NM Life Insurance Exam Ch. 2
Comprehensive Questions with
Verified Answers Graded A+
d - Answer: Which of the following is a true statement?
Select one:
a. If an applicant needs to makes changes in their application, the agent should create a new
form.
b. After the applicant's signature, no changes can be made to that particular application.
c. Any changes in the application must be signed by both the applicant and the agent.
d. Any changes in the application must be initialed by the applicant.
c - Answer: When completing the application, a producer should do all the following, EXCEPT:
Select one:
a. Make sure the applicant has completely filled out the application.
b. Determine whether or not the applicant understands questions asked on the application
c. Obtain the spouse's signature on the application, if the applicant is married
d. Write and sign an honest opinion of the applicant and their integrity in the section for the
Agent's Statement.
a - Answer: Jeanine submits an application with initial premium for a $100,000 life insurance
policy. She is issued a conditional receipt and is not required to take a medical exam. If Jeanine
dies in a plane crash a week later, what will the insurer do?
Select one:
, a. Pay $100,000 to Jeanine's beneficiary if Jeanine's policy would have been issued as applied
for
b. Pay $50,000 to Jeanine's beneficiary since Jeanine's death resulted from an accident
c. Refund the initial premium to Jeanine's named beneficiary
d. Void the policy, refund the initial premium and deny payment of the claim because the
insurer did not approve Jeanine's coverage
d - Answer: Dale fills out a health insurance policy application, and hands it to his agent. Of the
following statements, which is correct?
Select one:
a. Dale's policy is in force when he pays the initial premium.
b. Dale's policy is in force when he hands his application to the agent.
c. Dale's policy is in force when the insurance company issues the policy.
d. Dale's policy is in force when the agent deliver's Dale's policy.
c - Answer: Which of the following individual's missing signature deems a life insurance
application incomplete?
Select one:
a. The primary beneficiary
b. The executive officer of the insurance company
c. The prospective adult insured
d. The underwriter
d - Answer: A client applied for a $100,000 whole life policy, but did not pay the initial premium
at the time of application. When the agent later delivers the policy and collects the premium,
which of the following statements must be obtained from the client?
Select one:
a. A statement of no material change in risks
Comprehensive Questions with
Verified Answers Graded A+
d - Answer: Which of the following is a true statement?
Select one:
a. If an applicant needs to makes changes in their application, the agent should create a new
form.
b. After the applicant's signature, no changes can be made to that particular application.
c. Any changes in the application must be signed by both the applicant and the agent.
d. Any changes in the application must be initialed by the applicant.
c - Answer: When completing the application, a producer should do all the following, EXCEPT:
Select one:
a. Make sure the applicant has completely filled out the application.
b. Determine whether or not the applicant understands questions asked on the application
c. Obtain the spouse's signature on the application, if the applicant is married
d. Write and sign an honest opinion of the applicant and their integrity in the section for the
Agent's Statement.
a - Answer: Jeanine submits an application with initial premium for a $100,000 life insurance
policy. She is issued a conditional receipt and is not required to take a medical exam. If Jeanine
dies in a plane crash a week later, what will the insurer do?
Select one:
, a. Pay $100,000 to Jeanine's beneficiary if Jeanine's policy would have been issued as applied
for
b. Pay $50,000 to Jeanine's beneficiary since Jeanine's death resulted from an accident
c. Refund the initial premium to Jeanine's named beneficiary
d. Void the policy, refund the initial premium and deny payment of the claim because the
insurer did not approve Jeanine's coverage
d - Answer: Dale fills out a health insurance policy application, and hands it to his agent. Of the
following statements, which is correct?
Select one:
a. Dale's policy is in force when he pays the initial premium.
b. Dale's policy is in force when he hands his application to the agent.
c. Dale's policy is in force when the insurance company issues the policy.
d. Dale's policy is in force when the agent deliver's Dale's policy.
c - Answer: Which of the following individual's missing signature deems a life insurance
application incomplete?
Select one:
a. The primary beneficiary
b. The executive officer of the insurance company
c. The prospective adult insured
d. The underwriter
d - Answer: A client applied for a $100,000 whole life policy, but did not pay the initial premium
at the time of application. When the agent later delivers the policy and collects the premium,
which of the following statements must be obtained from the client?
Select one:
a. A statement of no material change in risks
