New York Life Insurance 2

97 Questions | Total Attempts: 213

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New York Life Insurance 2

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Questions and Answers
  • 1. 
    A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?p
    • A. 

      The group has not been established for long enough.

    • B. 

      The purpose of the group was to purchase life insurance

    • C. 

      Their profession poses too high of a risk for the insurer.

  • 2. 
    The Superintendent may refuse to issue a license in all of the following situations EXCEPT
    • A. 

      The proposed licensee is not trustworthy

    • B. 

      The proposed licensee is not competent.

    • C. 

      The proposed licensee is from another state

  • 3. 
    Which of the following will be included in a policy summary?
    • A. 

      Comparisons with similar policies

    • B. 

      Primary and secondary beneficiary designations

    • C. 

      Premium amounts and surrender values

  • 4. 
    What are the two components of a universal policy?
    • A. 

      Insurance and cash account

    • B. 

      Separate account and policy loans

    • C. 

      Insurance and death benefit

  • 5. 
    Why is an equity indexed annuity considered to be a fixed annuity?
    • A. 

      It is not tied to an index like the S&P 500

    • B. 

      It has a guaranteed minimum interest rate

    • C. 

      It has modest investment potential

  • 6. 
    Before he died, an annuitant had received $12,500 in monthly benefits from his $25,000 straight life annuity. He was also the insured under a $50,000 paid-up whole life policy that named his wife as primary beneficiary. Considering both contracts, how much will the annuitant's spouse receive in benefits?
    • A. 

      $50,000

    • B. 

      Nothing

    • C. 

      $62,500

  • 7. 
    A deferred annuity is surrendered prior to annuitization. Which of the following best describes the nonforfeiture value of the annuity?
    • A. 

      The surrender value should be equal to 100% of the premium paid, minus any prior withdrawals and surrender charges.

    • B. 

      A deferred annuity cannot be surrendered prior to annuitization. The owner must wait until the annuitization period begins to receive any payments.

    • C. 

      The surrender value will not be more than 80% of the cash value in the annuity at the time of surrender.

  • 8. 
    Which of the following best describes what the "annuity period" is?
    • A. 

      The period of time spanning from the accumulation period to the annuitization period

    • B. 

      The period of time during which accumulated money is converted into income payments

    • C. 

      The period of time spanning from the effective date of the contract to the date of its termination

  • 9. 
    Which of the following is NOT a way to determine the interest rate in a Universal Life Policy?
    • A. 

      Maintain a profit margin between the interest credited on in-force policies and the interest earned on their own investment portfolio

    • B. 

      Estimate market conditions for the life of the policy

    • C. 

      Declare the annual rate by the company's board of directors

  • 10. 
    Which of the following would most directly affect the purchasing power of benefits paid on a fixed annuity?
    • A. 

      Economic inflation

    • B. 

      Interest rates

    • C. 

      Guaranteed minimum payout

  • 11. 
    How long does a licensee have to deliver information requested by the Superintendent of Insurance?
    • A. 

      30 days

    • B. 

      15 days

    • C. 

      10 days

  • 12. 
    All of the following statements are true concerning the taxation of a traditional IRA EXCEPT
    • A. 

      Early distributions are always subject to penalty.

    • B. 

      The 10% penalty is waived for withdrawals made after age 59 1/2.

    • C. 

      A premature distribution may be subject to a 10% penalty, and the amount withdrawn is taxed as ordinary income in the year withdrawn.

  • 13. 
    Which is true about a spouse term rider?
    • A. 

      The rider is decreasing term insurance.

    • B. 

      Coverage is allowed for an unlimited time.

    • C. 

      The rider is level term insurance.

  • 14. 
    What is the name of a clause that is included in a policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military?
    • A. 

      Military service or war

    • B. 

      Hazardous occupation

    • C. 

      Limited

  • 15. 
    Are insurance company underwriters allowed to discriminate?
    • A. 

      No, higher risks pay higher premium

    • B. 

      Yes, but not unfairly

    • C. 

      No, discrimination is an unfair practice

  • 16. 
    An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy’s cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
    • A. 

      Term life

    • B. 

      Universal life

    • C. 

      Controlled

  • 17. 
    In order to be a licensed life settlement broker, a person must complete which of the following requirements?
    • A. 

      Have been a licensed life producer for at least one year

    • B. 

      Submit fingerprints

    • C. 

      Submit to a drug test

  • 18. 
    Which of the following statements is an accurate comparison between private and government insurers?
    • A. 

      Private insurers may be authorized to transact insurance by state insurance departments.

    • B. 

      Insurance provided by the government is called "federal insurance."

  • 19. 
    All of the following statements are components of a Credit Life program EXCEPT
    • A. 

      Benefits are paid to the borrower's beneficiary.

    • B. 

      Benefits are paid directly to the creditor.

    • C. 

      The amount of insurance permissible is limited per borrower.

  • 20. 
    Which of the following is an example of apparent authority?
    • A. 

      The agent puts up a sign with the logo of the insurance company without express permission.

    • B. 

      The agent accepts a premium payment after the end of the grace period

    • C. 

      The agent accepts a premium payment during the grace period.

  • 21. 
    The New York Superintendent has the responsibility to make sure each entity transacting insurance in this state remains solvent. Insurers are required to file a statement with the Superintendent
    • A. 

      Annually on or before March 1st.

    • B. 

      Biannually on or before April 1st.

    • C. 

      Every 2 years by the renewal date.

  • 22. 
    An insurance broker's license may be issued to
    • A. 

      Anyone who can pass the written examination.

    • B. 

      A person, firm or corporation.

    • C. 

      Persons age 17 or older.

  • 23. 
    An insured purchases a policy in 2000 and dies in 2005. The insurance company discovers at that time that the insured concealed information during the application process. What can they do?
    • A. 

      Pay the death benefit

    • B. 

      Sue for the right to not pay the death benefit

    • C. 

      Pay a decreased death benefit

  • 24. 
    Which of the following is true regarding the insurance amount in a credit life policy?
    • A. 

      Creditor may insure the debtor for an unlimited amount of coverage.

    • B. 

      Allowable amount of coverage is determined by the State Insurance Commissioner.

    • C. 

      Creditor can only insure the debtor for the amount owed.

  • 25. 
    Which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?
    • A. 

      The Consideration Clause

    • B. 

      Ownership rights

    • C. 

      The Entire Contract Provision

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