NM Life and Health Insurance Practice
Exam UPDATED QUESTIONS AND
CORRECT ANSWERS
In the event of a loss, after the notice of claim is submitted to the insurer, who is responsible for
providing claim forms and to which party? - CORRECT ANSWER Insurer to the insured
The death protection component of Universal Life insurance is always - CORRECT
ANSWER Annually Renewable Term
Following hospitalizations because of an accident, Bill was confined in a skilled nursing facility.
Medicare will pay full benefits in this facility for how many days? - CORRECT ANSWER 20
When the insured purchased his health policy he was a window washer. He has since changed
occupations and now manages a library. If the insurer is notified of the insured's change of
occupation, the insurer should - CORRECT ANSWER Adjust the benefit in accordance with
the decreased risk
Which of the following statements regarding conditional receipts is true? - CORRECT
ANSWER They are temporary insuring agreements
Which of the following is true regarding health insurance? - CORRECT ANSWER It could
provide payments for loss of income
Which of the following disability income policies would have the highest premium? - CORRECT
ANSWER 15-day waiting period/ 10-year benefit
A key person insurance policy can pay for which of the following? - CORRECT
ANSWER Costs of training a replacement
An HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense.
Which of the following is true? - CORRECT ANSWER There will be a tax.
Exam UPDATED QUESTIONS AND
CORRECT ANSWERS
In the event of a loss, after the notice of claim is submitted to the insurer, who is responsible for
providing claim forms and to which party? - CORRECT ANSWER Insurer to the insured
The death protection component of Universal Life insurance is always - CORRECT
ANSWER Annually Renewable Term
Following hospitalizations because of an accident, Bill was confined in a skilled nursing facility.
Medicare will pay full benefits in this facility for how many days? - CORRECT ANSWER 20
When the insured purchased his health policy he was a window washer. He has since changed
occupations and now manages a library. If the insurer is notified of the insured's change of
occupation, the insurer should - CORRECT ANSWER Adjust the benefit in accordance with
the decreased risk
Which of the following statements regarding conditional receipts is true? - CORRECT
ANSWER They are temporary insuring agreements
Which of the following is true regarding health insurance? - CORRECT ANSWER It could
provide payments for loss of income
Which of the following disability income policies would have the highest premium? - CORRECT
ANSWER 15-day waiting period/ 10-year benefit
A key person insurance policy can pay for which of the following? - CORRECT
ANSWER Costs of training a replacement
An HSA holder who is 65 years old decides to use the money in the account for a nonhealth expense.
Which of the following is true? - CORRECT ANSWER There will be a tax.
