New Jersey Laws, Rules and Regulations Pertinent to Life Only

Creditor

Who is the beneficiary in credit life insurance?

5 Years

An insurer must keep all sales materials for at least how long?

Some of the premiums were paid in an attempt to defraud creditors

Proceeds from life insurance policies are NOT protected from the beneficiary's debts under what circumstance?

Credit Life

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

Twisting 2

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

5 Business Days

During policy replacement, the replacing insurer must notify existing insurers within what time period?

False Advertising 2

Misrepresenting an insurance policy as a share of stock is an example of what?

False Advertising

Using names or titles that have tendency to misrepresent the true nature of a policy is an example of what illegal practice?

Refund of Premiums

In NJ, the public is protected by a notice of discontinuance when a policy is discontinued for nonpayment of premiums. When a policy is discontinued, what is NOT a requirement?

Whole Life

Solicitation rules would apply to what type of coverage?

The insurer will pay all losses through the end of the grace period

A small employer owns a group health insurance policy. The employer does not pay the premium by the premium due date and fails again to pay by the end of the grace period. The insurer cancels the policy. What is true?

60

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 is against the debt?

The amount to be repaid under the contract

The initial amount of credit life insurance may NOT exceed

5 Years 2

The insurer must maintain copies of Notice Regarding Replacement and the comparative information form, policy summary and all sales materials until the next regular examination by the Department of Banking and Insurance for at least

A group needing low-cost life insurance

What CANNOT own group life insurance?

Explaining to a client the advantages of permanent insurance over term and suggesting changing policies

What can NOT be described as twisting?

Notice Regarding Replacement

What documents must be provided to the policyowner or applicant during policy replacement?

The Insurance Company

What entity is held responsible for the contents of an insurer's advertisement on a local TV station?

Benefits are paid to the borrower's beneficiary

What is NOT TRUE regarding credit life insurance?

Replacement Rule

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Twisting

Which type of misrepresentation persuades an insured, to their detriment, to cancel, lapse, or switch policies from one to another?

10 Days

The Buyer's Guide and policy summary can be delivered with the policy or earlier if the policy contains an unconditional refund provision of at least

15

What is the minimum age that someone can purchase a life insurance policy on their own life?

7 Years

What is the minimum term of coverage for credit life insurance placed on a 10-year old loan?

Decreasing Term

What type of insurance policy is most commonly used in credit life insurance?

It is the policyowner's responsibility to request the reinstatement of an application; the insurer must then deliver it within 30 days

A life insurance policy has lapsed and the policyowner would like to reinstate it. In order to initiate the reinstatement process, he must submit an application to his insurer. What is true?

30 Days 2

If an insured requires an application in order to reinstate a policy and if the insured request reinstatement in writing, an application must be delivered to the insured within

Within 30 days of the insured's request

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

Creditor requiring that a debtor buys insurance from a certain insurer

What is NOT allowed in credit life insurance?

Benefits are paid to the borrower's beneficiary

What is NOT true regarding credit life insurance?

Creditor is the policyowner

What is TRUE about credit life insurance?

It insures the life of a debtor

What is true regarding credit life insurance?

This is a term life insurance policy

What statement about a life insurance policy would be allowed in an insurance advertisement?

The creditor can only insure the debtor for the amount owed

What is TRUE regarding the insurance amount in a credit life policy?

Obtain a list of all life insurance policies that will be replaced

During replacement of life insurance, a replacing insurer must

The producer must provide the applicant with a Notice Regarding Replacement

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The purpose of the group was to purchase life insurance

A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?

Only if the policy specifies that a separate premium for that peril coverage is separately cancelable

A life insurance policy insures against several different perils. If the policyowner wants to cancel the coverage for one of those perils, can that be done?

If the lender has credit insurance, this amount will be paid to the lender

A person takes out a loan in order to pay off his house. He dies several years later, having only paid off a small portion of his debt. What is true?

The policy will terminate

A small employer owns a group health insurance policy. The employer neglects to pay the premium by the payment due date. The employer fails to pay the premium yet again by the end of the grace period. What will happen?

Applications can only be used in court cases if they are attached to or endorsed upon the issued policy

An insurance company and insured are settling a lawsuit involving a life insurance policy. The insurer believes that the application would help to establish material facts in the case. What is true?

30 Days

An insured replaces his current policy with one offered by another insurer. If he finds that he is unsatisfied with the new policy, writing what period of time can he return it for a full refund?

0 Days

Buy how many days does the discontinuance of a group insurance policy reduce the time limit for providing notice of claim or proof of loss?

Hold Fred's money in its general fund until it can come to a formal agreement with Fred

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 silly not agreed formally to the terms of the proposal. When the policy matures, what will the insurer do?

Insurer

It is the responsibility of who to make sure that an applicant/policyholder has a policy summary and Buyer's Guide?