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New York State Life Insurance Series 17-51 COMPLETE
NEWEST 250 QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
QUESTION: A type of coverage with a small face amount, typically purchased to pay the burial
expenses of the insured is called ____. - ANSWER-Pre-need
QUESTION: With an _____ death benefit, the beneficiary will receive the face amount plus the
cash value as of the date of death. - ANSWER-Option B
QUESTION: 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
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minimum separation between the cash value and the death benefit is called the "risk corr -
ANSWER-Option A
QUESTION: An insurance company must adhere to the __________ when gathering information
about an applicant from third parties. - ANSWER-Fair Credit Reporting Act (FCRA)
QUESTION: The business enters into an agreement to purchase the deceased's interest in the
business - ANSWER-Entity Purchase Plan
QUESTION: 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. - ANSWER-
conditional
QUESTION: Not deductible and proceeds are income tax free - ANSWER-Buy-sell agreement life
insurance premiums are:
QUESTION: This insurance is normally Decreasing Term and the amount of insurance reduces as
the obligation reduces
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The amount of the insurance benefit must not exceed the total amount of indebtedness
The insurance is either a form of individual coverage on the life of a debtor, or a form of group
insurance issued to a creditor providing coverage for debtors - ANSWER-Credit Life Insurance
QUESTION: Adjustable Premiums - ANSWER-Indeterminate Premium Whole Life
QUESTION: The 3 nonforfeiture options are Cash Surrender, Reduced Paid-Up, and Extended
Term
They add flexibility to a cash value policy
They protect the policyowner against total loss of benefits if the policy should lapse or be
cancelled - ANSWER-Nonforfeiture Options
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Q; are considered a return of unearned premium which is why are they are paid out income tax
free. - ANSWER-Dividends
QUESTION: Accelerated Death Benefit
The prognosis of a physician must be a life expectancy of ___ months or less. - ANSWER-24
QUESTION: Highest authority for insurance regulation. No interference from federal regulation,
unless federal law specifically provides otherwise. - ANSWER-The individual states
QUESTION: 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. - ANSWER-
Fixed Annuities payments are level
QUESTION: 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. - ANSWER-Market Value Adjustment Annuity
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New York State Life Insurance Series 17-51 COMPLETE
NEWEST 250 QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
QUESTION: A type of coverage with a small face amount, typically purchased to pay the burial
expenses of the insured is called ____. - ANSWER-Pre-need
QUESTION: With an _____ death benefit, the beneficiary will receive the face amount plus the
cash value as of the date of death. - ANSWER-Option B
QUESTION: 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
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minimum separation between the cash value and the death benefit is called the "risk corr -
ANSWER-Option A
QUESTION: An insurance company must adhere to the __________ when gathering information
about an applicant from third parties. - ANSWER-Fair Credit Reporting Act (FCRA)
QUESTION: The business enters into an agreement to purchase the deceased's interest in the
business - ANSWER-Entity Purchase Plan
QUESTION: 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. - ANSWER-
conditional
QUESTION: Not deductible and proceeds are income tax free - ANSWER-Buy-sell agreement life
insurance premiums are:
QUESTION: This insurance is normally Decreasing Term and the amount of insurance reduces as
the obligation reduces
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The amount of the insurance benefit must not exceed the total amount of indebtedness
The insurance is either a form of individual coverage on the life of a debtor, or a form of group
insurance issued to a creditor providing coverage for debtors - ANSWER-Credit Life Insurance
QUESTION: Adjustable Premiums - ANSWER-Indeterminate Premium Whole Life
QUESTION: The 3 nonforfeiture options are Cash Surrender, Reduced Paid-Up, and Extended
Term
They add flexibility to a cash value policy
They protect the policyowner against total loss of benefits if the policy should lapse or be
cancelled - ANSWER-Nonforfeiture Options
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Q; are considered a return of unearned premium which is why are they are paid out income tax
free. - ANSWER-Dividends
QUESTION: Accelerated Death Benefit
The prognosis of a physician must be a life expectancy of ___ months or less. - ANSWER-24
QUESTION: Highest authority for insurance regulation. No interference from federal regulation,
unless federal law specifically provides otherwise. - ANSWER-The individual states
QUESTION: 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. - ANSWER-
Fixed Annuities payments are level
QUESTION: 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. - ANSWER-Market Value Adjustment Annuity
4
