NM Life Insurance Final Exam Mock Test
Questions And Answers
How is the uninsured protected if a payor benefit is attached to the life insurance
policy?
premium payments are waived in the event the premium payor dies or becomes
disabled
Which of the following health care plans charges a premium that cannot be
increased?
Noncancelable
What is the effect of the market value adjustments in a market value adjustment
annuity?
Transfers some of the investment risk to the policyowner
Which type of life insurance policy allows the policyowner the choice of
investments along with flexible premium payments?
Variable Universal Life
Which of these is NOT considered to be a cost connected with an individual's
death?
Business expenses
A (an) ___________ insurer assumes risk from another insurance company.
Reinsurance
, When group insurance under COBRA have expired, a fully insured group policy
can be converted to a (an)
Individual health policy
The authority to change the beneficiary in an individual annuity lies with the
Owner
How are monthly life annuity benefit payments treated under a tax sheltered
annuity (TSA)?
Taxed as an ordinary income in the year received
Which individual would be best suited for Medicare Supplement Insurance?
Medicare enrollee
Which of the following is NOT an example as risk retention?
Not doing a business deal after deciding it would be too risky.
Tim is in need of surgery. Before being hospitalized, he is referred to an
outpatient clinic for diagnostic tests. What is this an example of?
Pre-admission testing
Does the Superintendent have the ability to examine the records of authorized
insurers?
Yes, because of the powers granted through state statues
Which statement about group life insurance is INCORRECT?
Questions And Answers
How is the uninsured protected if a payor benefit is attached to the life insurance
policy?
premium payments are waived in the event the premium payor dies or becomes
disabled
Which of the following health care plans charges a premium that cannot be
increased?
Noncancelable
What is the effect of the market value adjustments in a market value adjustment
annuity?
Transfers some of the investment risk to the policyowner
Which type of life insurance policy allows the policyowner the choice of
investments along with flexible premium payments?
Variable Universal Life
Which of these is NOT considered to be a cost connected with an individual's
death?
Business expenses
A (an) ___________ insurer assumes risk from another insurance company.
Reinsurance
, When group insurance under COBRA have expired, a fully insured group policy
can be converted to a (an)
Individual health policy
The authority to change the beneficiary in an individual annuity lies with the
Owner
How are monthly life annuity benefit payments treated under a tax sheltered
annuity (TSA)?
Taxed as an ordinary income in the year received
Which individual would be best suited for Medicare Supplement Insurance?
Medicare enrollee
Which of the following is NOT an example as risk retention?
Not doing a business deal after deciding it would be too risky.
Tim is in need of surgery. Before being hospitalized, he is referred to an
outpatient clinic for diagnostic tests. What is this an example of?
Pre-admission testing
Does the Superintendent have the ability to examine the records of authorized
insurers?
Yes, because of the powers granted through state statues
Which statement about group life insurance is INCORRECT?
