NYS Life, Accident, and Health Insurance Exam: Study Guide,
Practice Questions, and Licensing Tips 2026
1. Which type of life insurance policy is best suited for paying off the
outstanding balance of a 30-year mortgage in the event of the insured's
death?
- A) Whole Life
- B) 30-Year Level Term
- C) 30-Year Decreasing Term
- D) Universal Life
- **Answer:** C) 30-Year Decreasing Term
- **Rationale:** This type of policy decreases in value over time, aligning
with the decreasing balance of a mortgage.
2. How many days' notice does the ACA require insurers to give before
rescinding coverage?
- A) 15
- B) 30
- C) 45
- D) 60
- **Answer:** B) 30
- **Rationale:** The ACA mandates a 30-day notice period prior to
rescinding coverage.
3. A signed good health statement may be requested by a life producer at
the time of:
,- A) Application Submission
- B) Policy Delivery
- C) Renewal
- D) Claim Submission
- **Answer:** B) Policy Delivery
- **Rationale:** This statement is often required to confirm the insured's health
status at the time of policy delivery.
4. Carol purchases a whole life policy that provides a choice of dividend
options. This policy is required to include a statement that the dividends are:
- A) Guaranteed
- B) Not Guaranteed
- C) Cumulative
- D) Tax-Free
- **Answer:** B) Not Guaranteed
- **Rationale:** Dividends in a whole life policy are not guaranteed and can
vary.
5. Tim is confined to a nursing home but doesn't have a terminal illness. Which
life insurance rider is designed to help pay for this type of expense?
- A) Accelerated Benefit Rider
- B) Long-Term Care Benefit Rider
- C) Waiver of Premium Rider
- D) Disability Income Rider
- **Answer:** B) Long-Term Care Benefit Rider
- **Rationale:** This rider specifically covers long-term care costs such as
nursing home expenses.
,6. An insured is covered under a group long-term disability policy. Under this
type of policy, the definition of disability based on any occupation typically
applies:
- A) Immediately
- B) After One Year
- C) After Two Years
- D) After Five Years
- **Answer:** C) After Two Years
- **Rationale:** Many policies define disability as the inability to work in any
occupation after a specified period.
7. Sylvia purchased an annuity for $100,000 from the proceeds of an
inheritance. No further payments are permitted, and the income stream begins
in 15 years. This contract is a(n):
- A) Immediate Annuity
- B) Single Premium Deferred Annuity
- C) Fixed Indexed Annuity
- D) Variable Annuity
- **Answer:** B) Single Premium Deferred Annuity
- **Rationale:** This type of annuity is funded with a single payment and
begins distributions after a deferral period.
---
### 8. Which of these is NOT a factor that influences group health insurance
underwriting?
, - A) Age of Group Members
- B) Gender of Group Members
- C) Former Residence
- D) Health History of Group Members
- **Answer:** C) Former Residence
- **Rationale:** Underwriting for group policies typically does not involve
individual physical exams.
---
### 9. What is the grace period required for an individual accident and
health insurance policy with monthly premiums?
- A) 5 days
- B) 10 days
- C) 15 days
- D) 30 days
- **Answer:** B) 10 days
- **Rationale:** The standard grace period for monthly premium payments is
typically 10 days.
---
### 10. In regards to technology and the ACA, which of the following
statements is correct?
- A) States must offer a paper application.
- B) States must provide an internet-based portal.
Practice Questions, and Licensing Tips 2026
1. Which type of life insurance policy is best suited for paying off the
outstanding balance of a 30-year mortgage in the event of the insured's
death?
- A) Whole Life
- B) 30-Year Level Term
- C) 30-Year Decreasing Term
- D) Universal Life
- **Answer:** C) 30-Year Decreasing Term
- **Rationale:** This type of policy decreases in value over time, aligning
with the decreasing balance of a mortgage.
2. How many days' notice does the ACA require insurers to give before
rescinding coverage?
- A) 15
- B) 30
- C) 45
- D) 60
- **Answer:** B) 30
- **Rationale:** The ACA mandates a 30-day notice period prior to
rescinding coverage.
3. A signed good health statement may be requested by a life producer at
the time of:
,- A) Application Submission
- B) Policy Delivery
- C) Renewal
- D) Claim Submission
- **Answer:** B) Policy Delivery
- **Rationale:** This statement is often required to confirm the insured's health
status at the time of policy delivery.
4. Carol purchases a whole life policy that provides a choice of dividend
options. This policy is required to include a statement that the dividends are:
- A) Guaranteed
- B) Not Guaranteed
- C) Cumulative
- D) Tax-Free
- **Answer:** B) Not Guaranteed
- **Rationale:** Dividends in a whole life policy are not guaranteed and can
vary.
5. Tim is confined to a nursing home but doesn't have a terminal illness. Which
life insurance rider is designed to help pay for this type of expense?
- A) Accelerated Benefit Rider
- B) Long-Term Care Benefit Rider
- C) Waiver of Premium Rider
- D) Disability Income Rider
- **Answer:** B) Long-Term Care Benefit Rider
- **Rationale:** This rider specifically covers long-term care costs such as
nursing home expenses.
,6. An insured is covered under a group long-term disability policy. Under this
type of policy, the definition of disability based on any occupation typically
applies:
- A) Immediately
- B) After One Year
- C) After Two Years
- D) After Five Years
- **Answer:** C) After Two Years
- **Rationale:** Many policies define disability as the inability to work in any
occupation after a specified period.
7. Sylvia purchased an annuity for $100,000 from the proceeds of an
inheritance. No further payments are permitted, and the income stream begins
in 15 years. This contract is a(n):
- A) Immediate Annuity
- B) Single Premium Deferred Annuity
- C) Fixed Indexed Annuity
- D) Variable Annuity
- **Answer:** B) Single Premium Deferred Annuity
- **Rationale:** This type of annuity is funded with a single payment and
begins distributions after a deferral period.
---
### 8. Which of these is NOT a factor that influences group health insurance
underwriting?
, - A) Age of Group Members
- B) Gender of Group Members
- C) Former Residence
- D) Health History of Group Members
- **Answer:** C) Former Residence
- **Rationale:** Underwriting for group policies typically does not involve
individual physical exams.
---
### 9. What is the grace period required for an individual accident and
health insurance policy with monthly premiums?
- A) 5 days
- B) 10 days
- C) 15 days
- D) 30 days
- **Answer:** B) 10 days
- **Rationale:** The standard grace period for monthly premium payments is
typically 10 days.
---
### 10. In regards to technology and the ACA, which of the following
statements is correct?
- A) States must offer a paper application.
- B) States must provide an internet-based portal.
