Ny life insurance practice test

Which of the following is the time limit on certain detenses after which the policy becomes incontestable?

2 years

All of the following transactions would be allowed except

A friend buying life insurance on a friend

When delivering a policy to an insured, an agent collects both the premium and a document verifying that the insured has not been injured or suffered any illnesses since completing the application. This is called

A statement of good health

All of the following are common exclusions from loss found in disability income policies EXCEPT for that incurred while

Committing a misdemeanor

An insured and the beneficiary are both killed in a fatal accident. Which provision presumes the insured survived the beneficiary?

Common disaster clause

Which of the following is TRUE of the limited pay whole life policy?

Coverage continues after the policy is paid-up.

Who is the policy owner in credit life insurance?

Creditor

Under which of the following riders will the insurer both waive policy premiums and pay monthly income to the insured if the insured is disabled ?

Disability income benefit rider

When the courts look at a contract to determine the intent of the parties which of the following is considered?

Entire Contract

Obtaining consumer information reports under false pretenses is prosecutable by which of the following?

Fair Credit Reporting Act

A person would look into buying life insurance for all of the following reasons except

Generate income

Under a key person policy, the key employee is the

Insured

Which part of an insurance contract contains the promise to pay losses covered by the policy in exchange for the insured's premium and compliance with policy terms?

Insuring clause

Which of the following is common in an increasing term life policy?

It begins with little or no insurance protection.

Which of the following is TRUE of an equity-indexed annuity?

It has a guaranteed minimum interest rate.

Why is relying solely on employer group life insurance generally considered inadequate for most individual's needs?

It is financially insufficient to cover end of life expenses.

Which annuity settlement option provides a stareo monthly amount to the annuitant and upon the annuitants death the some or a lesser amount paid for the lifetime of the survivor?

Joint and survivorship option

All of the following characteristics of a group are considered in a group underwriting except

Medical conditions

Under a universal life insurance policy , policy owners have a choice between what two types of premiums?

Minimum premium and target premium

Regular premium payments made to purchase an individual non qualified annuity are

Nondeductible

All of the following are tax qualified retirement plans EXCEPT

Section 529 plan

For which of the following reasons can the department of financial services issue a temporary license?

Servicing existing business

Unlike the dividend itself, the interest earned on dividends is

Taxable

What procedure is used by an insurer to protect itself in the event a dispute arises and the applicant and the agent do not recall the changes that were made in a completed application?

The applicant and possibly the agent initial any changes made.

Which of the following is Not true regarding the policy summary?

The policy summary may be part of the policy

How does the per capita rule apply to proceeds from a life insurance policy?

The proceeds are divided equally among living primary beneficiaries.

Which of the following is TRUE for a flexible premium annuity ?

The purchaser has the option to vary the amount of each premium payment falling between a minimum and maximum amount.

Which of the following is TRUE regarding assignment rights for irrevocable beneficiaries?

They are MORE likely to receive a loan based on the expectations of the proceeds.

Which of the following lists the three common types of permanent individual life insurance?

Variable Life, Whole Life, Universal Life

How do warranties differ from representations?

a warranty is guaranteed to be true, a representation is believed to be true to the best of one's knowledge.

For an individual long-term care policy there is an annual dollar limit for tax deductions that is based on which of the following?

age

Which of the following is an example of a premium poyment mode?

annual premium pavment

What type of insurance should a company purchase if it wants to insure the life of its CEO?

key person insurance

Which of the following refers to how often a premium is paid?

mode

All of the following are classifications of risk EXCEPT

non-nicotine

Which of the following is characteristic of a nonqualified plan?

plan does not meet federal guidelines for tax benefits

How might someone cover the extra expenses of child care and home-related costs?

purchasing family term insurance

In which of the following must a beneficiary change request be filed in writing to the insurer and is made effective by the insurance company recording the change in its records?

recording method

All life insurance and health insurance contracts contain all of the following EXCEPT

representations

In order to AVOID being classified as an MEC, a policy must pass which of the following?

seven-pay test

What is the order in which beneficianes receive proceeds from a life insurance policy?

succession of beneficiaries

All of the following are ownership rights EXCEPT

switching the policy from one insured to another

All of the following are features of the spendthrift dause EXCEPT

the beneficiary may encumber the proceeds

Group AD&D policies may be deducted by whom and under which deduction category?

the employer under business expenses

All of the following are TRUE regarding incomplete applications EXCEPT

the incomplete application can be accepted with the missing information added later.

All of the following are required signatures on a life insurance application EXCEPT

the minor in a juvenile policy.

What is the purpose of Stranger-originated life insurance (STOLI)?

the policy is originated primarily or solely for the purpose of resale

If the insurer wishes to share an applicant's HIV status, the applicant must be given full notice of all of the following EXCEPT

the treatment procedures that are covered by the policy.

Which of the following occurs immediately after the application is submitted and the initial premium paid?

the underwriting process begins

Which type of annuity attempts to offset inflation by providing a benefit linked to an underlying investment account?

variable

Current assumption whole life policies are sensitive to which of the following?

interest rates

Which one of the following is particularly important for an insurance producer to explain to a client upon delivery of a life insurance policy?

any exclusions

Which whole life policy premium type is the most common?

continuous premium

What is the primary advantage for obtaining reinstatement of a policy rather than obtaining a new one?

insured original issue age is used

Which of the following is exempted from the incontestability provision in insurance policies?

fraudulent misstatements

Which policy provision permits the policyowner to take a specified number of days to examine the contract, and allows for cancellation and a full refund if the policyowner rejects the terms or costs?

free look

Under the misstatement or age provision, what haopens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application?

benefits are adjusted to an amount that the premium would have purchased at the correct age or suenner

Which of the following term insurance types provides temporary protection that can De changed to some tvoe of permanent protection without evidence of insurability.

convertible

In a level term life policy, which ALWAYS remains constant?

death benefit

The group conversion option is allowed for all of the following EXCEPT

during the annual benefits enrollment period.

Which is a common approach to addressing the problems inherent in naming a minor as a beneficiary to a life insurance policy?

establishing a trust to administer proceeds

Which policy type is backed by equity investments and Allows policyholder to dust the death benefit?

Variable universal life