NYS LIFE INSURANCE EOC EXAM CORE QUESTIONS WITH
SOLUTIONS 2025 A+
✔✔Which of the following individuals must pass a written examination to be licensed as
agents?
A. An applicant who has a Chartered Life Underwriter (CLU) designation
B. A resident of New York wishing to transact business in New York
C. A nonresident licensee
D. A licensee who was licensed on July 1, 1987, to represent any assessment
corporation - ✔✔B. A resident of New York wishing to transact business in New York
None of the above listed individuals must take and pass a written examination in New
York to be licensed as an agent, except a New York resident wishing to act as an agent
✔✔All of the following are personal uses of life insurance EXCEPT
A. Cash accumulation
B. Buy-sell agreement
C. Survivor protection
D. Estate creation - ✔✔B. Buy-sell agreement
✔✔Which of the following applicants would NOT qualify for a Keogh Plan?
A. Someone who works for a self-employed individual
B. Someone who works 400 hours per year
C. Someone who has been employed for more than 12 months
D. Someone who is over 25 years of age - ✔✔B. Someone who works 400 hours per
year
A person must have worked at least 1,000 hours per year to be eligible for a Keogh
Plan
✔✔A tornado that destroys property would be an example of which of the following?
A. A peril
B. A pure risk
C. A loss
D. A physical hazard - ✔✔A. A peril
A peril is the cause of loss insured against in an insurance policy
✔✔All of the following are true of key person insurance EXCEPT
A. The key employee is the insured
B. The plan is funded by permanent insurance only
C. There is no limitation on the number of key employee plans in force at any one time
D. The employer is the owner, payor and beneficiary of the policy - ✔✔B. The plan is
funded by permanent insurance only
Key person coverage may be funded by any type of life insurance
✔✔Which of the following would NOT be considered an insurance producer?
A. An insurance broker
,B. A reinsurance intermediary
C. An insurance agent
D. An insurer's officer - ✔✔D. An insurer's officer
Insurance provider that means any person required to be licensed to sell, solicit or
negotiate insurance—including agents, brokers in intermediaries. Officers are not
required to be licensed
✔✔An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash value,
which is currently $20,000. What would be the face amount of the new term policy?
A. $20,000
B. $25,000
C. $50,000
D. The face amount will be determined by the insurer - ✔✔C. $50,000
The face of the term policy would be the same as the face amount provided under the
whole life policy
✔✔Which of the following riders will NOT cause the Death Benefit to increase?
A. Accidental Death Rider
B. Payor Benefit Rider
C. Guaranteed Insurability Rider
D. Cost of Living Rider - ✔✔B. Payor Benefit Rider
Payor Benefit Rider does not increase the Death Benefit; it only pays the premium if the
payor is disabled or dies. With Guaranteed Insurability Rider, the policyowner can
increase DB at specified ages or events, i.e. marriage or birth of a child; Cost of Living
Rider increases DB to keep pace with inflation; in Accidental Death Rider, if the insured
dies from an accident, DB is a multiple of the Face Amount
✔✔A life insurance policy does not have a war clause. If the insured is killed during a
time of war, what will the beneficiary receive from the policy?
A. The policy's cash value
B. A refund of premiums
C. Nothing, since the insured was killed as a result of war
D. The full death benefit - ✔✔D. The full death benefit
War or Military Service Clause specifically excludes or limits the insurer's liability for
losses caused by war or active military service. If a life insurance policy does not have
that exclusion, the benefits are paid to the beneficiary, as if the insured died of any other
cause
✔✔When must insurable interest exist in a life insurance policy?
A. At the time of loss
B. At the time of application
C. At the time of policy delivery
D. When there's a change of the beneficiary - ✔✔B. At the time of application
In life insurance, insurable interest must exist at the time of application
, ✔✔Under which installments option does the annuitant select the amount of each
payment, and the insurer determines how long they will pay benefits?
A. Fixed amount
B. Variable period
C. Variable amount
D. Fixed period - ✔✔A. Fixed amount
Under the installments for a fixed amount option, the annuitant selects the amount of
each payment, and the insurer determines how long they will pay benefits. This option
pays a specific amount until the funds are exhausted. There are no life contingencies
✔✔An insurer receives a report regarding a potential insured that includes the insured's
financial status, hobbies and habits. What type of report is that?
A. Agent's Report
B. Underwriter's Report
C. Inspection Report
D. Medical Information Bureau's report - ✔✔C. Inspection Report
inspection reports cover moral financial information regarding a potential insured,
usually supplied by private investigators and credit agencies you
✔✔Attempting to determine how much insurance an individual would require based on
their financial objectives is known as
A. Viatical Approach
B. Needs Approach
C. Human Life Value Approach
D. Estate Planning - ✔✔B. Needs Approach
Needs method determines how much benefit would be necessary to replace the loss
income and increased expense should the insured die prematurely
✔✔All of the following are examples of risk retention EXCEPT
A. Self-insurance
B. Premiums
C. Deductibles
D. Copayments - ✔✔B. Premiums
Retention is a planned assumption of risk, or acceptance of responsibility for the loss by
an insured through the use of deductibles, copayments, or self-insurance
✔✔Which of the following is the closest term to an authorized insurer?
A. Licensed
B. Legal
C. Admitted
D. Certified - ✔✔C. Admitted
Insurers who meet the state's financial requirements and are approved to transact
business in the state are considered authorized or admitted into the state as a legal
insurer
SOLUTIONS 2025 A+
✔✔Which of the following individuals must pass a written examination to be licensed as
agents?
A. An applicant who has a Chartered Life Underwriter (CLU) designation
B. A resident of New York wishing to transact business in New York
C. A nonresident licensee
D. A licensee who was licensed on July 1, 1987, to represent any assessment
corporation - ✔✔B. A resident of New York wishing to transact business in New York
None of the above listed individuals must take and pass a written examination in New
York to be licensed as an agent, except a New York resident wishing to act as an agent
✔✔All of the following are personal uses of life insurance EXCEPT
A. Cash accumulation
B. Buy-sell agreement
C. Survivor protection
D. Estate creation - ✔✔B. Buy-sell agreement
✔✔Which of the following applicants would NOT qualify for a Keogh Plan?
A. Someone who works for a self-employed individual
B. Someone who works 400 hours per year
C. Someone who has been employed for more than 12 months
D. Someone who is over 25 years of age - ✔✔B. Someone who works 400 hours per
year
A person must have worked at least 1,000 hours per year to be eligible for a Keogh
Plan
✔✔A tornado that destroys property would be an example of which of the following?
A. A peril
B. A pure risk
C. A loss
D. A physical hazard - ✔✔A. A peril
A peril is the cause of loss insured against in an insurance policy
✔✔All of the following are true of key person insurance EXCEPT
A. The key employee is the insured
B. The plan is funded by permanent insurance only
C. There is no limitation on the number of key employee plans in force at any one time
D. The employer is the owner, payor and beneficiary of the policy - ✔✔B. The plan is
funded by permanent insurance only
Key person coverage may be funded by any type of life insurance
✔✔Which of the following would NOT be considered an insurance producer?
A. An insurance broker
,B. A reinsurance intermediary
C. An insurance agent
D. An insurer's officer - ✔✔D. An insurer's officer
Insurance provider that means any person required to be licensed to sell, solicit or
negotiate insurance—including agents, brokers in intermediaries. Officers are not
required to be licensed
✔✔An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash value,
which is currently $20,000. What would be the face amount of the new term policy?
A. $20,000
B. $25,000
C. $50,000
D. The face amount will be determined by the insurer - ✔✔C. $50,000
The face of the term policy would be the same as the face amount provided under the
whole life policy
✔✔Which of the following riders will NOT cause the Death Benefit to increase?
A. Accidental Death Rider
B. Payor Benefit Rider
C. Guaranteed Insurability Rider
D. Cost of Living Rider - ✔✔B. Payor Benefit Rider
Payor Benefit Rider does not increase the Death Benefit; it only pays the premium if the
payor is disabled or dies. With Guaranteed Insurability Rider, the policyowner can
increase DB at specified ages or events, i.e. marriage or birth of a child; Cost of Living
Rider increases DB to keep pace with inflation; in Accidental Death Rider, if the insured
dies from an accident, DB is a multiple of the Face Amount
✔✔A life insurance policy does not have a war clause. If the insured is killed during a
time of war, what will the beneficiary receive from the policy?
A. The policy's cash value
B. A refund of premiums
C. Nothing, since the insured was killed as a result of war
D. The full death benefit - ✔✔D. The full death benefit
War or Military Service Clause specifically excludes or limits the insurer's liability for
losses caused by war or active military service. If a life insurance policy does not have
that exclusion, the benefits are paid to the beneficiary, as if the insured died of any other
cause
✔✔When must insurable interest exist in a life insurance policy?
A. At the time of loss
B. At the time of application
C. At the time of policy delivery
D. When there's a change of the beneficiary - ✔✔B. At the time of application
In life insurance, insurable interest must exist at the time of application
, ✔✔Under which installments option does the annuitant select the amount of each
payment, and the insurer determines how long they will pay benefits?
A. Fixed amount
B. Variable period
C. Variable amount
D. Fixed period - ✔✔A. Fixed amount
Under the installments for a fixed amount option, the annuitant selects the amount of
each payment, and the insurer determines how long they will pay benefits. This option
pays a specific amount until the funds are exhausted. There are no life contingencies
✔✔An insurer receives a report regarding a potential insured that includes the insured's
financial status, hobbies and habits. What type of report is that?
A. Agent's Report
B. Underwriter's Report
C. Inspection Report
D. Medical Information Bureau's report - ✔✔C. Inspection Report
inspection reports cover moral financial information regarding a potential insured,
usually supplied by private investigators and credit agencies you
✔✔Attempting to determine how much insurance an individual would require based on
their financial objectives is known as
A. Viatical Approach
B. Needs Approach
C. Human Life Value Approach
D. Estate Planning - ✔✔B. Needs Approach
Needs method determines how much benefit would be necessary to replace the loss
income and increased expense should the insured die prematurely
✔✔All of the following are examples of risk retention EXCEPT
A. Self-insurance
B. Premiums
C. Deductibles
D. Copayments - ✔✔B. Premiums
Retention is a planned assumption of risk, or acceptance of responsibility for the loss by
an insured through the use of deductibles, copayments, or self-insurance
✔✔Which of the following is the closest term to an authorized insurer?
A. Licensed
B. Legal
C. Admitted
D. Certified - ✔✔C. Admitted
Insurers who meet the state's financial requirements and are approved to transact
business in the state are considered authorized or admitted into the state as a legal
insurer
