New York Life Insurance Agent Broker Examination Series 17 to 51 Version 3
Practice exam for Life Insurance Producer under Insurance Exams (Licensing Exams). 5 sample questions.
Sample Questions
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Question 1
Without written consent, a policyowner CANNOT change the beneficiary if he has named
Correct Answer: D
Rationale: An irrevocable beneficiary cannot be changed without their written consent, as they have a vested interest in the policy. A contingent beneficiary (A) is a secondary beneficiary and can be changed. A revocable beneficiary (B) can be changed freely by the policyowner. Permanent beneficiary (C) is not a standard term in insurance.
Rationale: An irrevocable beneficiary cannot be changed without their written consent, as they have a vested interest in the policy. A contingent beneficiary (A) is a secondary beneficiary and can be changed. A revocable beneficiary (B) can be changed freely by the policyowner. Permanent beneficiary (C) is not a standard term in insurance.
Question 2
Open perils are BEST defined as
Correct Answer: C
Rationale: Open perils cover all losses except those specifically excluded in the policy. Losses specifically named (A) describe named peril policies. Specific coverage limits (B) refer to policy restrictions, not open perils. Basic plus broad perils (D) is a term used for specific coverage types, not open perils.
Rationale: Open perils cover all losses except those specifically excluded in the policy. Losses specifically named (A) describe named peril policies. Specific coverage limits (B) refer to policy restrictions, not open perils. Basic plus broad perils (D) is a term used for specific coverage types, not open perils.
Question 3
Statements made by a proposed Insured on an application for life Insurance are called
Correct Answer: C
Rationale: Representations are statements made by the insured on an application, believed to be true to the best of their knowledge. Provisions (A) are policy terms. Guarantees (B) are promises of performance. Warranties (D) are statements guaranteed to be true, with stricter consequences if false.
Rationale: Representations are statements made by the insured on an application, believed to be true to the best of their knowledge. Provisions (A) are policy terms. Guarantees (B) are promises of performance. Warranties (D) are statements guaranteed to be true, with stricter consequences if false.
Question 4
The applicant must face the possibility of losing something of value in the event of the Insured’s death. This principle is known as
Correct Answer: A
Rationale: Insurable interest requires the applicant to have a financial or emotional stake in the insured’s life. Adverse selection (B) is the tendency for higher-risk individuals to seek insurance. Indemnification (C) is compensating for a loss. Viatical settlement (D) involves selling a policy for cash, not insurable interest.
Rationale: Insurable interest requires the applicant to have a financial or emotional stake in the insured’s life. Adverse selection (B) is the tendency for higher-risk individuals to seek insurance. Indemnification (C) is compensating for a loss. Viatical settlement (D) involves selling a policy for cash, not insurable interest.
Question 5
What is the approach to assessing the consumer's need for life insurance that focuses on an individual's future stream of income?
Correct Answer: C
Rationale: The Human Life Value approach calculates life insurance needs based on the insured’s future income stream. Needs approach (A) focuses on specific financial needs of survivors. Affordability approach (B) considers what the insured can pay. Return of investment approach (D) is not a standard insurance term.
Rationale: The Human Life Value approach calculates life insurance needs based on the insured’s future income stream. Needs approach (A) focuses on specific financial needs of survivors. Affordability approach (B) considers what the insured can pay. Return of investment approach (D) is not a standard insurance term.