Final exam New Mexico Life Only Questions with Detailed Verified Answers

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Final exam New Mexico Life Only
Questions with Detailed Verified
Answers

Question: What is an insurance contract that identifies individuals by
relationship to a specific organization?


Ans: group insurance


Question: When an insured under a group life insurance plan in NM elects the
conversation option, the new policy is issued


Ans: Without requiring evidence of insurability


Question: What is another name for a Keogh plan


Ans: HR 10 plan


Question: An insurance policy may be issued with a preferred insurance
premium in all these situations EXEPT


Ans: Living in a rural area


Question: All of these statements concerning group credit life insurance are
false EXEPT

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Ans: The face amount is based on the outstanding loan balance


Question: Risk ____ is the process of analyzing exposures that create risk and
designing programs to handle them


Ans: management


Question: 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?


Ans: implied authority


Question: When the superintendent believes an agent is causing substantial
and material harm, the superintendent has the authority to


Ans: issue a cease and desist order against the agent


Question: Who normally pays the premiums for group credit life insurance?


Ans: borrower


Question: For policyholders in the same risk classification, it is unlawful to


Ans: Charge different premiums


Question: 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

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Ans: Subject to market value adjustment


Question: What must be given to a life insurance applicant when the agent
receives an application and the initial premium


Ans: Conditional receipt


Question: Which situation would not require the insureds consent when a life
insurance policy is issued


Ans: A policy is purchased by a parent for a minor child


Question: A business becoming incorporated is an example of risk ____.


Ans: to transfer


Question: The Superintendent may suspend an agent's license when the
agent


Ans: Rebates a portion of the commission to the insured


Question: What would be considered an advantage of purchasing term life
insurance?


Ans: The initial premium is lower compared to an equivalent amount of whole
life coverage


Question: When an insurance appointment with an agent is terminated, the
party must notify the agent of the termination is the