NM Life Insurance Final Exam Mock Test
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
How is the uninsured protected if a payor benefit is attached to the life insurance policy?
ii ii ii ii ii ii ii ii ii ii ii ii ii
premium payments are waived in the event the premium payor dies or becomes disabled
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of the following health care plans charges a premium that cannot be increased?
Noncancelable ii ii ii ii ii ii ii ii ii ii ii ii ii ii
What is the effect of the market value adjustments in a market value adjustment annuity?
ii ii ii ii ii ii ii ii
Transfers some of the investment risk to the policyowner
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which type of life insurance policy allows the policyowner the choice of investments along
ii ii ii ii
with flexible premium payments? ii ii
Variable Universal Life ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of these is NOT considered to be a cost connected with an individual's death?
ii
Business expenses
ii ii ii ii ii ii ii ii ii
A (an) ___________ insurer assumes risk from another insurance company.
Reinsurance ii ii ii ii ii ii ii ii ii ii ii ii ii
When group insurance under COBRA have expired, a fully insured group policy can be
ii ii ii ii
converted to a (an) ii ii
Individual health policy
ii ii ii ii ii ii ii ii ii ii ii ii
The authority to change the beneficiary in an individual annuity lies with the
Owner ii ii ii ii ii ii ii ii ii ii ii ii
How are monthly life annuity benefit payments treated under a tax sheltered annuity
ii
(TSA)? ii ii ii ii ii ii ii ii
Taxed as an ordinary income in the year recieved
ii ii ii ii ii ii ii ii ii
Which individual would be best suited for Medicare Supplement Insurance?
ii
Medicare enrollee ii ii ii ii ii ii ii ii ii ii
Which of the following is NOT an example as risk retention?
ii ii ii ii ii ii ii ii ii ii ii
Not doing a business deal after deciding it would be too risky.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Tim is in need of surgery. Before being hospitalized, he is referred to an outpatient clinic for
ii ii ii ii ii ii ii ii
diagnostic tests. What is this an example of? ii
Pre-admission testing ii ii ii ii ii ii ii ii ii ii ii ii
Does the Superintendent have the ability to examine the records of authorized insurers?
ii ii ii ii ii ii ii ii
Yes, because of the powers granted through state statues
ii ii ii ii ii ii ii
Which statement about group life insurance is INCORRECT?
ii ii ii ii ii
Each participant requires evidence of insurability ii ii ii ii ii ii ii
Medicare Part A does NOT provide coverage for
ii ii ii ii ii
The first three pints of blood ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Darrell has a group long-term disability income policy paid by his employer. Which of these
ii ii ii
statements is true?
ii ii ii ii ii ii ii ii ii
The specified benefit amount is a percentage of his wages. ii
Twisting means ii ii ii ii ii ii ii ii ii
Pursuading an insured, to the insured's detriment, to switch policies.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
What is the maxium number of employees (earning at least 5,000) that an employer can
ii ii ii ii ii ii ii ii ii
have in order to start a SIMPLE retirement plan?
, 100 ii ii ii ii ii ii ii ii ii
The following are all elements of a valid contract EXCEPT
ii
written evidence ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of the following would permit an insurer to delay a covered disability policy claim? ii
Elimination period ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Tom has a qualified retirement plan with his employer that is currently considered to be
ii ii ii ii ii ii ii
80% "vested". How can this be interpreted?
ii ii ii ii ii ii ii ii ii ii ii
If Tom's employment is terminated, 20% of his funds could be forfeited.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
When a ten year renewable term life insurance policy issued at age 45 is renewed, the
ii ii ii ii ii ii ii ii
premium rate will be the current rate for
ii ii ii ii ii ii ii ii
Ten year term insurance for a person aged 55.
ii ii ii ii ii ii ii ii ii ii ii ii
What kind of arrangement gives the policyowner the right to change the beneficiary? ii
Revocable designation ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit.
ii ii ii ii ii ii ii ii ii ii
Which index should he be looking at when making comparisons?
ii ii ii
Net payment cost index
We have an expert-written solution to this problem!
ii ii ii ii ii ii ii
ii ii ii ii ii ii ii ii ii ii ii ii
An individual health insurance policy with premiums paid monthly has a minimum grace
ii ii
period of ii
10 days ii ii ii ii ii ii ii ii ii
The Medical Information Bureau consists of members from which group? ii
Insurance companies
ii ii ii ii ii ii ii ii ii ii ii
A single premium deferred annuity sometimes containes a bail out feauture. Which
ii ii ii ii ii ii
statement regarding this feauture is correct?
ii ii ii ii ii ii ii ii ii ii ii ii ii
If an interest rate falls below a specified level, the surrender charge is waived.
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of these statements is NOT a characteristic of the law of large numbers?
ii ii ii ii ii ii ii
Rates can be calculated to compensate for lossesii ii ii ii ii ii ii ii ii
Which of the following is NOT a valid contract exchange?
ii ii ii ii ii ii ii
An annuity exchanged for a life insurance policy
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
All of these are duties that a producer may be required to perform when delivering an
ii ii ii
insurance policy EXCEPT ii ii ii ii ii ii
Leave a conditional receipt with the client
ii ii ii ii ii ii ii ii ii ii ii ii ii
The owner's cost basis for a non-qualified deferred is typically the same as the
ii ii
total premiums paid ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of these statements is NOT true regarding cash value loan against a life insurance
ii
policy? ii ii ii ii ii ii ii
Interst payment made by the policyowner are deductiable
ii ii ii ii ii ii ii ii ii ii ii
Which group is the Do Not Call Registry designed to protect against?
telemarketers ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of the following is NOT subject to the promise to pay in an insuring clause?
ii ii ii ii
How the premium is calculated
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
A policyowner has a life insurance policy where she had listed her age on the application as
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
5 years younger than her actual age. If she dies and the insurer discovers the
ii ii ii ii ii ii ii ii ii ii
misstatement of age, how much will the insurance company pay?
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
How is the uninsured protected if a payor benefit is attached to the life insurance policy?
ii ii ii ii ii ii ii ii ii ii ii ii ii
premium payments are waived in the event the premium payor dies or becomes disabled
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of the following health care plans charges a premium that cannot be increased?
Noncancelable ii ii ii ii ii ii ii ii ii ii ii ii ii ii
What is the effect of the market value adjustments in a market value adjustment annuity?
ii ii ii ii ii ii ii ii
Transfers some of the investment risk to the policyowner
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which type of life insurance policy allows the policyowner the choice of investments along
ii ii ii ii
with flexible premium payments? ii ii
Variable Universal Life ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of these is NOT considered to be a cost connected with an individual's death?
ii
Business expenses
ii ii ii ii ii ii ii ii ii
A (an) ___________ insurer assumes risk from another insurance company.
Reinsurance ii ii ii ii ii ii ii ii ii ii ii ii ii
When group insurance under COBRA have expired, a fully insured group policy can be
ii ii ii ii
converted to a (an) ii ii
Individual health policy
ii ii ii ii ii ii ii ii ii ii ii ii
The authority to change the beneficiary in an individual annuity lies with the
Owner ii ii ii ii ii ii ii ii ii ii ii ii
How are monthly life annuity benefit payments treated under a tax sheltered annuity
ii
(TSA)? ii ii ii ii ii ii ii ii
Taxed as an ordinary income in the year recieved
ii ii ii ii ii ii ii ii ii
Which individual would be best suited for Medicare Supplement Insurance?
ii
Medicare enrollee ii ii ii ii ii ii ii ii ii ii
Which of the following is NOT an example as risk retention?
ii ii ii ii ii ii ii ii ii ii ii
Not doing a business deal after deciding it would be too risky.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Tim is in need of surgery. Before being hospitalized, he is referred to an outpatient clinic for
ii ii ii ii ii ii ii ii
diagnostic tests. What is this an example of? ii
Pre-admission testing ii ii ii ii ii ii ii ii ii ii ii ii
Does the Superintendent have the ability to examine the records of authorized insurers?
ii ii ii ii ii ii ii ii
Yes, because of the powers granted through state statues
ii ii ii ii ii ii ii
Which statement about group life insurance is INCORRECT?
ii ii ii ii ii
Each participant requires evidence of insurability ii ii ii ii ii ii ii
Medicare Part A does NOT provide coverage for
ii ii ii ii ii
The first three pints of blood ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Darrell has a group long-term disability income policy paid by his employer. Which of these
ii ii ii
statements is true?
ii ii ii ii ii ii ii ii ii
The specified benefit amount is a percentage of his wages. ii
Twisting means ii ii ii ii ii ii ii ii ii
Pursuading an insured, to the insured's detriment, to switch policies.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
What is the maxium number of employees (earning at least 5,000) that an employer can
ii ii ii ii ii ii ii ii ii
have in order to start a SIMPLE retirement plan?
, 100 ii ii ii ii ii ii ii ii ii
The following are all elements of a valid contract EXCEPT
ii
written evidence ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of the following would permit an insurer to delay a covered disability policy claim? ii
Elimination period ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Tom has a qualified retirement plan with his employer that is currently considered to be
ii ii ii ii ii ii ii
80% "vested". How can this be interpreted?
ii ii ii ii ii ii ii ii ii ii ii
If Tom's employment is terminated, 20% of his funds could be forfeited.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
When a ten year renewable term life insurance policy issued at age 45 is renewed, the
ii ii ii ii ii ii ii ii
premium rate will be the current rate for
ii ii ii ii ii ii ii ii
Ten year term insurance for a person aged 55.
ii ii ii ii ii ii ii ii ii ii ii ii
What kind of arrangement gives the policyowner the right to change the beneficiary? ii
Revocable designation ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit.
ii ii ii ii ii ii ii ii ii ii
Which index should he be looking at when making comparisons?
ii ii ii
Net payment cost index
We have an expert-written solution to this problem!
ii ii ii ii ii ii ii
ii ii ii ii ii ii ii ii ii ii ii ii
An individual health insurance policy with premiums paid monthly has a minimum grace
ii ii
period of ii
10 days ii ii ii ii ii ii ii ii ii
The Medical Information Bureau consists of members from which group? ii
Insurance companies
ii ii ii ii ii ii ii ii ii ii ii
A single premium deferred annuity sometimes containes a bail out feauture. Which
ii ii ii ii ii ii
statement regarding this feauture is correct?
ii ii ii ii ii ii ii ii ii ii ii ii ii
If an interest rate falls below a specified level, the surrender charge is waived.
ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of these statements is NOT a characteristic of the law of large numbers?
ii ii ii ii ii ii ii
Rates can be calculated to compensate for lossesii ii ii ii ii ii ii ii ii
Which of the following is NOT a valid contract exchange?
ii ii ii ii ii ii ii
An annuity exchanged for a life insurance policy
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
All of these are duties that a producer may be required to perform when delivering an
ii ii ii
insurance policy EXCEPT ii ii ii ii ii ii
Leave a conditional receipt with the client
ii ii ii ii ii ii ii ii ii ii ii ii ii
The owner's cost basis for a non-qualified deferred is typically the same as the
ii ii
total premiums paid ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of these statements is NOT true regarding cash value loan against a life insurance
ii
policy? ii ii ii ii ii ii ii
Interst payment made by the policyowner are deductiable
ii ii ii ii ii ii ii ii ii ii ii
Which group is the Do Not Call Registry designed to protect against?
telemarketers ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Which of the following is NOT subject to the promise to pay in an insuring clause?
ii ii ii ii
How the premium is calculated
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
A policyowner has a life insurance policy where she had listed her age on the application as
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
5 years younger than her actual age. If she dies and the insurer discovers the
ii ii ii ii ii ii ii ii ii ii
misstatement of age, how much will the insurance company pay?
