New York Life and Health Insurance
Licensing Exam With Actual Questions
& Verified Answers,Plus
Rationales/Expert Verified For
Guaranteed Pass Graded A+/2026
/Latest Update/Instant Download Pdf
1. The primary purpose of life insurance is to
a) Provide investment growth
b) Accumulate tax-free interest
c) Provide financial protection against premature death
d) Offer savings for retirement
The purpose of life insurance is to provide financial protection for
beneficiaries in case of the insured’s premature death.
2. Which of the following is considered a living benefit in a life insurance
policy?
a) Death benefit
b) Accelerated benefit
c) Premium waiver
d) Accidental death rider
Accelerated benefits allow early access to death benefits if the insured is
terminally ill.
3. Which type of insurance policy combines both term and investment
features?
a) Whole life
b) Term life
c) Universal life
, d) Credit life
Universal life offers flexible premiums and includes a cash value
component tied to current interest rates.
4. Which policy provision prevents an insurer from voiding coverage after a
specific period?
a) Grace period
b) Incontestability clause
c) Reinstatement clause
d) Insuring clause
After two years, the insurer cannot contest the policy based on
misstatements except for fraud.
5. What is the maximum time allowed for the free-look period in New York
for life insurance policies?
a) 10 days
b) 10 days minimum
c) 15 days
d) 30 days
New York law requires a minimum 10-day free-look period for life
policies.
6. Which rider provides coverage if the insured becomes disabled and
cannot pay premiums?
a) Payor benefit
b) Waiver of premium
c) Disability income
d) Guaranteed insurability
The waiver of premium rider waives future premiums if the insured is
disabled.
7. What type of term insurance provides the same death benefit
throughout the policy?
a) Increasing term
b) Level term
c) Decreasing term
d) Renewable term
, Level term insurance maintains a constant face amount for the duration
of the term.
8. Which of the following describes a mutual insurance company?
a) Owned by shareholders
b) Owned by policyholders
c) Operated by the state
d) Funded by stock offerings
Mutual companies are owned by policyholders who may receive
dividends.
9. An insurance agent represents whom?
a) The insured
b) The insurer
c) The policyholder
d) The broker
Agents act on behalf of the insurance company, not the insured.
10.The entire contract includes the policy and
a) The insurer’s bylaws
b) The application
c) The company’s rate tables
d) The illustration only
The entire contract provision includes the policy and the application.
11.Which type of insurance is typically used to cover a home mortgage?
a) Whole life
b) Decreasing term
c) Increasing term
d) Variable life
Decreasing term coverage matches the declining balance of a mortgage.
12.What is the purpose of the grace period provision?
a) Extend coverage indefinitely
b) Refund premium payments
c) Prevent unintentional lapse of policy
d) Allow for cash surrender
Licensing Exam With Actual Questions
& Verified Answers,Plus
Rationales/Expert Verified For
Guaranteed Pass Graded A+/2026
/Latest Update/Instant Download Pdf
1. The primary purpose of life insurance is to
a) Provide investment growth
b) Accumulate tax-free interest
c) Provide financial protection against premature death
d) Offer savings for retirement
The purpose of life insurance is to provide financial protection for
beneficiaries in case of the insured’s premature death.
2. Which of the following is considered a living benefit in a life insurance
policy?
a) Death benefit
b) Accelerated benefit
c) Premium waiver
d) Accidental death rider
Accelerated benefits allow early access to death benefits if the insured is
terminally ill.
3. Which type of insurance policy combines both term and investment
features?
a) Whole life
b) Term life
c) Universal life
, d) Credit life
Universal life offers flexible premiums and includes a cash value
component tied to current interest rates.
4. Which policy provision prevents an insurer from voiding coverage after a
specific period?
a) Grace period
b) Incontestability clause
c) Reinstatement clause
d) Insuring clause
After two years, the insurer cannot contest the policy based on
misstatements except for fraud.
5. What is the maximum time allowed for the free-look period in New York
for life insurance policies?
a) 10 days
b) 10 days minimum
c) 15 days
d) 30 days
New York law requires a minimum 10-day free-look period for life
policies.
6. Which rider provides coverage if the insured becomes disabled and
cannot pay premiums?
a) Payor benefit
b) Waiver of premium
c) Disability income
d) Guaranteed insurability
The waiver of premium rider waives future premiums if the insured is
disabled.
7. What type of term insurance provides the same death benefit
throughout the policy?
a) Increasing term
b) Level term
c) Decreasing term
d) Renewable term
, Level term insurance maintains a constant face amount for the duration
of the term.
8. Which of the following describes a mutual insurance company?
a) Owned by shareholders
b) Owned by policyholders
c) Operated by the state
d) Funded by stock offerings
Mutual companies are owned by policyholders who may receive
dividends.
9. An insurance agent represents whom?
a) The insured
b) The insurer
c) The policyholder
d) The broker
Agents act on behalf of the insurance company, not the insured.
10.The entire contract includes the policy and
a) The insurer’s bylaws
b) The application
c) The company’s rate tables
d) The illustration only
The entire contract provision includes the policy and the application.
11.Which type of insurance is typically used to cover a home mortgage?
a) Whole life
b) Decreasing term
c) Increasing term
d) Variable life
Decreasing term coverage matches the declining balance of a mortgage.
12.What is the purpose of the grace period provision?
a) Extend coverage indefinitely
b) Refund premium payments
c) Prevent unintentional lapse of policy
d) Allow for cash surrender
