New York State Life Insurance Series 17-
51 questions and answers 2025\2026 A+
Grade
Dividends
- correct answer are considered a return of unearned premium which is why are they are paid out
income tax free.
24
- correct answer Accelerated Death Benefit
The prognosis of a physician must be a life expectancy of ___ months or less.
The individual states
- correct answer Highest authority for insurance regulation. No interference from federal regulation,
unless federal law specifically provides otherwise.
Fixed Annuities payments are level
- correct answer Premiums are allocated to the insurer's general account. The insurer has the
investment risk, and fixed annuities pay out a fixed level income benefit payment.
Market Value Adjustment Annuity
- correct answer an annuity product that features fixed interest rate guarantees combined with an
interest rate adjustment factor that can cause the surrender value to fluctuate in response to market
conditions.
2 years or less
- correct answer Viatical Settlement life expectancy
Pre-need
- correct answer A type of coverage with a small face amount, typically purchased to pay the burial
expenses of the insured is called ____.
, Option B
- correct answer With an _____ death benefit, the beneficiary will receive the face amount plus the cash
value as of the date of death.
Option A
- correct answer Pays the face amount of the policy and provides a level death benefit. As the cash value
increases, the company's risk decreases. A universal life policy must include an amount at risk. If the
cash value approaches the face amount, the death benefit must increase so as to provide for this
amount at risk. This minimum separation between the cash value and the death benefit is called the
"risk corridor." This corridor of insurance is automatic and does not require insurability. This prevents
the policy from maturing too early. Pays the face amount of the policy and provides a level death
benefit. As the cash value increases, the company's risk decreases. A universal life policy must include an
amount at risk. If the cash value approaches the face amount, the death benefit must increase so as to
provide for this amount at risk. This minimum separation between the cash value and the death benefit
is called the "risk corridor." This corridor of insurance is automatic and does not require insurability. This
prevents the policy from maturing too early.
Fair Credit Reporting Act (FCRA)
- correct answer An insurance company must adhere to the __________ when gathering information
about an applicant from third parties.
Entity Purchase Plan
- correct answer The business enters into an agreement to purchase the deceased's interest in the
business
conditional
- correct answer When both parties must perform certain duties and follow certain rules of conduct to
make a contract enforceable, this is known as a(n) __________ contract.
Buy-sell agreement life insurance premiums are:
- correct answer Not deductible and proceeds are income tax free
Credit Life Insurance
- correct answer This insurance is normally Decreasing Term and the amount of insurance reduces as the
obligation reduces
51 questions and answers 2025\2026 A+
Grade
Dividends
- correct answer are considered a return of unearned premium which is why are they are paid out
income tax free.
24
- correct answer Accelerated Death Benefit
The prognosis of a physician must be a life expectancy of ___ months or less.
The individual states
- correct answer Highest authority for insurance regulation. No interference from federal regulation,
unless federal law specifically provides otherwise.
Fixed Annuities payments are level
- correct answer Premiums are allocated to the insurer's general account. The insurer has the
investment risk, and fixed annuities pay out a fixed level income benefit payment.
Market Value Adjustment Annuity
- correct answer an annuity product that features fixed interest rate guarantees combined with an
interest rate adjustment factor that can cause the surrender value to fluctuate in response to market
conditions.
2 years or less
- correct answer Viatical Settlement life expectancy
Pre-need
- correct answer A type of coverage with a small face amount, typically purchased to pay the burial
expenses of the insured is called ____.
, Option B
- correct answer With an _____ death benefit, the beneficiary will receive the face amount plus the cash
value as of the date of death.
Option A
- correct answer Pays the face amount of the policy and provides a level death benefit. As the cash value
increases, the company's risk decreases. A universal life policy must include an amount at risk. If the
cash value approaches the face amount, the death benefit must increase so as to provide for this
amount at risk. This minimum separation between the cash value and the death benefit is called the
"risk corridor." This corridor of insurance is automatic and does not require insurability. This prevents
the policy from maturing too early. Pays the face amount of the policy and provides a level death
benefit. As the cash value increases, the company's risk decreases. A universal life policy must include an
amount at risk. If the cash value approaches the face amount, the death benefit must increase so as to
provide for this amount at risk. This minimum separation between the cash value and the death benefit
is called the "risk corridor." This corridor of insurance is automatic and does not require insurability. This
prevents the policy from maturing too early.
Fair Credit Reporting Act (FCRA)
- correct answer An insurance company must adhere to the __________ when gathering information
about an applicant from third parties.
Entity Purchase Plan
- correct answer The business enters into an agreement to purchase the deceased's interest in the
business
conditional
- correct answer When both parties must perform certain duties and follow certain rules of conduct to
make a contract enforceable, this is known as a(n) __________ contract.
Buy-sell agreement life insurance premiums are:
- correct answer Not deductible and proceeds are income tax free
Credit Life Insurance
- correct answer This insurance is normally Decreasing Term and the amount of insurance reduces as the
obligation reduces
