Practice Exam NM Life and
Health Insurance
Comprehensive Questions with
Verified Answers Graded A+
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the
investment? - Answer: The annuitant will receive the higher of either the guaranteed minimum
rate or current rate
Which of the following is true regarding taxation of dividends in participating policies? - Answer:
Dividends are not taxable.
J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent
was vacationing at the time the policy was issued, so J did not receive the policy until February
18. J decides that he does not want the policy. When would J need to return the policy to the
insurer in order to receive a full refund of premium paid? - Answer: February 28th, or 10 days
after the time the policy is delivered.
The appointing insurer must file a notice of agent appointment with the Superintendent within
how many days from the date the agency contract is executed or the first insurance application
is submitted? - Answer: 15 days
The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to
change the beneficiary before the insured's death, the proceeds of the policy will go to -
Answer: The insured's estate.
Health Insurance
Comprehensive Questions with
Verified Answers Graded A+
In a fixed annuity, which of the following is true regarding the guaranteed interest rate on the
investment? - Answer: The annuitant will receive the higher of either the guaranteed minimum
rate or current rate
Which of the following is true regarding taxation of dividends in participating policies? - Answer:
Dividends are not taxable.
J applied for a life insurance policy on January 10. The policy was issued on January 31. J's agent
was vacationing at the time the policy was issued, so J did not receive the policy until February
18. J decides that he does not want the policy. When would J need to return the policy to the
insurer in order to receive a full refund of premium paid? - Answer: February 28th, or 10 days
after the time the policy is delivered.
The appointing insurer must file a notice of agent appointment with the Superintendent within
how many days from the date the agency contract is executed or the first insurance application
is submitted? - Answer: 15 days
The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to
change the beneficiary before the insured's death, the proceeds of the policy will go to -
Answer: The insured's estate.
