NM LIFE,ACCIDENT AND HEALTH OR SICKNESS
INSURANCE PRODUCER EXAM QUESTIONS |
COMPLETELY SOVED |UPDATED 2026
How is the uninsured protected if a payor benefit is attached to the life insurance
policy? -ACCURATE ANSWER premium payments are waived in the event the
premium payor dies or becomes disabled
Which of the following health care plans charges a premium that cannot be
increased? -ACCURATE ANSWER Noncancelable
What is the effect of the market value adjustments in a market value adjustment
annuity? -ACCURATE ANSWER Transfers some of the investment risk to the
policyowner
Which type of life insurance policy allows the policyowner the choice of
investments along with flexible premium payments? -ACCURATE ANSWER
Variable Universal Life
Which of these is NOT considered to be a cost connected with an individual's
death? -ACCURATE ANSWER Business expenses
A (an) ___________ insurer assumes risk from another insurance company. -
ACCURATE ANSWER Reinsurance
When group insurance under COBRA have expired, a fully insured group policy
can be converted to a (an) -ACCURATE ANSWER Individual health policy
,The authority to change the beneficiary in an individual annuity lies with the -
ACCURATE ANSWER Owner
How are monthly life annuity benefit payments treated under a tax sheltered
annuity (TSA)? -ACCURATE ANSWER Taxed as an ordinary income in the year
recieved
Which individual would be best suited for Medicare Supplement Insurance? -
ACCURATE ANSWER Medicare enrollee
Which of the following is NOT an example as risk retention? -ACCURATE
ANSWER Not doing a business deal after deciding it would be too risky.
Tim is in need of surgery. Before being hospitalized, he is referred to an outpatient
clinic for diagnostic tests. What is this an example of? -ACCURATE ANSWER
Pre-admission testing
Does the Superintendent have the ability to examine the records of authorized
insurers? -ACCURATE ANSWER Yes, because of the powers granted through
state statues
Which statement about group life insurance is INCORRECT? -ACCURATE
ANSWER Each participant requires evidence of insurability
Medicare Part A does NOT provide coverage for -ACCURATE ANSWER The first
three pints of blood
, Darrell has a group long-term disability income policy paid by his employer.
Which of these statements is true? -ACCURATE ANSWER The specified benefit
amount is a percentage of his wages.
Twisting means -ACCURATE ANSWER Pursuading an insured, to the insured's
detriment, to switch policies.
What is the maxium number of employees (earning at least 5,000) that an
employer can have in order to start a SIMPLE retirement plan? -ACCURATE
ANSWER 100
The following are all elements of a valid contract EXCEPT -ACCURATE
ANSWER written evidence
Which of the following would permit an insurer to delay a covered disability
policy claim? -ACCURATE ANSWER Elimination period
Tom has a qualified retirement plan with his employer that is currently considered
to be 80% "vested". How can this be interpreted? -ACCURATE ANSWER If
Tom's employment is terminated, 20% of his funds could be forfeited.
When a ten year renewable term life insurance policy issued at age 45 is renewed,
the premium rate will be the current rate for -ACCURATE ANSWER Ten year
term insurance for a person aged 55.
What kind of arrangement gives the policyowner the right to change the
beneficiary? -ACCURATE ANSWER Revocable designation
INSURANCE PRODUCER EXAM QUESTIONS |
COMPLETELY SOVED |UPDATED 2026
How is the uninsured protected if a payor benefit is attached to the life insurance
policy? -ACCURATE ANSWER premium payments are waived in the event the
premium payor dies or becomes disabled
Which of the following health care plans charges a premium that cannot be
increased? -ACCURATE ANSWER Noncancelable
What is the effect of the market value adjustments in a market value adjustment
annuity? -ACCURATE ANSWER Transfers some of the investment risk to the
policyowner
Which type of life insurance policy allows the policyowner the choice of
investments along with flexible premium payments? -ACCURATE ANSWER
Variable Universal Life
Which of these is NOT considered to be a cost connected with an individual's
death? -ACCURATE ANSWER Business expenses
A (an) ___________ insurer assumes risk from another insurance company. -
ACCURATE ANSWER Reinsurance
When group insurance under COBRA have expired, a fully insured group policy
can be converted to a (an) -ACCURATE ANSWER Individual health policy
,The authority to change the beneficiary in an individual annuity lies with the -
ACCURATE ANSWER Owner
How are monthly life annuity benefit payments treated under a tax sheltered
annuity (TSA)? -ACCURATE ANSWER Taxed as an ordinary income in the year
recieved
Which individual would be best suited for Medicare Supplement Insurance? -
ACCURATE ANSWER Medicare enrollee
Which of the following is NOT an example as risk retention? -ACCURATE
ANSWER Not doing a business deal after deciding it would be too risky.
Tim is in need of surgery. Before being hospitalized, he is referred to an outpatient
clinic for diagnostic tests. What is this an example of? -ACCURATE ANSWER
Pre-admission testing
Does the Superintendent have the ability to examine the records of authorized
insurers? -ACCURATE ANSWER Yes, because of the powers granted through
state statues
Which statement about group life insurance is INCORRECT? -ACCURATE
ANSWER Each participant requires evidence of insurability
Medicare Part A does NOT provide coverage for -ACCURATE ANSWER The first
three pints of blood
, Darrell has a group long-term disability income policy paid by his employer.
Which of these statements is true? -ACCURATE ANSWER The specified benefit
amount is a percentage of his wages.
Twisting means -ACCURATE ANSWER Pursuading an insured, to the insured's
detriment, to switch policies.
What is the maxium number of employees (earning at least 5,000) that an
employer can have in order to start a SIMPLE retirement plan? -ACCURATE
ANSWER 100
The following are all elements of a valid contract EXCEPT -ACCURATE
ANSWER written evidence
Which of the following would permit an insurer to delay a covered disability
policy claim? -ACCURATE ANSWER Elimination period
Tom has a qualified retirement plan with his employer that is currently considered
to be 80% "vested". How can this be interpreted? -ACCURATE ANSWER If
Tom's employment is terminated, 20% of his funds could be forfeited.
When a ten year renewable term life insurance policy issued at age 45 is renewed,
the premium rate will be the current rate for -ACCURATE ANSWER Ten year
term insurance for a person aged 55.
What kind of arrangement gives the policyowner the right to change the
beneficiary? -ACCURATE ANSWER Revocable designation
