NY LIFE INSURANCE EXAM GRADED A+ SCORE REVIEW 2026
QUESTIONS AND ANSWERS
Contracts that are prepared by one party and submitted to the
other party on a take-it-or-leave-it basis are classified as
A. Binding contracts
B. Contracts of adhesion
C. Unilateral contracts
D. Aleatory contacts
B. Contracts of adhesion
Insurance policies are written by the insurer and submitted to
the insured on a take-it-or-leave-it basis. The insured does
not have any input into the contract, but simply adheres the
contract
An insured wants to transfer his personal insurance policy to
a friend. Under what conditions with this be possible?
A. The insured will need a written consent of the insurer
B. It is impossible to transfer a policy
C. The insured would have to surrender his policy to the
insurer, and his friend could then ask to buy it
D. The insured can transfer the policy to his friend and then
notify the insurer of the change
A. The insured will need a written consent of the insurer
A personal insurance contract is written between an insurance
company and an individual, and the company has a right to
,decide with whom it will and will not do business. An insured
can transfer an insurance contract to another person, but he
or she must first obtain the written consent of the insurer
Which of the following is a statement that is guaranteed to be
true, and if untrue, may breach an insurance contract?
A. Indemnity
B. Representation
C. Warranty
D. Concealment
C. Warranty
A warranty in insurance is a statement guaranteed to be true.
When an applicant is applying for insurance contract, the
statements he or she makes are generally not warranties but
representations. Representations are statements that are true
to the best of the applicant's knowledge
The causes of loss insured against in an insurance policy are
known as
A. Losses
B. Risks
C. Hazards
D. Perils
,D. Perils
Perils are the causes of loss insured against in an insurance
policy
An agent accepts the premium payment 35 days after it is due,
telling the insured that there will not be a problem keeping the
policy in force. This is an example of what type of agent
authority?
A. Implied
B. Assumed
C. Apparent
D. Express
C. Apparent
An agent who accepts a premium after the end of the grace
period appears to the client to have the authority to prevent
the policy from lapsing. In fact, the agent has no such power
Which of the following best describes the aleatory nature of an
insurance contract?
A. Policies are submitted to the insurer on a take-it-or-leave-
it basis
B. Exchange of unequal values
C. Only one of the parties being legally bound by the contract
, D. Ambiguities are interpreted in favor of the insured
B. Exchange of unequal values
An aleatory contract is a contract in which unequal amounts or
values are exchanged. The amount of premium the insured
pays is much less than the potential loss assumed by the
insurer
Which of the following best describes rescission?
A. An insurer cancels a policy after an insured files a
suspicious claim
B. An insured agrees to cancel policy for the return of the
most recent premium paid
C. An insured allows a policy to lapse
D. An insurer cancels a policy after it has been issued and
refunds all paid premiums
D. An insurer cancels a policy after it has been issued and
refunds all paid premiums
When an insurer rescinds a policy after is been issued and
refunds all premiums paid, this is rescission
An insured purchased an insurance policy 5 years ago. Last
year, she received a dividend check from the insurance
company that was not taxable. This year, she did not receive a
QUESTIONS AND ANSWERS
Contracts that are prepared by one party and submitted to the
other party on a take-it-or-leave-it basis are classified as
A. Binding contracts
B. Contracts of adhesion
C. Unilateral contracts
D. Aleatory contacts
B. Contracts of adhesion
Insurance policies are written by the insurer and submitted to
the insured on a take-it-or-leave-it basis. The insured does
not have any input into the contract, but simply adheres the
contract
An insured wants to transfer his personal insurance policy to
a friend. Under what conditions with this be possible?
A. The insured will need a written consent of the insurer
B. It is impossible to transfer a policy
C. The insured would have to surrender his policy to the
insurer, and his friend could then ask to buy it
D. The insured can transfer the policy to his friend and then
notify the insurer of the change
A. The insured will need a written consent of the insurer
A personal insurance contract is written between an insurance
company and an individual, and the company has a right to
,decide with whom it will and will not do business. An insured
can transfer an insurance contract to another person, but he
or she must first obtain the written consent of the insurer
Which of the following is a statement that is guaranteed to be
true, and if untrue, may breach an insurance contract?
A. Indemnity
B. Representation
C. Warranty
D. Concealment
C. Warranty
A warranty in insurance is a statement guaranteed to be true.
When an applicant is applying for insurance contract, the
statements he or she makes are generally not warranties but
representations. Representations are statements that are true
to the best of the applicant's knowledge
The causes of loss insured against in an insurance policy are
known as
A. Losses
B. Risks
C. Hazards
D. Perils
,D. Perils
Perils are the causes of loss insured against in an insurance
policy
An agent accepts the premium payment 35 days after it is due,
telling the insured that there will not be a problem keeping the
policy in force. This is an example of what type of agent
authority?
A. Implied
B. Assumed
C. Apparent
D. Express
C. Apparent
An agent who accepts a premium after the end of the grace
period appears to the client to have the authority to prevent
the policy from lapsing. In fact, the agent has no such power
Which of the following best describes the aleatory nature of an
insurance contract?
A. Policies are submitted to the insurer on a take-it-or-leave-
it basis
B. Exchange of unequal values
C. Only one of the parties being legally bound by the contract
, D. Ambiguities are interpreted in favor of the insured
B. Exchange of unequal values
An aleatory contract is a contract in which unequal amounts or
values are exchanged. The amount of premium the insured
pays is much less than the potential loss assumed by the
insurer
Which of the following best describes rescission?
A. An insurer cancels a policy after an insured files a
suspicious claim
B. An insured agrees to cancel policy for the return of the
most recent premium paid
C. An insured allows a policy to lapse
D. An insurer cancels a policy after it has been issued and
refunds all paid premiums
D. An insurer cancels a policy after it has been issued and
refunds all paid premiums
When an insurer rescinds a policy after is been issued and
refunds all premiums paid, this is rescission
An insured purchased an insurance policy 5 years ago. Last
year, she received a dividend check from the insurance
company that was not taxable. This year, she did not receive a
