NY LIFE ACCIDENT AND HEALTH INSURANCE
AGENT BROKER EXAM EXAM SCRIPT 2026
◉ A health plan offered by private insurance companies is Answer: A
Medicare Supplement
◉ Bryce purchased a disability income policy with a rider that
guarantees him the option of purchasing additional amounts of
coverage at predetermined times without requiring to provide
evidence of insurability. What kind of rider is this? Answer:
Guaranteed insurability rider
◉ Which of these would NOT be a valid reason to add the waiver of
premium rider to a life insurance policy? Answer: It allows a policy
loan to cover premium payments if the policy owner becomes totally
disabled
◉ What is considered interstate travel under the Federal Fraud and
False Statements Act? Answer: Puerto Rico
◉ Which of these statements regarding the extended term insurance
nonforfeiture option in a life policy is accurate? Answer: The
premium to purchase the coverage comes from the policy's cash
value
,◉ If a group endorses an accident and health insurance product in
an advertisement, the public must be made aware of Answer: Any
control by the insurer over the group
◉ Insurable interest in one's own life is legally considered as
Answer: Generally unlimited
◉ How do benefit payments fluctuate over time in a variable life
annuity? Answer: Reflects changes in the market value of assets in a
separate account
◉ Switching Life insurance policies without tax consequence is
permitted under Answer: Section 1035 rules
◉ When a ten year renewable term life insurance policy issued at
age 45 is renewed, the premium rate will be the current rate for
Answer: Ten year term insurance for a person aged 55
◉ What is the effect of the market value adjustment in a market
value adjustment annuity? Answer: Transfers some of the
investment risk to the policy owner
,◉ During a stated initial period of coverage, long-term care
insurance policies normally EXCLUDE conditions that Answer: Were
treated during a specified period preceding the policy date
◉ Which of these may NOT be deducted from premium payments or
the cash value of a variable life insurance policy? Answer: Federal
premium taxes
◉ Which element of a contract constitutes a definite and unqualified
proposal by one party to another? Answer: Offer
◉ Under which circumstance is the interest rate guaranteed within a
market value adjusted annuity? Answer: When the contract has been
held for the period specified in the policy
◉ A prepaid dental plan has an agreement in place with a network
of dentists which Answer: accepts an established amount as
payment in full for the dental services rendered
◉ Omar is covered by a disability income policy. He is hurt while
performing an occupation more hazardous than the occupation
listed in his policy. The policy's change of occupation provision will
have what effect? Answer: Reduce the benefit level
, ◉ Which of the following outlines the authority given to the
producer on behalf of the insurer? Answer: Producer contract
◉ Linda is covered with long-term care insurance and has early-
stage Alzheimer's. She is still able to reside in her home while
receiving primary care, as opposed to moving into a nursing home.
All of the following long-term benefits encourage this EXCEPT for
Answer: Custodial care
◉ The absolute assignment of a life insurance policy results in
Answer: All incidents of ownership transferred to the assignee
◉ A policy owner and a life settlement provider can have a life
settlement negotiated through a Answer: life settlement broker
◉ Which benefit is normally payable to a life insurance policy owner
when the insured's life expectancy has been severely limited?
Answer: Accelerated (living) benefit
◉ Medicare supplement insurance that provides a preventative
medical care benefit will often cover Answer: Yearly physical
examinations
◉ During an annuity's liquidation phase, the annuitant normally
Answer: Receives benefit payments at regular intervals
AGENT BROKER EXAM EXAM SCRIPT 2026
◉ A health plan offered by private insurance companies is Answer: A
Medicare Supplement
◉ Bryce purchased a disability income policy with a rider that
guarantees him the option of purchasing additional amounts of
coverage at predetermined times without requiring to provide
evidence of insurability. What kind of rider is this? Answer:
Guaranteed insurability rider
◉ Which of these would NOT be a valid reason to add the waiver of
premium rider to a life insurance policy? Answer: It allows a policy
loan to cover premium payments if the policy owner becomes totally
disabled
◉ What is considered interstate travel under the Federal Fraud and
False Statements Act? Answer: Puerto Rico
◉ Which of these statements regarding the extended term insurance
nonforfeiture option in a life policy is accurate? Answer: The
premium to purchase the coverage comes from the policy's cash
value
,◉ If a group endorses an accident and health insurance product in
an advertisement, the public must be made aware of Answer: Any
control by the insurer over the group
◉ Insurable interest in one's own life is legally considered as
Answer: Generally unlimited
◉ How do benefit payments fluctuate over time in a variable life
annuity? Answer: Reflects changes in the market value of assets in a
separate account
◉ Switching Life insurance policies without tax consequence is
permitted under Answer: Section 1035 rules
◉ When a ten year renewable term life insurance policy issued at
age 45 is renewed, the premium rate will be the current rate for
Answer: Ten year term insurance for a person aged 55
◉ What is the effect of the market value adjustment in a market
value adjustment annuity? Answer: Transfers some of the
investment risk to the policy owner
,◉ During a stated initial period of coverage, long-term care
insurance policies normally EXCLUDE conditions that Answer: Were
treated during a specified period preceding the policy date
◉ Which of these may NOT be deducted from premium payments or
the cash value of a variable life insurance policy? Answer: Federal
premium taxes
◉ Which element of a contract constitutes a definite and unqualified
proposal by one party to another? Answer: Offer
◉ Under which circumstance is the interest rate guaranteed within a
market value adjusted annuity? Answer: When the contract has been
held for the period specified in the policy
◉ A prepaid dental plan has an agreement in place with a network
of dentists which Answer: accepts an established amount as
payment in full for the dental services rendered
◉ Omar is covered by a disability income policy. He is hurt while
performing an occupation more hazardous than the occupation
listed in his policy. The policy's change of occupation provision will
have what effect? Answer: Reduce the benefit level
, ◉ Which of the following outlines the authority given to the
producer on behalf of the insurer? Answer: Producer contract
◉ Linda is covered with long-term care insurance and has early-
stage Alzheimer's. She is still able to reside in her home while
receiving primary care, as opposed to moving into a nursing home.
All of the following long-term benefits encourage this EXCEPT for
Answer: Custodial care
◉ The absolute assignment of a life insurance policy results in
Answer: All incidents of ownership transferred to the assignee
◉ A policy owner and a life settlement provider can have a life
settlement negotiated through a Answer: life settlement broker
◉ Which benefit is normally payable to a life insurance policy owner
when the insured's life expectancy has been severely limited?
Answer: Accelerated (living) benefit
◉ Medicare supplement insurance that provides a preventative
medical care benefit will often cover Answer: Yearly physical
examinations
◉ During an annuity's liquidation phase, the annuitant normally
Answer: Receives benefit payments at regular intervals
