Home Health aid questions
An insured decides to surrender his $100,000 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?
$3,000 (The difference between the premiums paid and the cash value would be taxable. In this example, the difference between the premiums paid ($15,000) and the cash value ($18,000) is $3,000.)
If an applicant's license has lapsed within the past year, the applicant may apply for late renewal of the license within the maximum of how many months of expiration?
12 months
In New Jersey, what is the minimum age at which a person can purchase a life insurance policy on his or her own life?
15
Applicants for an individual producer license must submit proof of completing 24 hours of continuing education credits during the previous
2 years
Bill's license was revoked 2 vears ago. How much longer will he have to wait in order to request his license to be reinstated?
3 years
If a credit life policy lapses for nonpayment before the debt is satisfied, within how many days must the creditor either refund the premium paid or apply it against the debt?
60
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
What is NOT a requirements of eligibility for Social Security disability income benefits
Being age 65
To legally transact insurance in this state, an insurer must obtain which of the following?
Certificate Authority
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
Coercion
What is NOT allowed in credit life insurance?
Creditor requiring that a debtor buys insurance from a certain insurer
The term "fixed" in a fixed annuity refers to ?
Death benefit
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
What information is identified in the General information section of a life insurance application ?
Education
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy
Executive bonus.
In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?
Executive is the owner, and the executive pays the premium
Fred is the owner of a whole life insurance policy. Some of the details involving benefit payments are not expressed in the policy, but the insurer proposed an arrangement 10 years ago. Fred has still not agreed formally to the terms of the proposal, and the policy will soon mature. Which of the following is true?
Hold Fred's money in Its general fund until it can come to a formal agreement with Fred
To be licensed as a non resident producer in this state, a producer must do which of the following ?
Hold a resident license in good standing in the producer's home state
What are the two components of a universal policy?
Insurance and cash account
If an insurer requires an application in order to renew a life insurance policy, it is the insurer's responsibility to send one to the insured
Within 30 days of the insured's request
What type of premium do both Universal Life and Variable Universal Life policies have?
flexible
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
with the policy
A "certification of license status" report can be run on any currently licensed New Jersey producer, but can only contain information on formal disciplinary actions taken within the past
4 years
According to the Entire Contract provision, a policy must contain
A copy of the original application for insurance
An individual has been diagnosed with Alzheimer's dibase.He is insured under a life insurance policy with the accelerated benefits rider. What is true regarding taxation of the accelerated benefits?
A portion of the benefit up to a limit is tax free; the rest is taxable income
During partial withdrawal from a universal life policy, which portion will be taxed?
Interest
What would provide an underwriter with information concerning an applicant's health history?
Medical Information Bureau (MIB)
What information about the applicant is NOT included in the General Information section of the application for insurance?
Medical background
A life insurance policy insures against several different perils. If the policy owner wants to cancel the coverage for one of those perils, can that be done?
Only if the policy specifies that a separate premium for that peril coverage is separately cancelable
What is NOT a requirement for a nonresident license ?
Passing the New Jersey licensing examination
An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What does this describe?
Reduction of premium
Equity indexed annuities
Seek higher returns. (Equity Indexed Annuities are not securities)
Which of the following information will be stated in the consideration clause of a life insurance policy?
The amount of premium payment
What is true regarding variable annuities?
The annuitant assumes the risk on investment
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then..?
The benefit is received tax free
An organization licensed as a producer business entity based in New York would like to transact insurance in New Jersey.
The organization will need to obtain a nonresident busilass entity license, and its producers will need to obtain nonresident licenses
A producer's license was revoked as a result of the Insurance Code violation. What will happen to the producer's license?
The producer will have to wait 5 years before applying for license reinstatement
What is true regarding taxation of accelerated benefits under a life insurance policy?
They are tax free to terminally ill insured
Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?
Variable Universal Life
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Variable option
What policy allows for a flexible premium and a variable investment component?
Variable universal life insurance
Which of the following types of policies allows for a flexible premium and a variable investment component
Variable universal life insurance
