Free New York Life & Health Insurance License Exam Practice Test

Sample NY L&H practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

1. Question 1Life Insurance Policy Conversions

   A New York resident purchases a $500,000 term life insurance policy with a guaranteed renewable feature. After 15 years, the insured, now age 65, wishes to convert the policy to a permanent life insurance policy without a medical examination. What is the primary underwriting consideration for the insurer when evaluating this conversion request?

   • A.The insurer's current interest rate environment and dividend projections.
   • B.The original policy's cash value accumulation and investment performance.
   • C.The insured's current health status and mortality risk based on age.(Correct)
   • D.The insured's employment history and income verification over the past 15 years.

   Explanation

   When converting a term policy to a permanent policy, the insurer must underwrite the policy based on the insured's current health and age at the time of conversion, as the premium for the permanent policy will reflect the then-current mortality risk.

2. Question 2Long-Term Care Insurance

   An agent is discussing a Long-Term Care (LTC) insurance policy with a client. The policy has a 90-day elimination period and a 5-year benefit period, with a daily benefit of $200. If the client requires skilled nursing care for 180 days, how much will the policy pay out in total benefits?

   • A.$29,200
   • B.$36,500
   • C.$10,800
   • D.$21,600(Correct)

   Explanation

   The elimination period is the time before benefits begin. The client receives benefits for 180 days minus the 90-day elimination period, resulting in 90 days of paid benefits. Total payout = 90 days * $200/day = $18,000. The benefit period is 5 years, which is longer than the 90 days of payable benefits, so the benefit period does not limit the payout in this case.

3. Question 3Health Insurance Cost-Sharing

   A client has a health insurance policy with a $2,000 deductible and an 80/20 coinsurance clause. They incur $15,000 in covered medical expenses. How much will the client be responsible for paying out-of-pocket?

   • A.$3,000
   • B.$2,000
   • C.$3,800
   • D.$4,600(Correct)

   Explanation

   The client pays the $2,000 deductible first. Of the remaining $13,000 ($15,000 - $2,000), the client pays 20% (coinsurance). Client's coinsurance = 0.20 * $13,000 = $2,600. Total out-of-pocket = Deductible + Coinsurance = $2,000 + $2,600 = $4,600.

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