NM Life Insurance Final Exam Mock Test Questions and answers Newest RATED A+ 100% VERIFIED CORRECT 2025/2026

NM Life Insurance Final Exam Mock Test Questions and
answers Newest RATED A+ 100% VERIFIED CORRECT
2025/2026
How is the uninsured protected if a payor benefit is attached to the life insurance policy?
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premium payments are waived in the event the premium payor dies or becomes disabled
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Which of the following health care plans charges a premium that cannot be increased?
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Noncancelable

What is the effect of the market value adjustments in a market value adjustment annuity?
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Transfers some of the investment risk to the policyowner Il` Il` Il` Il` Il` Il` Il` Il`




Which type of life insurance policy allows the policyowner the choice of investments along with
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flexible premium payments?
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Variable Universal Life Il` Il`




Which of these is NOT considered to be a cost connected with an individual's death?
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Business expenses Il`




A (an) ___________ insurer assumes risk from another insurance company.
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Reinsurance

When group insurance under COBRA have expired, a fully insured group policy can be converted
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to a (an)
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Individual health policy Il` Il`




The authority to change the beneficiary in an individual annuity lies with the
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Owner

How are monthly life annuity benefit payments treated under a tax sheltered annuity (TSA)?
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Taxed as an ordinary income in the year recieved
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,Which individual would be best suited for Medicare Supplement Insurance?
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Medicare enrollee Il`




Which of the following is NOT an example as risk retention?
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Not doing a business deal after deciding it would be too risky.
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Tim is in need of surgery. Before being hospitalized, he is referred to an outpatient clinic for
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diagnostic tests. What is this an example of?
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Pre-admission testing Il`




AD

Does the Superintendent have the ability to examine the records of authorized insurers?
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Yes, because of the powers granted through state statues
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Which statement about group life insurance is INCORRECT?
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Each participant requires evidence of insurability
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Medicare Part A does NOT provide coverage for Il` Il` Il` Il` Il` Il` Il`




The first three pints of blood
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Darrell has a group long-term disability income policy paid by his employer. Which of these
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statements is true?
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The specified benefit amount is a percentage of his wages.
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Twisting means Il`




Pursuading an insured, to the insured's detriment, to switch policies. Il` Il` Il` Il` Il` Il` Il` Il` Il`




What is the maxium number of employees (earning at least 5,000) that an employer can have in
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order to start a SIMPLE retirement plan?
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100



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The following are all elements of a valid contract EXCEPT
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written evidence Il`

, Which of the following would permit an insurer to delay a covered disability policy claim?
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Elimination period Il`




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Tom has a qualified retirement plan with his employer that is currently considered to be 80%
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"vested". How can this be interpreted?
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If Tom's employment is terminated, 20% of his funds could be forfeited.
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When a ten year renewable term life insurance policy issued at age 45 is renewed, the premium
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rate will be the current rate for
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Ten year term insurance for a person aged 55.
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AD

What kind of arrangement gives the policyowner the right to change the beneficiary?
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Revocable designation Il`




Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which
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index should he be looking at when making comparisons?
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Net payment cost index
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An individual health insurance policy with premiums paid monthly has a minimum grace period of
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10 days Il`




The Medical Information Bureau consists of members from which group?
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Insurance companies Il`




A single premium deferred annuity sometimes containes a bail out feauture. Which statement
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regarding this feauture is correct?
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If an interest rate falls below a specified level, the surrender charge is waived.
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