Life Guaranteed Exam Questions Missed
which of the following is NOT a standard exclusion in life insurance policies
disability
which of the folllowing is TRUE regarding an Agents Report during the policy application process
it provides the agent personal observations concering the proposed insured
in which of the following scenarios would a producer be allowed to obtain insurance through an unathorized insurer
if there are no authorized insurers for a specific type of coverage in the state (ONLY CIRCUMSTANCE)
Under which of the following conditions would life insurance proceeds be taxable by the federal government
if there is a transfer for value
if an individual willfully violates provisions of the Fair Credit Reporting Act what is the maximum civil penalty
$2500, think "willfully" key word. Not 5K
a whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will
continue to increase
an applicant for surplus lines authority must do all of the following EXCEPT
possess a certificate of authority in this state
when term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a
term rider
which of the following statements is INCORRECT?
a minor, age 17 or younger is not allowed to purchase insurance in the state of NJ (WRONG. YOU CAN PURCHASE AT 15)
applicants for an individual producer license must submit proof of completing certain number of hours approved continuing education credits. How many hours are required
24, more than 20.
an agent who knowingly misrepresents material info for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as
TWISTING (key words are inducing to lapse, or surrender. NOT misrepresentation)
which of the following would NOT trigger the payment of accelerated death benefits
being permanently disabled (not institutionalized)
a married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend
payor benefit
what is the difference between a straight life policy and a 20-pay whole life policy?
premium payment method (20 pay is completely paid, straight life endows till 100)
in a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure
prior to performing of the test, must obtain verbal consent
what is the purpose of requiring licenses for persons who transact insurace
protect the general public (its about the people)
an insurance consultant can only charge fees in addition to his commissions if the fees are
based on a written and signed memorandum agreed upon prior to the consulting (missed on test****)
in life insurance, which of the following is NOT required to have an insurable interest in the insured
the beneficiary
which of the following types of insurance is investment based, has a fixed premium and a non-guaranteed cash value?
VARIABLE whole life
all of the following are true about key person insurance EXCEPT
the death benefit is taxable to the business
according to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first. Which of the following will be assumed?
the primary beneficiary died before the insured
cash values guarentees in a whole life policy are called
nonforfeiture values
which of the following is a correct statement about annuities
FIXED annuities do not provide protection against inflation
Policies written on a third-party ownership basis are usually written to cover:
policie's minor children or business associates (cannot be directly their estate)
your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guarenteed an income for life. WHich settlement option should this policyowner select
joint and survivor
which of the following would be TRUE of both the fixed period and fixed amount settlement options?
both guarantee that the principal and interest will be fully paid out (ANSWER HAS BOTH IN IT)
during policy solicitation, an insurer exaggerates the financial condition of one of its competitors to be worse. This is an example of
defamation (key is bashing competitor)
in a noncontributory group policy
100% of ELIGIBLE employees must participate. (key is they must be eligible)
when a whole life policy is surrendered for its nonforfeiture value, what is the automatic option
extended term
If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur?
the change must be filed with the Department (it is possible by doing this )
which statement below is incorrect regarding the type og term insurance that best fits with the applicants needs
applicants who require a larger death benefit in the future should buy convertible term insurance
which of the following is a provision found in life insurance policies
reinstatement (found in all)
what must an applicant do before being admitted to the state licensing examination
COMPLETE 20 HOURS of education for each line of insurance which the applicant intends to transact including education regarding state specific regulations. (KEY IS 20 HOURS)
When one insurer buys insurance from another company to minimize the effects of catastrophic losses, they are
Reinsuring (not self insuring)
all of the following are true regarding the waiver of cost of insurance rider EXCEPT
the rider expires when the insured reaches 60
which of the following would be considered a violation of Life Insurance Advertising regulations
calling an insurance policy an investment plan. (CANNOT CALL IT THAT)
if an insured dies and it is discovered that the insured misstated his/her age or gender, then life insurance company will
adjust the death benefit to what the premium would have purchased at the actual age or gender (INSURER HAS THE RIGHT TO ADJUST BENEFITS FOR CORRECT AGE)
all of the following are true regarding the federal Fair Credit Reporting Act EXCEPT
reports may be sent to anyone who requests one (can only be ordered by those involved in insurance type duties)
With adjustable life, the owner can change all of the following EXCEPT
the insured
which of the following statements regarding HIV testing is NOT true
test results must be sent to the Department of Insurance (NOT NECESSARY)
an agent tells an insured that if he replaces his current insurance with a newer one, his dividends will be higher and his premiums will be slightly lower. The policy however, will not offer either one of these things. What type of misrepresentation is this
TWISTING... (if it doesnt offer a bribe it is not rebating)
what type of interest rate is guaranteed in universal life policies
contract interest rate
an insurer decides to terminate the appointment of one of its producers and notifies the Commissioner 29 days after the fact. On the 9th day after the decision, the producer violates a regulation of the Insurance Code and a policyowner wants to hold the insurer legally responsible. Which of the following is true?
The Insurer will be held legally responsible (MUST NOTIFY COMMISH IN 15 DAYS, THEY NOTIFIED HIM LATE)
what is the purpose of the agents report in the application process
to provide addittional information about the applicant to the underwriters
when an insured terminates membership in the insured group, the insured can convert to
WHOLE LIFE without proof, (terminate group, cant do term again)