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Free Life Insurance Basics Practice Questions

New York Life exam (series 17-51) — 39 practice questions.

Subtopics: Life settlement broker, Insurable interest, Insurance on minors, Disclosure, Insurable interest parties, 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

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

New York limits the aggregate amount of life insurance that may be written on the life of a minor by age bands.

4. At or before delivery of an individual New York life policy, the applicant must receive a:

Buyer's guide and policy summary disclosure

New York's life insurance disclosure rule requires delivery of a buyer's guide and policy summary to the applicant.

All Life topics

Practice: Life Insurance Basics

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 Pennsylvania Insurance Department and the exam administrator before relying on it.