ExamFX LIFE INSURACE (New Jersey Laws, Rules, and Regulations Pertinent to Life Only)

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

0 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

10 days.

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

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, within what period of time can he return it and receive a full refund?

30 days.

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

5 business days

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 or for at least

5 years

All of the following statements are correct regarding credit life insurance EXCEPT:

Benefits are paid to the borrower's beneficiary

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

Credit Life

Which of the following is true about credit life insurance

Creditor is the policyowner

Which of the following types of insurance policies is most commonly used in credit life insurance?

Decreasing Term

Misrepresenting an insurance policy as a share of stock is an example of which of the following?

False Advertising

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

False Advertising

Fred is the owner of a whole life insurance policy. Some of the detail 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. When policy matures, what will the insurer do?

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

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

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

All advertisements pertaining to life insurance policies are the responsibility of the

Insurer

During replacement of life insurance, a replacing insurer must do which of the following?

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

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?

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

In New Jersey, the public is protected by a notice of discontinuance when a policy is discontinued for nonpayment premiums. When a policy is discontinued, all of the following are required EXCEPT:

Refund of premiums

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?

Replacement rule

Proceeds from life insurance policies are protected from the beneficiary's debts under all of the following circumstances EXCEPT:

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

The initial amount of credit life insurance may NOT exceed...

The amount to be repaid under the contract

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. Which of the following will happen?

The policy will terminate.

A group of 15 skydivers met 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?

The purpose of the group was to purchase life insurance.

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

Twisting

Solicitation rules would apply to which of the following types of coverage?

Whole life

All of the following could own group life EXCEPT:

A group needing low-cost life insurance.

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

7 years

Which of the following is correct regarding credit life insurance?

Insures the life of a debtor.

If a credit life policy lapses for nonpayment before the debt is satisfied, within how many days must the creditor either refund the premium or apply it against the debt.

60 Days

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. Which of the following is true?

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

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer.

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. Which of the following is true?

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

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