NYLAHI New York Life, Accident & Health Insurance exam - Set 2 - Part 2

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 21: Which life insurance policy provision gives the owner extra time after the premium due date to make a late payment before the policy lapses?

The grace period

The reinstatement provision

The free look provision

The incontestability clause

Question 22: A provision that lets the owner restore a lapsed policy to active status by paying overdue premiums with interest and showing renewed insurability is known as which of the following?

The grace period

The free look provision

The waiver of premium

The reinstatement provision

Question 23: After a life policy has been in force during the insured's lifetime for the period set by law, the insurer can no longer void it for misstatements on the application. Which provision creates this bar?

The entire contract clause

The consideration clause

The incontestability clause

The reinstatement provision

Question 24: Which provision states that the policy and the attached application together make up the whole agreement, so no outside document can change it?

The incontestability clause

The entire contract provision

The consideration clause

The ownership clause

Question 25: If an insured's age was understated on the application and the error surfaces at death, how does New York require the insurer to handle the death benefit?

Adjust the benefit for the true age

Deny the claim entirely

Pay the full face amount

Refund only the premiums paid

Question 26: Which provision identifies who holds the rights in a life insurance policy, such as naming beneficiaries, taking loans, and surrendering the contract?

The beneficiary clause

The assignment clause

The entire contract clause

The ownership provision

Question 27: A policyowner permanently transfers all ownership rights in a life policy to another party. Which kind of assignment has taken place?

A collateral assignment

A conditional assignment

An absolute assignment

A revocable assignment

Question 28: A policyowner temporarily pledges a life policy to a bank as security for a loan, transferring only enough interest to cover the debt. This is which of the following?

A collateral assignment

An absolute assignment

A beneficiary designation

A spendthrift arrangement

Question 29: Which beneficiary designation lets the policyowner change the beneficiary at any time without needing that person's consent?

An irrevocable beneficiary

A revocable beneficiary

A contingent beneficiary

A tertiary beneficiary

Question 30: A policyowner names a beneficiary whose written consent is required before the owner may change the designation or take certain policy actions. This beneficiary is which of the following?

A revocable beneficiary

A contingent beneficiary

A primary beneficiary

An irrevocable beneficiary

Question 31: If the primary beneficiary dies before the insured, the death benefit passes next to which party named in the policy?

The insured's creditors

The state of New York

The contingent beneficiary

The policyowner's employer

Question 32: A beneficiary designation in which a deceased beneficiary's share passes to that person's own children rather than to the other named beneficiaries is described as which of the following?

Per stirpes

Per capita

Revocable

Tertiary

Question 33: A provision requiring the primary beneficiary to outlive the insured by a stated period to collect, otherwise paying the contingent beneficiary, is known as which of the following?

The spendthrift clause

The incontestability clause

The entire contract clause

The common disaster clause

Question 34: Which settlement option pays the beneficiary a guaranteed income for the rest of their life, with payments ending at the beneficiary's death?

Interest only

Life income

Fixed period

Lump sum

Question 35: A settlement option that pays the proceeds in equal installments over a chosen number of years until the funds and interest are used up is which of the following?

Interest only option

Life income option

Fixed-period option

Cash settlement option

Question 36: Under which settlement option does the insurer hold the proceeds and pay the beneficiary only the earnings on them, leaving the principal untouched?

The interest-only option

The fixed-amount option

The life income option

The lump-sum option

Question 37: Which provision shields policy proceeds paid in installments from the beneficiary's creditors and prevents the beneficiary from assigning future payments?

The common disaster clause

The incontestability clause

The ownership provision

The spendthrift clause

Question 38: When a policyowner stops paying premiums on a whole life policy and chooses to take the accumulated cash in hand, they are using which nonforfeiture option?

Extended term insurance

Reduced paid-up insurance

Cash surrender value

Automatic premium loan

Question 39: A nonforfeiture option that uses a policy's cash value to buy a smaller amount of fully paid-up permanent coverage is known as which of the following?

Extended term insurance

Reduced paid-up insurance

Cash surrender value

Paid-up additions

Question 40: A nonforfeiture option that uses the cash value to keep the full face amount in force as term insurance for as long as the value will buy is which of the following?

Extended term insurance

Reduced paid-up insurance

Cash surrender value

Accumulation at interest

Don't Want to Study?

Save Time on Studies, Spend More with Family & Friends! Pay-After-you-Pass!

Get Exam Support