New Mexico Life and Health Insurance
Exam Review. Questions with Correct
Answers Latest 2026-2027. Graded A
A business may purchase an annuity for all of the following reasons
EXCEPT - ANSinformally funding a non-qualified deferred compensation
plan
A Guaranteed Renewable provision allows - ANSpremiums which can only
be increased per rate class
A Health Reimbursement Arrangement MUST be established - ANSby the
employer
A Keogh plan is a(n) - ANSqualified retirement plan for the self employed
A life insurance policy becomes incontestable after it has been in force for -
ANStypically 2 years
A life insurance policy provision that has the ability to reduce the death
benefit is called the - ANSaccelerated (living) benefit
A life insurance policy that contains an accelerated (living) benefit rider will
provide funds if the - ANSinsured is expected to be confined to a nursing
home for life
1
, A life insurance REPLACEMENT transaction gives the policyowner the
right to return the policy for a 100% refund within ___ days of policy
delivery. - ANSwithin 30 days
A notice of information practices must be given to a policyholder at LEAST
every ___ year(s) - ANSevery three years
A reciprocal insurer typically has an administrator who manages the
premiums collected from the group's members. This administrator is called
a(n) - ANSattorney-in-fact
ABC Corporation purchases and is beneficiary of an individual disability
income insurance policy on a key employee. Which of the following
statements is true? - ANSBenefits are received tax-free by the company
After the extended term life nonforfeiture option is chosen, the available
insurance will be - ANSlevel term for a stated period of time
All long-term care policies sold in New Mexico are REQUIRED to pay the
SAME daily benefit amount for "at home" care as compared to - ANSthe
daily amount paid for nursing home care
All of the following actions are considered rebating EXCEPT - ANSsharing
commissions with other licensed and appointed agents
2
Exam Review. Questions with Correct
Answers Latest 2026-2027. Graded A
A business may purchase an annuity for all of the following reasons
EXCEPT - ANSinformally funding a non-qualified deferred compensation
plan
A Guaranteed Renewable provision allows - ANSpremiums which can only
be increased per rate class
A Health Reimbursement Arrangement MUST be established - ANSby the
employer
A Keogh plan is a(n) - ANSqualified retirement plan for the self employed
A life insurance policy becomes incontestable after it has been in force for -
ANStypically 2 years
A life insurance policy provision that has the ability to reduce the death
benefit is called the - ANSaccelerated (living) benefit
A life insurance policy that contains an accelerated (living) benefit rider will
provide funds if the - ANSinsured is expected to be confined to a nursing
home for life
1
, A life insurance REPLACEMENT transaction gives the policyowner the
right to return the policy for a 100% refund within ___ days of policy
delivery. - ANSwithin 30 days
A notice of information practices must be given to a policyholder at LEAST
every ___ year(s) - ANSevery three years
A reciprocal insurer typically has an administrator who manages the
premiums collected from the group's members. This administrator is called
a(n) - ANSattorney-in-fact
ABC Corporation purchases and is beneficiary of an individual disability
income insurance policy on a key employee. Which of the following
statements is true? - ANSBenefits are received tax-free by the company
After the extended term life nonforfeiture option is chosen, the available
insurance will be - ANSlevel term for a stated period of time
All long-term care policies sold in New Mexico are REQUIRED to pay the
SAME daily benefit amount for "at home" care as compared to - ANSthe
daily amount paid for nursing home care
All of the following actions are considered rebating EXCEPT - ANSsharing
commissions with other licensed and appointed agents
2
