New York Life Insurance Agent Broker Examination Series 17 to 51 Version 4
Practice exam for Life Insurance Producer under Insurance Exams (Licensing Exams). 5 sample questions.
Sample Questions
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Question 1
Under a Universal Life Insurance policy, a corridor represents the
Correct Answer: A
Rationale: In a Universal Life Insurance policy, the corridor is the difference between the death benefit and the cash value, ensuring the policy qualifies as life insurance for tax purposes. This gap is maintained to meet IRS requirements. It does not relate to conversion periods, reinstatement, or beneficiary distributions.
Rationale: In a Universal Life Insurance policy, the corridor is the difference between the death benefit and the cash value, ensuring the policy qualifies as life insurance for tax purposes. This gap is maintained to meet IRS requirements. It does not relate to conversion periods, reinstatement, or beneficiary distributions.
Question 2
When trying on wedding rings at a jewelry store, a woman left her engagement ring on the countertop only to return later and find it missing. The woman experienced a
Correct Answer: D
Rationale: A loss occurs when an asset, such as the engagement ring, is misplaced or stolen, resulting in its absence. This is distinct from a transfer of risk (shifting risk to another party), hazard (condition increasing loss likelihood), or peril (specific cause of loss).
Rationale: A loss occurs when an asset, such as the engagement ring, is misplaced or stolen, resulting in its absence. This is distinct from a transfer of risk (shifting risk to another party), hazard (condition increasing loss likelihood), or peril (specific cause of loss).
Question 3
Licenses for a life settlement broker MUST be renewed
Correct Answer: B
Rationale: Life settlement broker licenses typically require renewal every two years, depending on state regulations. This ensures brokers maintain compliance with current laws. The other options do not align with standard renewal periods.
Rationale: Life settlement broker licenses typically require renewal every two years, depending on state regulations. This ensures brokers maintain compliance with current laws. The other options do not align with standard renewal periods.
Question 4
An insured wants to purchase a policy with three key elements: flexible premium, death benefit, and the choice of how the cash value will be invested. The insured should purchase
Correct Answer: C
Rationale: Variable universal life insurance offers flexible premiums, a death benefit, and the ability to choose how the cash value is invested. Adjustable life allows premium adjustments but not investment choice, universal term life is not a standard product, and graded premium whole life has fixed investments.
Rationale: Variable universal life insurance offers flexible premiums, a death benefit, and the ability to choose how the cash value is invested. Adjustable life allows premium adjustments but not investment choice, universal term life is not a standard product, and graded premium whole life has fixed investments.
Question 5
A common disaster clause states that if the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if the
Correct Answer: A
Rationale: A common disaster clause assumes the insured outlived the beneficiary in a simultaneous accident to ensure proceeds go to the insured's estate or secondary beneficiaries. This prevents complications in estate distribution. The other options do not align with this clause's purpose.
Rationale: A common disaster clause assumes the insured outlived the beneficiary in a simultaneous accident to ensure proceeds go to the insured's estate or secondary beneficiaries. This prevents complications in estate distribution. The other options do not align with this clause's purpose.