Term, whole life, universal, variable and the other policy types are explained in the national Types of Life Insurance Policies guide. New York's state questions on this topic come from its group life rules (Insurance Law 3220 and 4216), the rules on minors, and disclosure for indexed products.

Group life (Ins. Law 3220)

• Group life is limited to eligible groups defined by law, such as employer-employee groups (Ins. Law 4216).
• Incontestability: the group policy is incontestable after two years from issue, and an insured's statements can't be used to contest coverage that has been in force two years during that person's lifetime (3220(a)(1)).
• Certificates describing the coverage and conversion rights go to the policyholder for delivery to each insured (3220(a)(4)).
• Conversion: when coverage ends because employment or the group policy ends, the insured may buy an individual policy, in any form the insurer usually issues except term, without evidence of insurability, by applying within 31 days. At the insured's option, one year of term may come first (3220(a)(6)).
• Death during the conversion period: the amount that could have been converted is paid as a death benefit.
• Age reductions: reductions totaling 20% or more at or after age 60 trigger the same conversion right as a termination.

Life insurance on minors (Ins. Law 3207)

A minor over 14 1/2 may own a policy on their own life. Coverage on a younger child is limited to the greater of $50,000 or 50% (25% under age 4 1/2) of the coverage on the person buying it. The New York Life Insurance Basics guide has an example.

Indexed products

No later than the application, the buyer of a product with an equity index account must get a disclosure that its benefits are linked to an outside index and that the account doesn't directly participate in the market (Ins. Law 3209(b)(2)).

Variable products

Variable life and annuity applicants must also show FINRA or state securities qualification, because variable products are securities (Ins. Law 4240).

Common exam traps

• Group conversion: 31 days, no evidence of insurability, any form except term.
• Reductions of 20% or more after age 60 trigger conversion rights.
• Group incontestability: two years.
• Indexed accounts don't directly participate in the stock market, and the buyer must be told so.