Exam (elaborations)
NYS Life Insurance License 2024/2025 already graded A+
- Course
- Institution
NYS Life Insurance License 2024/2025 already graded A+
[Show more]
Content preview
NYS Life Insurance LicenseInsurance - ANSA contract whereby one party (insurer) agrees to indemnify or guarantee
another party (insured) against a loss by a specified future contingency or peril in return for
payment of a premium.
Risk - ANSUncertainty as to the outcome of an event whentwo or more possibilities exist
Three types of hazards - ANSPhysical, Moral, Morale
peril - ANSthe cause of a possible loss
Elements of insurable risk - ANSLoss must be (1) due to chance, (2) definite and measurable,
(3) statistically predictable, (4) not catastrophic, (5) with large loss exposure, and (6) insurance
cannot be mandatory
The difference between an authorized/admitted and unauthorized/non-admitted insurer -
ANSAnd admitted or authorizing insurer is qualified and receives a certificate of authority from
the Department of insurance to transact insurance in the state. A nonadmitted or an authorized
insurer is an insurance company that has not applied for or has been denied a certificate of
authority and may not transact insurance
The difference between domestic, foreign and alien insurance companies - ANSDomestic
insurer is incorporated in this state. A foreign insurer is incorporated in another state. A alien
insurer is incorporated outside of the United States
Three types of agent authority - ANSExpress, a parent, and implied
Four elements of an insurance contract - ANSAgreement - offer and acceptance, consideration,
competent parties, and legal purpose
indemnify - ANSTo "restore" an insured to the same financial status as before the loss
Representation and how it differs from a warranty - ANSRepresentations are statements
believed to be true to the best of one's knowledge. A warranty is an absolutely true statement
upon which the validity of the insurance policy depends.
Insurable interest - when it should exist - ANSInsurable interest must exist between the policy
owner and the insured at the time of application (or the time of policy issue), but not at the time
of loss
, Common personal uses of life insurance - ANSSurvivor protection, estate creation and
conservation, cash accumulation, and liquidity
Needs approach - ANSThe needs approach is based on the predicted needs of the family after
the premature death of the insured
The purpose of key person insurance - ANSTo minimize the risk of a financial loss because of
premature death of a key employee that has specialize knowledge, skills, or business contacts
Insurance solicitation - ANSSolicitation of insurance means an attempt to persuade a person to
buy an insurance policy, and can be done verbally or in writing
The person responsible for all written and distributed insurance advertisements - ANSThe
insurer whose policies are advertise is responsible for all of its advertisements, regardless of
who wrote, creative, presented, or distributed them.
The steps a producer must complete when replacing an existing policy - ANSGive applicant a
notice regarding replacement, obtain a list of all existing life insurance policies to be replaced,
give the applicant the original or a copy of written or printed communications used for
presentation to the applicant, and submit to the replacing insurance company, with the
application, a copy of replacement notice
Underwriting - ANSrisk selection and classification process
Information gathered in parts one and two of the application - ANSPart one of the application
includes general questions about the applicant, including name, age, address, birthdate, gender,
income, marital status, and occupation. Part two includes medical information about prospective
insured
The purpose of an agents report - ANSThe agents/producers report is used by the agent to
discuss his or her personal observations concerning the proposed insured.
Who is required to sign an application for life insurance? - ANSBoth the agent and the proposed
insured (usually the applicant) must sign the application
When does an insurance policy go in effect? - ANSThe policy will go into effect when the first
premium is paid and the policy has been delivered
How can an insurance company use the information in obtains from the MIB? - ANSIt can use
MIB information to conduct further investigations into an applicants current insurability.
How does a substandard risk policy differ from a standard risk? - ANSSubstandard risk
applicants are not acceptable at standard rates because of physical conditions, personal or
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Ashley96. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73918 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now