New York Life Insurance Questions and
Answers Already Passed
Accelerated Benefits ✔✔Riders attached to life insurance policies which allow death benefits to
be used to cover nursing or convalescent home expenses.
Accidental Death Benefits ✔✔A policy rider that states that the cause of death will be analyzed
to determine if it complies with the policy description of accidental death.
Accidental Death Insurance ✔✔An insurance policy that provides payment if the insured's death
is the result of an accident.
Accumulation Period ✔✔The time before an annuitant's retirement during which the annuitant is
making payments or investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) - ✔✔An infectious and incurable disease caused
by the human immunodeficiency virus (HIV).
Actual Cash Value (ACV) ✔✔The required amount to pay damages or for property loss. This
amount is calculated based on the property's current replacement value minus depreciation.
,Actuary ✔✔A person trained in the technical aspects of insurance and related fields, particularly
in the mathematics of insurance; a person who, on behalf of the company, determines the
mathematical probability of loss.
Adhesion ✔✔A contract offered on a "take-it-or leave-it" basis by an insurer, in which the
insured's only option is to either accept or reject the contract. Any ambiguities in the contract
will be settled in favor of the insured.
Adjustable Life ✔✔Life insurance which permits changes in the face amount, premium amount,
period of protection, and the duration of the premium payment period.
Adjuster ✔✔A representative of an insurance company who investigates and acts on the behalf
of the company to obtain agreements for the amount of the insurance claim.
Administrator ✔✔An individual appointed by a court as a fiduciary to settle the financial affairs
and estate of a deceased person.
,Admitted (Authorized) Insurer ✔✔An insurance company authorized and licensed to transact
business in a particular state.
Adult Day Care ✔✔A program for impaired adults that attempts to meet their health, social, and
functional needs in a setting away from their homes.
Adverse Selection ✔✔The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability.
Agency ✔✔An insurance sales office or company.
Agent ✔✔An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf
of the insurer.
Agent's Authority ✔✔Special powers granted to an agent by his or her agency contract.
Aleatory ✔✔A contract in which participating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amount the insured will pay in premiums is unequal to the
amount the insurer will pay in the event of a loss.
, Alien Insurer ✔✔An insurance company that is incorporated outside the United States.
Alzheimer's Disease ✔✔A disease that causes the victim to become dysfunctional due to
degeneration of brain cells and severe memory loss.
Ancillary ✔✔Additional, miscellaneous services provided by a hospital, such as x-rays,
anesthesia, and lab work, but not hospital room and board expenses.
Annual Statement ✔✔A detailed financial report that an insurance company must submit every
year to the insurance department of state(s) in which it conducts business.
Annuity ✔✔A contract that provides income for a specified period of years, or for life.
Apparent Authority ✔✔The appearance or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the principal created.
Applicant ✔✔A person making application for, or offering him/herself or another to be insured
under an insurance contract.
Answers Already Passed
Accelerated Benefits ✔✔Riders attached to life insurance policies which allow death benefits to
be used to cover nursing or convalescent home expenses.
Accidental Death Benefits ✔✔A policy rider that states that the cause of death will be analyzed
to determine if it complies with the policy description of accidental death.
Accidental Death Insurance ✔✔An insurance policy that provides payment if the insured's death
is the result of an accident.
Accumulation Period ✔✔The time before an annuitant's retirement during which the annuitant is
making payments or investments in an annuity.
Acquired Immunodeficiency Syndrome (AIDS) - ✔✔An infectious and incurable disease caused
by the human immunodeficiency virus (HIV).
Actual Cash Value (ACV) ✔✔The required amount to pay damages or for property loss. This
amount is calculated based on the property's current replacement value minus depreciation.
,Actuary ✔✔A person trained in the technical aspects of insurance and related fields, particularly
in the mathematics of insurance; a person who, on behalf of the company, determines the
mathematical probability of loss.
Adhesion ✔✔A contract offered on a "take-it-or leave-it" basis by an insurer, in which the
insured's only option is to either accept or reject the contract. Any ambiguities in the contract
will be settled in favor of the insured.
Adjustable Life ✔✔Life insurance which permits changes in the face amount, premium amount,
period of protection, and the duration of the premium payment period.
Adjuster ✔✔A representative of an insurance company who investigates and acts on the behalf
of the company to obtain agreements for the amount of the insurance claim.
Administrator ✔✔An individual appointed by a court as a fiduciary to settle the financial affairs
and estate of a deceased person.
,Admitted (Authorized) Insurer ✔✔An insurance company authorized and licensed to transact
business in a particular state.
Adult Day Care ✔✔A program for impaired adults that attempts to meet their health, social, and
functional needs in a setting away from their homes.
Adverse Selection ✔✔The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability.
Agency ✔✔An insurance sales office or company.
Agent ✔✔An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf
of the insurer.
Agent's Authority ✔✔Special powers granted to an agent by his or her agency contract.
Aleatory ✔✔A contract in which participating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amount the insured will pay in premiums is unequal to the
amount the insurer will pay in the event of a loss.
, Alien Insurer ✔✔An insurance company that is incorporated outside the United States.
Alzheimer's Disease ✔✔A disease that causes the victim to become dysfunctional due to
degeneration of brain cells and severe memory loss.
Ancillary ✔✔Additional, miscellaneous services provided by a hospital, such as x-rays,
anesthesia, and lab work, but not hospital room and board expenses.
Annual Statement ✔✔A detailed financial report that an insurance company must submit every
year to the insurance department of state(s) in which it conducts business.
Annuity ✔✔A contract that provides income for a specified period of years, or for life.
Apparent Authority ✔✔The appearance or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the principal created.
Applicant ✔✔A person making application for, or offering him/herself or another to be insured
under an insurance contract.
