Insurance

Which of the following types of insurance would be written by a limited lines agent? a) Credit insurance b) Variable life insurance c) Surplus lines insurance d) Term life insurance

Credit insurance

All of the following are Nonforfeiture options EXCEPT a) Cash surrender b) Extended term c) Reduced paid-up d) Interest only

D. Interest. Only

circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

Under which of the following circumstances would a nonresident producer NOT required to complete CE hours in New Jersey? a) If the producer's home state has the same CE requirements and the producer satisfies them b) Any time nonresident producers satisfy CE requirements in their home state c) Under no circumstances: all producers must meet CE requirements in this state d) If a waiver is received from the Commissioner

If the producer's home state has the same CE requirements and the producer satisfies them

Applicants for an individual producer license must submit proof of completing 24 hours of continuing education credits during the previous

2 years

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

Which of the following is called a "second-to-die" policy?

Survivor life

Both Universal Life and Variable Universal Life have a

Flexible premium

The Ownership provision entitles the policyowner to do all of the following EXCEPT a) Assign the policy. b) Designate a beneficiary. c) Set premium rates. d) Receive a policy loan.

Set premium rates

The McCarran Act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the

States

The Supreme Court stated that insurance is interstate commerce and is therefore subject to regulation by the federal government in the decision of what case?

The U.S. vs. the South-Eastern Underwriters Association

If an insured continually uses the automatic premium loan option to pay the policy premium

The policy will terminate when the cash value is reduced to nothing

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

All of the following are requirements for life insurance illustrations EXCEPT a) They must differentiate between guaranteed and projected amounts. b) They must be part of the contract. c) They may only be used as approved. d) They must identify nonguaranteed values.

b) They must be part of the contract.

Which of the following would NOT be considered a misrepresentation on the part of the insurer? a) Backdating policies to secure a lower premium for the insured b) Implying that term insurance has cash value c) Embellishing the benefits provided in the policy d) Overstating returns on policy dividends

backdating policies to secure a lower premium for the insured

Which of the following is NOT true regarding a nonqualified retirement plan? a) Contributions are not currently tax deductible. b) It can discriminate in benefits and selecting participants. c) Earnings grow tax deferred. d) It needs IRS approval.

d) It needs IRS approval.

The insurer must maintain copies of Notice Regarding Replacement and the comparative information form, policy summary, and all sales materials until the next regular examination by the Department of Banking and Insurance or for at least

5 years

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's a) Habits. b) Prior insurance. c) Ancestry. d) Credit history.

Ancestry

All of the following are characteristics of group life insurance EXCEPT a) Amount of coverage is determined according to nondiscriminatory rules. b) Individuals covered under the policy receive a certificate of insurance. c) Certificate holders may convert coverage to an individual policy without evidence of insurability. d) Premiums are determined by the age, sex and occupation of each individual certificate holder

Premiums are determined by the age, sex and occupation of each individual certificate holder.

The advantage of qualified plans to employers is

Tax-deductible contributions

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary.

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid.

All of the following would be considered an insurance transaction EXCEPT a) Obtaining an insurance license. b) Soliciting a policy. c) Advising a policyholder regarding a claim. d) Negotiating coverage.

Obtaining an insurance license.

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring clause

Which of the following is included in the term "insurance-related conduct"? a) Producer licensing b) Transmitting funds between producers and the insurance company c) Insurer's acting with the scope of the Insurance Code d) Producer's ethical behavior

Transmitting funds between producers and the insurance company

Life income joint and survivor settlement option guarantees a) Income for 2 or more recipients until they die. b) Payment of interest on death proceeds. c) Payout of the entire death benefit. d) Equal payments to all recipients.

A.

All of the following are dividend options EXCEPT a) Fixed-period installments. b) Accumulated at interest c) Reduction of premium. d) Paid-up additions.

Fixed-period installments

Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members? a) Guaranteed insurability rider b) Change of insured rider c) Term rider d) Accidental death and dismemberment rider

Term rider

A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive from the policy?

The full death benefit