Insurance Questions gotten wrong

All of the following are abilities of the New Jersey Life and Health Guaranty Association in the event of insurer insolvency EXCEPT a. Assumption of payment of insurer's contractual obligations b. Guardianship of all physical properties, documents, and effects of insurer c. Issuing moratoriums on payment d. Imposition of contract liens

b.

All of the following statements about mutual insurance companies are correct EXCEPT a. Mutual companies issue policies referred to as participating b. Policy dividends issued by mutual companies are guaranteed and not taxable c. Dividends allow policyholders to share in a mutual company's divisible surplus d. Dividends are a return of unused premiums

b.

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapsed, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as a. misrepresentation b. twisting c. fraud d. concealment

b.

In a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT a. Mortality reserves b. Face amount reserves c. Incidental benefit amounts d. Cash surrender values

d.

Which of the following best describes a rebate? a. A producer selling insurance primarily to himself, his family, and his friends b. A producer returning part of her commission to her client, as an inducement to buy c. A producer misrepresenting policy provisions or coverages at issue d. A producer requiring an insured to buy insurance from her as a condition to a loan

b.

Under which of the following conditions would life insurance proceeds be taxable by the federal government? a. If paid to the policyowner b. If there is a transfer for value c. If collaterally assigned to a lender d. If taken as a lump sum

b.

When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option? a. Reduced paid up b. Extended term c. Paid up additions d. Cash surrender value

b.

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends than he knows would be possible. Which term describes what the agent has done? a. misrepresentation b. rebating c. twisting d. defamation

a.

What does the state Life and Health Insurance Guaranty Association guard against? a. Insurance fraud b. Overinsurance c. Unfair trade practices d. Insurer insolvency

d.