NY LIFE INSURANCE EXAM REVIEW
1. Based on the Human Life Value Approach, which of the following is NOT used to
calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
D. Insured's current and future income: C. Predicted needs of the family after the
insured's death.
The Human Life Value Approach to determining the value of an individual's life requires the
calculation of probable future earnings of the insured, which involves wages, expenses,
inflation, amount of time until retirement, and 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 fraudulent claims if they occurred outside of the
resident's state according to the Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation within this state or
outside of the state
B. Yes, but only if it is a violation of another 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 Superin-tendent
must notify the state's Superintendent or Commissioner. It will then become a
federal matter: A. Yes. The Superintendent has the power to make an investigation
within this state or outside of the state
If the insurance frauds bureau has reason to believe that a person is engaged or is about
to engage in a fraudulent act, the Superintendent has the power to make an investigation
within this state or outside the state
3. Which settlement option allows the insurer to retain the face amount but pay some
income based on gain on the proceeds to the beneficiary at regular intervals? A. Interest
only
B. Life income
C. Fixed amount
D. Fixed period: A. Interest only
Within the "interest only" option, the insurer retains policy proceeds and pays interest on
the proceeds to the beneficiary at regular intervals. The insurer will usually guarantee an
interest rate and even pay in excess of the rate quoted
,NY LIFE INSURANCE EXAM REVIEW
4. In order to be a licensed life settlement 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: C. Submit fingerprints
5. How long does a licensee have to notify the Superintendent of a change of address?
A. 90 days
B. Immediately
C. 30 days
D. 60 days: C. 30 days
The Superintendent must be notified within 30 days upon any of a change of primary
residence or business address
6. Which of the following would be deducted from the death benefit paid to a
beneficiary, if a partial accelerated death benefit had been paid while the insured was
still alive?
A. Amount paid with the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit
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 benefit: A.
Amount paid with the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit
If an insured withdraws a portion of the death benefit by the use of this rider, the benefit
payable at death will be reduced by that amount, plus the amount of earnings lost by the
insurance company in interest income
7. Which of the following statements concerning a Simplified Employee Pension plan
(SEP) in INCORRECT?
A. SEPs allow the employer to make annual tax deductible contributions up to
25% of an employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
, NY LIFE INSURANCE EXAM REVIEW
C. Employer contributions are not included int he employee's gross incomeD. SEPs are
suitable for large companies: D. SEPs are suitable for large companies
8. An employee is joining a group insurance plan. In order to avoid having to prove
insurability, what must the employee do?
A. Join during the open enrollment period
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: A. Join during the
open enrollment period
If one applies for coverage after the open enrollment period, proof of insurability may be
required in order to avoid adverse selection 9. Which of the following best describes the
MIB?
A. It is a nonprofit organization that maintains underwriting information on
applicants for life and health insurance B. it is a government agency that collects
C. It is a member organization that protects insured against insolvent insurers D. It is a
ranking organization for health insurance: A. It is a nonprofit organization that maintains
underwriting information on applicants for life and health insurance
The Medical Information Bureau (MIB) is a nonprofit trade organization which receives
adverse medical information from the insurance companies and maintains confidential
medical impairment information on individuals
10. A lucky individual won the state lottery, so the state will be sending him a check
each month for the next 25 years. What type of annuity products are they likely to use
to provide these benefits?
A. Variable annuity
B. Flexible payment annuity
C. Deferred interest annuity
D. Immediate annuity: D. Immediate annuity
An annuity purchased with a single lump-sum payment, with a 25-year fixed-period
distribution will be most suitable for this arrangement
11. A perspective insured receives a conditional receipt but dies before the policy is
issued. The insurer will
A. Pay the policy proceeds up to an established a limit
B. Not pay the policy proceeds under any circumstances
C. Automatically pay the policy proceeds
1. Based on the Human Life Value Approach, which of the following is NOT used to
calculate an individual's life value?
A. Insured's annual expenses
B. Effect of inflation on income over time
C. Predicted needs of the family after the insured's death
D. Insured's current and future income: C. Predicted needs of the family after the
insured's death.
The Human Life Value Approach to determining the value of an individual's life requires the
calculation of probable future earnings of the insured, which involves wages, expenses,
inflation, amount of time until retirement, and 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 fraudulent claims if they occurred outside of the
resident's state according to the Insurance Fraud Prevention Act?
A. Yes. The Superintendent has the power to make an investigation within this state or
outside of the state
B. Yes, but only if it is a violation of another 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 Superin-tendent
must notify the state's Superintendent or Commissioner. It will then become a
federal matter: A. Yes. The Superintendent has the power to make an investigation
within this state or outside of the state
If the insurance frauds bureau has reason to believe that a person is engaged or is about
to engage in a fraudulent act, the Superintendent has the power to make an investigation
within this state or outside the state
3. Which settlement option allows the insurer to retain the face amount but pay some
income based on gain on the proceeds to the beneficiary at regular intervals? A. Interest
only
B. Life income
C. Fixed amount
D. Fixed period: A. Interest only
Within the "interest only" option, the insurer retains policy proceeds and pays interest on
the proceeds to the beneficiary at regular intervals. The insurer will usually guarantee an
interest rate and even pay in excess of the rate quoted
,NY LIFE INSURANCE EXAM REVIEW
4. In order to be a licensed life settlement 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: C. Submit fingerprints
5. How long does a licensee have to notify the Superintendent of a change of address?
A. 90 days
B. Immediately
C. 30 days
D. 60 days: C. 30 days
The Superintendent must be notified within 30 days upon any of a change of primary
residence or business address
6. Which of the following would be deducted from the death benefit paid to a
beneficiary, if a partial accelerated death benefit had been paid while the insured was
still alive?
A. Amount paid with the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit
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 benefit: A.
Amount paid with the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit
If an insured withdraws a portion of the death benefit by the use of this rider, the benefit
payable at death will be reduced by that amount, plus the amount of earnings lost by the
insurance company in interest income
7. Which of the following statements concerning a Simplified Employee Pension plan
(SEP) in INCORRECT?
A. SEPs allow the employer to make annual tax deductible contributions up to
25% of an employee's earned income
B. SEPs have a higher tax deductible contribution limit than an IRA
, NY LIFE INSURANCE EXAM REVIEW
C. Employer contributions are not included int he employee's gross incomeD. SEPs are
suitable for large companies: D. SEPs are suitable for large companies
8. An employee is joining a group insurance plan. In order to avoid having to prove
insurability, what must the employee do?
A. Join during the open enrollment period
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: A. Join during the
open enrollment period
If one applies for coverage after the open enrollment period, proof of insurability may be
required in order to avoid adverse selection 9. Which of the following best describes the
MIB?
A. It is a nonprofit organization that maintains underwriting information on
applicants for life and health insurance B. it is a government agency that collects
C. It is a member organization that protects insured against insolvent insurers D. It is a
ranking organization for health insurance: A. It is a nonprofit organization that maintains
underwriting information on applicants for life and health insurance
The Medical Information Bureau (MIB) is a nonprofit trade organization which receives
adverse medical information from the insurance companies and maintains confidential
medical impairment information on individuals
10. A lucky individual won the state lottery, so the state will be sending him a check
each month for the next 25 years. What type of annuity products are they likely to use
to provide these benefits?
A. Variable annuity
B. Flexible payment annuity
C. Deferred interest annuity
D. Immediate annuity: D. Immediate annuity
An annuity purchased with a single lump-sum payment, with a 25-year fixed-period
distribution will be most suitable for this arrangement
11. A perspective insured receives a conditional receipt but dies before the policy is
issued. The insurer will
A. Pay the policy proceeds up to an established a limit
B. Not pay the policy proceeds under any circumstances
C. Automatically pay the policy proceeds
