NY Life, Accident, and Health Insurance Agent/Broker
Exam Series 17-55| 200 QUESTIONS| GRADED A
New York Life, Accident & Health Insurance Agent/Broker
(Series 17-55)
Original Practice Exam – Part 1 (Questions 1–50)
Instructions: Select the best answer for each question. Only one
answer is correct.
1.
An insurance contract is considered an aleatory contract because:
A. Both parties exchange equal value.
B. Performance depends on an uncertain event.
C. Only the insurer makes a promise.
D. It must be written in legal language.
2.
Which characteristic distinguishes a contract of adhesion?
A. Negotiated equally by both parties
B. Drafted primarily by the insurer
C. Requires two witnesses
D. Can only be oral
,3.
Insurable interest in a life insurance policy must generally exist:
A. At the time of application.
B. At the time of death.
C. During every policy year.
D. Only after the first premium is paid.
4.
Which policyowner right is NOT typically included in an
individual life insurance policy?
A. Change beneficiary
B. Borrow against cash value
C. Increase dividends at will
D. Assign ownership
5.
A representation made on an insurance application is:
A. Always guaranteed true forever.
B. A statement believed to be true.
C. A warranty.
D. An incontestable fact.
6.
,Which type of authority is specifically granted to an insurance
producer through the agency contract?
A. Express authority
B. Implied authority
C. Apparent authority
D. Emergency authority
7.
The consideration given by the insurer in a life insurance contract
is:
A. The premium.
B. The application.
C. The promise to pay benefits.
D. The policy loan.
8.
The primary purpose of underwriting is to:
A. Increase commissions.
B. Determine acceptable risk.
C. Sell additional policies.
D. Reduce taxes.
9.
, Which risk classification represents the lowest expected
mortality?
A. Standard
B. Declined
C. Preferred
D. Substandard
10.
An applicant intentionally conceals a serious illness on an
insurance application. This is an example of:
A. Waiver
B. Estoppel
C. Misrepresentation
D. Assignment
11.
The policyowner of a whole life policy dies during the grace
period without paying the overdue premium. The insurer will
generally:
A. Deny the claim.
B. Pay the death benefit minus the premium owed.
C. Refund all premiums.
D. Reduce the face amount by half.
Exam Series 17-55| 200 QUESTIONS| GRADED A
New York Life, Accident & Health Insurance Agent/Broker
(Series 17-55)
Original Practice Exam – Part 1 (Questions 1–50)
Instructions: Select the best answer for each question. Only one
answer is correct.
1.
An insurance contract is considered an aleatory contract because:
A. Both parties exchange equal value.
B. Performance depends on an uncertain event.
C. Only the insurer makes a promise.
D. It must be written in legal language.
2.
Which characteristic distinguishes a contract of adhesion?
A. Negotiated equally by both parties
B. Drafted primarily by the insurer
C. Requires two witnesses
D. Can only be oral
,3.
Insurable interest in a life insurance policy must generally exist:
A. At the time of application.
B. At the time of death.
C. During every policy year.
D. Only after the first premium is paid.
4.
Which policyowner right is NOT typically included in an
individual life insurance policy?
A. Change beneficiary
B. Borrow against cash value
C. Increase dividends at will
D. Assign ownership
5.
A representation made on an insurance application is:
A. Always guaranteed true forever.
B. A statement believed to be true.
C. A warranty.
D. An incontestable fact.
6.
,Which type of authority is specifically granted to an insurance
producer through the agency contract?
A. Express authority
B. Implied authority
C. Apparent authority
D. Emergency authority
7.
The consideration given by the insurer in a life insurance contract
is:
A. The premium.
B. The application.
C. The promise to pay benefits.
D. The policy loan.
8.
The primary purpose of underwriting is to:
A. Increase commissions.
B. Determine acceptable risk.
C. Sell additional policies.
D. Reduce taxes.
9.
, Which risk classification represents the lowest expected
mortality?
A. Standard
B. Declined
C. Preferred
D. Substandard
10.
An applicant intentionally conceals a serious illness on an
insurance application. This is an example of:
A. Waiver
B. Estoppel
C. Misrepresentation
D. Assignment
11.
The policyowner of a whole life policy dies during the grace
period without paying the overdue premium. The insurer will
generally:
A. Deny the claim.
B. Pay the death benefit minus the premium owed.
C. Refund all premiums.
D. Reduce the face amount by half.
