NJ Life Producer Exam Study Life Insurance
9 years and 8 months
A 10 year family income policy was purchased effective April 1, 2007. The insured died August 1, 2007. The beneficiary receives monthly income for:
90 days
A business name authorization expires in
At the time of policy delivery
A change in premium due to a rate-up would normally be discussed with a client...
Unilateral contract
A contract where only one party gives a legally enforceable promise?
12 months
A first time applicant is someone who has not been licensed as a producer for the previous...
The ceding insurer
A insurer procuring insurance for itself from another insurer is called...
Mutual insurer
A insurer's ownership comprised of policyholders is a...
Insurer
A licensed producer represents the...
Modified Endowment Contract (MEC)
A life insurance policy that fails to meet the seven-pay test is called a...
rider
A modification to a life policy is called a...
Contempt
A person failing to comply to a subpoena from the Commissioner, may be charged with...
Insurance broker
A person, for a fee or commission represents insured for the purpose of obtaining them a life insurance policy...
20-pay life
A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a...
30 days
A producer has up to how many days to notify the department of an address change?
50%
A producer is not allowed to obtain a license solely to write insurance on the producer's family or business. What percentage of the producer's aggregate commissions must be exceeded to be considered "controlled business"?
$1,000.00
A producer who unknowingly engages in a prohibited trade practice, can be issued a fine not to exceed...
have their principle office in New Jersey
A producer who wishes to hold a Resident NJ Life Producer license, who lives in another state, must...
The Superior Court
A producer wishing to appeal the final order of the Commissioner would appeal to....
1035 Exchange
A tax free exchange of one life insurance policy or annuity for another is called...
60 days
A temporary certificate expires no more then how many days after issuance?
No capital stock
A trademark of a mutual insurer is...
insurance company
Agents represent the...
Rebating
An agent offering a prospect something of value that is not specified in the insurance contract in order to persuade prospect to purchase insurance is guilty of...
Buy and Sell agreement
An agreement to purchase a deceased partner's share of a business, using the proceeds from a life insurance policy, is called a...
non-contribuatory
An employer paid life insurance is called...
Automatic premium loan
An insured may receive protection against the unintentional lapse of his life insurance policy contract by requesting the...
Renewable Term Life Insurance
An insurer must renew a renewable term policy at the policyowner's request regardless of the insurability status of the insured.
Domestic mutual insurer
An insurer that is incorporated under the laws of New Jersey, without permanent stock, and its governing body elected by its policyholders is a...
5 years
Copies of insurance advertisement must be kept for at least...
3 years
Copies of policy summary and buyer's guides used with the public must be kept on file for...
Decreasing term
Credit life insurance is a form of...
Decreasing term insurance
Credit life insurance is a form of...
Insured's estate
Creditors may attach the death benefits payable to...
Not Taxable
Dividends are...
Immediate
Elisabeth retires. She purchases an annuity. One month later, she starts to receive payments from the annuity. What type of annuity does Elisabeth have?
$500.00
Failure to notify the Department of the opening or closing of a branch office is subject to a fine of...
Not Tax Deductable
Generally, premiums paid on an individual life insurance policy are:
30 days
How many days does a licensee need to notify the Department when opening a branch office?
30
How many days within a Commissioner's final order does an intervenor have to appeal a decision?
$500,000.00
If Guaranty Association assumes management of an insolvent insurer, the amount of death benefits for which they are liable is...
The insured debtor
If a credit life insurance policy is terminated prior to the maturity date of the loan, a refund of unearned premiums is paid to...
Terminated
If a producer fails to complete the required CE credits before his license expires, their license will be...
30 days
If a producer is indicted of a crime, they must notify the Commissioner within...
Immediately after the period of suspension
If a producer's license is suspended. When can he apply for reinstatement?
Pay an amount equivalent to that which the premium would have purchased at the correct age
If an insured understates her age and this is discovered upon her death, the insurer will...
Contingent beneficiaries
If the primary beneficiary dies before an insured, the individuals are paid when the insured dies are...
Twisting
Illegally inducing an individual to lapse a current plan of life insurance in order to purchase a new one is called...
the creditor
In a credit insurance policy, who is the beneficiary?
180 Days
In most circumstances, a temporary license in New Jersey shall not be valid for a period longer than:
Individual policies of life insurance issued to debtors on a term plan
In what instance can a credit insurance policy be issued?
Interest-only
In which of the following are proceeds left with the insurer and earnings sent to the beneficiary?
5 years
Insurers must maintain files of all advertisements used in the solicitation of life insurance for a period of at least...
Not tax deductable
Interest paid on a policy loan is...
the face amount less the annual premium
John the insured dies during the grace period of his life insurance policy and had not paid the annual premium. The insurance company is obligated to pay which of the following to the beneficiary?
may be subjected to unfavorable tax rules
Money taken out of a modified endowment contract (MEC)...
5 years
Producers whose licenses have been revoked must wait a minimum of how long before reapplying?
a non-qualified plan
Split-Dollar Life is a...
31 Days
Telemarketers must update their solicitation lists with the National Do Not Call Registry every...
jail
The Commissioner does not have the power to put you in...
10 days
The Commissioner is required to provide public notice a minimum of how many days prior to holding a hearing to discuss a proposed rule change?
A certificate of authority
The Commissioner issues what type of certificate to an insurer?
The governor
The Commissioner of the NJ Department of Insurance is appointed by...
CLU courses
The Department of Insurance will count which of the following towards the continuing education requirement?
Member insurers
The New Jersey Life and Health Guaranty Association is funded by...
premium mode
The aspect of a policy that allows a policyholder to select the timing of premium payments is known as...
states
The court case Paul vs Virginia established the regulation of insurance business is the responsibility of the...
Public Law 15
The federal antitrust laws would apply to insurance but only to the extent that the state regulation was not effective is...
When the premium is due
The grace period in a life insurance policy begins...
Legislature ,Executive branch of government and the Courts
The insurance industry is regulated by the...
provide income for retirement
The primary purpose for an annuity is to...
Incontestability clause
The provision that addresses misstatements made by applicant on application is...
Protect the public from insolvent insurers
The purpose of the NJ life and Health Guaranty Association is to...
Fixed-amount
The settlement option that provides for payments to be made in regular installments to a beneficiary until the principal and interest are exhausted best describes:
Irrevocable
The term used to indicate that a policy beneficiary cannot be changed is...
Competent parties
To be valid, a contract must be between individuals considered legally able to enter into an agreement. This is known as...
Misrepresentation
Twisting is a form of
Amount of indeptness
Under a Credit Life Policy, the amount of coverage shall not exceed the:
70 1/2
Under a Traditional IRA, owners must begin to receive payments from their accounts by the time they reach the age of...
Variable Life
Under what type of life insurance policy will the death benefit vary, based on the performance of an underlying portfolio of securities?
15 days
Upon cancellation of an agency contract, with a producer, the insurer must give how many days notice to the Commissioner?
$5,000.00
Violation of a cease and desist order can result in a maximum fine of...
Grace period provision
What allows for an insurance policy to remain in force for a specified number of days beyond the premium due date?
Agency contract
What contract states the commissions agreement?
Must give public reasonable access.
What hours of operation is a branch office required to have?
A mutual insurance company
What is the proper term for a company owned by its policy owners?
A policy summary
What must be provided to all purchasers of life insurance?
Living too long and outlasting one's income.
What risk does an annuity cover?
Contribuatory
What type of group plan requires at least 75% of the eligible members to participate?
retrocession
When a reinsurer procures insurance for themselves from another reinsurer. This is known as...
12 months
When applying for a producer's license, an applicant must have passed the State Licensing Exam within how long from the date of their application for license?
Notice Regarding Replacement of Life Insurance and Annuities
When replacing an existing life insurance policy, the agent should have the applicant sign what form?
Notify the Producer whose policy is being replaced
When replacing existing life insurance, an agent MUST...
If a legal guardian has been appointed
When the beneficiary of a life insurance policy is a minor, the insurer can pay the proceeds...
United States v. Southeastern Underwriters Association (1944)
Which established that the insurance industry should be considered interstate commerce and therefore subject to federal regulation?
premium schedule
Which of the following features makes Universal Life insurance different from other forms of permanent insurance?
Entire contract
Which of the following prevents the producer from unilaterally amending a policy?
The beneficiary
Which party does not have to sign life insurance application?
Commissioner
Who is responsible for advertising regulations?
The State of New Jersey
Who owns a producer's license?
The premium paid
With an insurance contract, what is the insured's consideration?
