FINAL EXAM - NEW MEXICO LIFE AND HEALTH
What is an insurance contract that identifies individuals by relationship to a specific organization? -
(ANSWER)group insurance
When an insured under a group life insurance plan in NM elects the conversation option, the new policy
is issued - (ANSWER)Without requiring evidence of insurability
What is another name for a Keogh plan - (ANSWER)HR 10 plan
An insurance policy may be issued with a preferred insurance premium in all these situations EXEPT -
(ANSWER)Living in a rural area
All of these statements concerning group credit life insurance are false EXEPT - (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 -
(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? - (ANSWER)implied authority
When the superintendent believes an agent is causing substantial and material harm, the
superintendent has the authority to - (ANSWER)issue a cease and desist order against the agent
Who normally pays the premiums for group credit life insurance? - (ANSWER)borrower
For policyholders in the same risk classification, it is unlawful to - (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 - (ANSWER)Subject to market value adjustment
, FINAL EXAM - NEW MEXICO LIFE AND HEALTH
What must be given to a life insurance applicant when the agent receives an application and the initial
premium - (ANSWER)Conditional receipt
Which situation would not require the insureds consent when a life insurance policy is issued -
(ANSWER)A policy is purchased by a parent for a minor child
A business becoming incorporated is an example of risk ____. - (ANSWER)to transfer
The Superintendent may suspend an agent's license when the agent - (ANSWER)Rebates a portion of the
commission to the insured
What would be considered an advantage of purchasing term life insurance? - (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 - (ANSWER)Insurer
The policy provision that permits an employee to change from group life coverage to an individual life
policy is called the - (ANSWER)Conversation provision
A qualified profit-sharing plan is designed to - (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 - (ANSWER)100
A policy owner with a terminal illness who sells his life insurance policy to a third party is called a -
(ANSWER)Viator
The Medical information Bureau consists of members from which group - (ANSWER)insurance
companies
What is an insurance contract that identifies individuals by relationship to a specific organization? -
(ANSWER)group insurance
When an insured under a group life insurance plan in NM elects the conversation option, the new policy
is issued - (ANSWER)Without requiring evidence of insurability
What is another name for a Keogh plan - (ANSWER)HR 10 plan
An insurance policy may be issued with a preferred insurance premium in all these situations EXEPT -
(ANSWER)Living in a rural area
All of these statements concerning group credit life insurance are false EXEPT - (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 -
(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? - (ANSWER)implied authority
When the superintendent believes an agent is causing substantial and material harm, the
superintendent has the authority to - (ANSWER)issue a cease and desist order against the agent
Who normally pays the premiums for group credit life insurance? - (ANSWER)borrower
For policyholders in the same risk classification, it is unlawful to - (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 - (ANSWER)Subject to market value adjustment
, FINAL EXAM - NEW MEXICO LIFE AND HEALTH
What must be given to a life insurance applicant when the agent receives an application and the initial
premium - (ANSWER)Conditional receipt
Which situation would not require the insureds consent when a life insurance policy is issued -
(ANSWER)A policy is purchased by a parent for a minor child
A business becoming incorporated is an example of risk ____. - (ANSWER)to transfer
The Superintendent may suspend an agent's license when the agent - (ANSWER)Rebates a portion of the
commission to the insured
What would be considered an advantage of purchasing term life insurance? - (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 - (ANSWER)Insurer
The policy provision that permits an employee to change from group life coverage to an individual life
policy is called the - (ANSWER)Conversation provision
A qualified profit-sharing plan is designed to - (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 - (ANSWER)100
A policy owner with a terminal illness who sells his life insurance policy to a third party is called a -
(ANSWER)Viator
The Medical information Bureau consists of members from which group - (ANSWER)insurance
companies
