1. Exam Prep
  2. New Mexico
  3. Life, Accident & Health
  4. Guaranty and Ethics

Free Guaranty and Ethics Practice Questions

New Mexico Life, Accident & Health exam — 44 practice questions.

Subtopics: Guaranty association scope, Guaranty funding, Replacement disclosure, Fiduciary duty, Suitability documentation, Senior protection, Advertising, Replacement register, Free-look seniors, Continuing education ethics, Fraud penalties, Disclosure of compensation, Group health certificate, Claims timeliness, Outline of coverage delivery, Principles, Immediate vs deferred, Products, Payment options, Uses, Taxation, Parties to an annuity, Flexible premium annuity, Cash refund option, Installment refund option, Period certain option, Annuity units, Separate account, Tax-deferred accumulation, Exclusion ratio, Early withdrawal penalty, Annuitization, Death before annuitization, Qualified vs nonqualified, Structured settlement, Annuity exclusion ratio

Sample questions & answers

1. The New Mexico Life and Health Insurance Guaranty Association generally provides protection for:

Covered life, health, and annuity obligations of an insolvent member insurer

The life and health guaranty association covers certain life, health, and annuity obligations when a member insurer becomes insolvent.

2. The New Mexico life and health guaranty association is funded primarily by:

Assessments on member insurers

The guaranty association is funded by assessments levied on member insurers licensed in the state.

3. A New Mexico producer replacing an existing life policy must generally:

Provide required replacement notices and comparisons to the applicant

Replacement rules require the producer to give notices and comparisons so the applicant understands the effect of replacing coverage.

4. A New Mexico producer who collects premiums on behalf of an insurer holds those funds in a:

Fiduciary capacity that must be accounted for to the insurer

Premiums collected on behalf of an insurer are fiduciary funds that must be properly accounted for and remitted.

All Life, Accident & Health topics

Practice: Guaranty and Ethics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

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.