10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The NY-LAH exam has 150 questions and runs 2 hours 30 minutes.
These 10 free NY-LAH questions are organized by exam domain, so you can see how each part of the New York Life, Accident & Health Insurance Agent/Broker Exam blueprint is tested. Reveal the answer and explanation under each question.
Domain 1: Insurance Regulation 7% of exam
Question 1
Near-term liquidity is central for a 59-year-old client who expects to use $20,000 of $35,000 in liquid savings for a home purchase within two years. A producer favors a deferred annuity with a nine-year surrender schedule mainly because it pays more commission than a comparable shorter-surrender product. Under New York's best-interest standard, what should control the recommendation?
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Correct answer: B - Choose based on the client's liquidity needs, not the higher commission
Domain 2: General Insurance 4% of exam
Question 2
The insurer supplies a newly contracted agent with branded applications, a company email address, and access to its local office. Although the contract does not authorize binding coverage, an applicant reasonably believes that authority exists because of the insurer's conduct. Which authority is implicated?
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Correct answer: D - Apparent authority
Domain 3: Life Insurance Basics 8% of exam
Question 3
Calculate the additional life insurance indicated by the needs approach: $420,000 of income-replacement needs, a $180,000 mortgage, $30,000 of final and emergency expenses, $90,000 in liquid assets, and $140,000 of existing life insurance. A $300,000 closely held business is not intended for sale.
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Correct answer: C - $400,000
Domain 4: Life Insurance Policies 8% of exam
Question 4
Group life coverage ends with employment. Twenty days later, before the former employee applies for an individual conversion policy or pays its first premium, the employee dies. The amount eligible for conversion was $75,000. What does the New York conversion rule provide?
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Correct answer: A - $75,000
Domain 5: Life Insurance Policy Provisions, Options, and Riders 10% of exam
Question 5
Which nonforfeiture option uses a whole-life policy's net cash value to preserve the original face amount for as long as that value will support coverage?
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Correct answer: D - Extended term insurance
Question 6
Three adult children are named as equal primary beneficiaries per stirpes. One child predeceases the insured and leaves two children. At the insured's death, what happens to that branch's one-third share?
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Correct answer: B - It is divided equally between the deceased child's two children
Domain 6: Annuities 7% of exam
Question 7
For a newly retired client who wants the largest guaranteed monthly annuity payment from a fixed premium-and accepts that payments stop at death even after only one payment-which payout option fits?
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Correct answer: A - Straight life
Domain 7: Federal Tax Considerations for Life Insurance and Annuities 2% of exam
Question 8
A life policy failed the 7-pay test and became a modified endowment contract. At age 52, the owner borrows while the policy has gain in excess of basis. What is the loan's general federal income-tax treatment?
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Correct answer: C - Taxable to gain first under LIFO, with a possible 10% additional tax
Domain 8: Qualified Plans 2% of exam
Question 9
Which retirement arrangement best fits a 12-employee architecture firm seeking minimal administration, discretionary employer-only contributions, a uniform allocation formula, and immediate vesting?
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Correct answer: B - SEP IRA
Domain 9: Life Settlement 3% of exam
Question 10
Before a life policy is issued, an investor offers to finance a healthy applicant's premiums and arranges for a later transfer. Because the plan existed from the outset for the investor's benefit, how is the arrangement classified?
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Correct answer: D - Stranger-originated life insurance