NY Life, Accident, and Health Insurance
Agent/Broker Exam Series 17-55 2025 update |
Actual Questions And Verified Answers 100%
CORRECT.
Term insurance is the most common form of group life insurance. Group
term life is typically provided in the form of yearly renewable term
insurance. When group term insurance is provided through your
employer, the employer usually pays for most (and in some cases all) of
the premiums. The amount of your coverage is typically equal to one or
two times your annual salary.
Group term coverage remains in force until your employment is
terminated or until the specific term of coverage ends. You may have
the option of converting your group coverage to an individual policy if
you leave your employer. However, most people choose not to do this
because these conversion premiums tend to be much higher than
premiums for comparable policies available to individuals. Typically,
only those who are otherwise uninsurable take advantage of this co
Types of Group plan sponsors ✔✔CORRECT ANSWERS✔✔a designated
party—usually a company or employer—that sets up a healthcare or
retirement plan, such as a 401(k), for the benefit of the organization's
employees. The responsibilities of the plan sponsor include determining
membership parameters, investment choices, and in some cases,
providing contribution payments in the form of cash and/or stock.
,Some companies offer retirement savings plans, pension plans, or
health plans to their employees as part of their employee benefits
program. These companies are referred to as plan sponsors. Employers
are typically plan sponsors, but unions and professional bodies could
also be plan sponsors.
Credit life insurance ✔✔CORRECT ANSWERS✔✔type of life insurance
policy designed to pay off a borrower's outstanding debts if the
borrower dies. The face value of a credit life insurance policy decreases
proportionately with the outstanding loan amount as the loan is paid
off over time, until both reach zero value.
typically sold by banks at a mortgage closing; it could also be offered
when you take out a car loan or a line of credit. The pitch is to protect
your heirs if you die, since the policy will pay off the loan. If your spouse
or someone else is a co-signer on your mortgage, credit life insurance
would protect them from making loan payments after your death. This
could be appealing if you are the primary breadwinner in your family,
and the loan co-signer would be unable to make payments in the event
of your death.
But in most cases, any heirs who are not co-signers on your loans are
not obligated to pay off your loans when you die; debts are not
generally inherited. The exceptions are the few states that recognize
community property, but even then only a spouse could be liable for
your debts, not your children. When banks loan money, part of their
accepted risk is that the borrower could die before the loan is repaid. As
,such, credit life insurance really protects the lender, not your heirs. In
fact, the payout on a credit life insurance policy goes straight to the
lender, not to your heirs.
Credit life insurance is a specialized type of life insurance policy
intended to pay off specific outstanding debts in the case the borrower
dies before the debt is fully repaid.
Such a policy may be required by certain lenders for specific purposes.
Credit life policies feature a term that corresponds with the loan
maturity and decreasing death benefits that correspond with the
reduced debt outstanding over time.
Credit life policies, due to their specific natu
Qualified Retirement Plans ✔✔CORRECT ANSWERS✔✔A qualified
retirement plan meets the requirements of Internal Revenue Code
Section 401(a) of the Internal Revenue Service (IRS) and is therefore
eligible to receive certain tax benefits, unlike a non-qualified plan. An
employer establishes such a retirement plan on behalf of and for the
benefit of the company's employees. It is one tool that can help
employers attract and retain good employees.
defined contribution plan ✔✔CORRECT ANSWERS✔✔retirement plan
that's typically tax-deferred, like a 401(k) or a 403(b), in which
employees contribute a fixed amount or a percentage of their
paychecks to an account that is intended to fund their retirements. The
sponsor company will, at times match a portion of employee
contributions as an added benefit. These plans place restrictions that
, control when and how each employee can withdraw from these
accounts without penalties.
Defined contribution (DC) retirement plans allow employees to invest
pre-tax dollars in the capital markets where they can grow tax-deferred
until retirement withdrawals.
401(k) and 403(b) are two popular defined-contribution plans
commonly used by companies and organizations to encourage their
employees to save for retirement.
DC plans can be contrasted with defined benefit (DB) pensions,
whereby retirement income is guaranteed by an employer. With a DC
plan, there are no guarantees, and participation is both voluntary and
self-directed.
Defined Benefit Plan ✔✔CORRECT ANSWERS✔✔employer-sponsored
retirement plan where employee benefits are computed using a
formula that considers several factors, such as length of employment
and salary history. The company administers portfolio management and
investment risk of the plan. There are also restrictions on when and by
what method an employee can withdraw funds without penalties.
Benefits paid are typically guaranteed for life and rise slightly to account
for the increased cost of living.
A defined-benefit plan is an employer-based program that pays benefits
based on factors such as length of employment and salary history.
Pensions are defined-benefit plans.
Agent/Broker Exam Series 17-55 2025 update |
Actual Questions And Verified Answers 100%
CORRECT.
Term insurance is the most common form of group life insurance. Group
term life is typically provided in the form of yearly renewable term
insurance. When group term insurance is provided through your
employer, the employer usually pays for most (and in some cases all) of
the premiums. The amount of your coverage is typically equal to one or
two times your annual salary.
Group term coverage remains in force until your employment is
terminated or until the specific term of coverage ends. You may have
the option of converting your group coverage to an individual policy if
you leave your employer. However, most people choose not to do this
because these conversion premiums tend to be much higher than
premiums for comparable policies available to individuals. Typically,
only those who are otherwise uninsurable take advantage of this co
Types of Group plan sponsors ✔✔CORRECT ANSWERS✔✔a designated
party—usually a company or employer—that sets up a healthcare or
retirement plan, such as a 401(k), for the benefit of the organization's
employees. The responsibilities of the plan sponsor include determining
membership parameters, investment choices, and in some cases,
providing contribution payments in the form of cash and/or stock.
,Some companies offer retirement savings plans, pension plans, or
health plans to their employees as part of their employee benefits
program. These companies are referred to as plan sponsors. Employers
are typically plan sponsors, but unions and professional bodies could
also be plan sponsors.
Credit life insurance ✔✔CORRECT ANSWERS✔✔type of life insurance
policy designed to pay off a borrower's outstanding debts if the
borrower dies. The face value of a credit life insurance policy decreases
proportionately with the outstanding loan amount as the loan is paid
off over time, until both reach zero value.
typically sold by banks at a mortgage closing; it could also be offered
when you take out a car loan or a line of credit. The pitch is to protect
your heirs if you die, since the policy will pay off the loan. If your spouse
or someone else is a co-signer on your mortgage, credit life insurance
would protect them from making loan payments after your death. This
could be appealing if you are the primary breadwinner in your family,
and the loan co-signer would be unable to make payments in the event
of your death.
But in most cases, any heirs who are not co-signers on your loans are
not obligated to pay off your loans when you die; debts are not
generally inherited. The exceptions are the few states that recognize
community property, but even then only a spouse could be liable for
your debts, not your children. When banks loan money, part of their
accepted risk is that the borrower could die before the loan is repaid. As
,such, credit life insurance really protects the lender, not your heirs. In
fact, the payout on a credit life insurance policy goes straight to the
lender, not to your heirs.
Credit life insurance is a specialized type of life insurance policy
intended to pay off specific outstanding debts in the case the borrower
dies before the debt is fully repaid.
Such a policy may be required by certain lenders for specific purposes.
Credit life policies feature a term that corresponds with the loan
maturity and decreasing death benefits that correspond with the
reduced debt outstanding over time.
Credit life policies, due to their specific natu
Qualified Retirement Plans ✔✔CORRECT ANSWERS✔✔A qualified
retirement plan meets the requirements of Internal Revenue Code
Section 401(a) of the Internal Revenue Service (IRS) and is therefore
eligible to receive certain tax benefits, unlike a non-qualified plan. An
employer establishes such a retirement plan on behalf of and for the
benefit of the company's employees. It is one tool that can help
employers attract and retain good employees.
defined contribution plan ✔✔CORRECT ANSWERS✔✔retirement plan
that's typically tax-deferred, like a 401(k) or a 403(b), in which
employees contribute a fixed amount or a percentage of their
paychecks to an account that is intended to fund their retirements. The
sponsor company will, at times match a portion of employee
contributions as an added benefit. These plans place restrictions that
, control when and how each employee can withdraw from these
accounts without penalties.
Defined contribution (DC) retirement plans allow employees to invest
pre-tax dollars in the capital markets where they can grow tax-deferred
until retirement withdrawals.
401(k) and 403(b) are two popular defined-contribution plans
commonly used by companies and organizations to encourage their
employees to save for retirement.
DC plans can be contrasted with defined benefit (DB) pensions,
whereby retirement income is guaranteed by an employer. With a DC
plan, there are no guarantees, and participation is both voluntary and
self-directed.
Defined Benefit Plan ✔✔CORRECT ANSWERS✔✔employer-sponsored
retirement plan where employee benefits are computed using a
formula that considers several factors, such as length of employment
and salary history. The company administers portfolio management and
investment risk of the plan. There are also restrictions on when and by
what method an employee can withdraw funds without penalties.
Benefits paid are typically guaranteed for life and rise slightly to account
for the increased cost of living.
A defined-benefit plan is an employer-based program that pays benefits
based on factors such as length of employment and salary history.
Pensions are defined-benefit plans.
