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NYS INSURANCE LICENSING EXAM 2024 QUESTIONS AND ANSWERS
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NYS INSURANCE LICENSING EXAM 2024 QUESTIONS AND ANSWERS
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NYS INSURANCE LICENSING EXAM3 basic types of Term Coverage - ANSWERS-determined by how the face amount
or death benefit changes throughout coverage (Level, Increasing, Decreasing)
however, premiums usually stay constant the only thing that changes is the death
benefit
Level Term Insurance - ANSWERS-refers to most common type of temporary
protection in which death benefit does not change throughout duration of policy
Annually Renewal Term -ART - ANSWERS-the purest form of term insurance, in
which death benefit remains level and the policy may be guaranteed to be
renewable each year without proof of insurability, but the premium increases
annually according to attained age , as the probability of death increases
Level Premium Term - ANSWERS-provides a level death benefit and a level
premium during policy term
Convertible Term - ANSWERS-provision provides the policy owner with the right
to convert the to a permanent insurance policy without PROOF OF INSURABILITY.
The premium will be based on the insured's attained age at time of conversion
Increasing Term - ANSWERS-features level premiums and a death benefit that
increases each year over the duration of the policy term. The amount of the
increase in the death benefit is usually expressed as a specific amount or
percentage of the original amount. Often used by insurance companies to fund
, certain riders that provide A REFUND OF PREMIUMS OR A GRADUAL INCREASE IN
TOTAL COVERAGE
Decreasing Term Policy - ANSWERS-policy that features a level premium and a
death benefit that decreases each year over the duration of the policy. Primarily
used when the amount of the needed protection is time sensitive or decreases in
time (eg---to insure the payment of a mortgage or other debts if the insured dies
prematurely b/c amount of coverage decreases as outstanding bal. dec. each
year; usually not RENEWABLE
Return of Premium Term-ROP - ANSWERS-form of increasing insurance policy that
pays an additional death benefit equal to the premiums paid to the beneficiary.
It's paid if the death occurs within a specific time or if the insured outlives the
policy.
Permanent insurance - ANSWERS-general term used to refer to various forms of
life insurance that build in cash value and stay in effect until age 100 or the life of
the insured as long as the premium is paid; most common is whole life
Whole life insurance - ANSWERS-build in cash value in which the policy owner can
borrow against. cash value does not accumulate until third year in policy.
policyowner pays a level premium over the life of the contract. At age 100,
benefit is paid to policy/owner or insured or if person dies before beneficiary
receives benefit
3 types of Whole life insurance - ANSWERS-straight, limited pay, and single
premium
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