New Mexico Life Only Final exam

What is an insurance contract that identifies individuals by relationship to a specific organization? - Answer- group insurance When an insured under a group life insurance plan in NM elects the conversation option, the new policy is issued - Answer- Without requiring evidence of insurability What is another name for a Keogh plan - Answer- HR 10 plan An insurance policy may be issued with a preferred insurance premium in all these situations EXEPT - Answer- Living in a rural area All of these statements concerning group credit life insurance are false EXEPT - 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 - 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? - Answer- implied authority When the superintendent believes an agent is causing substantial and material harm, the superintendent has the authority to - Answer- issue a cease and desist order against the agent Who normally pays the premiums for group credit life insurance? - Answer- borrower For policyholders in the same risk classification, it is unlawful to - 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 - 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 - Answer- Conditional receipt Which situation would not require the insureds consent when a life insurance policy is issued - Answer- A policy is purchased by a parent for a minor child