New York State Life and Health
Insurance Questions Licensing Exam
with Already Solved Solutions 2026-2027
Updated.
The primary purpose of a rating service company is... - Answer to determine the rated
insurance company's financial strength
The accounting measurement of an insurer's future obligations to its policyholders is called its...
- Answer reserves
Indicates a company's ability to make unpredictable payouts. - Answer Liquidity
A nonparticipating company is sometimes called a(n)... - Answer A stock insurer is referred to
as a nonparticipating company because policyholders do not participate in dividends resulting
from stock ownership.
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called... - Answer a self-funded plan
What is considered to be the primary reason for buying life insurance? - Answer The primary
reason for purchasing life insurance is to provide death benefits.
A type of insurer that is owned by its policyowners is called... - Answer A mutual insurer.
What kind of life insurance policy issued by a mutual insurer provides a return of divisible
surplus? - Answer Participating life insurance policy.
A nonparticipating policy will not... - Answer pay dividends.
A(n) ______ company is owned by its shareholders. - Answer A stock company.
Ken is a producer who has obtained Consumer Information Reports under false pretenses.
Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on
Ken? - Answer $5,000 and up to 1 year of imprisonment.
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT... -
Answer insurance sales calls.
,What is the primary purpose of a rating service company such as A.M Best? - Answer
Determine financial strength of an insurance company.
A nonparticipating company is sometimes called a(n)... - Answer stock insurer.
What happens if the insurer discovers that the insured's age was accidentally misstated on an
application for an individual life insurance policy? - Answer Benefits will be calculated
according to how much coverage the premium paid would have purchased for the correct age.
Janice forgot to make her insurance premium payment by the due date. The specified period
after the due date where she can still make payment and avoid discontinuance of her coverage
is called the... - Answer grace period.
An advertisement for an insurance product may contain
a- exaggerated benefit amounts
b- deceptive information
c-the Guaranty Fund's endorsement for this product
d- the insurer's name - Answer d- the insurer's name
A carrier for a small group health plan may refuse to renew the plan if the employer...
a- fails to generate minimum revenues
b- fails to pay the premium
c- exceeds a specified number of claims
d- falls below a minimum AM Best rating - Answer b- fails to pay the premium
An agent does NOT have a fiduciary responsibility to...
a- the New York Guaranty Association
b- applicants
c- insurers
d- insureds - Answer a- the New York Guaranty Association
An agent has committed an insurance crime that violates US Code 1033 (interstate commerce).
Who would be responsible for the prosecution of this crime?
a- State Senate
b- Superintendent
c- US Attorney General
,d- Lieutenant Governor - Answer A violation of US Code 1033, crimes by or affecting persons
engaged in the business of insurance whose activities affect interstate commerce, is prosecuted
by the US Attorney General. Superintendent handles state-level violations. Lieutenant Governor
is not involved in criminal prosecution. State Senate is a legislative body, not a prosecuting
authority. Key test point: US Code 1033 violations are prosecuted by the US Attorney General.
An agent may be disciplined by the Superintendent for which of the following actions?
a- Misappropriation of premium funds
b- Sharing commissions with other licensed producers
c- Being accused of a felony
d- Failing to meet insurer production requirements - Answer a- Misappropriation of premium
funds
Coverage for newborns under an accident and health plan MUST include coverage for...
a- lost wages of the mother
b- birth abnormalities
c- delivery costs
d- disability of the mother - Answer b- birth abnormalities
When the insured gives birth, coverage for eligible newly born children consists of coverage for
injury or sickness including birth abnormalities.
If a new enrollee to a group health plan has had previous creditable coverage for up to ___ days
prior to enrollment, the Pre-existing Condition Provision will apply.
a- 43
b- 53
c- 73
d- 63 - Answer d- 63
A Pre-existing Condition Provision applies to a covered person if the previous creditable
coverage was continuous to a date not more than 63 days prior to the enrollment date of the
new coverage.
--> Trick to remember this: 2 months + 3 days = 63 days"
If an insurer refuses to pay a claim, how many days must the insured wait to take legal action
against a health insurer after submitting written proof of loss?
a- 50
, b- 30
c- 60
d- 40 - Answer c- 60
Although the Time Payment of claims provision requires the claim to be paid immediately, legal
action against the insurer for failure to pay timely cannot commence until 60 days after proof of
loss is furnished.
--> Trick to remember this: Proof of loss --> Wait 60 days --> Then can sue.
If the cause of death appears to be accidental, an insurer may require a(n)...
a- autopsy
b- hospital report
c- background check
d- police report - Answer a- autopsy
An example of an Unfair Claims Settlement Practice is
a- Making it mandatory that proof of loss be provided for each claim
b- Requiring a time limit for submitting a claim
c- Failing to promptly provide reasonable explanations for the denial of claims
d- Paying a claim in a timely matter - Answer c- Failing to promptly provide reasonable
explanations for the denial of claims
An insurance company that consistently fails to provide reasonable explanations for the denial
of a claim is committing an unfair claim settlement.
Long-term care policies sold in New York may exclude coverage related to...
a- substance addictions
b- injuries
c- Alzheimer's disease
d- dementia - Answer a- substance addictions
Coverage for alcohol and drug addictions is excluded under long term care insurance in New
York.
The required grace period for an accident and health policy is ___ days for weekly premium
policies.
Insurance Questions Licensing Exam
with Already Solved Solutions 2026-2027
Updated.
The primary purpose of a rating service company is... - Answer to determine the rated
insurance company's financial strength
The accounting measurement of an insurer's future obligations to its policyholders is called its...
- Answer reserves
Indicates a company's ability to make unpredictable payouts. - Answer Liquidity
A nonparticipating company is sometimes called a(n)... - Answer A stock insurer is referred to
as a nonparticipating company because policyholders do not participate in dividends resulting
from stock ownership.
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called... - Answer a self-funded plan
What is considered to be the primary reason for buying life insurance? - Answer The primary
reason for purchasing life insurance is to provide death benefits.
A type of insurer that is owned by its policyowners is called... - Answer A mutual insurer.
What kind of life insurance policy issued by a mutual insurer provides a return of divisible
surplus? - Answer Participating life insurance policy.
A nonparticipating policy will not... - Answer pay dividends.
A(n) ______ company is owned by its shareholders. - Answer A stock company.
Ken is a producer who has obtained Consumer Information Reports under false pretenses.
Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on
Ken? - Answer $5,000 and up to 1 year of imprisonment.
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT... -
Answer insurance sales calls.
,What is the primary purpose of a rating service company such as A.M Best? - Answer
Determine financial strength of an insurance company.
A nonparticipating company is sometimes called a(n)... - Answer stock insurer.
What happens if the insurer discovers that the insured's age was accidentally misstated on an
application for an individual life insurance policy? - Answer Benefits will be calculated
according to how much coverage the premium paid would have purchased for the correct age.
Janice forgot to make her insurance premium payment by the due date. The specified period
after the due date where she can still make payment and avoid discontinuance of her coverage
is called the... - Answer grace period.
An advertisement for an insurance product may contain
a- exaggerated benefit amounts
b- deceptive information
c-the Guaranty Fund's endorsement for this product
d- the insurer's name - Answer d- the insurer's name
A carrier for a small group health plan may refuse to renew the plan if the employer...
a- fails to generate minimum revenues
b- fails to pay the premium
c- exceeds a specified number of claims
d- falls below a minimum AM Best rating - Answer b- fails to pay the premium
An agent does NOT have a fiduciary responsibility to...
a- the New York Guaranty Association
b- applicants
c- insurers
d- insureds - Answer a- the New York Guaranty Association
An agent has committed an insurance crime that violates US Code 1033 (interstate commerce).
Who would be responsible for the prosecution of this crime?
a- State Senate
b- Superintendent
c- US Attorney General
,d- Lieutenant Governor - Answer A violation of US Code 1033, crimes by or affecting persons
engaged in the business of insurance whose activities affect interstate commerce, is prosecuted
by the US Attorney General. Superintendent handles state-level violations. Lieutenant Governor
is not involved in criminal prosecution. State Senate is a legislative body, not a prosecuting
authority. Key test point: US Code 1033 violations are prosecuted by the US Attorney General.
An agent may be disciplined by the Superintendent for which of the following actions?
a- Misappropriation of premium funds
b- Sharing commissions with other licensed producers
c- Being accused of a felony
d- Failing to meet insurer production requirements - Answer a- Misappropriation of premium
funds
Coverage for newborns under an accident and health plan MUST include coverage for...
a- lost wages of the mother
b- birth abnormalities
c- delivery costs
d- disability of the mother - Answer b- birth abnormalities
When the insured gives birth, coverage for eligible newly born children consists of coverage for
injury or sickness including birth abnormalities.
If a new enrollee to a group health plan has had previous creditable coverage for up to ___ days
prior to enrollment, the Pre-existing Condition Provision will apply.
a- 43
b- 53
c- 73
d- 63 - Answer d- 63
A Pre-existing Condition Provision applies to a covered person if the previous creditable
coverage was continuous to a date not more than 63 days prior to the enrollment date of the
new coverage.
--> Trick to remember this: 2 months + 3 days = 63 days"
If an insurer refuses to pay a claim, how many days must the insured wait to take legal action
against a health insurer after submitting written proof of loss?
a- 50
, b- 30
c- 60
d- 40 - Answer c- 60
Although the Time Payment of claims provision requires the claim to be paid immediately, legal
action against the insurer for failure to pay timely cannot commence until 60 days after proof of
loss is furnished.
--> Trick to remember this: Proof of loss --> Wait 60 days --> Then can sue.
If the cause of death appears to be accidental, an insurer may require a(n)...
a- autopsy
b- hospital report
c- background check
d- police report - Answer a- autopsy
An example of an Unfair Claims Settlement Practice is
a- Making it mandatory that proof of loss be provided for each claim
b- Requiring a time limit for submitting a claim
c- Failing to promptly provide reasonable explanations for the denial of claims
d- Paying a claim in a timely matter - Answer c- Failing to promptly provide reasonable
explanations for the denial of claims
An insurance company that consistently fails to provide reasonable explanations for the denial
of a claim is committing an unfair claim settlement.
Long-term care policies sold in New York may exclude coverage related to...
a- substance addictions
b- injuries
c- Alzheimer's disease
d- dementia - Answer a- substance addictions
Coverage for alcohol and drug addictions is excluded under long term care insurance in New
York.
The required grace period for an accident and health policy is ___ days for weekly premium
policies.
