NY Life Insurance Exam Review/ 75+ Quizzes &
Correct Ans with Rationales/ 2024-2025.
Which of the following statements concerning a Simplified Employee Pension plan (SEP) in
INCORRECT?
A. SEPs allow the employer to make annual tax deductible contributions up to 25% of an
employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
C. Employer contributions are not included int he employee's gross income
D. SEPs are suitable for large companies - Answer: D. SEPs are suitable for large companies
An employee is joining a group insurance plan. In order to avoid having to prove insurability,
what must the employee do?
A. Join during the open enrollment period
B. Provide medical records to the insurer
C. Sign a statement of contributed good health
D. Nothing: proof of insurability is never required in group policies - Answer: A. Join during the
open enrollment period
Page 1 of 26
,If one applies for coverage after the open enrollment period, proof of insurability may be
required in order to avoid adverse selection
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
D. Insured's current and future income - Answer: C. Predicted needs of the family after the
insured's death.
The Human Life Value Approach to determining the value of an individual's life requires the
calculation of probable future earnings of the insured, which involves wages, expenses,
inflation, amount of time until retirement, and the time value of money. Predicted needs of the
family after the insured's death are used in the needs approach
Can the Superintendent investigate fraudulent claims if they occurred outside of the resident's
state according to the Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation within this state or outside
of the state
B. Yes, but only if it is a violation of another state's insurance law
C. No. Because insurance is regulated by the state, all claims must occur within state boundaries
D. No. If fraudulent acts are believed to have been committed, the Superintendent must notify
the state's Superintendent or Commissioner. It will then become a federal matter - Answer: A.
Yes. The Superintendent has the power to make an investigation within this state or outside of
the state
If the insurance frauds bureau has reason to believe that a person is engaged or is about to
engage in a fraudulent act, the Superintendent has the power to make an investigation within
this state or outside the state
Page 2 of 26
, Which of the following best describes the MIB?
A. It is a nonprofit organization that maintains underwriting information on applicants for life
and health insurance
B. it is a government agency that collects
C. It is a member organization that protects insured against insolvent insurers
D. It is a ranking organization for health insurance - Answer: A. It is a nonprofit organization that
maintains underwriting information on applicants for life and health insurance
The Medical Information Bureau (MIB) is a nonprofit trade organization which receives adverse
medical information from the insurance companies and maintains confidential medical
impairment information on individuals
A lucky individual won the state lottery, so the state will be sending him a check each month for
the next 25 years. What type of annuity products are they likely to use to provide these
benefits?
A. Variable annuity
B. Flexible payment annuity
C. Deferred interest annuity
D. Immediate annuity - Answer: D. Immediate annuity
An annuity purchased with a single lump-sum payment, with a 25-year fixed-period distribution
will be most suitable for this arrangement
A perspective insured receives a conditional receipt but dies before the policy is issued. The
insurer will
A. Pay the policy proceeds up to an established a limit
B. Not pay the policy proceeds under any circumstances
C. Automatically pay the policy proceeds
D. Pay the policy proceeds only if it would have issued the policy - Answer: D. Pay the policy
proceeds only if it would have issued the policy
Page 3 of 26
Correct Ans with Rationales/ 2024-2025.
Which of the following statements concerning a Simplified Employee Pension plan (SEP) in
INCORRECT?
A. SEPs allow the employer to make annual tax deductible contributions up to 25% of an
employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
C. Employer contributions are not included int he employee's gross income
D. SEPs are suitable for large companies - Answer: D. SEPs are suitable for large companies
An employee is joining a group insurance plan. In order to avoid having to prove insurability,
what must the employee do?
A. Join during the open enrollment period
B. Provide medical records to the insurer
C. Sign a statement of contributed good health
D. Nothing: proof of insurability is never required in group policies - Answer: A. Join during the
open enrollment period
Page 1 of 26
,If one applies for coverage after the open enrollment period, proof of insurability may be
required in order to avoid adverse selection
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
D. Insured's current and future income - Answer: C. Predicted needs of the family after the
insured's death.
The Human Life Value Approach to determining the value of an individual's life requires the
calculation of probable future earnings of the insured, which involves wages, expenses,
inflation, amount of time until retirement, and the time value of money. Predicted needs of the
family after the insured's death are used in the needs approach
Can the Superintendent investigate fraudulent claims if they occurred outside of the resident's
state according to the Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation within this state or outside
of the state
B. Yes, but only if it is a violation of another state's insurance law
C. No. Because insurance is regulated by the state, all claims must occur within state boundaries
D. No. If fraudulent acts are believed to have been committed, the Superintendent must notify
the state's Superintendent or Commissioner. It will then become a federal matter - Answer: A.
Yes. The Superintendent has the power to make an investigation within this state or outside of
the state
If the insurance frauds bureau has reason to believe that a person is engaged or is about to
engage in a fraudulent act, the Superintendent has the power to make an investigation within
this state or outside the state
Page 2 of 26
, Which of the following best describes the MIB?
A. It is a nonprofit organization that maintains underwriting information on applicants for life
and health insurance
B. it is a government agency that collects
C. It is a member organization that protects insured against insolvent insurers
D. It is a ranking organization for health insurance - Answer: A. It is a nonprofit organization that
maintains underwriting information on applicants for life and health insurance
The Medical Information Bureau (MIB) is a nonprofit trade organization which receives adverse
medical information from the insurance companies and maintains confidential medical
impairment information on individuals
A lucky individual won the state lottery, so the state will be sending him a check each month for
the next 25 years. What type of annuity products are they likely to use to provide these
benefits?
A. Variable annuity
B. Flexible payment annuity
C. Deferred interest annuity
D. Immediate annuity - Answer: D. Immediate annuity
An annuity purchased with a single lump-sum payment, with a 25-year fixed-period distribution
will be most suitable for this arrangement
A perspective insured receives a conditional receipt but dies before the policy is issued. The
insurer will
A. Pay the policy proceeds up to an established a limit
B. Not pay the policy proceeds under any circumstances
C. Automatically pay the policy proceeds
D. Pay the policy proceeds only if it would have issued the policy - Answer: D. Pay the policy
proceeds only if it would have issued the policy
Page 3 of 26
