NEW MEXICO LIFE ONLY FINAL EXAM
2024/2025 WITH 100% ACCURATE
SOLUTIONS
What is an insurance contract that identifies individuals by relationship
to a specific organization? - Precise Answer ✔✔group insurance
When an insured under a group life insurance plan in NM elects the
conversation option, the new policy is issued - Precise Answer
✔✔Without requiring evidence of insurability
What is another name for a Keogh plan - Precise Answer ✔✔HR 10
plan
An insurance policy may be issued with a preferred insurance premium
in all these situations EXEPT - Precise Answer ✔✔Living in a rural area
All of these statements concerning group credit life insurance are false
EXEPT - Precise Answer ✔✔The face amount is based on the
outstanding loan balance
Risk ____ is the process of analyzing exposures that create risk and
designing programs to handle them - Precise Answer ✔✔management
,XYZ Insurance Company gives direct authority to its producers to sell
insurance through an agency contract, but nothing is stated regarding the
collection of premiums. Which authority grants the producer the right to
collect premiums? - Precise Answer ✔✔implied authority
When the superintendent believes an agent is causing substantial and
material harm, the superintendent has the authority to - Precise Answer
✔✔issue a cease and desist order against the agent
Who normally pays the premiums for group credit life insurance? -
Precise Answer ✔✔borrower
For policyholders in the same risk classification, it is unlawful to -
Precise Answer ✔✔Charge different premiums
What happens to the cash value of a market value adjusted annuity if it's
surrendered prior to the end of the stated guarantee period - Precise
Answer ✔✔Subject to market value adjustment
What must be given to a life insurance applicant when the agent receives
an application and the initial premium - Precise Answer ✔✔Conditional
receipt
Which situation would not require the insureds consent when a life
insurance policy is issued - Precise Answer ✔✔A policy is purchased by
a parent for a minor child
, A business becoming incorporated is an example of risk ____. - Precise
Answer ✔✔to transfer
The Superintendent may suspend an agent's license when the agent -
Precise Answer ✔✔Rebates a portion of the commission to the insured
What would be considered an advantage of purchasing term life
insurance? - Precise Answer ✔✔The initial premium is lower compared
to an equivalent amount of whole life coverage
When an insurance appointment with an agent is terminated, the party
must notify the agent of the termination is the - Precise Answer
✔✔Insurer
The policy provision that permits an employee to change from group life
coverage to an individual life policy is called the - Precise Answer
✔✔Conversation provision
A qualified profit-sharing plan is designed to - Precise Answer
✔✔distribute a portion of company earnings to its employees
What is the maximum number of employees (earning at least 5k) that an
employer can have in order to start SIMPLE retirement plan - Precise
Answer ✔✔100
2024/2025 WITH 100% ACCURATE
SOLUTIONS
What is an insurance contract that identifies individuals by relationship
to a specific organization? - Precise Answer ✔✔group insurance
When an insured under a group life insurance plan in NM elects the
conversation option, the new policy is issued - Precise Answer
✔✔Without requiring evidence of insurability
What is another name for a Keogh plan - Precise Answer ✔✔HR 10
plan
An insurance policy may be issued with a preferred insurance premium
in all these situations EXEPT - Precise Answer ✔✔Living in a rural area
All of these statements concerning group credit life insurance are false
EXEPT - Precise Answer ✔✔The face amount is based on the
outstanding loan balance
Risk ____ is the process of analyzing exposures that create risk and
designing programs to handle them - Precise Answer ✔✔management
,XYZ Insurance Company gives direct authority to its producers to sell
insurance through an agency contract, but nothing is stated regarding the
collection of premiums. Which authority grants the producer the right to
collect premiums? - Precise Answer ✔✔implied authority
When the superintendent believes an agent is causing substantial and
material harm, the superintendent has the authority to - Precise Answer
✔✔issue a cease and desist order against the agent
Who normally pays the premiums for group credit life insurance? -
Precise Answer ✔✔borrower
For policyholders in the same risk classification, it is unlawful to -
Precise Answer ✔✔Charge different premiums
What happens to the cash value of a market value adjusted annuity if it's
surrendered prior to the end of the stated guarantee period - Precise
Answer ✔✔Subject to market value adjustment
What must be given to a life insurance applicant when the agent receives
an application and the initial premium - Precise Answer ✔✔Conditional
receipt
Which situation would not require the insureds consent when a life
insurance policy is issued - Precise Answer ✔✔A policy is purchased by
a parent for a minor child
, A business becoming incorporated is an example of risk ____. - Precise
Answer ✔✔to transfer
The Superintendent may suspend an agent's license when the agent -
Precise Answer ✔✔Rebates a portion of the commission to the insured
What would be considered an advantage of purchasing term life
insurance? - Precise Answer ✔✔The initial premium is lower compared
to an equivalent amount of whole life coverage
When an insurance appointment with an agent is terminated, the party
must notify the agent of the termination is the - Precise Answer
✔✔Insurer
The policy provision that permits an employee to change from group life
coverage to an individual life policy is called the - Precise Answer
✔✔Conversation provision
A qualified profit-sharing plan is designed to - Precise Answer
✔✔distribute a portion of company earnings to its employees
What is the maximum number of employees (earning at least 5k) that an
employer can have in order to start SIMPLE retirement plan - Precise
Answer ✔✔100
