NJ
An insured receives a monthly summary of his life insurance policy. The cash value this month is significantly lower than is was last month. What type of policy is it?
Variable
The renewable provision allows the policyowner to renew the coverage at the expiration
Without evidence of insurability
The insured usually pays $1,200 annually for her life insurance premium. This year, she has accumulated $175 in dividends, and applied that to her next premium, reducing it to $1,025. What dividend option has the insured chosen?
Reduction of premium
Statements made by an applicant for an insurance policy that are true to the best of the applicant's knowledge are referred to as
Representation
Which of the following are Social Security benefits?
Retirement, disability and survivors
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyer's Guide
Which of the following features of the Indexed Whole Life policy is NOT fixed
Cash value growth
What happens when a policy is surrendered for its cash value?
Coverage ends but the policy cannot be reinstated
A spouse receives a $5k a month until the principal and interest on her husband's life insurance policy have been paid out. Which settlement option did the beneficiary choose?
Fixed amount
A life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the
Incontestability clause
If the agent feels that there could be misrepresentation on the part of the applicant for insurance, what must the agent do?
Inform the insurance company
Which of the following is TRUE about the free-look period in a life insurance policy
It starts when the policy is delivered
Which of the following is an example of a limited-pay life policy
Life paid-up at age 65
An agent/producer who offers a cash reward to a prospect for buying a policy is guilty of
Rebating
With a traditional whole life policy, the death benefit
Remains constant over time
Which is the appropriate action by the insurer (company) if a prospective insured (Client, Person looking/buying for insurance) submitted an incomplete application?
Return the application to the applicant for completion
If an agent fails to obtain an applicant's signature on the insurance application, the agent must
Return the application to the applicant for signature
What is the main responsibility of a company's underwriting unit?
Risk selection and classification
Which type of life insurance policy generates immediate cash value
Single premium
The time period during which an annuitant contributes to an annuity is called
The accumulation period
In life insurance, which of the following is NOT required to have an insurable interest in the insured?
The beneficiary
If a life insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission from the beneficiary
All of the following are requirements for life insurance illustration except
They must be part of the contract
Which method of dealing with risk is applied when insurance is purchased
Transfer
The rider in a whole life policy that allows the company to forgo collection the premium if the insured is disabled is called
Waiver of premium
The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount
100
What is the age that you can apply for a Producer/agent license
18
A temporary license is normally valid for
180 Days
How many hours must you complete before you take the NJ Life Producer Exam
20 Hours
How many Continuing Education Credits must you complete to renew your license in the state of New Jersey
24
How many days must Insurance producers report their change of business or residence address
30 Days
The Medical Insurance Bureau (MIB) is
A source of medical information to alert insurers to adverse medical history
Which of the following is considered a field underwriter?
An agent
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
Whose life expectancy is taken into consideration in an annuity
Annuitant
Which of the following would be the main source of underwriting information used by the company in the risk selection process?
Application
When must insurable interest exist in life insurance?
Application date
Which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another
Assignment
When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which of the following policies is best suitable for that need?
Decreasing Term
When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which of the following policies is best suitable for that need?
Decreasing term
An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need?
Deferred
An individual inherited a large sum of money at the age of 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. which of the following would best meet his needs?
Deferred
Which of the following is NOT a standard exclusion in life insurance policies?
Disability
Which of the following is the eligibility requirement for setting up a traditional IRA plan
Earned income
Which provision of a life insurance policy states that the application is part of the Contract
Entire Contract
A producer's license must be renewed
Every 2 years
How often must organizations consult the National Do Not Call Registry
Every 31 Days
Which of the following regulatory authorities' participated in creating the National Do Not Call Registry?
FTC (Federal Trade Commission)
What are the characteristics of term life insurance?
No cash value
All of the following are nonforfeiture options in life insurance EXCEPT
Automatic premium loans
Applicants for surplus lines authority must fulfill all of the following requirements EXCEPT?
Be a New Jersey resident
If a life policy does not pass the 7-pay test, that policy
Becomes a Modified Endowment Contract (MEC)
Which of the following statements is true of both the fixed-period and fixed-amount settlement options
Both guarantee that the principal and interest will be paid out.
Which of the following includes information regarding a person's credit, character, reputation and habit?
Consumer report
Which of the following features allows an insurance policy to remain in force for a specific number of days beyond the premium due date.
Grace period provision
Which of the following would be considered a disadvantage of term insurance
If the insured dies after the end of the term, there is no death benefit to the beneficiary
Term is defined as
No cash value
An annually renewable term policy
Renews each year with an increased premium
Representation are statements made by the applicant that are
Considered true to the best of the applicant's knowledge
Which of the following statements is TRUE regarding a universal life policy
The premiums can be decreased by the insured
When must an insurable interest exist in a life insurance policy?
At the time of application
Which of the following protects the insured from an unintentional policy lapse due to a non-payment of premium
Automatic premium loan
An insured submits the full premium along with a competed application, and the policy is issued 10 Days later. When does the coverage begin?
On the date of the application
When a death claim is submitted, the insurer discovered that the insured understated her age on the application for a life policy. What action will the insurer take
Pay a reduced death benefit based on the insured's actual age
If no receipt is issued at the time of application, a statement of good health is usually required at the time of
Policy delivery
Which of the following is true regarding a joint (1st) life policy
Premium is based on the average age of the insured