Life insurance
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
Which provision of life insurance states the insurers duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Insuring clause
All of the following are Nonforfeiture options except
Interest only is a settlement option
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 days
The commission believes the that an insurance rule has been violated, within how many days before a hearing must commissioner issue a notice
10 days
What is the minimum term for credit life insurance place on a 10 year loan
7 years
Producer license are valid for
2 years
Option A
(Level Death Benefit option), the death benefit remains level while the cash value gradually increases. Corridor gap between cash value
In order to become a producer in New Jersey, after submitting an application, candidates must pass a licensing exam within
1 year
The commissioner may revoke a producers license for all of the following reasons EXCEPT
Acting in a fiduciary capacity
What is reinsurance?
An agreement between a ceding insurer and assuming insurer
All of the following are TRUE of the federal tax advantages of a qualified plan except
At distribution, all amounts received by the employee are tax free.
When an insurer negotiates on behalf of a client, the producer is acting on behalf of a client?
Broker
Nonforfeiture Options include
Cash surrender, extended term, reduced paid up —> INTEREST ONLY is a settlement option
All of the following statements are true concerning dividends EXCEPT:
Dividend amounts are guaranteed in the policy
All of the following are dividend options except
Fixed period installments which is a settlement option; Accumulated at interest, Reduction of premiums, and Paid-up additions are dividend options
Qualified plan
Funds accumulate on a tax deferred basis Employer and employee contributions are not counted as income to the employee for income tax purposes Employer contributions are tax deductible as ordinary business expense
Applicants for surplus lines authority must fulfill all of the following requirements except
Hold a bond as a condition for licensure
What is the benefit of choosing extended term non forfeiture option
It has the highest amount of insurance protection as the policy cash value is used to convert to term insurance for as long as the cash value will purchase
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level term
Straight life equals
Life income
Which of the following information about the applicant is NOT included in the General Information section for insurance
Medical background
Death benefits payable to a beneficiary under a life insurance policy are generally
Not subject to income taxation by the Federal Government
The Federal Fair Credit Reporting Act
Regulates consumer reports
Which of the following is a person that is allowed to write business in NJ for insurance companies that do not possess a certificate line of authority in NJ
Surplus lines agent
The interest earned on policy dividends is
Taxable (any interest earned is taxable as ordinary income)
Which of the following is INCORRECT regarding 20yr 100k TERM policy
Term polices do not develop cash values
Which of the following, when attached to a permanent life insurance policy, allows the policy-owner to CUSTOMIZE the policy to provide an additional amount insurance
Term rider
The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husbands death. Who will select the settlement option
The beneficiary
Which is not true about beneficiary designations
The beneficiary must have insurable interest in the insured.
All of the following entities regulate variable life insurance polices except
The guaranty association
All of the following are true of a key person insurance EXCEPT
The plan is funded by permanent insurance only.
What is the earliest a policy may go into effect
When the application is signed and a check is given to the agent
If an applicant 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
If an insurer cancels an agency contract, it must notify the Commissioner in writing within how many days?
15 days