Free Life Policy Provisions Options and Riders Practice Questions
New Mexico Life, Accident & Health exam (series 18-27) — 117 practice questions.
Subtopics: Beneficiary, Settlement options, Nonforfeiture, Policy loan, Free look, Grace period, Reinstatement, Incontestability, Suicide clause, Misstatement of age, Accidental death, Waiver of premium, Guaranteed insurability, Assignment, Spendthrift clause, NM grace period, Grace period interest, NM incontestability, Incontestability vs exclusions, Reinstatement contestability, Entire contract statements, Reinstatement period, Reinstatement requirements, Policy loan availability, Policy loan deferral, Policy loan interest, Claim settlement time, Dividend apportionment, Suicide exclusion limit, Permitted exclusions, Excluded death payment, Backdating limit, Agent of insured clause, Prohibited policy plans, Premium described as deposits, Nonforfeiture election, Annuity misstatement of sex, Replacement notice, Replacement refund, Financed purchase, Replacement definition, Standard provisions, Beneficiaries, Beneficiary clauses, Nonforfeiture options, Policy loans, Dividend options, Riders, Incontestable clause, Primary beneficiary, Irrevocable beneficiary, Minor beneficiary, Per capita, Estate as beneficiary, Dividend option cash, Dividend option reduce premium, Dividend option accumulate at interest, Dividend option one-year term, Joint and survivor settlement, Guaranteed insurability rider, Cost of living rider, Payor benefit rider, Return of premium rider, Child term rider, War exclusion, Aviation and avocation exclusions, Exclusions, Dividends, Accelerated benefits, Premium modes, Entire contract, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. A New Mexico policyowner who names a beneficiary that can be changed at any time has named a:
Revocable beneficiary
A revocable beneficiary can be changed by the policyowner at any time without the beneficiary's consent.
2. A life insurance settlement option that pays the beneficiary equal installments for a guaranteed number of years is the:
Fixed period option
The fixed period option pays the proceeds in equal installments over a chosen number of years until exhausted.
3. A New Mexico whole life policyowner who stops paying premiums may use the nonforfeiture cash value to:
Purchase reduced paid-up insurance
Nonforfeiture options let the owner use accumulated cash value, such as electing reduced paid-up insurance.
4. A policy loan taken against a New Mexico whole life policy:
Reduces the death benefit if unpaid
An outstanding policy loan plus interest reduces the death benefit payable if it is not repaid before the insured dies.
All Life, Accident & Health topics
Practice: Life Policy Provisions Options and Riders
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
