Free Life Insurance Basics Practice Questions
New York Life exam (series 17-51) — 144 practice questions.
Subtopics: Life settlement broker, Insurable interest, Insurance on minors, Buyer's Guide timing, Insurable interest parties, Consent of insured, STOLI, Life settlement fiduciary, Illustrations, Policy summary on request, Antedating, Own-life insurance, Spousal consent exception, Employer-owned coverage, Life settlement rescission, Life settlement contact limits, Life settlement broker exemption, Life settlement advertising, Life settlement referral fees, Life settlement disclosures, Life settlement proceeds, Coverage verification, STOLI violation, Personal uses, Liquidity, Human life value, Needs approach, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Premium factors, Mortality, Interest assumption, Premium mode, Advertising, Field underwriting, Application accuracy, Sources of underwriting, Risk classification, Substandard risk, Effective date, Statement of good health, Backdating, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index, Net amount at risk, Legal reserve, CSO mortality table, Level premium funding, Cash value accumulation, Endowment maturity, Free look period, Policy replacement rules, Twisting, Churning, Rebating, Defamation, Binding receipt, Insuring clause, Consideration clause, Owner vs insured, Stranger-originated life insurance, Suitability, Sales illustration, Producer appointment, Paramedical exam, Inspection report, Nonmedical limit, Split-dollar plan, Section 162 executive bonus, Dependency period need, Social Security blackout period, Capital retention approach, Final expense need, Insurance age, Flat extra premium, Postponed risk, Agent's report, Policy summary, Material misrepresentation, Estate creation, Cash accumulation, Charitable giving, Buy-sell cross purchase, Buy-sell entity purchase, Cross purchase count, Key person beneficiary, Deferred compensation, Split dollar collateral assignment, Executive bonus taxation, Business overhead uses, Information for needs analysis, Group vs individual class, Nonparticipating policy, Fixed vs variable, Variable minimum death benefit, Gross vs net premium, Modal factors, Mortality table use, Gender and mortality, Producer delivery duties, Constructive delivery, Rated policy delivery, Conditional receipt insurability, No premium with application, Application signatures, Application corrections, Insurable interest third party, Self insurable interest, Attending physician statement, MIB adverse decisions, MIB pre-notice, HIV testing consent, Underwriting prohibited factor, Rated policy, Standard risk, Prescription database, Social Security fully insured, Currently insured, Survivor benefits children, Spouse caring for child, Blackout period end, Lump-sum death benefit, Full retirement age, Social Security disability, Social Security as offset, Producer report purpose
Read the Life Insurance Basics study guide
Sample questions & answers
1. A person who negotiates the sale of an existing New York life policy to a third party for a lump sum must hold a:
Life settlement broker license
Negotiating a life settlement (the sale of an in-force policy) requires a life settlement broker license in New York.
2. For a New York life insurance policy, insurable interest in the insured must exist:
At the time the contract is made (inception)
New York requires insurable interest at the inception of the life contract; it need not continue to the time of loss.
3. New York Insurance Law limits the amount of life insurance that may be placed on the life of a:
Minor child
For a minor under age 14 1/2, New York caps the total insurance at the greater of $50,000 or a percentage (50%, or 25% under age 4 1/2) of the coverage on the person effectuating the insurance.
4. Under New York's life insurance disclosure law, when must a prospective purchaser of an individual life policy be given the Buyer's Guide?
At or before the time the application is taken
The Buyer's Guide and the preliminary information must be provided at or before the time the application is taken; the policy summary is provided upon delivery of the policy.
Practice: Life Insurance Basics
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.
