Life Guaranteed Exam Questions Missed

which of the following is NOT a standard exclusion in life insurance policies

disability

which of the folllowing is TRUE regarding an Agents Report during the policy application process

it provides the agent personal observations concering the proposed insured

in which of the following scenarios would a producer be allowed to obtain insurance through an unathorized insurer

if there are no authorized insurers for a specific type of coverage in the state (ONLY CIRCUMSTANCE)

Under which of the following conditions would life insurance proceeds be taxable by the federal government

if there is a transfer for value

if an individual willfully violates provisions of the Fair Credit Reporting Act what is the maximum civil penalty

$2500, think "willfully" key word. Not 5K

a whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will

continue to increase

an applicant for surplus lines authority must do all of the following EXCEPT

possess a certificate of authority in this state

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

which of the following statements is INCORRECT?

a minor, age 17 or younger is not allowed to purchase insurance in the state of NJ (WRONG. YOU CAN PURCHASE AT 15)

applicants for an individual producer license must submit proof of completing certain number of hours approved continuing education credits. How many hours are required

24, more than 20.

an agent who knowingly misrepresents material info for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

TWISTING (key words are inducing to lapse, or surrender. NOT misrepresentation)

which of the following would NOT trigger the payment of accelerated death benefits

being permanently disabled (not institutionalized)

a married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend

payor benefit

what is the difference between a straight life policy and a 20-pay whole life policy?

premium payment method (20 pay is completely paid, straight life endows till 100)

in a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure

prior to performing of the test, must obtain verbal consent

what is the purpose of requiring licenses for persons who transact insurace

protect the general public (its about the people)

an insurance consultant can only charge fees in addition to his commissions if the fees are

based on a written and signed memorandum agreed upon prior to the consulting (missed on test****)

in life insurance, which of the following is NOT required to have an insurable interest in the insured

the beneficiary

which of the following types of insurance is investment based, has a fixed premium and a non-guaranteed cash value?

VARIABLE whole life

all of the following are true about key person insurance EXCEPT

the death benefit is taxable to the business

according to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first. Which of the following will be assumed?

the primary beneficiary died before the insured

cash values guarentees in a whole life policy are called

nonforfeiture values

which of the following is a correct statement about annuities

FIXED annuities do not provide protection against inflation

Policies written on a third-party ownership basis are usually written to cover:

policie's minor children or business associates (cannot be directly their estate)

your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guarenteed an income for life. WHich settlement option should this policyowner select

joint and survivor

which of the following would be TRUE of both the fixed period and fixed amount settlement options?

both guarantee that the principal and interest will be fully paid out (ANSWER HAS BOTH IN IT)

during policy solicitation, an insurer exaggerates the financial condition of one of its competitors to be worse. This is an example of

defamation (key is bashing competitor)

in a noncontributory group policy

100% of ELIGIBLE employees must participate. (key is they must be eligible)

when a whole life policy is surrendered for its nonforfeiture value, what is the automatic option

extended term

If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur?

the change must be filed with the Department (it is possible by doing this )

which statement below is incorrect regarding the type og term insurance that best fits with the applicants needs

applicants who require a larger death benefit in the future should buy convertible term insurance

which of the following is a provision found in life insurance policies

reinstatement (found in all)

what must an applicant do before being admitted to the state licensing examination

COMPLETE 20 HOURS of education for each line of insurance which the applicant intends to transact including education regarding state specific regulations. (KEY IS 20 HOURS)

When one insurer buys insurance from another company to minimize the effects of catastrophic losses, they are

Reinsuring (not self insuring)

all of the following are true regarding the waiver of cost of insurance rider EXCEPT

the rider expires when the insured reaches 60

which of the following would be considered a violation of Life Insurance Advertising regulations

calling an insurance policy an investment plan. (CANNOT CALL IT THAT)

if an insured dies and it is discovered that the insured misstated his/her age or gender, then life insurance company will

adjust the death benefit to what the premium would have purchased at the actual age or gender (INSURER HAS THE RIGHT TO ADJUST BENEFITS FOR CORRECT AGE)

all of the following are true regarding the federal Fair Credit Reporting Act EXCEPT

reports may be sent to anyone who requests one (can only be ordered by those involved in insurance type duties)

With adjustable life, the owner can change all of the following EXCEPT

the insured

which of the following statements regarding HIV testing is NOT true

test results must be sent to the Department of Insurance (NOT NECESSARY)

an agent tells an insured that if he replaces his current insurance with a newer one, his dividends will be higher and his premiums will be slightly lower. The policy however, will not offer either one of these things. What type of misrepresentation is this

TWISTING... (if it doesnt offer a bribe it is not rebating)

what type of interest rate is guaranteed in universal life policies

contract interest rate

an insurer decides to terminate the appointment of one of its producers and notifies the Commissioner 29 days after the fact. On the 9th day after the decision, the producer violates a regulation of the Insurance Code and a policyowner wants to hold the insurer legally responsible. Which of the following is true?

The Insurer will be held legally responsible (MUST NOTIFY COMMISH IN 15 DAYS, THEY NOTIFIED HIM LATE)

what is the purpose of the agents report in the application process

to provide addittional information about the applicant to the underwriters

when an insured terminates membership in the insured group, the insured can convert to

WHOLE LIFE without proof, (terminate group, cant do term again)