NYS LIFE ACCIDENT AND HEALTH INSURANCE EXAM
2024 ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE 450 QUESTIONS WITH DETAILED VERIFIED
ANSWERS /ALREADY GRADED A+
Actuarial Department - ANSWER: Calculates policy rates, reserves, and dividends
Admitted Insurer - ANSWER: an insurer who has received a certificate of authority
from a states department of insurance authorizing them to conduct insurance
business in that state
Broker - ANSWER: A person who represents themselves and the insured (ie., the
client or customer)
Captive Insurer - ANSWER: An issuer established and owned by a parent firm for the
purpose of insuring the parent firms loss exposure
Certificate of Authority - ANSWER: A license issued to an insurer by a department of
instance (or equivalent state agency), which authorizes that company to conduct
insurance business in that particular state
Claims Department - ANSWER: Responsible for processing, investigating, and paying
claims
Divisible Surplus - ANSWER: amount of earnings paid to policy owners as dividends
after the insurance company sets aside funds required to cover reserves, operating
expenses, and general business purposes.
Domestic Insurer - ANSWER: An insurer doing business in the jurisdiction in which it
is incorporated.
Foreign Insurer - ANSWER: An insurance company that is incorporated in another
state.
Fraternal Benefit Society - ANSWER: a nonprofit organization that provide insurance
to its members
Industrial Insurer - ANSWER: a specialized branch of the industry, primarily providing
policies with small face amounts with weekly premiums.
Insurance - ANSWER: transfers risk through the pooling or accumulation of funds.
Insured - ANSWER: is the customer receiving insurance protection under an
insurance policy
,Insurer - ANSWER: insurance company
Lloyd's of London - ANSWER: not an insurer, but a society of members who
underwrite unusual insurance
Multi-line insurer - ANSWER: an insurance company or independent agent that
provides a one-stop-shop for businesses or individuals seeking coverage for all their
insurance needs. For example, many large insurers offer individual policies for
automobile, homeowner, long-term care, life, and health insurance needs.
Mutual Insurance Company - ANSWER: Insurance companies characterized by having
no capital stock, being owned by its policy owners, and usually issue participating
insurance.
Non-admitted Insurer - ANSWER: is someone who has not received a certificate of
authority from a states department of insurance authorizing them to conduct
insurance business in that state.
Nonparticipating policy - ANSWER: typically issued by stock companies, do not allow
policy owners to participate in dividends or electing the board of directors.
Participating Plan - ANSWER: an insurance policy under which the policy owners
share in the company's earnings through receipt of dividends and also elect the
company's board of directors.
Private (commercial) Insurer - ANSWER: companies owned by private citizens or
groups that offer one or more insurance lines. NOT government-owned.
Reciprocal Insurer - ANSWER: An unincorporated association of individuals who
insure each other.
Reinsurance - ANSWER: Acceptance by one or more insurers, called reinsurers, of a
portion of the risk underwritten by another insurer who has contracted for the entire
coverage.
Reinsurer - ANSWER: a company that provides financial protection to insurance
companies. Reinsurers handle risks that are too large for insurance companies
Risk Retention Group - ANSWER: a group-owned liability insurer which assumes and
spread products liability and other forms of commercial liability risks among its
members.
Self-Insurers - ANSWER: establishes a self-funded plan to cover potential losses
instead of transferring the risk to an insurance company.
Stock Insurance Company - ANSWER: a type of insurance company owned and
controlled by a group of stockholders whose investment in the company provides
, the safety margin necessary in the issuance of guaranteed, fixed premium,
nonparticipating policies.
Surplus Lines Insurance - ANSWER: nontraditional insurance only available for a
surplus lines insurer. They offer coverage for substandard or unusual risks not
available though private or commercial carriers.
Underwriting Department - ANSWER: department in the insurance company
responsible for reviewing applications, approving or declining applications, and
assigning risk classifications.
Fair Credit Reporting Act (1970) - ANSWER: an insurance applicant must be informed
of an investigation regarding his/hers reputation and character
policyholders - ANSWER: Who elects the governing body of a mutual insurance
company?
Fair Credit Reporting Act - ANSWER: the name of the law that requires insures to
disclose information gathering practices and where the info was obtained
Participating - ANSWER: When a policy pays dividends to its policyholders is
considered
Promise to pay death benefit to a named beneficiary - ANSWER: what is the
consideration given by an insurer in the Consideration clause of a life policy?
Representations - ANSWER: Statements made on an insurance application that are
believed to be true to the best of the applicant's knowledge are called
Conditional - ANSWER: insurance contracts are known as _______ because certain
future conditions or acts must occur before any claims can be paid
Investor Originated Life Insurance (IOLI) - ANSWER: allows one to bypass insurable
interest laws
Principal - ANSWER: NOT a type of agent authority
Insurable interest in the proposed insured - ANSWER: When third-party ownerships
is involved, applicants who also happen to be the stated primary beneficiary are
required to have:
Legal Purpose - ANSWER: Stranger Originated Life Insurance has been found to be in
violation of
Bilateral - ANSWER: Life and Health Insurance policies are:
2024 ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE 450 QUESTIONS WITH DETAILED VERIFIED
ANSWERS /ALREADY GRADED A+
Actuarial Department - ANSWER: Calculates policy rates, reserves, and dividends
Admitted Insurer - ANSWER: an insurer who has received a certificate of authority
from a states department of insurance authorizing them to conduct insurance
business in that state
Broker - ANSWER: A person who represents themselves and the insured (ie., the
client or customer)
Captive Insurer - ANSWER: An issuer established and owned by a parent firm for the
purpose of insuring the parent firms loss exposure
Certificate of Authority - ANSWER: A license issued to an insurer by a department of
instance (or equivalent state agency), which authorizes that company to conduct
insurance business in that particular state
Claims Department - ANSWER: Responsible for processing, investigating, and paying
claims
Divisible Surplus - ANSWER: amount of earnings paid to policy owners as dividends
after the insurance company sets aside funds required to cover reserves, operating
expenses, and general business purposes.
Domestic Insurer - ANSWER: An insurer doing business in the jurisdiction in which it
is incorporated.
Foreign Insurer - ANSWER: An insurance company that is incorporated in another
state.
Fraternal Benefit Society - ANSWER: a nonprofit organization that provide insurance
to its members
Industrial Insurer - ANSWER: a specialized branch of the industry, primarily providing
policies with small face amounts with weekly premiums.
Insurance - ANSWER: transfers risk through the pooling or accumulation of funds.
Insured - ANSWER: is the customer receiving insurance protection under an
insurance policy
,Insurer - ANSWER: insurance company
Lloyd's of London - ANSWER: not an insurer, but a society of members who
underwrite unusual insurance
Multi-line insurer - ANSWER: an insurance company or independent agent that
provides a one-stop-shop for businesses or individuals seeking coverage for all their
insurance needs. For example, many large insurers offer individual policies for
automobile, homeowner, long-term care, life, and health insurance needs.
Mutual Insurance Company - ANSWER: Insurance companies characterized by having
no capital stock, being owned by its policy owners, and usually issue participating
insurance.
Non-admitted Insurer - ANSWER: is someone who has not received a certificate of
authority from a states department of insurance authorizing them to conduct
insurance business in that state.
Nonparticipating policy - ANSWER: typically issued by stock companies, do not allow
policy owners to participate in dividends or electing the board of directors.
Participating Plan - ANSWER: an insurance policy under which the policy owners
share in the company's earnings through receipt of dividends and also elect the
company's board of directors.
Private (commercial) Insurer - ANSWER: companies owned by private citizens or
groups that offer one or more insurance lines. NOT government-owned.
Reciprocal Insurer - ANSWER: An unincorporated association of individuals who
insure each other.
Reinsurance - ANSWER: Acceptance by one or more insurers, called reinsurers, of a
portion of the risk underwritten by another insurer who has contracted for the entire
coverage.
Reinsurer - ANSWER: a company that provides financial protection to insurance
companies. Reinsurers handle risks that are too large for insurance companies
Risk Retention Group - ANSWER: a group-owned liability insurer which assumes and
spread products liability and other forms of commercial liability risks among its
members.
Self-Insurers - ANSWER: establishes a self-funded plan to cover potential losses
instead of transferring the risk to an insurance company.
Stock Insurance Company - ANSWER: a type of insurance company owned and
controlled by a group of stockholders whose investment in the company provides
, the safety margin necessary in the issuance of guaranteed, fixed premium,
nonparticipating policies.
Surplus Lines Insurance - ANSWER: nontraditional insurance only available for a
surplus lines insurer. They offer coverage for substandard or unusual risks not
available though private or commercial carriers.
Underwriting Department - ANSWER: department in the insurance company
responsible for reviewing applications, approving or declining applications, and
assigning risk classifications.
Fair Credit Reporting Act (1970) - ANSWER: an insurance applicant must be informed
of an investigation regarding his/hers reputation and character
policyholders - ANSWER: Who elects the governing body of a mutual insurance
company?
Fair Credit Reporting Act - ANSWER: the name of the law that requires insures to
disclose information gathering practices and where the info was obtained
Participating - ANSWER: When a policy pays dividends to its policyholders is
considered
Promise to pay death benefit to a named beneficiary - ANSWER: what is the
consideration given by an insurer in the Consideration clause of a life policy?
Representations - ANSWER: Statements made on an insurance application that are
believed to be true to the best of the applicant's knowledge are called
Conditional - ANSWER: insurance contracts are known as _______ because certain
future conditions or acts must occur before any claims can be paid
Investor Originated Life Insurance (IOLI) - ANSWER: allows one to bypass insurable
interest laws
Principal - ANSWER: NOT a type of agent authority
Insurable interest in the proposed insured - ANSWER: When third-party ownerships
is involved, applicants who also happen to be the stated primary beneficiary are
required to have:
Legal Purpose - ANSWER: Stranger Originated Life Insurance has been found to be in
violation of
Bilateral - ANSWER: Life and Health Insurance policies are:
