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New York Life & Health Insurance Practice Test
Practice with 2,180 national questions and 600 New York-specific questions. Every question is free to answer and includes a full explanation.
Work through New York insurance rules, then review the national policy concepts behind each answer. Check the New York guide for the exam format relevant to your license.
Try a free 10-question New York practice set
National concepts and New York rules, with explanations after each answer. No signup or timer.
Review New York practice questions
Read the reasoning behind each answer, then try the practice set above.
A trade association whose member businesses vary in size asks about obtaining small-group health coverage for its members in New York. How does the small-group definition apply to association coverage?
Answer: A. Each association member group qualifies only if it employs no more than 50 employees
Why A is correct
Under the New York Insurance Law and the Department of Financial Services' small-group rules, when accident and health coverage is provided through an association, eligibility is tested member group by member group: each association member group counts as a small group only if it employs no more than 50 employees. This group-by-group test prevents large employers from qualifying for the community-rated small-group market merely by joining an association.
Why the other options are wrong
- B) Association membership does not waive the size limit; every member group must independently satisfy the small-group employee ceiling.
- C) Associations are not shut out of the small-group market; member groups that meet the size test may participate through the association.
- D) The employee test is applied to each member group, not to the association's aggregate headcount across all members.
Memory hook
Association coverage counts heads member by member: each group must stay at 50 or fewer employees.
A New York resident wants to negotiate life settlement contracts for policy owners and charge a fee. What must she do before holding herself out to the public as a life settlement broker?
Answer: C. Obtain the license New York requires to act as a life settlement broker
Why C is correct
Under N.Y. Ins. Law §2102(a)(1), no person may act as an insurance broker in New York without a license, and §2137 sets out the additional licensing requirements applicable to life settlement brokers. Acting as a life settlement broker for compensation without the required license violates the Insurance Law and is enforceable by the Superintendent of Financial Services, so licensure must come before any brokering activity. A notice filing is not a substitute for the license itself.
Why the other options are wrong
- A) Appointments bind agents to insurers for soliciting insurance; a settlement broker represents owners, not insurers, so appointments are not the gate.
- B) A provider license authorizes the purchaser of policies, not a person negotiating sales on behalf of owners.
- D) A notice of intent does not substitute for a license — the New York Insurance Law requires actual licensure before brokering.
Memory hook
No license, no brokering: §2102(a)(1) plus §2137 gate the life settlement broker.
Under N.Y. Ins. Law §3219, an annuity contract delivered in New York that requires payments to the insurer must provide that, after the first payment, any subsequent payment has a grace period of:
Answer: A. 31 days, during which the contract remains in full force
Why A is correct
Under N.Y. Ins. Law §3219, an annuity or pure endowment contract requiring payments to the insurer must provide a grace period of 31 days following the due date of any payment due after the first payment, and the contract continues in full force during the grace period. If a claim arises during the grace period, the insurer may deduct the unpaid payment from the benefit payable.
Why the other options are wrong
- B) 61 days is the grace period required for flexible premium LIFE insurance policies; annuity contracts receive the 31-day grace period.
- C) 10 days is the grace period for monthly premium HEALTH policies; it does not apply to annuity contracts.
- D) 7 days is the grace period for weekly premium HEALTH policies and has no application to annuity payments.
Memory hook
Annuity grace = 31 days, like ordinary life; the health figures (10 and 7 days) do not apply.
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Check your New York exam requirements
Use our state guide for exam formats, fees, registration, pre-licensing requirements and official sources. Guide facts last verified: 2026-09-02.
Read the New York exam guide →This free practice set is a study aid. It is not the official exam, a full-length simulation, or a prediction of your result.
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