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New Mexico Life and Health Insurance
Actual Exam Questions And Answers Practice
Questions with Solutions Newest 2026-2027 |
Already Graded A+
Long-term care insurance applications MUST contain plain and
unambiguous health questions. The exception to this rule would
be applications for - ANSWER-guaranteed issue
An agent's license may only be suspended or revoked if the
agent - ANSWER-has been afforded a right to a hearing
A business may purchase an annuity for all of the following
reasons EXCEPT - ANSWER-informally funding a non-
qualified deferred compensation plan
The State Guaranty Association guarantees - ANSWER-that a
claim will be paid if an admitted insurer becomes insolvent
Which of the following would most likely purchase an
immediate annuity? - ANSWER-Retiree having a lump sum to
invest
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Jerome is covered by a disability income policy that does NOT
provide benefits for losses occurring as the result of his
employment. What kind of coverage is this? - ANSWER-
Nonoccupational coverage
During the liquidation phase of an annuity contract, to whom are
the income benefits normally payable to? - ANSWER-Annuitant
Larry wants to purchase an individual disability income policy
to provide continuous income while disabled. He is also covered
by a two-month wage continuation benefit from his employer.
What should the policy elimination period be for his individual
policy? - ANSWER-60 days
Insurance crimes which affect interstate commerce are
prosecuted by the - ANSWER-US Attorney General
Which of the following is covered by a basic dental indemnity
plan? - ANSWER-Non-surgical periodontal treatment
Which health policy clause specifies the amount of benefits to
be paid? - ANSWER-Insuring
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The exclusion ratio determines - ANSWER-the amount of an
annuity payment subject to income tax
An example of endodontic treatment is a - ANSWER-root canal
The interest paid during an annuity's payout period is considered
- ANSWER-taxable as ordinary income
A reciprocal insurer typically has an administrator who manages
the premiums collected from the group's members. This
administrator is called a(n) - ANSWER-attorney-in-fact
What is a major difference between private commercial insurers
and HMO's? - ANSWER-An HMO combines medical care
delivery and funding in one organization
Which benefit can be found in an equity indexed annuity, but not
in a fixed annuity? - ANSWER-Protection against long-term
inflation
New Mexico Life and Health Insurance
Actual Exam Questions And Answers Practice
Questions with Solutions Newest 2026-2027 |
Already Graded A+
Long-term care insurance applications MUST contain plain and
unambiguous health questions. The exception to this rule would
be applications for - ANSWER-guaranteed issue
An agent's license may only be suspended or revoked if the
agent - ANSWER-has been afforded a right to a hearing
A business may purchase an annuity for all of the following
reasons EXCEPT - ANSWER-informally funding a non-
qualified deferred compensation plan
The State Guaranty Association guarantees - ANSWER-that a
claim will be paid if an admitted insurer becomes insolvent
Which of the following would most likely purchase an
immediate annuity? - ANSWER-Retiree having a lump sum to
invest
,2|Page
Jerome is covered by a disability income policy that does NOT
provide benefits for losses occurring as the result of his
employment. What kind of coverage is this? - ANSWER-
Nonoccupational coverage
During the liquidation phase of an annuity contract, to whom are
the income benefits normally payable to? - ANSWER-Annuitant
Larry wants to purchase an individual disability income policy
to provide continuous income while disabled. He is also covered
by a two-month wage continuation benefit from his employer.
What should the policy elimination period be for his individual
policy? - ANSWER-60 days
Insurance crimes which affect interstate commerce are
prosecuted by the - ANSWER-US Attorney General
Which of the following is covered by a basic dental indemnity
plan? - ANSWER-Non-surgical periodontal treatment
Which health policy clause specifies the amount of benefits to
be paid? - ANSWER-Insuring
, 3|Page
The exclusion ratio determines - ANSWER-the amount of an
annuity payment subject to income tax
An example of endodontic treatment is a - ANSWER-root canal
The interest paid during an annuity's payout period is considered
- ANSWER-taxable as ordinary income
A reciprocal insurer typically has an administrator who manages
the premiums collected from the group's members. This
administrator is called a(n) - ANSWER-attorney-in-fact
What is a major difference between private commercial insurers
and HMO's? - ANSWER-An HMO combines medical care
delivery and funding in one organization
Which benefit can be found in an equity indexed annuity, but not
in a fixed annuity? - ANSWER-Protection against long-term
inflation
