FINAL EXAM NEW MEXICO LIFE ONLY QUESTIONS WITH
DETAILED ANSWERS GUARANTEED PASS GRADED A+
Scott has a life insurance policy in which the dividends are left
with the insurance company. This particular policy may be paid
up when the cash value plus accumulated dividends
Equal the net single premium for the same face amount at the
insured's attained age
Which life insurance policy clause prohibits an insurance
company from questioning the validity of the contract after
stated period of the time has passed?
Incontestable clause
What is the insurer responsible for when a producer is acting
within the scope of authority granted in the agency contract?
Responsible for acts by the producer that are authority only
Which of the following is an unincorporated association whose
members provide coverage for one another?
Reciprocal
Which of the following is NOT an intended use of an annuity?
,Create new funds upon the death of a wage-earner
Misrepresenting pertinent policy provisions relating to a
coverage after a loss is
An unfair claims settlement practice
The reason for backdating a policy is
To obtain a premium rate based on an earlier age
A(n) ________ insurer assumes risk from another insurance
company.
Reinsurance
What does a fixed life annuity offer protection against?
Savings depletion due to longevity
Which benefit supplement added to a life insurance policy
insures an entire family?
Family term rider
, Which of the following disability buy-sell agreements is best
suited for businesses with a limited number of partners?
Cross-purchasing agreement
Which of these factors does NOT affect life insurance premium
rates?
Producer certification
Which is an accurate description of the premium in a graded
premium life insurance policy?
Annual increases in premium for a stated number of years
then levels off for the remainder of the contract
Security laws passed by Congress are enforced by which
Federal agency?
Security and Exchange Commission (SEC)
The irs has a minimum coverage rule regarding qualified
retirement plans. This rule states that each qualified plan is
required to
Benefit a broad cross-section of employees
DETAILED ANSWERS GUARANTEED PASS GRADED A+
Scott has a life insurance policy in which the dividends are left
with the insurance company. This particular policy may be paid
up when the cash value plus accumulated dividends
Equal the net single premium for the same face amount at the
insured's attained age
Which life insurance policy clause prohibits an insurance
company from questioning the validity of the contract after
stated period of the time has passed?
Incontestable clause
What is the insurer responsible for when a producer is acting
within the scope of authority granted in the agency contract?
Responsible for acts by the producer that are authority only
Which of the following is an unincorporated association whose
members provide coverage for one another?
Reciprocal
Which of the following is NOT an intended use of an annuity?
,Create new funds upon the death of a wage-earner
Misrepresenting pertinent policy provisions relating to a
coverage after a loss is
An unfair claims settlement practice
The reason for backdating a policy is
To obtain a premium rate based on an earlier age
A(n) ________ insurer assumes risk from another insurance
company.
Reinsurance
What does a fixed life annuity offer protection against?
Savings depletion due to longevity
Which benefit supplement added to a life insurance policy
insures an entire family?
Family term rider
, Which of the following disability buy-sell agreements is best
suited for businesses with a limited number of partners?
Cross-purchasing agreement
Which of these factors does NOT affect life insurance premium
rates?
Producer certification
Which is an accurate description of the premium in a graded
premium life insurance policy?
Annual increases in premium for a stated number of years
then levels off for the remainder of the contract
Security laws passed by Congress are enforced by which
Federal agency?
Security and Exchange Commission (SEC)
The irs has a minimum coverage rule regarding qualified
retirement plans. This rule states that each qualified plan is
required to
Benefit a broad cross-section of employees
