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NY Life Insurance Exam Review (NEW UPDATED VERSION) LATEST ACTUAL
EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED QUESTIONS AND
ANSWERS)- GUARANTEED PASS A+ UPDATED
NY Life Insurance Exam Review – Series
17-51
1. Exam Overview
• Exam Name: Life Insurance Agent/Broker
• Series: 17-51
• Questions: 100 multiple-choice
• Time: 2 hours
• Passing Score: 70%
• Administered By: PSI Testing Services
Tip: Focus on New York state regulations, policy types, underwriting, and ethical conduct —
these appear frequently on the exam.
2. Core Topics
A. Insurance Regulation & Law
• NYDFS: Oversees insurance licensing and compliance.
• Producer Licensing Requirements:
o Must complete pre-licensing education (~40 hours).
o Submit application + fees + fingerprints.
o Maintain license with CE every 2 years.
• Prohibited Practices:
o Misrepresentation
o Twisting (convincing clients to replace policies unfairly)
o Rebating (offering extra incentives not in policy)
• Key Laws:
o Insurance Law Article 21 (NY life insurance regulations)
o Replacement regulations for life insurance
practice exam 2026
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Tip: Many exam questions are situational — know the “right” legal/ethical choice.
B. Life Insurance Basics
• Policy Types:
1. Term Life: Temporary, pure death benefit. No cash value.
2. Whole Life: Lifetime coverage, fixed premiums, cash value.
3. Universal Life: Flexible premiums and death benefit; cash value earns interest.
4. Variable Life: Investment-linked cash value; regulated by NYDFS + SEC.
• Uses of Life Insurance:
o Income replacement
o Estate planning
o Business continuation (e.g., buy-sell agreements)
• Insurable Interest: Must exist at the time of application (self, family, business interest).
Tip: Know differences between policy types and cash value growth — often tested.
C. Policy Provisions & Options
• Standard Provisions:
o Grace period (typically 30 days in NY)
o Incontestability (2 years in most policies)
o Suicide clause
o Free-look period (NY = 10 days for life insurance)
• Options/Riders:
o Waiver of premium
o Accidental death benefit
o Guaranteed insurability
o Accelerated death benefit (living benefits)
• Beneficiary Rules:
o Primary vs contingent
o Revocable vs irrevocable
o Common disaster clause
Tip: Many questions ask “which provision applies” — memorize definitions and timeframes.
D. Underwriting & Risk Classification
• Purpose: Assess risk to determine insurability and premiums.
• Factors:
o Age, sex, health, lifestyle, occupation, hobbies
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• Risk Classes: Preferred, standard, substandard (rated)
• Medical Requirements: Exam, lab tests, medical history
Tip: Know the difference between risk classification and policy type.
E. Premiums, Benefits & Taxation
• Premium Calculations:
o Level vs. flexible premiums
o Net vs gross premiums (including loading)
• Cash Value & Dividends:
o Whole/universal life policies build cash value
o Dividends are not guaranteed
• Policy Loans & Withdrawals:
o Loans reduce cash value and death benefit
• Tax Treatment:
o Death benefits generally tax-free to beneficiaries
o Interest on loans may be taxable
Tip: Watch for questions combining taxation, cash value, and policy loans.
F. Ethics & Producer Conduct
• Responsibilities:
o Full disclosure
o Avoid misrepresentation or fraud
o Follow NYDFS rules
• Replacement Rules:
o Must provide replacement notice
o Must compare new and old policy benefits
Tip: Ethics questions often test what a producer should or should not do.
3. Exam Strategy
• Time Management: ~1.2 minutes per question. Don’t get stuck.
• Read Questions Carefully: NY exam often uses “EXCEPT” or “NOT” — double-check
wording.
• Use Process of Elimination: Remove obviously wrong options first.
• Memorize Key Numbers:
o Grace period = 30 days
practice exam 2026
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o Free-look period = 10 days
o Incontestability = 2 years
4. Quick Reference Table
Topic Key Points
Policy Types Term, Whole, Universal, Variable
Grace Period 30 days
Free-Look 10 days
Incontestable 2 years
Common Riders Waiver of premium, Accidental death, Accelerated death benefit
Ethics Violations Twisting, Rebating, Misrepresentation
5. Sample Practice Questions
1. Which life insurance policy builds cash value and allows flexible premiums?
Answer: Universal Life
2. In New York, what is the free-look period for a life insurance policy?
Answer: 10 days
3. Twisting is:
a) Offering additional benefits legally
b) Convincing a client to replace a policy unfairly
c) Selling multiple policies legally
Answer: b) Convincing a client to replace a policy unfairly
4. A policy loan reduces:
Answer: Cash value and death benefit
Based on the Human Life Value Approach, which of the following is
NOT used to calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
practice exam 2026
NY Life Insurance Exam Review (NEW UPDATED VERSION) LATEST ACTUAL
EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED QUESTIONS AND
ANSWERS)- GUARANTEED PASS A+ UPDATED
NY Life Insurance Exam Review – Series
17-51
1. Exam Overview
• Exam Name: Life Insurance Agent/Broker
• Series: 17-51
• Questions: 100 multiple-choice
• Time: 2 hours
• Passing Score: 70%
• Administered By: PSI Testing Services
Tip: Focus on New York state regulations, policy types, underwriting, and ethical conduct —
these appear frequently on the exam.
2. Core Topics
A. Insurance Regulation & Law
• NYDFS: Oversees insurance licensing and compliance.
• Producer Licensing Requirements:
o Must complete pre-licensing education (~40 hours).
o Submit application + fees + fingerprints.
o Maintain license with CE every 2 years.
• Prohibited Practices:
o Misrepresentation
o Twisting (convincing clients to replace policies unfairly)
o Rebating (offering extra incentives not in policy)
• Key Laws:
o Insurance Law Article 21 (NY life insurance regulations)
o Replacement regulations for life insurance
practice exam 2026
,2|Page
Tip: Many exam questions are situational — know the “right” legal/ethical choice.
B. Life Insurance Basics
• Policy Types:
1. Term Life: Temporary, pure death benefit. No cash value.
2. Whole Life: Lifetime coverage, fixed premiums, cash value.
3. Universal Life: Flexible premiums and death benefit; cash value earns interest.
4. Variable Life: Investment-linked cash value; regulated by NYDFS + SEC.
• Uses of Life Insurance:
o Income replacement
o Estate planning
o Business continuation (e.g., buy-sell agreements)
• Insurable Interest: Must exist at the time of application (self, family, business interest).
Tip: Know differences between policy types and cash value growth — often tested.
C. Policy Provisions & Options
• Standard Provisions:
o Grace period (typically 30 days in NY)
o Incontestability (2 years in most policies)
o Suicide clause
o Free-look period (NY = 10 days for life insurance)
• Options/Riders:
o Waiver of premium
o Accidental death benefit
o Guaranteed insurability
o Accelerated death benefit (living benefits)
• Beneficiary Rules:
o Primary vs contingent
o Revocable vs irrevocable
o Common disaster clause
Tip: Many questions ask “which provision applies” — memorize definitions and timeframes.
D. Underwriting & Risk Classification
• Purpose: Assess risk to determine insurability and premiums.
• Factors:
o Age, sex, health, lifestyle, occupation, hobbies
practice exam 2026
,3|Page
• Risk Classes: Preferred, standard, substandard (rated)
• Medical Requirements: Exam, lab tests, medical history
Tip: Know the difference between risk classification and policy type.
E. Premiums, Benefits & Taxation
• Premium Calculations:
o Level vs. flexible premiums
o Net vs gross premiums (including loading)
• Cash Value & Dividends:
o Whole/universal life policies build cash value
o Dividends are not guaranteed
• Policy Loans & Withdrawals:
o Loans reduce cash value and death benefit
• Tax Treatment:
o Death benefits generally tax-free to beneficiaries
o Interest on loans may be taxable
Tip: Watch for questions combining taxation, cash value, and policy loans.
F. Ethics & Producer Conduct
• Responsibilities:
o Full disclosure
o Avoid misrepresentation or fraud
o Follow NYDFS rules
• Replacement Rules:
o Must provide replacement notice
o Must compare new and old policy benefits
Tip: Ethics questions often test what a producer should or should not do.
3. Exam Strategy
• Time Management: ~1.2 minutes per question. Don’t get stuck.
• Read Questions Carefully: NY exam often uses “EXCEPT” or “NOT” — double-check
wording.
• Use Process of Elimination: Remove obviously wrong options first.
• Memorize Key Numbers:
o Grace period = 30 days
practice exam 2026
, 4|Page
o Free-look period = 10 days
o Incontestability = 2 years
4. Quick Reference Table
Topic Key Points
Policy Types Term, Whole, Universal, Variable
Grace Period 30 days
Free-Look 10 days
Incontestable 2 years
Common Riders Waiver of premium, Accidental death, Accelerated death benefit
Ethics Violations Twisting, Rebating, Misrepresentation
5. Sample Practice Questions
1. Which life insurance policy builds cash value and allows flexible premiums?
Answer: Universal Life
2. In New York, what is the free-look period for a life insurance policy?
Answer: 10 days
3. Twisting is:
a) Offering additional benefits legally
b) Convincing a client to replace a policy unfairly
c) Selling multiple policies legally
Answer: b) Convincing a client to replace a policy unfairly
4. A policy loan reduces:
Answer: Cash value and death benefit
Based on the Human Life Value Approach, which of the following is
NOT used to calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
practice exam 2026
