1
NY Life Insurance Exam Review/ Quizzes & Correct
Ans with Rationales/ .2025
Based on the Human Life Value Approach, which of the following is NOT used to
calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
D. Insured's current and future income - (ANSWER)C. Predicted needs of the
family after the insured's death.
The Human Life Value Approach to determining the value of an individual's life
requires the calculation of probable future earnings of the insured, which involves
wages, expenses, inflation, amount of time until retirement, and the time value of
money. Predicted needs of the family after the insured's death are used in the
needs approach
Can the Superintendent investigate fraudulent claims if they occurred outside of
the resident's state according to the Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation within this
state or outside of the state
B. Yes, but only if it is a violation of another state's insurance law
C. No. Because insurance is regulated by the state, all claims must occur within
state boundaries
D. No. If fraudulent acts are believed to have been committed, the
Superintendent must notify the state's Superintendent or Commissioner. It will
then become a federal matter - (ANSWER)A. Yes. The Superintendent has the
power to make an investigation within this state or outside of the state
, 2
If the insurance frauds bureau has reason to believe that a person is engaged or is
about to engage in a fraudulent act, the Superintendent has the power to make
an investigation within this state or outside the state
Which settlement option allows the insurer to retain the face amount but pay
some income based on gain on the proceeds to the beneficiary at regular
intervals?
A. Interest only
B. Life income
C. Fixed amount
D. Fixed period - (ANSWER)A. Interest only
Within the "interest only" option, the insurer retains policy proceeds and pays
interest on the proceeds to the beneficiary at regular intervals. The insurer will
usually guarantee an interest rate and even pay in excess of the rate quoted
In order to be a licensed life settlement broker, a person must complete which of
the following requirements?
A. Post a surety bond
B. Submit to a drug test
C. Submit fingerprints
D. Have been a licensed life producer for at least 6 months - (ANSWER)C. Submit
fingerprints
How long does a licensee have to notify the Superintendent of a change of
address?
, 3
A. 90 days
B. Immediately
C. 30 days
D. 60 days - (ANSWER)C. 30 days
The Superintendent must be notified within 30 days upon any of a change of
primary residence or business address
Which of the following would be deducted from the death benefit paid to a
beneficiary, if a partial accelerated death benefit had been paid while the insured
was still alive?
A. Amount paid with the accelerated benefit, plus the earnings lost by the
insurance company in interest income from the accelerated benefit
B. There are no deductions taken from death benefits
C. Penalty imposed for early withdrawal of the death benefit, plus the amount of
earnings lost by the insurance company in interest income
C. 10% federal death benefit income tax, plus the amount of the accelerated
benefit - (ANSWER)A. Amount paid with the accelerated benefit, plus the earnings
lost by the insurance company in interest income from the accelerated benefit
If an insured withdraws a portion of the death benefit by the use of this rider, the
benefit payable at death will be reduced by that amount, plus the amount of
earnings lost by the insurance company in interest income
Which of the following statements concerning a Simplified Employee Pension plan
(SEP) in INCORRECT?
, 4
A. SEPs allow the employer to make annual tax deductible contributions up to
25% of an employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
C. Employer contributions are not included int he employee's gross income
D. SEPs are suitable for large companies - (ANSWER)D. SEPs are suitable for large
companies
An employee is joining a group insurance plan. In order to avoid having to prove
insurability, what must the employee do?
A. Join during the open enrollment period
B. Provide medical records to the insurer
C. Sign a statement of contributed good health
D. Nothing: proof of insurability is never required in group policies - (ANSWER)A.
Join during the open enrollment period
If one applies for coverage after the open enrollment period, proof of insurability
may be required in order to avoid adverse selection
Which of the following best describes the MIB?
A. It is a nonprofit organization that maintains underwriting information on
applicants for life and health insurance
B. it is a government agency that collects
C. It is a member organization that protects insured against insolvent insurers
NY Life Insurance Exam Review/ Quizzes & Correct
Ans with Rationales/ .2025
Based on the Human Life Value Approach, which of the following is NOT used to
calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
D. Insured's current and future income - (ANSWER)C. Predicted needs of the
family after the insured's death.
The Human Life Value Approach to determining the value of an individual's life
requires the calculation of probable future earnings of the insured, which involves
wages, expenses, inflation, amount of time until retirement, and the time value of
money. Predicted needs of the family after the insured's death are used in the
needs approach
Can the Superintendent investigate fraudulent claims if they occurred outside of
the resident's state according to the Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation within this
state or outside of the state
B. Yes, but only if it is a violation of another state's insurance law
C. No. Because insurance is regulated by the state, all claims must occur within
state boundaries
D. No. If fraudulent acts are believed to have been committed, the
Superintendent must notify the state's Superintendent or Commissioner. It will
then become a federal matter - (ANSWER)A. Yes. The Superintendent has the
power to make an investigation within this state or outside of the state
, 2
If the insurance frauds bureau has reason to believe that a person is engaged or is
about to engage in a fraudulent act, the Superintendent has the power to make
an investigation within this state or outside the state
Which settlement option allows the insurer to retain the face amount but pay
some income based on gain on the proceeds to the beneficiary at regular
intervals?
A. Interest only
B. Life income
C. Fixed amount
D. Fixed period - (ANSWER)A. Interest only
Within the "interest only" option, the insurer retains policy proceeds and pays
interest on the proceeds to the beneficiary at regular intervals. The insurer will
usually guarantee an interest rate and even pay in excess of the rate quoted
In order to be a licensed life settlement broker, a person must complete which of
the following requirements?
A. Post a surety bond
B. Submit to a drug test
C. Submit fingerprints
D. Have been a licensed life producer for at least 6 months - (ANSWER)C. Submit
fingerprints
How long does a licensee have to notify the Superintendent of a change of
address?
, 3
A. 90 days
B. Immediately
C. 30 days
D. 60 days - (ANSWER)C. 30 days
The Superintendent must be notified within 30 days upon any of a change of
primary residence or business address
Which of the following would be deducted from the death benefit paid to a
beneficiary, if a partial accelerated death benefit had been paid while the insured
was still alive?
A. Amount paid with the accelerated benefit, plus the earnings lost by the
insurance company in interest income from the accelerated benefit
B. There are no deductions taken from death benefits
C. Penalty imposed for early withdrawal of the death benefit, plus the amount of
earnings lost by the insurance company in interest income
C. 10% federal death benefit income tax, plus the amount of the accelerated
benefit - (ANSWER)A. Amount paid with the accelerated benefit, plus the earnings
lost by the insurance company in interest income from the accelerated benefit
If an insured withdraws a portion of the death benefit by the use of this rider, the
benefit payable at death will be reduced by that amount, plus the amount of
earnings lost by the insurance company in interest income
Which of the following statements concerning a Simplified Employee Pension plan
(SEP) in INCORRECT?
, 4
A. SEPs allow the employer to make annual tax deductible contributions up to
25% of an employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
C. Employer contributions are not included int he employee's gross income
D. SEPs are suitable for large companies - (ANSWER)D. SEPs are suitable for large
companies
An employee is joining a group insurance plan. In order to avoid having to prove
insurability, what must the employee do?
A. Join during the open enrollment period
B. Provide medical records to the insurer
C. Sign a statement of contributed good health
D. Nothing: proof of insurability is never required in group policies - (ANSWER)A.
Join during the open enrollment period
If one applies for coverage after the open enrollment period, proof of insurability
may be required in order to avoid adverse selection
Which of the following best describes the MIB?
A. It is a nonprofit organization that maintains underwriting information on
applicants for life and health insurance
B. it is a government agency that collects
C. It is a member organization that protects insured against insolvent insurers
