn a minimum interest rate
B. That premiums will never increase
C. That a claim will be paid if an admitted insurer becomes insolvent
D. That all policyholders receive dividends
• ANSWER-C
5. Which of the following would most likely purchase an immediate annuity?
A. A 30-year-old saving for retirement
B. A family with young children
C. A retiree having a lump sum to invest
D. A business owner funding a buy-sell agreement
• ANSWER-C
6. Jerome is covered by a disability income policy that does NOT provide benefits
for losses occurring as the result of his employment. What kind of coverage is this?
A. Occupational coverage
B. Nonoccupational coverage
C. Blanket coverage
D. Partial disability coverage
• ANSWER-B
7. During the liquidation phase of an annuity contract, to whom are the income
benefits normally payable?
A. The contract owner
B. The beneficiary
C. The annuitant
D. The policyholder's estate
• ANSWER-C
,8. Larry wants to purchase an individual disability income policy to provide
continuous income while disabled. He is also covered by a two-month wage
continuation benefit from his employer. What should the policy elimination period
be for his individual policy?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
• ANSWER-B
9. Insurance crimes which affect interstate commerce are prosecuted by the:
A. State Insurance Commissioner
B. Federal Bureau of Investigation
C. U.S. Attorney General
D. National Association of Insurance Commissioners
• ANSWER-C
10. Which of the following is covered by a basic dental indemnity plan?
A. Orthodontics
B. Crowns and bridges
C. Non-surgical periodontal treatment
D. Cosmetic dentistry
• ANSWER-C
11. Which health policy clause specifies the amount of benefits to be paid?
A. Consideration clause
B. Insuring clause
C. Entire contract clause
D. Benefit clause
• ANSWER-B
, 12. The exclusion ratio determines:
A. The amount of premium that is tax-deductible
B. The amount of an annuity payment subject to income tax
C. The maximum benefit period for a long-term care policy
D. The percentage of claims an insurer may deny
• ANSWER-B
13. An example of endodontic treatment is a:
A. Dental cleaning
B. Tooth extraction
C. Root canal
D. Dental filling
• ANSWER-C
14. The interest paid during an annuity’s payout period is considered:
A. Tax-exempt income
B. Capital gains
C. Taxable as ordinary income
D. Tax-deferred until death
• ANSWER-C
15. A reciprocal insurer typically has an administrator who manages the premiums
collected from the group's members. This administrator is called a(n):
A. Subscriber
B. Member-manager
C. Attorney-in-fact
D. Reciprocity officer
• ANSWER-C
