Final exam New Mexico Life Only
Questions with Detailed Verified
Answers
What is an insurance contract that identifies individuals by relationship to a specific
organization? - ANSWER -group insurance
When an insured under a group life insurance plan in NM elects the conversation option, the
new policy is issued - ANSWER -Without requiring evidence of insurability
What is another name for a Keogh plan - ANSWER -HR 10 plan
An insurance policy may be issued with a preferred insurance premium in all these situations
EXEPT - ANSWER -Living in a rural area
XYZ Insurance Company gives direct authority to its producers to sell insurance through an
agency contract, but nothing is stated regarding the collection of premiums. Which authority
grants the producer the right to collect premiums? - ANSWER -implied authority
When the superintendent believes an agent is causing substantial and material harm, the
superintendent has the authority to - ANSWER -issue a cease and desist order against
the agent
Who normally pays the premiums for group credit life insurance? - ANSWER -borrower
, For policyholders in the same risk classification, it is unlawful to - ANSWER -Charge
different premiums
What happens to the cash value of a market value adjusted annuity if it's surrendered prior to
the end of the stated guarantee period - ANSWER -Subject to market value adjustment
What must be given to a life insurance applicant when the agent receives an application and
the initial premium - ANSWER -Conditional receipt
Which situation would not require the insureds consent when a life insurance policy is issued -
ANSWER -A policy is purchased by a parent for a minor child
A business becoming incorporated is an example of risk ____. - ANSWER -to transfer
The Superintendent may suspend an agent's license when the agent - ANSWER -Rebates
a portion of the commission to the insured
What would be considered an advantage of purchasing term life insurance? - ANSWER -
The initial premium is lower compared to an equivalent amount of whole life coverage
When an insurance appointment with an agent is terminated, the party must notify the agent
of the termination is the - ANSWER -Insurer
All of these statements concerning group credit life insurance are false EXEPT -
ANSWER -The face amount is based on the outstanding loan balance
Risk ____ is the process of analyzing exposures that create risk and designing programs to
handle them - ANSWER -management
The policy provision that permits an employee to change from group life coverage to an
individual life policy is called the - ANSWER -Conversation provision
A qualified profit-sharing plan is designed to - ANSWER -distribute a portion of company
earnings to its employees
Questions with Detailed Verified
Answers
What is an insurance contract that identifies individuals by relationship to a specific
organization? - ANSWER -group insurance
When an insured under a group life insurance plan in NM elects the conversation option, the
new policy is issued - ANSWER -Without requiring evidence of insurability
What is another name for a Keogh plan - ANSWER -HR 10 plan
An insurance policy may be issued with a preferred insurance premium in all these situations
EXEPT - ANSWER -Living in a rural area
XYZ Insurance Company gives direct authority to its producers to sell insurance through an
agency contract, but nothing is stated regarding the collection of premiums. Which authority
grants the producer the right to collect premiums? - ANSWER -implied authority
When the superintendent believes an agent is causing substantial and material harm, the
superintendent has the authority to - ANSWER -issue a cease and desist order against
the agent
Who normally pays the premiums for group credit life insurance? - ANSWER -borrower
, For policyholders in the same risk classification, it is unlawful to - ANSWER -Charge
different premiums
What happens to the cash value of a market value adjusted annuity if it's surrendered prior to
the end of the stated guarantee period - ANSWER -Subject to market value adjustment
What must be given to a life insurance applicant when the agent receives an application and
the initial premium - ANSWER -Conditional receipt
Which situation would not require the insureds consent when a life insurance policy is issued -
ANSWER -A policy is purchased by a parent for a minor child
A business becoming incorporated is an example of risk ____. - ANSWER -to transfer
The Superintendent may suspend an agent's license when the agent - ANSWER -Rebates
a portion of the commission to the insured
What would be considered an advantage of purchasing term life insurance? - ANSWER -
The initial premium is lower compared to an equivalent amount of whole life coverage
When an insurance appointment with an agent is terminated, the party must notify the agent
of the termination is the - ANSWER -Insurer
All of these statements concerning group credit life insurance are false EXEPT -
ANSWER -The face amount is based on the outstanding loan balance
Risk ____ is the process of analyzing exposures that create risk and designing programs to
handle them - ANSWER -management
The policy provision that permits an employee to change from group life coverage to an
individual life policy is called the - ANSWER -Conversation provision
A qualified profit-sharing plan is designed to - ANSWER -distribute a portion of company
earnings to its employees
