NEW YORK LIFE, ACCIDENT AND
HEALTH INSURANCE EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Accelerated Benefits - ANS Riders attached to life insurance policies which allow death
benefits to be used to cover nursing or convalescent home expenses.
Accident - ANS An unplanned, unforeseen event which occurs suddenly and at an unspecified
place. Accident Insurance - A type of insurance that protects the insured against loss due to
accidental bodily injury.
Accidental Bodily Injury - ANS Unplanned, unforeseen traumatic injury to the body.
Accidental Death and Dismemberment (AD&D) - ANS An insurance policy which pays a
specified amount or a specified multiple of the insured's benefit if the insured dies, loses
his/her sight, or loses two limbs due to an accident.
Accidental Death Benefits - ANS A policy rider that states that the cause of death will be
analyzed to determine if it complies with the policy description of accidental death.
Accidental Death Insurance - ANS An insurance policy that provides payment if the insured's
death is the result of an accident.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Accumulation Period - ANS The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest tax deferred.
Acquired Immunodeficiency Syndrome (AIDS) - ANS An infectious and incurable disease
caused by the human immunodeficiency virus (HIV).
Activities of Daily Living (ADLs) - ANS Activities individuals must do every day such as moving
about, getting dressed, eating, bathing, etc.
Actual Cash Value (ACV) - ANS The required amount to pay damages or for property loss,
which is calculated based on the property's current replacement value minus depreciation.
Actual Charge - ANS The amount a physician or supplier actually bills for a particular service
or supply. Actuary - A person trained in the technical aspects of insurance and related fields,
particularly in the mathematics of insurance; a person who, on behalf of the company,
determines the mathematical probability of loss.
Adhesion - ANS A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the
insured's only option is to accept or reject the contract. Any ambiguities in the contract will be
settled in favor of the insured.
Adjustable Life - ANS Life insurance which permits changes in the face amount, premium
amount, period of protection, and the duration of the premium payment period.
Adjuster - ANS A representative of an insurance company who investigates and acts on the
behalf of the company to obtain agreements for the amount of the insurance claim.
Administrator - ANS An individual appointed by a court as a fiduciary to settle the financial
affairs and estate of a deceased person.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Admitted (Authorized) Insurer - ANS An insurance company authorized and licensed to
transact business in a particular state.
Adult Day Care - ANS A program for impaired adults that attempts to meet their health,
social, and functional needs in a setting away from their homes.
Adverse Selection - ANS The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability.
Agency - ANS An insurance sales office or company.
Agent - ANS An individual who is licensed to sell, negotiate, or effect insurance contracts on
behalf of an insurer.
Agent's Authority - ANS Special powers granted to an agent by his or her agency contract.
Aleatory - A contract in which participating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amount the insured will pay in premiums is unequal to the
amount the insurer will pay in the event of a loss.
Alien Insurer - ANS An insurance company that is incorporated outside the United States.
Alzheimer's Disease - A disease that causes the victim to become dysfunctional due to
degeneration of brain cells causing severe memory loss.
Ancillary - ANS Additional, miscellaneous services provided by a hospital, such as x-rays,
anesthesia, and lab work, but not hospital room and board expenses.
Annual Statement - ANS A detailed financial report that an insurance company must submit
every year to the insurance department of state(s) in which it conducts business.
Annuity - ANS A contract that provides income for a specified period of years, or for life.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Apparent Authority - ANS The appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the principal created.
Applicant - ANS A person making application for, or offering him/herself or another to be
insured under an insurance contract.
Application - ANS A document that provides information for underwriting purposes. After the
policy is issued, any unanswered questions are considered waived by the insurer.
Approved Amount - ANS The amount Medicare determines to be reasonable for a service
that is covered under part B of Medicare.
Assignment (Life) - ANS The transfer of ownership rights of a life insurance policy from one
person to another.
Assignment (Health) - ANS A claim to a provider or medical supplier to receive payments
directly from Medicare.
Attained Age - ANS The age of the insured at a determined date.
Attending Physician's Statement (APS) - ANS A statement usually obtained from the
applicant's doctor.
Authorized (Admitted) Insurer - ANS An insurance company authorized and licensed to
transact business in a particular state.
Avoidance - ANS A method of dealing with risk by deliberately keeping away from it (e.g. if a
person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never
to fly in a plane).
Back End Load - ANS a fee charged at the time of a sale, transfer or withdrawal from an
annuity or a life insurance policy.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
HEALTH INSURANCE EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
Accelerated Benefits - ANS Riders attached to life insurance policies which allow death
benefits to be used to cover nursing or convalescent home expenses.
Accident - ANS An unplanned, unforeseen event which occurs suddenly and at an unspecified
place. Accident Insurance - A type of insurance that protects the insured against loss due to
accidental bodily injury.
Accidental Bodily Injury - ANS Unplanned, unforeseen traumatic injury to the body.
Accidental Death and Dismemberment (AD&D) - ANS An insurance policy which pays a
specified amount or a specified multiple of the insured's benefit if the insured dies, loses
his/her sight, or loses two limbs due to an accident.
Accidental Death Benefits - ANS A policy rider that states that the cause of death will be
analyzed to determine if it complies with the policy description of accidental death.
Accidental Death Insurance - ANS An insurance policy that provides payment if the insured's
death is the result of an accident.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Accumulation Period - ANS The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest tax deferred.
Acquired Immunodeficiency Syndrome (AIDS) - ANS An infectious and incurable disease
caused by the human immunodeficiency virus (HIV).
Activities of Daily Living (ADLs) - ANS Activities individuals must do every day such as moving
about, getting dressed, eating, bathing, etc.
Actual Cash Value (ACV) - ANS The required amount to pay damages or for property loss,
which is calculated based on the property's current replacement value minus depreciation.
Actual Charge - ANS The amount a physician or supplier actually bills for a particular service
or supply. Actuary - A person trained in the technical aspects of insurance and related fields,
particularly in the mathematics of insurance; a person who, on behalf of the company,
determines the mathematical probability of loss.
Adhesion - ANS A contract offered on a "take-it-or-leave-it" basis by an insurer, in which the
insured's only option is to accept or reject the contract. Any ambiguities in the contract will be
settled in favor of the insured.
Adjustable Life - ANS Life insurance which permits changes in the face amount, premium
amount, period of protection, and the duration of the premium payment period.
Adjuster - ANS A representative of an insurance company who investigates and acts on the
behalf of the company to obtain agreements for the amount of the insurance claim.
Administrator - ANS An individual appointed by a court as a fiduciary to settle the financial
affairs and estate of a deceased person.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Admitted (Authorized) Insurer - ANS An insurance company authorized and licensed to
transact business in a particular state.
Adult Day Care - ANS A program for impaired adults that attempts to meet their health,
social, and functional needs in a setting away from their homes.
Adverse Selection - ANS The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower probability.
Agency - ANS An insurance sales office or company.
Agent - ANS An individual who is licensed to sell, negotiate, or effect insurance contracts on
behalf of an insurer.
Agent's Authority - ANS Special powers granted to an agent by his or her agency contract.
Aleatory - A contract in which participating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amount the insured will pay in premiums is unequal to the
amount the insurer will pay in the event of a loss.
Alien Insurer - ANS An insurance company that is incorporated outside the United States.
Alzheimer's Disease - A disease that causes the victim to become dysfunctional due to
degeneration of brain cells causing severe memory loss.
Ancillary - ANS Additional, miscellaneous services provided by a hospital, such as x-rays,
anesthesia, and lab work, but not hospital room and board expenses.
Annual Statement - ANS A detailed financial report that an insurance company must submit
every year to the insurance department of state(s) in which it conducts business.
Annuity - ANS A contract that provides income for a specified period of years, or for life.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Apparent Authority - ANS The appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the principal created.
Applicant - ANS A person making application for, or offering him/herself or another to be
insured under an insurance contract.
Application - ANS A document that provides information for underwriting purposes. After the
policy is issued, any unanswered questions are considered waived by the insurer.
Approved Amount - ANS The amount Medicare determines to be reasonable for a service
that is covered under part B of Medicare.
Assignment (Life) - ANS The transfer of ownership rights of a life insurance policy from one
person to another.
Assignment (Health) - ANS A claim to a provider or medical supplier to receive payments
directly from Medicare.
Attained Age - ANS The age of the insured at a determined date.
Attending Physician's Statement (APS) - ANS A statement usually obtained from the
applicant's doctor.
Authorized (Admitted) Insurer - ANS An insurance company authorized and licensed to
transact business in a particular state.
Avoidance - ANS A method of dealing with risk by deliberately keeping away from it (e.g. if a
person wanted to avoid the risk of being killed in an airplane crash, he/she might choose never
to fly in a plane).
Back End Load - ANS a fee charged at the time of a sale, transfer or withdrawal from an
annuity or a life insurance policy.
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
