New Mexico Life Insurance Final Exam (Latest 2025/2026 Update) Questions with Verified Answers | 100% Correct| Graded A.

New Mexico Life Insurance Final Exam
(Latest 2025/2026 Update) Questions with
Verified Answers | 100% Correct| Graded A.

Question:

Who normally pays the premiums for group credit life insurance??
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Answer:

borrower




Question:

For policyholders in the same risk classification, it is unlawful to?
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Answer:

Charge different premiums
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Question:

What happens to the cash value of a market value adjusted annuity if it's
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surrendered prior to the end of the stated guarantee period?
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Answer:
Subject to market value adjustment
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,Question:

What must be given to a life insurance applicant when the agent receives
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an application and the initial premium?
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Answer:
Conditional receipt i,-




Question:

Which situation would not require the insureds consent when a life
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insurance policy is issued? i,- i,- i,-




Answer:
A policy is purchased by a parent for a minor child
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Question:
A business becoming incorporated is an example of risk ____.?
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Answer:
to transfer
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Question:

The Superintendent may suspend an agent's license when the agent?
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,Answer:
Rebates a portion of the commission to the insured
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Question:

What would be considered an advantage of purchasing term life
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insurance??

Answer:

The initial premium is lower compared to an equivalent amount of whole
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life coverage
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Question:

When an insurance appointment with an agent is terminated, the party
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must notify the agent of the termination is the?
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Answer:

Insurer




Question:

The policy provision that permits an employee to change from group life
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coverage to an individual life policy is called the?
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Answer:
Conversation provision i,-

, Question:

What is an insurance contract that identifies individuals by relationship to
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a specific organization??
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Answer:
group insurance i,-




Question:

When an insured under a group life insurance plan in NM elects the
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conversation option, the new policy is issued? i,- i,- i,- i,- i,- i,-




Answer:
Without requiring evidence of insurability
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Question:
What is another name for a Keogh plan?
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Answer:
HR 10 plan i,- i,-




Question:

An insurance policy may be issued with a preferred insurance premium in
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all these situations EXEPT?
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