STUDY GUIDE FOR NYS LIFE INSURANCE AGENT EXAM 17-51 2025 QUESTIONS AND VERIFIED SOLUTION, Exams of Life Sciences

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STUDY GUIDE FOR NYS LIFE INSURANCE AGENT

EXAM 17- 51 2025 QUESTIONS AND VERIFIED

SOLUTIONS| ABSOLUTE SUCCESS GUARANTEED.

1. All of the following information about a customer must be used in determining annuity suitability except - correct answer - beneficiarys age
2. How must a replacing producer respond to an applicant wishing to replace existing life insurance? - correct answer - the producer must provide the applicant with a notice regarding replacement
3. Which of the following is the basic source of information used by the company in the risk selection process? - correct answer - application
4. Which of the following statements regarding hiv testing for life insurance purposes is not true? - correct answer - insurers are barred from requesting hiv testing
5. What is the time period called during which the surviving spouse of the insured does not receive social security income benefits? - correct answer - blackout period

6. What is the purpose of a conditional receipt? - correct answer - is it intended to provide coverage on a date prior to the policy issue
7. What does liquidity refer to in a life insurance policy? - correct answer - cash values can be borrowed at any time
8. Which of the following applicants could the insurer charge a higher rate of premium and not violate regulations regarding unfair discrimination? - correct answer - an applicant who is a smoker
9. Part 2 of the application for life insurance provides questions regarding all of the following except - correct answer - other insurance coverages
10. Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles? - correct answer - standard risk is representative of the majority of people
11. Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives? - correct answer - medical information
12. The mode of premium payment - correct answer - is defined as the frequency and the amount of the premium payment

19. Cash value - correct answer - equitity amount accumulated in permanent life insurance
20. Estate - correct answer - a person's net worth
21. Illustrations - correct answer - presentation or depiction of nonguaranteed elements of a life insurance policy
22. Life insurance - correct answer - coverage on human lives
23. Liquidation - correct answer - selling assets in order to raise capital
24. Lump sum - correct answer - payment of the entire benefit in one sum
25. Minor - correct answer - a person under legal age
26. Solvency - correct answer - ability to meet financial obligations (an insurance company maintain enough assets to pay claims)

27. Insurable interest must exist at.. - correct answer - the time of application
28. Policyowner must have.. - correct answer - insurable interest in the life of the insured
29. Any form of life insurance may be used to... - correct answer - fund a buy sell agreement
30. Another name for a substandard risk classification is - correct answer
    • rated
31. What describes the specific information about a policy - correct answer - policy summary
32. A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then - correct answer
    • the benefit is received tax free

40. Your client wants both protection and savings from the insurance and is willing to pay premiums until retirement at. Age 65 what would be the right policy for this client - correct answer - limited pay whole life
41. In a suvivorship life policy when does the insurer pay the death benifit
    • correct answer - upon the last death
42. The initial amount of credit life insurance may not exceed - correct answer - amount to be repaid under the contract
43. Which of the following is not allowed in credit life insurance - correct answer - creditor requiring that a debtor buys insurance from a certain insurer
44. Two componenets of universal policy - correct answer - insurance and cash account
45. The type of policy that can be changed from one that does not accumulate cash value to the one that does is a - correct answer - convertible term policy

46. The least expensive first year premium is found in which of the following policies - correct answer - annually renewable term
47. Which of the following best describes annually renweable term insurance - correct answer - level term insurance
48. Anually renweable term policies provide a level desth beenfit for a premium that - correct answer - increases anually
49. All of the following could own group life insurance except - correct answer - a group needing low cost life insurance
50. When would a 20 pay whole life policy endow - correct answer - when the insured reaches age 100
51. Which of the following is not typically excluded from life policies - correct answer - death due to plane crash for a fare paying passenger
52. During partial withdrawal from a universal life policy which portion will be taxed? - correct answer - interest

59. What is the advantage of reinstating a policy instead of applying for a new one? - correct answer - the og age is used for premium determination
60. All of the following are beneficary designations except - correct answer - specified
61. A rider attached to a life insurance policy that provides coverage on the insured's family members is called the - correct answer - other insured rider
62. If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights? - correct answer - policyowner
63. The interest earned on policy dividends is - correct answer - taxable
64. What provision in an insurance policy extends coverage beyond the premium due date? - correct answer - grace period

65. If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a - correct answer - guaranteed insurability rider
66. An insured stops making payments on a loan taken from his cash value policy. What will most likely happen? - correct answer - policy will terminate when loan amt with interest = or exceeds cash value
67. The waiver of cost of insurance rider is found in what type of insurance? - correct answer - universal life
68. Which of the following is true about warranties? - correct answer - they are guaranteed to be true.
69. Statements made by an applicant for a life insurance policy which are true to the best of one's knowledge are referred to as - correct answer - representations
70. An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use? - correct answer - paid up option

77. Which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy? - correct answer - owners rights
78. When a reduced paid-up nonforfeiture option is chosen, what happens to the face amount of the policy? - correct answer - it is reduced to the amount of what the cash value would buy as a single premium.
79. An insured receives an annual life insurance dividend check. What term best describes this arrangement? - correct answer - cash option
80. What is the purpose of a free-look period in insurance policies? - correct answer - it allows the insured to reject the policy with a full refund.
81. What is the other term for the cash payment settlement option? - correct answer - lump sum
82. When calculating the amount a policyowner may borrow from a variable life policy, what must be subtracted from the policy's cash value? - correct answer - outstanding loans and interest

83. If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy? - correct answer - death benefit will be smaller
84. An insured stops making payments on a loan taken from his cash value policy. What will most likely happen - correct answer - the policy will terminate when the loan amount with interest equals or exceeds the cash value.
85. If a life insurance policy has an irrevocable beneficiary designation - correct answer - the beneficiary can only be changed with written permission of the beneficiary.
86. When an annuity is written, whose life expectancy is taken into account? - correct answer - annuitant
87. Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be? - correct answer - installments for a fixed period
88. According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following - correct answer - guaranteed surrender value