NY Life Insurance Exam Review (2025) COMPLETE QUESTIONS With
NY Life Insurance Exam Review
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1. Based on the Human Life Value Approach, C. Predicted needs of the family after the in-
which of the following is NOT used to cal- sured's death.
culate an individual's life value? The Human Life Value Approach to determin-
A. Insured's annual expenses ing the value of an individual's life requires
B. Effect of inflation on income over time the calculation of probable future earnings of
C. Predicted needs of the family after the the insured, which involves wages, expenses,
insured's death inflation, amount of time until retirement, and
D. Insured's current and future income the time value of money. Predicted needs of
the family after the insured's death are used
in the needs approach
2. Can the Superintendent investigate fraud- A. Yes. The Superintendent has the power to
ulent claims if they occurred outside of make an investigation within this state or out-
the resident's state according to the Insur- side of the state
ance Fraud Prevention Act? If the insurance frauds bureau has reason to
A. Yes. The Superintendent has the power believe that a person is engaged or is about
to make an investigation within this state to engage in a fraudulent act, the Superinten-
or outside of the state dent has the power to make an investigation
B. Yes, but only if it is a violation of another within this state or outside the state
state's insurance law
C. No. Because insurance is regulated by
the state, all claims must occur within
state boundaries
D. No. If fraudulent acts are believed to
have been committed, the Superinten-
dent must notify the state's Superinten-
dent or Commissioner. It will then become
a federal matter
3. Which settlement option allows the insur- A. Interest only
er to retain the face amount but pay some Within the "interest only" option, the insurer
income based on gain on the proceeds to retains policy proceeds and pays interest on
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the beneficiary at regular intervals? the proceeds to the beneficiary at regular in-
A. Interest only tervals. The insurer will usually guarantee an
B. Life income interest rate and even pay in excess of the rate
C. Fixed amount quoted
D. Fixed period
4. In order to be a licensed life settlement C. Submit fingerprints
broker, a person must complete which of
the following requirements?
A. Post a surety bond
B. Submit to a drug test
C. Submit fingerprints
D. Have been a licensed life producer for
at least 6 months
5. How long does a licensee have to noti- C. 30 days
fy the Superintendent of a change of ad- The Superintendent must be notified within
dress? 30 days upon any of a change of primary
A. 90 days residence or business address
B. Immediately
C. 30 days
D. 60 days
6. Which of the following would be deducted A. Amount paid with the accelerated benefit,
from the death benefit paid to a benefi- plus the earnings lost by the insurance com-
ciary, if a partial accelerated death benefit pany in interest income from the accelerated
had been paid while the insured was still benefit
alive? If an insured withdraws a portion of the death
A. Amount paid with the accelerated bene- benefit by the use of this rider, the bene-
fit, plus the earnings lost by the insurance fit payable at death will be reduced by that
company in interest income from the ac- amount, plus the amount of earnings lost by
celerated benefit the insurance company in interest income
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B. There are no deductions taken from
death benefits
C. Penalty imposed for early withdrawal
of the death benefit, plus the amount of
earnings lost by the insurance company in
interest income
C. 10% federal death benefit income tax,
plus the amount of the accelerated bene-
fit
7. Which of the following statements con- D. SEPs are suitable for large companies
cerning a Simplified Employee Pension
plan (SEP) in INCORRECT?
A. SEPs allow the employer to make annu-
al tax deductible contributions up to 25%
of an employee's earned income
B. SEPs have a higher tax deductible con-
tribution limit than an IRA
C. Employer contributions are not includ-
ed int he employee's gross income
D. SEPs are suitable for large companies
8. An employee is joining a group insurance A. Join during the open enrollment period
plan. In order to avoid having to prove If one applies for coverage after the open en-
insurability, what must the employee do? rollment period, proof of insurability may be
A. Join during the open enrollment period required in order to avoid adverse selection
B. Provide medical records to the insurer
C. Sign a statement of contributed good
health
D. Nothing: proof of insurability is never
required in group policies
NY Life Insurance Exam Review
100% Verified Solutions,
Study online at https://quizlet.com/_3b3cfv
1. Based on the Human Life Value Approach, C. Predicted needs of the family after the in-
which of the following is NOT used to cal- sured's death.
culate an individual's life value? The Human Life Value Approach to determin-
A. Insured's annual expenses ing the value of an individual's life requires
B. Effect of inflation on income over time the calculation of probable future earnings of
C. Predicted needs of the family after the the insured, which involves wages, expenses,
insured's death inflation, amount of time until retirement, and
D. Insured's current and future income the time value of money. Predicted needs of
the family after the insured's death are used
in the needs approach
2. Can the Superintendent investigate fraud- A. Yes. The Superintendent has the power to
ulent claims if they occurred outside of make an investigation within this state or out-
the resident's state according to the Insur- side of the state
ance Fraud Prevention Act? If the insurance frauds bureau has reason to
A. Yes. The Superintendent has the power believe that a person is engaged or is about
to make an investigation within this state to engage in a fraudulent act, the Superinten-
or outside of the state dent has the power to make an investigation
B. Yes, but only if it is a violation of another within this state or outside the state
state's insurance law
C. No. Because insurance is regulated by
the state, all claims must occur within
state boundaries
D. No. If fraudulent acts are believed to
have been committed, the Superinten-
dent must notify the state's Superinten-
dent or Commissioner. It will then become
a federal matter
3. Which settlement option allows the insur- A. Interest only
er to retain the face amount but pay some Within the "interest only" option, the insurer
income based on gain on the proceeds to retains policy proceeds and pays interest on
, NY Life Insurance Exam Review
Study online at https://quizlet.com/_3b3cfv
the beneficiary at regular intervals? the proceeds to the beneficiary at regular in-
A. Interest only tervals. The insurer will usually guarantee an
B. Life income interest rate and even pay in excess of the rate
C. Fixed amount quoted
D. Fixed period
4. In order to be a licensed life settlement C. Submit fingerprints
broker, a person must complete which of
the following requirements?
A. Post a surety bond
B. Submit to a drug test
C. Submit fingerprints
D. Have been a licensed life producer for
at least 6 months
5. How long does a licensee have to noti- C. 30 days
fy the Superintendent of a change of ad- The Superintendent must be notified within
dress? 30 days upon any of a change of primary
A. 90 days residence or business address
B. Immediately
C. 30 days
D. 60 days
6. Which of the following would be deducted A. Amount paid with the accelerated benefit,
from the death benefit paid to a benefi- plus the earnings lost by the insurance com-
ciary, if a partial accelerated death benefit pany in interest income from the accelerated
had been paid while the insured was still benefit
alive? If an insured withdraws a portion of the death
A. Amount paid with the accelerated bene- benefit by the use of this rider, the bene-
fit, plus the earnings lost by the insurance fit payable at death will be reduced by that
company in interest income from the ac- amount, plus the amount of earnings lost by
celerated benefit the insurance company in interest income
, NY Life Insurance Exam Review
Study online at https://quizlet.com/_3b3cfv
B. There are no deductions taken from
death benefits
C. Penalty imposed for early withdrawal
of the death benefit, plus the amount of
earnings lost by the insurance company in
interest income
C. 10% federal death benefit income tax,
plus the amount of the accelerated bene-
fit
7. Which of the following statements con- D. SEPs are suitable for large companies
cerning a Simplified Employee Pension
plan (SEP) in INCORRECT?
A. SEPs allow the employer to make annu-
al tax deductible contributions up to 25%
of an employee's earned income
B. SEPs have a higher tax deductible con-
tribution limit than an IRA
C. Employer contributions are not includ-
ed int he employee's gross income
D. SEPs are suitable for large companies
8. An employee is joining a group insurance A. Join during the open enrollment period
plan. In order to avoid having to prove If one applies for coverage after the open en-
insurability, what must the employee do? rollment period, proof of insurability may be
A. Join during the open enrollment period required in order to avoid adverse selection
B. Provide medical records to the insurer
C. Sign a statement of contributed good
health
D. Nothing: proof of insurability is never
required in group policies
