New Mexico Life and Health Insurance Exam 2026
| Real Exam Questions and Correct Answers |
Verified Answers | Graded A+
Which benefit supplement added to a life insurance policy insures an entire
family?
Kin term rider
Family term rider
Group term rider
Household term rider ---------CORRECT ANSWER-----------------Family Term rider
Which of these is NOT relevant when determining the amount of personal life
insurance needed?
Household income
Household debt
Local unemployment rates
Existing life insurance coverage ---------CORRECT ANSWER-----------------Local
Unemployment rate
A policyowner is permitted to take out a policy loan on a whole life policy at what
point?
When the policy has a cash value
When the cash value equals the face amount
,When the policy has been in force 2 years
When the policyowner has demonstrated financial need ---------CORRECT
ANSWER-----------------When the policy has cash value
Which of the following describes coverage for the Medicare Part B coinsurance? --
-------CORRECT ANSWER-----------------A medicare supplemental core benefit
In long-term care insurance, what is the length of time for which claims will be
paid? ---------CORRECT ANSWER-----------------Benefit Period
Karen is considering replacing her individual accident and health insurance policy
with another individual policy. She has had issues in the past with her gall bladder
that would be considered a pre-existing condition. How will a pre-existing
conditions exclusion affect Karen's new insurance contract? ---------CORRECT
ANSWER-----------------May reduce her benefits
All of these are duties that a producer may be required to perform when
delivering an insurance policy EXCEPT
Review policy with applicant
Acquire a statement of good health signature
Leave a conditional receipt with client
,Gather the initial premium ---------CORRECT ANSWER-----------------Leave a
conditional Receipt with client
Tim is retired and has recently separated from his wife. He receives benefits from
a qualified retirement plan through his former employer. The plan's trustee has
decided to split these benefit payments between Tim and his estranged wife. This
decision is likely in violation of which IRS rule? ---------CORRECT ANSWER-------------
----Alienation of Benefits
Which term describes the elimination of a hazard?
Risk pooling
Risk retention
Risk transference
Risk avoidance ---------CORRECT ANSWER-----------------Risk Avoidance
What are reasonable and customary charges for health insurance primarily based
on?
Average charges as determined by the NAIC
Average charges within a geographic region
Average charges within the United States
Average charges as determined by actuarial tables ---------CORRECT ANSWER-------
----------Average Charges Within a Geographic Region
, Which of these is NOT considered to be a cost connected with an individual's
death?
Business expenses
Funeral expense
Tax liability
Probate costs ---------CORRECT ANSWER-----------------Business Expenses
A policyowner pays the first annual premium for a $50,000 life insurance policy
and dies one month after the policy effective date. Which of these statements is
normally true?
Premium received by insurer is considered to be unearned
Beneficiary receives $50,000 income tax-free
Premium will be refunded with interest and no death benefit paid
Proceeds are prorated to 1/12th of the full amount ---------CORRECT ANSWER------
-----------Beneficiary receives $50,000 income tax free
| Real Exam Questions and Correct Answers |
Verified Answers | Graded A+
Which benefit supplement added to a life insurance policy insures an entire
family?
Kin term rider
Family term rider
Group term rider
Household term rider ---------CORRECT ANSWER-----------------Family Term rider
Which of these is NOT relevant when determining the amount of personal life
insurance needed?
Household income
Household debt
Local unemployment rates
Existing life insurance coverage ---------CORRECT ANSWER-----------------Local
Unemployment rate
A policyowner is permitted to take out a policy loan on a whole life policy at what
point?
When the policy has a cash value
When the cash value equals the face amount
,When the policy has been in force 2 years
When the policyowner has demonstrated financial need ---------CORRECT
ANSWER-----------------When the policy has cash value
Which of the following describes coverage for the Medicare Part B coinsurance? --
-------CORRECT ANSWER-----------------A medicare supplemental core benefit
In long-term care insurance, what is the length of time for which claims will be
paid? ---------CORRECT ANSWER-----------------Benefit Period
Karen is considering replacing her individual accident and health insurance policy
with another individual policy. She has had issues in the past with her gall bladder
that would be considered a pre-existing condition. How will a pre-existing
conditions exclusion affect Karen's new insurance contract? ---------CORRECT
ANSWER-----------------May reduce her benefits
All of these are duties that a producer may be required to perform when
delivering an insurance policy EXCEPT
Review policy with applicant
Acquire a statement of good health signature
Leave a conditional receipt with client
,Gather the initial premium ---------CORRECT ANSWER-----------------Leave a
conditional Receipt with client
Tim is retired and has recently separated from his wife. He receives benefits from
a qualified retirement plan through his former employer. The plan's trustee has
decided to split these benefit payments between Tim and his estranged wife. This
decision is likely in violation of which IRS rule? ---------CORRECT ANSWER-------------
----Alienation of Benefits
Which term describes the elimination of a hazard?
Risk pooling
Risk retention
Risk transference
Risk avoidance ---------CORRECT ANSWER-----------------Risk Avoidance
What are reasonable and customary charges for health insurance primarily based
on?
Average charges as determined by the NAIC
Average charges within a geographic region
Average charges within the United States
Average charges as determined by actuarial tables ---------CORRECT ANSWER-------
----------Average Charges Within a Geographic Region
, Which of these is NOT considered to be a cost connected with an individual's
death?
Business expenses
Funeral expense
Tax liability
Probate costs ---------CORRECT ANSWER-----------------Business Expenses
A policyowner pays the first annual premium for a $50,000 life insurance policy
and dies one month after the policy effective date. Which of these statements is
normally true?
Premium received by insurer is considered to be unearned
Beneficiary receives $50,000 income tax-free
Premium will be refunded with interest and no death benefit paid
Proceeds are prorated to 1/12th of the full amount ---------CORRECT ANSWER------
-----------Beneficiary receives $50,000 income tax free
