NYS LIFE ACCIDENT AND HEALTH
INSURANCE EXAM 2024 COMPLETE 450
QUESTIONS WITH 100% CORRECT
DETAILED AND VERIFIED ANSWERS
BRAND NEW EXAM
ALREADY GRADED A+
If Sally owned a $200,000 life insurance policy with an
accidental death benefit ride (ADB), and Sally was
accidentally struck by a truck on June 3, 2016 but died
of her injuries on July 10, 2016, what would be the
payout to her beneficiary?
A. $400,000
B. Only the premium paid in
C. $200,000
D. Beneficiary not entitled to receive the death benefit
due to the date Sally died -
....ANSWER...Answer: A. $400,000
The ADB commonly pays out double the face value of the
rider ($200,000 x 2 = $400,000). Some companies may
even pay out triple or quadruple the face value, but this
would be stated- otherwise, assume double.
1
,The death benefit is paid out because Sally's death was a
direct cause of her accidental injuries. It was also within
the specified time frame of 90 days.
Jenny is told by her agent that if she opts to add this
rider benefit to her life insurance policy, the insurer, in
the event of her total disability (for at least 6 months),
would pay her premiums to a specified date or age:
A. Waiver of cost of insurance
B. Disability Income Rider
C. Waiver of Premium
D. Disability buy out rider - ....ANSWER...Answer: C.
Waiver of Premium
With the Waiver of Premium, the company will pay her
premiums in the event of total disability for a set amount
of time and to a certain age.
In contrast, the Waiver of cost of insurance is the same
provision, just for a Universal life policy.
If a loan is taken out against a life insurance policy and
the insured dies prior to the loan being paid off, the
insurance company would generally:
2
,A. Pay the entire death benefit to the beneficiary and
write off the outstanding loan balance
B. Have the beneficiary pay off the outstanding loan
within 6 months of the death, before the insurance
company will pay the entire death benefit
C. Defer paying the death proceeds until 6 months
have transpired from the date of death
D. Pay the death benefit to the beneficiary minus the
outstanding loan principle and any accrued interest -
....ANSWER...Answer: D. Pay the death benefit to the
beneficiary minus the outstanding loan principle and any
accrued interest
The insurance company cannot withhold the death
benefit payout, and cannot hold the beneficiary
responsible for paying off the loan. The loan would be
taken out of the death benefit along with any interest.
All of the following are available dividend options on a
participating whole life policy except:
A. Reduced paid up insurance
B. One year term
3
, C. Accumulations at interest
D. Paid up additions - ....ANSWER...Answer: A.
Reduced paid up insurance
Reduced paid up insurance is a non-forfeiture benefit,
not a dividend option.
Upon the advice of their agent, Joan and Bert have taken
out a specific life insurance policy that will pay their
calculated Federal estate taxes after both have passed
away. Which policy have they purchased?
A. Joint Life
B. Joint and Survivorship
C. Payor Benefit Life
D. None of the above - ....ANSWER...Answer: Joint
and Survivorship
Joint and Survivorship policies only pay out upon the
second death of the insureds. A regular Joint Life policy
pays out after the first death.
An annuity can provide which of the following?
4
INSURANCE EXAM 2024 COMPLETE 450
QUESTIONS WITH 100% CORRECT
DETAILED AND VERIFIED ANSWERS
BRAND NEW EXAM
ALREADY GRADED A+
If Sally owned a $200,000 life insurance policy with an
accidental death benefit ride (ADB), and Sally was
accidentally struck by a truck on June 3, 2016 but died
of her injuries on July 10, 2016, what would be the
payout to her beneficiary?
A. $400,000
B. Only the premium paid in
C. $200,000
D. Beneficiary not entitled to receive the death benefit
due to the date Sally died -
....ANSWER...Answer: A. $400,000
The ADB commonly pays out double the face value of the
rider ($200,000 x 2 = $400,000). Some companies may
even pay out triple or quadruple the face value, but this
would be stated- otherwise, assume double.
1
,The death benefit is paid out because Sally's death was a
direct cause of her accidental injuries. It was also within
the specified time frame of 90 days.
Jenny is told by her agent that if she opts to add this
rider benefit to her life insurance policy, the insurer, in
the event of her total disability (for at least 6 months),
would pay her premiums to a specified date or age:
A. Waiver of cost of insurance
B. Disability Income Rider
C. Waiver of Premium
D. Disability buy out rider - ....ANSWER...Answer: C.
Waiver of Premium
With the Waiver of Premium, the company will pay her
premiums in the event of total disability for a set amount
of time and to a certain age.
In contrast, the Waiver of cost of insurance is the same
provision, just for a Universal life policy.
If a loan is taken out against a life insurance policy and
the insured dies prior to the loan being paid off, the
insurance company would generally:
2
,A. Pay the entire death benefit to the beneficiary and
write off the outstanding loan balance
B. Have the beneficiary pay off the outstanding loan
within 6 months of the death, before the insurance
company will pay the entire death benefit
C. Defer paying the death proceeds until 6 months
have transpired from the date of death
D. Pay the death benefit to the beneficiary minus the
outstanding loan principle and any accrued interest -
....ANSWER...Answer: D. Pay the death benefit to the
beneficiary minus the outstanding loan principle and any
accrued interest
The insurance company cannot withhold the death
benefit payout, and cannot hold the beneficiary
responsible for paying off the loan. The loan would be
taken out of the death benefit along with any interest.
All of the following are available dividend options on a
participating whole life policy except:
A. Reduced paid up insurance
B. One year term
3
, C. Accumulations at interest
D. Paid up additions - ....ANSWER...Answer: A.
Reduced paid up insurance
Reduced paid up insurance is a non-forfeiture benefit,
not a dividend option.
Upon the advice of their agent, Joan and Bert have taken
out a specific life insurance policy that will pay their
calculated Federal estate taxes after both have passed
away. Which policy have they purchased?
A. Joint Life
B. Joint and Survivorship
C. Payor Benefit Life
D. None of the above - ....ANSWER...Answer: Joint
and Survivorship
Joint and Survivorship policies only pay out upon the
second death of the insureds. A regular Joint Life policy
pays out after the first death.
An annuity can provide which of the following?
4
