LIFE INSURANCE BROTHER!!!

all of the following are consideration in an insurance policy except a) cash value b) premium payment c) death benefit payment d) statements made in application

a. cash value

Several insurance consumers have violated the insurance laws of NJ. Who has the power to conduct investigations and hold hearings if necessary a) county clerks b) commissioner c) insurance agent d) insurance company

b. commissioner

which of the following is TRUE regarding the accumulation period of an annuity a. its the period that the beneficiary receives income b. limited to 10 years c. its a period in which payments made in to the annuity grow tax deferred d. its also referred to as the annuity period

c. it is a period in which the payments in to the annuity grow tax deferred

which of the following indicated the person upon who the annuity income amount is determined a. owner b. insured c. annuitant d. beneficiary

c. annuitant

which of the following would be considered false advertising a. stating that a policy has limitations and exclusions b. failing to include premiums and sales materials c. implying that the agent is the insurer d. stating the differences in benefits between whole life insurance and term life insurance

c. implying that the agent is the insurer agents can't imply that their the insuring entity

which of the following would help prevent a universal life policy from lapsing a. adjustable premium b. corridor of insurance c. target premium d. face amount

c. target premium

which of the following is an example of insurable interest a. business partners in each other b. employer in employee c. child in parent d. debtor in creditor

d. debtor in creditor

when would a 20-pay whole life policy endow a. at the insureds age 65 b. after 20 payments c. in 20 years d. when the insured reaches age 100

d. when the insured reaches age 100

How does insurance distribute the consequences of individual losses a. Transfers to all persons insured b. it retains the financial consequences c. transfers risk to associates of insured d. transfers risk to small number of persons insured

a. transfers risk to all persons insured

which of the following terms is the closest term to an authorized insurer a. certified b. licensed c. legal d. admitted

d. admitted

a participating insurance policy may do which of the following a) pay dividends to the policyowner b) provide group coverage c) pay dividends to the stock holder d)require 80% participation

a. pay dividends to the policyowner

which statement is INCORRECT regarding the type of term insurance that best fits the applicants needs a. applicants who may require a larger death benefit in the future should buy convertible term insurance b. applicants concerned with the increasing cost of living should purchase increasing term c. applicants wishing to pay off a mortgage should they suffer a premature death might buy a decreasing term policy d. employers looking to provide a cost effective group life insurance for their employees may choose the annually renewable term

a. applicants who may require a higher death benefit in the future should purchase convertible term

All of the following need to be included on the application for life insurance EXCEPT... a. Health insurance policies in force b. Life insurance with other producers c. The agents statement, if applicable d. medical info. about applicant

a. health insurance policies in force

The guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT a) purchase of a new home b) approximately 3 years between the age of 25 and 40 c) birth of a child d) Marriage

a. purchase of a new home

all of the following are advantages of a qualified retirement plan EXCEPT a) The income at retirement is tax free b) the contribution is deductible to the employer c) the contribution is not taxable to the employee when made d) the funds grow tax deferred

a. the income at retirement is tax free

what is the purpose of a disclosure statement in life insurance policies a. to explain features and benefits of a proposed policy to the consumer b. to obtain important underwriting information from the applicant c. to help consumers compare policy prices d. to protect agents and insurers against lawsuits

a. to explain features and benefits of a proposed policy to the consumer disclosure statements help applicants make more educated decisions about their choice of insurance. they just say the different types of insurance offered to the applicant.

A licensee changes his business address. Within how many days must he notify the commissioner. a. 10 b. 15 c. 30 d. 90

c. 30

Which of the following would NOT trigger the payment of accelerated Death Benefits a. requiring an organ transplant to the insured b. being permanently institutionalized c. being permanently disabled d. terminal illness

c. being permanently disabled

what does an annuity protect the contract owner against a) estate taxes b) the financial impact caused by premature death c) living longer than expected d) leaving beneficiaries without income

c. living longer than expected

provided that it is a first offense, what is the maximum penalty for failing to respond to a subpoena a. $500 b. $100 c. $10,000 d. $5,000

d. $5,000 $5,000 for the first time, $10,000 every time after that

a 60-year old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 day. which of the following is true? a. the amount distributed is subject to ordinary income tax b. the amount of the distribution is reduced by the amount of a 20% withholding tax c. no taxes are due since the plan participant is over age 59 1/2 d. there is a 10% early withdrawal penalty

b. the amount of distribution is reduced by the amount of a 20% withholding tax since the client took the distribution directly and didn't do a direct rollover of trustee-to-trustee, it is subject to 20% withholding tax. However, distributions from 401(k) accounts ARE generally considered as taxable income

the policy owner of an adjustable life policy wants to increase the death benefit. which of the following statements correct regarding this change a. the death benefit can be increased only by exchanging the existing policy in for a new one b. the death benefit can be increased by providing evidence of insurability c. the death benefit can not be increased d. the death benefit can be increased only when the policy has developed a cash value

b. the benefit can be increased by providing proof of insurability

a producer received a group master policy and certificates for delivery to the insured. within how many days must they be delivered a. 5 calendar days b. 10 business days c. 10 calendar days d. 5 business days

c. 10 calendar days

When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a) term rider b) nonforfeiture option c) Future income rider d) Guaranteed insurability rider

a. term rider

in the executive bonus plan, who is the owner of the policy and who pays the premiums a. company is the owner, and company pays the premiums b. executive is the owner and the executive pays the premiums c. company is the owner and the company pays the premiums d. board of directors is the owner and board of directors pays the premiums

b. executive is the owner and the executive pays the premium

a rider attached to a life insurance policy that provides coverage on the insureds family members is called a. payor rider b. other-insured rider c. change of insured rider d. juvenile rider

b. other-insured rider useful for providing insurance for more than one family member. usually offered as term insurance with convertible option to whole life

If a licensee wants to transact insurance under a different name other than that is listed on his or her producers license, which of the following must occur a) It is illegal to transact insurance under any name other than the one listed on the license b) the change must be filed with the department of insurance c) the change must be reported to the Federal Producer Directory d) The licensee must obtain a new license

b. the change must be filed with the department

according to the entire contract provision, a policy must contain a. buyers guide to life insurance b. listing of the insureds former insurer(s) for incontestability provisions c. a copy of the original application for insurance d. a declarations page with a summary of insureds

c. a copy of the original application for insurance

an insurer that holds a certificate of authority in the state in which it transacts business is considered a/an a. certified insurer b. self-insurer c. authorized insurer d. local insurer

c. authorized insurer

producer licenses will not be issued to business entities in which of the following cases a) one partner holds 10% share in another licensed business entity b) the business has only one licensed producer c) the partners license was revoked in the previous 5 years d) the business is not authorized by the secretary of state

c. the partners license was revoked in the previous 5 years

When is the earliest a policy may go in to effect a. when the insurer approves the application b. after the underwriter reviews the application c. when the application is signed and the check is handed to the agent d. when the first premium is paid and the policy has been delivered

c. when the application is signed and the check is given to the agent can be effective as early as the application submission, if premium is submitted with the app. and the policy is issued as applied for

If a life insurance company uses HIV testing as part of its underwriting process, when must an applicant be notified of the procedure a) prior notice isn't required b) prior to performance of test c) prior to ordering physical examination d) prior to solicitation of policy

b. prior to performance of the test

Traditional IRA contributions are a. never tax deductible b. partially tax deductible depending on the income level c. tax deductible d. deducted based on income level

c. tax deductible these rules apply to traditional IRA contributions: tax deductible for year of contribution based on persons income, must be made in cash to be tax deductible, excess contributions taxed at 6% each year, tax deferred earnings not taxed until withdrawal.

the premiums paid by the employer in a business life insurance policy are a. always tax deductible to the employee b. never tax deductible to the employer c. tax deductible to the employer d. tax deductible to the employee

c. tax deductible to the employer tax deductible to employer as a business expense