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NY Life Insurance Exam Review 2026(NEW UPDATED VERSION) LATEST
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED QUESTIONS AND
ANSWERS)- GUARANTEED PASS A+ UPDATED
Based on the Human Life Value Approach, which of the following is
NOT used to calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
D. Insured's current and future income - CORRECT ANSWER C.
Predicted needs of the family after the insured's death.
The Human Life Value Approach to determining the value of an
individual's life requires the calculation of probable future earnings of
the insured, which involves wages, expenses, inflation, amount of
time until retirement, and the time value of money. Predicted needs of
the family after the insured's death are used in the needs approach
QUESTION : Can the Superintendent investigate fraudulent claims if
they occurred outside of the resident's state according to the
Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation
within this state or outside of the state
B. Yes, but only if it is a violation of another state's insurance law
C. No. Because insurance is regulated by the state, all claims must
occur within state boundaries
practice exam 2026
,2|Page
D. No. If fraudulent acts are believed to have been committed, the
Superintendent must notify the state's Superintendent or
Commissioner. It will then become a federal matter - CORRECT
ANSWER A. Yes. The Superintendent has the power to make an
investigation within this state or outside of the state
If the insurance frauds bureau has reason to believe that a person is
engaged or is about to engage in a fraudulent act, the Superintendent
has the power to make an investigation within this state or outside the
state
QUESTION : Which settlement option allows the insurer to retain the
face amount but pay some income based on gain on the proceeds to
the beneficiary at regular intervals?
A. Interest only
B. Life income
C. Fixed amount
D. Fixed period - CORRECT ANSWER A. Interest only
Within the "interest only" option, the insurer retains policy proceeds
and pays interest on the proceeds to the beneficiary at regular
intervals. The insurer will usually guarantee an interest rate and even
pay in excess of the rate quoted
QUESTION : In order to be a licensed life settlement broker, a person
must complete which of the following requirements?
A. Post a surety bond
B. Submit to a drug test
C. Submit fingerprints
D. Have been a licensed life producer for at least 6 months -
CORRECT ANSWER C. Submit fingerprints
practice exam 2026
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QUESTION : How long does a licensee have to notify the
Superintendent of a change of address?
A. 90 days
B. Immediately
C. 30 days
D. 60 days - CORRECT ANSWER C. 30 days
The Superintendent must be notified within 30 days upon any of a
change of primary residence or business address
QUESTION : Which of the following would be deducted from the
death benefit paid to a beneficiary, if a partial accelerated death
benefit had been paid while the insured was still alive?
A. Amount paid with the accelerated benefit, plus the earnings lost by
the insurance company in interest income from the accelerated
benefit
B. There are no deductions taken from death benefits
C. Penalty imposed for early withdrawal of the death benefit, plus the
amount of earnings lost by the insurance company in interest income
C. 10% federal death benefit income tax, plus the amount of the
accelerated benefit - CORRECT ANSWER A. Amount paid with
the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit
If an insured withdraws a portion of the death benefit by the use of
this rider, the benefit payable at death will be reduced by that amount,
plus the amount of earnings lost by the insurance company in interest
income
QUESTION : Which of the following statements concerning a
Simplified Employee Pension plan (SEP) in INCORRECT?
practice exam 2026
, 4|Page
A. SEPs allow the employer to make annual tax deductible
contributions up to 25% of an employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
C. Employer contributions are not included int he employee's gross
income
D. SEPs are suitable for large companies - CORRECT ANSWER
D. SEPs are suitable for large companies
QUESTION : An employee is joining a group insurance plan. In order
to avoid having to prove insurability, what must the employee do?
A. Join during the open enrollment period
B. Provide medical records to the insurer
C. Sign a statement of contributed good health
D. Nothing: proof of insurability is never required in group policies -
CORRECT ANSWER A. Join during the open enrollment period
If one applies for coverage after the open enrollment period, proof of
insurability may be required in order to avoid adverse selection
QUESTION : Which of the following best describes the MIB?
A. It is a nonprofit organization that maintains underwriting
information on applicants for life and health insurance
B. it is a government agency that collects
C. It is a member organization that protects insured against insolvent
insurers
D. It is a ranking organization for health insurance - CORRECT
ANSWER A. It is a nonprofit organization that maintains
underwriting information on applicants for life and health insurance
practice exam 2026
NY Life Insurance Exam Review 2026(NEW UPDATED VERSION) LATEST
ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED QUESTIONS AND
ANSWERS)- GUARANTEED PASS A+ UPDATED
Based on the Human Life Value Approach, which of the following is
NOT used to calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
D. Insured's current and future income - CORRECT ANSWER C.
Predicted needs of the family after the insured's death.
The Human Life Value Approach to determining the value of an
individual's life requires the calculation of probable future earnings of
the insured, which involves wages, expenses, inflation, amount of
time until retirement, and the time value of money. Predicted needs of
the family after the insured's death are used in the needs approach
QUESTION : Can the Superintendent investigate fraudulent claims if
they occurred outside of the resident's state according to the
Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation
within this state or outside of the state
B. Yes, but only if it is a violation of another state's insurance law
C. No. Because insurance is regulated by the state, all claims must
occur within state boundaries
practice exam 2026
,2|Page
D. No. If fraudulent acts are believed to have been committed, the
Superintendent must notify the state's Superintendent or
Commissioner. It will then become a federal matter - CORRECT
ANSWER A. Yes. The Superintendent has the power to make an
investigation within this state or outside of the state
If the insurance frauds bureau has reason to believe that a person is
engaged or is about to engage in a fraudulent act, the Superintendent
has the power to make an investigation within this state or outside the
state
QUESTION : Which settlement option allows the insurer to retain the
face amount but pay some income based on gain on the proceeds to
the beneficiary at regular intervals?
A. Interest only
B. Life income
C. Fixed amount
D. Fixed period - CORRECT ANSWER A. Interest only
Within the "interest only" option, the insurer retains policy proceeds
and pays interest on the proceeds to the beneficiary at regular
intervals. The insurer will usually guarantee an interest rate and even
pay in excess of the rate quoted
QUESTION : In order to be a licensed life settlement broker, a person
must complete which of the following requirements?
A. Post a surety bond
B. Submit to a drug test
C. Submit fingerprints
D. Have been a licensed life producer for at least 6 months -
CORRECT ANSWER C. Submit fingerprints
practice exam 2026
,3|Page
QUESTION : How long does a licensee have to notify the
Superintendent of a change of address?
A. 90 days
B. Immediately
C. 30 days
D. 60 days - CORRECT ANSWER C. 30 days
The Superintendent must be notified within 30 days upon any of a
change of primary residence or business address
QUESTION : Which of the following would be deducted from the
death benefit paid to a beneficiary, if a partial accelerated death
benefit had been paid while the insured was still alive?
A. Amount paid with the accelerated benefit, plus the earnings lost by
the insurance company in interest income from the accelerated
benefit
B. There are no deductions taken from death benefits
C. Penalty imposed for early withdrawal of the death benefit, plus the
amount of earnings lost by the insurance company in interest income
C. 10% federal death benefit income tax, plus the amount of the
accelerated benefit - CORRECT ANSWER A. Amount paid with
the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit
If an insured withdraws a portion of the death benefit by the use of
this rider, the benefit payable at death will be reduced by that amount,
plus the amount of earnings lost by the insurance company in interest
income
QUESTION : Which of the following statements concerning a
Simplified Employee Pension plan (SEP) in INCORRECT?
practice exam 2026
, 4|Page
A. SEPs allow the employer to make annual tax deductible
contributions up to 25% of an employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
C. Employer contributions are not included int he employee's gross
income
D. SEPs are suitable for large companies - CORRECT ANSWER
D. SEPs are suitable for large companies
QUESTION : An employee is joining a group insurance plan. In order
to avoid having to prove insurability, what must the employee do?
A. Join during the open enrollment period
B. Provide medical records to the insurer
C. Sign a statement of contributed good health
D. Nothing: proof of insurability is never required in group policies -
CORRECT ANSWER A. Join during the open enrollment period
If one applies for coverage after the open enrollment period, proof of
insurability may be required in order to avoid adverse selection
QUESTION : Which of the following best describes the MIB?
A. It is a nonprofit organization that maintains underwriting
information on applicants for life and health insurance
B. it is a government agency that collects
C. It is a member organization that protects insured against insolvent
insurers
D. It is a ranking organization for health insurance - CORRECT
ANSWER A. It is a nonprofit organization that maintains
underwriting information on applicants for life and health insurance
practice exam 2026
