NM Life Insurance Final Exam Mock Test
Questions Complete With 100% Correct
Answers
NM Life Insurance Final Exam Mock Test
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 recieved
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?
Each participant requires evidence of insurability
Medicare Part A does NOT provide coverage for
The first three pints of blood
Darrell has a group long-term disability income policy paid by his employer. Which of these
statements is true?
The specified benefit amount is a percentage of his wages.
Twisting means
Pursuading an insured, to the insured's detriment, to switch policies.
What is the maxium number of employees (earning at least 5,000) that an employer can have
in order to start a SIMPLE retirement plan?
100
The following are all elements of a valid contract EXCEPT
written evidence
Which of the following would permit an insurer to delay a covered disability policy claim?
Elimination period
, Tom has a qualified retirement plan with his employer that is currently considered to be 80%
"vested". How can this be interpreted?
If Tom's employment is terminated, 20% of his funds could be forfeited.
When a ten year renewable term life insurance policy issued at age 45 is renewed, the
premium rate will be the current rate for
Ten year term insurance for a person aged 55.
What kind of arrangement gives the policyowner the right to change the beneficiary?
Revocable designation
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit.
Which index should he be looking at when making comparisons?
Net payment cost index
An individual health insurance policy with premiums paid monthly has a minimum grace
period of
10 days
The Medical Information Bureau consists of members from which group?
Insurance companies
A single premium deferred annuity sometimes containes a bail out feauture. Which statement
regarding this feauture is correct?
If an interest rate falls below a specified level, the surrender charge is waived.
Which of these statements is NOT a characteristic of the law of large numbers?
Rates can be calculated to compensate for losses
Which of the following is NOT a valid contract exchange?
An annuity exchanged for a life insurance policy
All of these are duties that a producer may be required to perform when delivering an
insurance policy EXCEPT
Leave a conditional receipt with the client
The owner's cost basis for a non-qualified deferred is typically the same as the
total premiums paid
Questions Complete With 100% Correct
Answers
NM Life Insurance Final Exam Mock Test
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 recieved
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?
Each participant requires evidence of insurability
Medicare Part A does NOT provide coverage for
The first three pints of blood
Darrell has a group long-term disability income policy paid by his employer. Which of these
statements is true?
The specified benefit amount is a percentage of his wages.
Twisting means
Pursuading an insured, to the insured's detriment, to switch policies.
What is the maxium number of employees (earning at least 5,000) that an employer can have
in order to start a SIMPLE retirement plan?
100
The following are all elements of a valid contract EXCEPT
written evidence
Which of the following would permit an insurer to delay a covered disability policy claim?
Elimination period
, Tom has a qualified retirement plan with his employer that is currently considered to be 80%
"vested". How can this be interpreted?
If Tom's employment is terminated, 20% of his funds could be forfeited.
When a ten year renewable term life insurance policy issued at age 45 is renewed, the
premium rate will be the current rate for
Ten year term insurance for a person aged 55.
What kind of arrangement gives the policyowner the right to change the beneficiary?
Revocable designation
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit.
Which index should he be looking at when making comparisons?
Net payment cost index
An individual health insurance policy with premiums paid monthly has a minimum grace
period of
10 days
The Medical Information Bureau consists of members from which group?
Insurance companies
A single premium deferred annuity sometimes containes a bail out feauture. Which statement
regarding this feauture is correct?
If an interest rate falls below a specified level, the surrender charge is waived.
Which of these statements is NOT a characteristic of the law of large numbers?
Rates can be calculated to compensate for losses
Which of the following is NOT a valid contract exchange?
An annuity exchanged for a life insurance policy
All of these are duties that a producer may be required to perform when delivering an
insurance policy EXCEPT
Leave a conditional receipt with the client
The owner's cost basis for a non-qualified deferred is typically the same as the
total premiums paid
