NYLAHI New York Life, Accident & Health Insurance exam - Set 1 - Part 3

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

Question 41: An applicant whose health or habits create a greater-than-average risk, resulting in a higher premium, is assigned to which underwriting classification?

Preferred

Standard

Declined

Substandard

Question 42: Which document gives a prospective buyer generic information about life insurance and how to compare the different policy types before deciding to purchase?

The policy summary

The application

The buyer's guide

The conditional receipt

Question 43: An insurer dates a life insurance policy earlier than the application date so the insured qualifies for a lower premium age. Within limits, this permitted practice is known as which of the following?

Rebating

Backdating

Antiselection

Reinstatement

Question 44: When a policy is issued and delivered without the first premium paid in advance, the producer must collect that premium and obtain a signed statement confirming what about the insured?

That the insured has named a beneficiary

That the insured has read the policy

That the insured accepts the premium mode

That the insured's health is unchanged

Question 45: An applicant pays the first premium with the application and receives a receipt that can make coverage effective before the policy is delivered, provided the insured proves insurable. Which receipt is this?

A binding receipt

A conditional receipt

An inspection receipt

A delivery receipt

Question 46: A terminally ill policyowner sells an existing life insurance policy to a third party for an immediate cash sum that is less than the death benefit. This transaction is known as which of the following?

An accelerated loan

A policy surrender

A viatical settlement

A reduced paid-up option

Question 47: The sale of a life insurance policy by an insured who is not terminally or chronically ill, often an older policyowner seeking cash, is best described as which of the following?

A life settlement

A viatical settlement

A policy loan

A collateral assignment

Question 48: A life insurance policy is arranged for the benefit of an investor who has no relationship to the insured and no interest in their survival. New York prohibits this as which of the following?

A viatical settlement

A key person policy

A third-party assignment

Stranger-originated life insurance

Question 49: Because their values depend on investment performance, variable life and variable annuity products are regulated not only by New York but also by which additional authorities?

State banking regulators only

County licensing boards

Federal securities regulators

The Federal Reserve System

Question 50: Which policy provision lets a new policyowner return the policy within a set number of days after delivery for a full premium refund if they are not satisfied with it?

The free look provision

The grace period

The reinstatement clause

The consideration clause

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