NY LIFE INSURANCE
EXAM TEST BANK
Table of Contents
SECTION 1: INSURANCE REGULATION (Questions 1–50) .......................................................... 2
SECTION 2: GENERAL INSURANCE (Questions 51–100) ...........................................................24
SECTION 3: LIFE INSURANCE BASICS (Questions 101–200) ....................................................45
SECTION 4: LIFE INSURANCE POLICIES (Questions 201–275) .................................................90
SECTION 5: LIFE INSURANCE POLICY PROVISIONS, OPTIONS & RIDERS (Questions 276–375)
...............................................................................................................................................124
SECTION 6: ANNUITIES (Questions 376–430) ........................................................................170
SECTION 7: FEDERAL TAX CONSIDERATIONS (Questions 431–450) ......................................194
SECTION 8: QUALIFIED PLANS (Questions 451–470) .............................................................203
SECTION 9: LIFE SETTLEMENTS (Questions 471–500) ..........................................................212
,SECTION 1: INSURANCE REGULATION
(Questions 1–50)
1. Which of the following is a primary eligibility requirement for a resident individual to
be licensed as a life insurance producer in New York?
a. Attainment of at least 21 years of age.
b. Possession of a college degree in finance or business.
c. Successful completion of a pre-licensing course and passing a written examination.
d. Minimum of three years of experience in the insurance industry.
ANS: c.
Rationale: In New York, resident applicants for an insurance producer license must
complete the prescribed pre-licensing education requirements and pass the applicable
state written examination.
2. Under New York insurance law, which of the following activities is included in the
definition of 'soliciting' insurance?
a. Providing administrative support for policy issuance.
b. Attempting to persuade a person to purchase insurance from a particular insurer.
c. Conducting an inspection report for an insurer.
d. Processing a claim on behalf of an insurer.
ANS: b.
Rationale: Soliciting involves attempting to persuade a person to apply for a particular
kind of insurance policy from a specific insurer, which is a regulated act requiring
licensure.
,3. What is the maximum duration for a temporary insurance producer license issued by
the Superintendent in New York?
a. 30 days
b. 60 days
c. 90 days
d. 180 days
ANS: c.
Rationale: A temporary license in New York may be issued for a maximum of 90 days,
typically to allow for the orderly transition of a business in the event of an agent's
death or disability.
4. Within how many days must a licensed insurance producer notify the New York
Superintendent of Financial Services regarding a change of business address?
a. 10 days
b. 20 days
c. 30 days
d. 60 days
ANS: c.
Rationale: New York insurance law mandates that all licensees must notify the
Superintendent of any change of residence or business address within 30 days of the
change.
5. How many hours of continuing education (CE) must a licensed life insurance
producer complete in New York during each biennial licensing period?
a. 10 hours
, b. 15 hours
c. 24 hours
d. 30 hours
ANS: b.
Rationale: To maintain licensure, New York insurance producers are required to
complete 15 hours of approved continuing education coursework every two years.
6. When an insurer terminates an agent's appointment, how many days does the
insurer have to notify the Superintendent of the termination?
a. 10 days
b. 15 days
c. 30 days
d. 60 days
ANS: c.
Rationale: If an insurer terminates the appointment of an insurance producer, the
insurer must file a notice of termination with the Superintendent within 30 days of the
termination date.
7. An agent wishes to sell policies for a specific insurer. Which of the following is
required before the agent can legally perform this action in New York?
a. The agent must provide a security bond to the insurer.
b. The agent must have a written agreement or appointment in place with that insurer.
c. The agent must obtain permission from the Better Business Bureau.
d. The agent must work exclusively for that insurer.
EXAM TEST BANK
Table of Contents
SECTION 1: INSURANCE REGULATION (Questions 1–50) .......................................................... 2
SECTION 2: GENERAL INSURANCE (Questions 51–100) ...........................................................24
SECTION 3: LIFE INSURANCE BASICS (Questions 101–200) ....................................................45
SECTION 4: LIFE INSURANCE POLICIES (Questions 201–275) .................................................90
SECTION 5: LIFE INSURANCE POLICY PROVISIONS, OPTIONS & RIDERS (Questions 276–375)
...............................................................................................................................................124
SECTION 6: ANNUITIES (Questions 376–430) ........................................................................170
SECTION 7: FEDERAL TAX CONSIDERATIONS (Questions 431–450) ......................................194
SECTION 8: QUALIFIED PLANS (Questions 451–470) .............................................................203
SECTION 9: LIFE SETTLEMENTS (Questions 471–500) ..........................................................212
,SECTION 1: INSURANCE REGULATION
(Questions 1–50)
1. Which of the following is a primary eligibility requirement for a resident individual to
be licensed as a life insurance producer in New York?
a. Attainment of at least 21 years of age.
b. Possession of a college degree in finance or business.
c. Successful completion of a pre-licensing course and passing a written examination.
d. Minimum of three years of experience in the insurance industry.
ANS: c.
Rationale: In New York, resident applicants for an insurance producer license must
complete the prescribed pre-licensing education requirements and pass the applicable
state written examination.
2. Under New York insurance law, which of the following activities is included in the
definition of 'soliciting' insurance?
a. Providing administrative support for policy issuance.
b. Attempting to persuade a person to purchase insurance from a particular insurer.
c. Conducting an inspection report for an insurer.
d. Processing a claim on behalf of an insurer.
ANS: b.
Rationale: Soliciting involves attempting to persuade a person to apply for a particular
kind of insurance policy from a specific insurer, which is a regulated act requiring
licensure.
,3. What is the maximum duration for a temporary insurance producer license issued by
the Superintendent in New York?
a. 30 days
b. 60 days
c. 90 days
d. 180 days
ANS: c.
Rationale: A temporary license in New York may be issued for a maximum of 90 days,
typically to allow for the orderly transition of a business in the event of an agent's
death or disability.
4. Within how many days must a licensed insurance producer notify the New York
Superintendent of Financial Services regarding a change of business address?
a. 10 days
b. 20 days
c. 30 days
d. 60 days
ANS: c.
Rationale: New York insurance law mandates that all licensees must notify the
Superintendent of any change of residence or business address within 30 days of the
change.
5. How many hours of continuing education (CE) must a licensed life insurance
producer complete in New York during each biennial licensing period?
a. 10 hours
, b. 15 hours
c. 24 hours
d. 30 hours
ANS: b.
Rationale: To maintain licensure, New York insurance producers are required to
complete 15 hours of approved continuing education coursework every two years.
6. When an insurer terminates an agent's appointment, how many days does the
insurer have to notify the Superintendent of the termination?
a. 10 days
b. 15 days
c. 30 days
d. 60 days
ANS: c.
Rationale: If an insurer terminates the appointment of an insurance producer, the
insurer must file a notice of termination with the Superintendent within 30 days of the
termination date.
7. An agent wishes to sell policies for a specific insurer. Which of the following is
required before the agent can legally perform this action in New York?
a. The agent must provide a security bond to the insurer.
b. The agent must have a written agreement or appointment in place with that insurer.
c. The agent must obtain permission from the Better Business Bureau.
d. The agent must work exclusively for that insurer.
