insurance full exam

for any person valued in an insurance regulation on subsequent offenses after the first offense, the commissioner May impose a penalty not exceeding?

$10,000

if, after conducting a hearing, the commissioner determines that an individual is guilty of an unfair act or practice, then for each act or violation he may order a payment not to exceed?

$1000

Joby comes totally disabled. how much will social security pay Joe's wife, who relies on child support payments from joe, to care for their 12 year twins?

1/2 Joe pia

the free look period for an annuity product in New Jersey is?

10 days

at what age May a minor enter into insurance contract?

15

Colin buys a fixed deferred annuity. upon and neutralization, he chooses the life annuity with period certain payout options. Colin will receive $3,000 each month with a 15-year certain period. if Colin dies after 7 years, how much will his beneficiary receive?

288,000

Tim's toy shop has gone bankrupt and needs to terminate all employees. Tim informs all employees of their right of conversion under the employer's sponsorship group life plan. how many days are tens employees allotted to convert their group life coverage to individual coverage?

31 days ​

in new jersey, what is the maximum term for credit life insurance policy?

5 years

insurance must maintain a file for all advertisements used in the solicitation of life insurance for a period of at least?

5 years

conversion from a group policy to an individual policy must be made within a maximum of how many days of termination from the group coverage?

60

ABC insurance sells a $500,000 single premium immediate annuity to four different people, who receives the largest check?

60yr old male

what is the full social security retirement age for a person born after 1960?

67

Alex purchases a single premium immediate annuity on March 1st. if he elects monthly annuity payments, when will he receive his first annuity payment?

April 1st ( first payment one month after annuity purchase date)

a local insurance company has worked closely with an area real estate firm in writing mortgage insurance as well as other insurances such as health and accident policies to newcomers in a small University town. recently one of the town's oldest and most reliable banks have become cautious about making mortgage loans, and both the Realtors and the insurance company have lost business as a result. they agree to change their own accounts to a newer bank with a more liberal lending policy and to encourage their clients to follow their course. since it's a small town with a sizable number of newcomers who visit the real estate fund for rentals or home purchases, they're combined action is likely to affect the older, more conservative lender. the practice in which they are engaging is?

Boycott

Jacob has been insured under his employer sponsored group life insurance plan for seven years. he becomes totally disabled upon termination of his group coverage. which of the following is true?

Jacob must be permitted to continue group coverage for 6 months

Kenny is self-employed. he owns a book bindery. which statement accurately describes his social security tax obligation?

Kenny must pay the employer and employees tax portions

Luca is eligible to receive both spousal and retirement benefits. which of the following is true?

Luca will receive the larger of the two benefits

leo, a producer sat down with a prospective client to discuss a long-term care policy. He used a computer program to outline and emphasize his remarks. The visual representation contained the principal benefits of the policy he was trying to sell. although he mentioned that it also had, the usual conditions, he did not include those in his visual presentation or specify what they were. the producer was engaging in

Misrepresentation

what type of group plan requires 100% participation?

Noncontributory

social security is also referred to as

OASDI (old age, survivors, disability insurance)

what is the basis for social security retirement benefits?

PIA( primary insurance account)

and discussing a potentially lucrative group policy with a business owner who had purchased a business and just moved into the company, and established producer jokingly remarked,"well, would it sweet in the pot if I can assure you membership in the country club?" the producer added," I'm on the membership committee and while we're not accepting any new applications right now, I'm sure something could be worked out." these remarks constituted?

Rebating

Rick is planning on getting married next month. he currently has $800,000 whole life participating policy. because he is planning a family, he wants to increase his life insurance while keeping his costs down. which of the following options would best suit his needs?

Rick could use the dividends to purchase paid up additions

Serena dies 15 days after her group life insurance coverage is terminated. she did not apply for individual coverage. which of the following is true?

Serena's beneficiary will receive the full death benefit

what decision ruled the insurance business is considered interstate commerce?

US Vs south-eastern under writers association

Janice applies for a life insurance policy. she submits the application with the initial premium for $100,000 whole life. the agent returns the policy with a higher premium hazardous occupation exclusion. what has the insurer made?

a counter offer

Joyce applies for a health insurance policy. when the agent delivers the policy to joyce, and additional premium is required to account for Joyce's medical conditions. Joyce must agree to pay the additional premium before the policy is effective. the ensure has made?

a counter offer

if a producer, in order to secure a contract, given item or consideration with a value over $25 to an applicant or policyholder, it is considered?

a form of coercion

in new jersey, all of the following are part of the regulations pertaining to contracts with minors, except?

a minor can use his minority to break or void an insurance contract

which of the following employees would not be covered by social security?

a person hired by the federal government in 1980, a priest that has taken a vow of poverty and a self-employed, homeless street musician

Eddie wants to use a non forfeiture option. which of the following May Eddie not use?

accumulation at interest

Sandra wants to have flexibility with her life insurance policy to accommodate changes in her situation. she should consider?

adjustable life

what policy provides flexible premiums, cash values, face amounts, premium pain. and length of coverage?

adjustable life

the duties of the commissioner include which of the following?

administer the work of the department. the terminal matters of policy within the commissioner's jurisdiction & point and remove officers and other personnel employed within the department

an example of an unfair claim settlement practice would include?

advising a claimant of the possibility that should be claimant reject the settlement offer, and abbitration award might be less than the offer.

a company must disclose all of the following to an insured, except?

agent compensation

premiums for a joint and survivor life annuity are based on the annuitants?

ages and sex

which of the following is true about the obligations and procedures of the insurer and the policyholder for a notice of discontinuance of a group policy?

all of the above

how long is the reduction in social security retirement benefits affected for a person who retires early?

all throughout retirement

which of the following is not considered replacement?

allowing a life insurance policy to continue on extended term insurance to fund another policy

defamation occurs when?

an individual or entity makes false, derogatory statements about it insurers financial condition that are calculated to ensure the insurers business.

the insurance commissioner is

appointed by the governor

why are life and health insurance contracts said to be contracts of adhesion?

because the insurer writes the contract, to which the insured must adhere

which of the following non-forfeiture options does not allow the ensure to reinstate the policy?

cash surrender

the practice of using misrepresentations indusa policyholder to replace a policy issue by the insurer the producer represents is called?

churning

any written communication expressing ingredients is a?

complaint

insurance make a promise to pay benefits in the future in the case of death or sickness, what type of contract is this?

conditional

the purpose of group life and health coverage regulations is to set forth requirements regarding the discontinuance and replacement of all group life, accident and health insurance policies and contracts. all of The following fall under the regulations, except?

contracts issued in connection with temporary disability benefits or workers compensation laws

which of the following statements is false regarding the conversion option for group life insurance policies?

converted coverage may be term or whole life, depending on the needs of the insured

in a universal life insurance policy, the two most common adjustments made during a month are?

cost of debt protection deducted and current interest rate credited

social security quarters of coverage earned are based on _______ quarters work, _______ be earned consecutively.

cumulative; do not need to

which of the following terms is allowable and solicitation used by insurance producers?

current rate

which policy works the same way as universal life, but has an interest rate that is tied to the stock market index?

equity indexed universal life

what nonferfeiture options per miss the policy owner to use the cash values to purchase paid-up term life insurance coverage?

extended term

which none forfeiture option is the automatic option?

extended term option

which of the following is considered an unfair claims practice?

failing to affirm or deny coverage within a reasonable time after receiving proof of loss

a covered worker must be ________ insured to receive social security retirement benefits?

fully

replacement is defined as any life insurance transaction in which existing life insurance?

has lapsed, is continued as extended term insurance and being reissued with a reduction in cash value

how are social security benefits determined?

how long it covered worker has worked throughout their life

insurance contracts are conditional. which of the following would be a characteristic of a conditional contract?

if a loss occurs, then the insurance company will pay benefits

which of the following is not one of the duties of the commissioner?

institute legal proceedings if required

an adjustable life policy allows a policy owner to make all of the following changes except?

invest premiums in a separate account

which of the following is not required in a legal contract?

invitation to offer

some universal policies permitted cash withdrawal. all of the following are true statements about universal life except

it is treated as a loan

which of the following is not true regarding the cash value in an ordinary whole life policy.

it may be used as a policy loan without affecting the death benefit

in order to be valid, a contract must have?

legal purpose

if the commissioner has reason to believe that a person has engaged in an unfair method of competition, or an unfair or deceptive act, he will issue and serve on that person a statement of the charges and notice of hearing which will not be?

less than 10 days after date of service

Gina and Jerry are purchasing life insurance. they decided on policies that would be paid up in 20 years. what type of policies did they purchase?

limited payment policies

the insurance commissioner has the power to do any of the following except?

make laws that regulate insurance matters

which of the following is considered a violation of life insurance replacement requirements?

misleading sales material, intentional incorrect recording of an answer and advising an applicant to respond negatively to any question regarding replacement

which of the following correctly describes social security survivors benefits for a covered worker who is fully insured?

monthly payments to the widow equal to the deceased spouses pia if the widow is age 65 or above, lump sum death benefit paid to the widow and eligible children of the deceased covered worker and monthly payments to a dependent parent age 62 and above.

noncontributory plans?

must have 100% participation

contributory plans?

must have 75% participation

which of the following is a guarantee that is required by law to be a part of the life insurance policies that build cash value?

nonforfeiture option

John Green has sued his insurance company over a claim they did not pay. the policy does not specifically exclude the circumstances of the claim, but the insurance company States the denial is implied. under the current law the court will probably rule?

order the cleanest paid, since the policy wording was ambiguous

this dividend option provides additional permanent coverage?

paid up additions

in the underwriting of insurance policies, some amount of discrimination is?

present in many cases, because of differing levels of risk.

for what reason would the insurance company raise the death benefit of a universal life policy?

prevent the cash value from growing too quickly

which of the following is not a dividend option?

reduced paid up insurance

what non forfeiture option allows the policy owner to purchase paid up whole life coverage at a reduced face amount based on the policies existing cash value?

reduced paid-up insurance

all of the following acts are considered unfair trade practices, except?

replacement

all of the following, if performed frequently enough to indicate a general business practice, are unfair claims settlement practices, except?

requiring submission of preliminary claim report or a formal proof of loss before paying a claim

all of the following actions require an insurance license, except?

scheduling an appointment for an insurance review

insurable interest requires that an individual have a valid concern for the well-being of the person's insured. in a life policy and sure will interest can be present in all of the following, except?

second cousins

what type of premium is used to purchase an immediate annuity?

single

annuities sold in New Jersey must include a notice stating which of the following?

that for a period of 10 days after receiving the policy, the owner May cancel the annuity and receive a prompt refund of any account value

all of the following are characteristics of whole life insurance, except?

the cash value in a permanent life insurance policy is not a non-forfeiture benefit

which of the following best describes option one under a universal life policy?

the death benefit is a designated amount specified by the policy owner

which of the following is not true about the regulation and enforcement of insurance laws within a state?

the department of insurance is tasked with creating new insurance laws

which of the following is false regarding eligibility for social security disability benefits?

the disability must have lasted or will last for at least six full months or be expected to end in death

John purchases a life insurance policy for his wife Jean. which of the following best describes who is legally bound to the policies promise of benefits?

the insurer

what happens when the cash value of a life insurance policy equals the face value?

the policy endows

what happens when a universal life policyholder pays the target premium?

the policy will resemble whole life insurance

which of the following is not allowed in advertisements for life insurance products?

the term "investment"

in order to obtain fully insured status a covered worker must accrue one quarter of coverage each calendar year after the age of 21 for a total of 40 quarters and minimum of six quarters, upon the earliest of?

the year prior to reaching age 62. the year of disability onset and the year prior to death

after the 5 month waiting period, social security disability benefitsare payable to the disabled covered worker in the amount of?

their total pia

what is the purpose of State insurance regulations?

to protect the public from unfair acts of insurance companies or it's representatives. to protect the public against the insolvency of insurers & protect the public interest

when Richards and sure failed to effectuate a prompt settlement when liability was clear, he was forced to institute litigation to recover the amounts due under his policy. the insurer initially made him a really low offer to settle, but he refused. all of these actions buy it ensure are considered?

unfair claim practices

insurance contracts are one-sided. which of the following terms best describes this?

unilateral contract

which of the following would not be a violation of the replacement requirements?

unintentionally and correct recording of an answer