New York Insurance Practice Test (Free)

Question 1

What does an Excess Lines Broker license in New York require before it can be issued?

Accepted Answer

An existing Property/Casualty Broker license

Answer

A Life Settlement Broker license

Answer

A separate prelicensing course and exam specific to excess lines

Answer

A Public Adjuster license

Question 2

What does the term "contestable period" refer to in a life insurance policy?

Accepted Answer

The window, typically two years, during which the insurer can investigate and challenge statements made in the application

Answer

The period during which premiums are waived

Answer

The time allowed for a beneficiary to file a claim

Answer

The grace period for late premium payments

Question 3

Which agency licenses insurance agents and brokers in New York?

Accepted Answer

The New York Department of Financial Services (DFS)

Answer

The New York Department of State (DOS)

Answer

The New York State Education Department (NYSED)

Answer

The New York City Department of Consumer and Worker Protection (DCWP)

Question 4

Which professional designations can exempt an applicant from New York's insurance prelicensing education requirement?

Accepted Answer

CPCU, CLU, CLUA, ChFC, or MSFS

Answer

A high school diploma

Answer

Any real estate license

Answer

A notary public commission

Question 5

What does liability coverage in an auto insurance policy protect against?

Accepted Answer

The insured's legal responsibility for bodily injury or property damage caused to others

Answer

Damage to the insured's own vehicle from a collision

Answer

Theft of the insured's vehicle

Answer

Mechanical breakdown of the insured's vehicle

Question 6

In New York, what is the purpose of the incontestability clause in a life insurance policy?

Accepted Answer

It prevents the insurer from contesting the validity of the policy after a specified period, usually two years, except for nonpayment of premium

Answer

It allows the insurer to cancel the policy at any time without cause

Answer

It guarantees the policy will never lapse

Answer

It allows the insured to change beneficiaries without notice

Question 7

What is the general purpose of a free-look period in an insurance policy?

Accepted Answer

It lets the policyholder review the policy after delivery and cancel for a full refund within a set number of days

Answer

It allows the insurer to cancel coverage without notice

Answer

It waives all premiums for the first year

Answer

It extends coverage automatically after the policy lapses

Question 8

What is the passing score on a New York insurance licensing exam?

Accepted Answer

70 percent

Answer

60 percent

Answer

65 percent

Answer

75 percent

Question 9

How many continuing education credits must a New York insurance licensee complete to renew, once the license has been in effect more than 2 years?

Accepted Answer

15 credits

Answer

5 credits

Answer

24 credits

Answer

40 credits

Question 10

What is the primary function of an annuity?

Accepted Answer

To provide a stream of income, often for retirement

Answer

To pay medical bills as they occur

Answer

To insure a vehicle against collision

Answer

To replace a mortgage