NY LIFE, ACCIDENT, AND HEALTH
INSURANCE AGENT/BROKER EXAM
SERIES 17-55 2026/2027 ACTUAL
QUESTIONS WITH VERIFIED ANSWERS.
Guaranteed Minimum Income Benefit (GMIB) - correct answer-
an optional rider that annuitants can purchase for their
retirement annuities. When the annuity has been annuitized,
this specific option guarantees that the annuitant will receive a
minimum value of payments on a regular basis, regardless of
other circumstances.
A guaranteed minimum income benefit (GMIB) is an optional
rider attached to an annuity contract that guarantees a
minimum level of payments once it has annuitized.
GMIBs are often found with variable annuities, which contain
some level of market risk.
While handy, these riders will come at an additional cost to the
annuity buyer.
single life annuity - correct answer-An annuity or pension that
pays out to only one person is known as a single-life payout.
Single-life payout is one of two payout options an employer
uses to distribute retirement benefits. At retirement, a retiree
,has the choice of either a single-life payout or a joint-life
payout. A single-life payout means only the employee will
receive the payments for the rest of his/her life, but the
payments stop upon his/her death.
A single-life payout is an annuity or pension option that means
that payments will stop when the annuitant dies.
In a joint-life payout, payments continue after death to the
annuitant's spouse.
Single-life payouts are generally larger on a per month basis
since the payments stop upon the death of the annuitant.
Annuities certain (types) - correct answer-There are five major
categories of annuities — fixed annuities, variable annuities,
fixed-indexed annuities, immediate annuities and deferred
annuities.
Fixed annuities - correct answer-These are fixed interest
investments issued by insurance companies. They pay
guaranteed rates of interest, typically higher than bank CDs,
and you can defer income or draw income immediately. These
are popular among retirees and pre-retirees who want a no-
cost, modest and guaranteed fixed investment.
,General account assets - correct answer-The general account
is where an insurer deposits premiums from policies it
underwrites and from which it funds day-to-day operations of
the business. The general account does not dedicate collateral
to a specific policy and instead treats all funds in aggregate.
The general account is where insurance companies place their
collected premiums.
The account is treated as an investable asset and is allocated
accordingly.
General accounts invest in less risky ventures in case they
need to make a large payout to their policyholders, as was the
case with the Fukushima disaster or during large wildfires.
Variable Annuities - correct answer-A variable annuity is a type
of annuity contract, the value of which can vary based on the
performance of an underlying portfolio of mutual funds. Variable
annuities differ from fixed annuities, which provide a specific
and guaranteed return.
The value of a variable annuity is based on the performance of
an underlying portfolio of mutual funds selected by the annuity
owner.
Fixed annuities, on the other hand, provide a guaranteed
return.
, Variable annuities offer the possibility of higher returns and
greater income than fixed annuities, but there's also a risk that
the account will fall in value.
Level benefit payment amount - correct answer-A level death
benefit is a payout from a life insurance policy that is the same
whenever the insured person dies, whether shortly after
purchasing the policy or many years later. Compared to a policy
that provides an increasing death benefit, one that provides a
level death benefit will be less expensive (that is, the premiums
will be lower for the same amount of initial benefit). However,
inflation will diminish the value of the level death benefit over
time.
Fixed (equity) indexed annuities - correct answer-These are
essentially fixed annuities with a variable rate of interest that is
added to your contract value if an underlying market index,
such as the S& P 500, is positive. They typically offer a
guaranteed minimum income benefit, and the chance of
principal upside pegged to a market-based index. A drawback
is that upside potential is limited by a so-called participation
rate, caps or a spread — all methods in which your return in a
rising stock market is trimmed. Consequently, buyers of these
annuities never keep pace with a robust market. These appeal
to retirees and pre-retirees who want to conservatively
participate in potential market appreciation without fuss and
with downside principal protection.
INSURANCE AGENT/BROKER EXAM
SERIES 17-55 2026/2027 ACTUAL
QUESTIONS WITH VERIFIED ANSWERS.
Guaranteed Minimum Income Benefit (GMIB) - correct answer-
an optional rider that annuitants can purchase for their
retirement annuities. When the annuity has been annuitized,
this specific option guarantees that the annuitant will receive a
minimum value of payments on a regular basis, regardless of
other circumstances.
A guaranteed minimum income benefit (GMIB) is an optional
rider attached to an annuity contract that guarantees a
minimum level of payments once it has annuitized.
GMIBs are often found with variable annuities, which contain
some level of market risk.
While handy, these riders will come at an additional cost to the
annuity buyer.
single life annuity - correct answer-An annuity or pension that
pays out to only one person is known as a single-life payout.
Single-life payout is one of two payout options an employer
uses to distribute retirement benefits. At retirement, a retiree
,has the choice of either a single-life payout or a joint-life
payout. A single-life payout means only the employee will
receive the payments for the rest of his/her life, but the
payments stop upon his/her death.
A single-life payout is an annuity or pension option that means
that payments will stop when the annuitant dies.
In a joint-life payout, payments continue after death to the
annuitant's spouse.
Single-life payouts are generally larger on a per month basis
since the payments stop upon the death of the annuitant.
Annuities certain (types) - correct answer-There are five major
categories of annuities — fixed annuities, variable annuities,
fixed-indexed annuities, immediate annuities and deferred
annuities.
Fixed annuities - correct answer-These are fixed interest
investments issued by insurance companies. They pay
guaranteed rates of interest, typically higher than bank CDs,
and you can defer income or draw income immediately. These
are popular among retirees and pre-retirees who want a no-
cost, modest and guaranteed fixed investment.
,General account assets - correct answer-The general account
is where an insurer deposits premiums from policies it
underwrites and from which it funds day-to-day operations of
the business. The general account does not dedicate collateral
to a specific policy and instead treats all funds in aggregate.
The general account is where insurance companies place their
collected premiums.
The account is treated as an investable asset and is allocated
accordingly.
General accounts invest in less risky ventures in case they
need to make a large payout to their policyholders, as was the
case with the Fukushima disaster or during large wildfires.
Variable Annuities - correct answer-A variable annuity is a type
of annuity contract, the value of which can vary based on the
performance of an underlying portfolio of mutual funds. Variable
annuities differ from fixed annuities, which provide a specific
and guaranteed return.
The value of a variable annuity is based on the performance of
an underlying portfolio of mutual funds selected by the annuity
owner.
Fixed annuities, on the other hand, provide a guaranteed
return.
, Variable annuities offer the possibility of higher returns and
greater income than fixed annuities, but there's also a risk that
the account will fall in value.
Level benefit payment amount - correct answer-A level death
benefit is a payout from a life insurance policy that is the same
whenever the insured person dies, whether shortly after
purchasing the policy or many years later. Compared to a policy
that provides an increasing death benefit, one that provides a
level death benefit will be less expensive (that is, the premiums
will be lower for the same amount of initial benefit). However,
inflation will diminish the value of the level death benefit over
time.
Fixed (equity) indexed annuities - correct answer-These are
essentially fixed annuities with a variable rate of interest that is
added to your contract value if an underlying market index,
such as the S& P 500, is positive. They typically offer a
guaranteed minimum income benefit, and the chance of
principal upside pegged to a market-based index. A drawback
is that upside potential is limited by a so-called participation
rate, caps or a spread — all methods in which your return in a
rising stock market is trimmed. Consequently, buyers of these
annuities never keep pace with a robust market. These appeal
to retirees and pre-retirees who want to conservatively
participate in potential market appreciation without fuss and
with downside principal protection.
