New York Life Insurance Law
An insured bought a 10-year, $50,000 level term life insurance policy on July 1st, 2011 by paying an annual premium of $200. If he or she dies on July 4th, 2012 without paying the renewal premium, how much will the insurer pay?
$49,800
In New York, an applicant for life insurance must be at least age ___________ in order to buy and own a life insurance policy on himself or herself.
14 years and six months
A life insurance policyowner who sold his or her policy in a life settlement transaction may void or rescind the transaction within ____ days after he or she receives the life settlement proceeds.
15
A life settlement provider may contact an insured to request information regarding his or her health status not more than once every ____ month(s) if the insured has a life expectancy of more than one year.
3
Life insurance sold by mail must include at least a ____ -day free look.
30
The grace period on an individual life insurance policy or annuity is ____ days.
31
In determining suitability of an annuity replacement transaction, if the client has replaced an annuity in the previous ____ months, that would be a concerning factor.
36
A life insurance policy may be backdated up to ____ months in order to receive a lower premium.
6
According to Regulation 60, when replacing life insurance, the replacing insurer must give his or her new insured at least a ____-day free look.
60
Which of the following applicants for life insurance would pay the highest premium?
60-year-old male
An insurer may pay accelerated death benefits to an insured who suffers from any of the following EXCEPT:
A chronic illness
Which of the following cannot be changed by a life insurance policyowner?
Absolute assignment
All of the following are true regarding the reinstatement of a life insurance policy EXCEPT:
An applicant has up to five years after taking cash surrender to apply
HIV tests may not be administered without the consent of the:
Applicant
Applicants for life insurance must receive a copy of the buyer's guide:
At the time of application
All are common exclusions on life insurance policies EXCEPT:
Auto accidents
All of the following are required nonforfeiture provisions on a cash value life insurance policy EXCEPT:
Automatic premium loan
They provide a source of income to the employer when an employee dies.
Financing transaction
When a life settlement provider obtains funds from a financing entity in order to purchase one or more life settlement contracts, it is known as a(n):
Financing transaction
Which of the following statements is incorrect?
It is legal for an insurance producer to attempt to dissuade a consumer from truthfully responding to an insurer's request for confirmation of suitability information
All of the following are true about group life insurance EXCEPT:
It is subject to individual underwriting
All of the following are true regarding insurable interest EXCEPT:
It must exist at the time of loss
Insurers who sell variable products must invest the premiums collected in their:
Separate account
Records related to annuity recommendation must be kept under Regulation 152 for:
Six (6) calendar years
In recommending the purchase or replacement of an annuity, the producer must be sure the transaction is in the best interest of:
The consumer
The beneficiary on a group credit life policy is:
The creditor
Under Regulation 60, when replacing existing life insurance, an agent is required to give his or her prospective insured all of the following EXCEPT:
The financial statements of the replacing insurer
A life insurance buyer's guide must disclose all of the following EXCEPT:
The insurer's financial statements
A life insurance policyowner who has owned his or her policy for only one year may engage in a life settlement transaction in all of the following circumstances EXCEPT:
The policy was purchased as a STOLI
A life settlement broker represents:
The policyowner
All are true about employee group life insurance policies EXCEPT:
They provide a source of income to the employer when an employee dies.
Regulation 60 addresses which of the following?
Replacement
A life insurance policy is incontestable after it has been in force for ____ years.
Two
A business owner would have an insurable interest in all of the following EXCEPT:
Customers
All of the following are true regarding the Life Insurance Company Guaranty Corporation EXCEPT:
It covers all types of life insurance and annuities sold in this state
All of the following are true regarding a life insurance policy summary EXCEPT:
It must illustrate all guaranteed future dividends
Regarding a life settlement transaction, the policyowner seeks to sell his or her whole life policy for its "net value", which is defined as:
More than its cash value but less than its death benefit
Regarding life settlement transactions, life settlement brokers must provide the policyowner with all offers, counteroffers, acceptances, and rejections related to a proposed life settlement:
No later than the date the life settlement contract is signed
Regulation 60 applies to all of the following types of life insurance EXCEPT:
Non-renewable, non-convertible term that will expire in five years or less
Under New York Insurance Law, all of the following items would be considered in establishing suitability related to the purchase of an annuity EXCEPT:
Number of children
A consumer refuses to provide the information necessary to make a suitability determination related to the purchase of an annuity. Which of the following statements is correct?
This consumer may purchase an annuity, but the purchase may not be recommended by the insurer or producer without the suitability information
Generally, a life insurance policyowner may sell his or her policy in a life settlement transaction after he or she has owned the policy for at least:
Two years
When can a life settlement broker, intermediary, or provider share information regarding the insured without his or her consent?
When necessary to conduct the settlement or as required by law