Life Insurance

The customer's associates, friends, and neighbors provide the report's data.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

Purchase a single premium policy for a reduced face amount.

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

When the application is signed and a check is given to the agent

When is the earliest a policy may go into effect?

Money borrowed from the cash value is taxable.

Which of the following is NOT true regarding policy loans?

Nonresident producers

Which of the following most likely would NOT be required to complete continuing education hours in this state?

Universal life

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered

Which of the following would be considered an unfair claims settlement practice?

Face amount

Which policy component decreases in decreasing term insurance?

The employer is the owner and beneficiary.

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?

3 days

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

Until it is terminated

A producer's appointment lasts for how long?

False advertising

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

5 business days

During policy replacement, the replacing insurer must notify existing insurers within what time period?

Regulates consumer reports

The Federal Fair Credit Reporting Act

One-year term option.

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

The producer

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?

Universal life

What kind of policy allows withdrawals or partial surrenders?

The insured's premiums will be waived until she is 21.

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

It is the policyowner's responsibility to request the reinstatement application; the insurer must then deliver it within 30 days.

A life insurance policy has lapsed, and the policyowner would like to reinstate it. In order to initiate the reinstatement process, he must submit an application to his insurer. Which of the following is true?

The interest is not taxable since it remains inside the insurance policy.

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

Surplus lines.

All of the following are considered limited lines of authority EXCEPT

Are subject to vesting requirements.

Employer contributions made to a qualified plan

$5,000.

If a person violates a cease and desist order, the Commissioner can turn the matter over to the New Jersey Superior Court for further legal action and can assess a fine for each violation of up to

12 months

If an applicant's license has lapsed within the past year, the applicant may apply for late renewal of the license within the maximum of how many months of expiration?

6 credits

To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

Must be informed of the source of the report.

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

Reduced paid-up

Which nonforfeiture option provides coverage for the longest period of time?

Death benefits

Which of the following are NOT fundable by annuities?

Insurers

Who makes up the Medical Information Bureau?

b) An endowment policy

Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you recommend?

This rider is available to all insureds with no additional premium.

All of the following are true regarding the guaranteed insurability rider EXCEPT

The insurer will pay the full death benefit from the group policy to the beneficiary.

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?

Pay the death benefit

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?

5 years

In cases where a producer's license has been revoked, the producer must wait for how long before applying for reinstatement?

Benefit payment amounts are not guaranteed.

Which of the following is a feature of a variable annuity?

Level term

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

The payable premium amount steadily declines throughout the duration of the contract.

All of the following are true regarding a decreasing term policy EXCEPT

Universal life

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

c) 180 days.

If a producer dies or is rendered severely disabled, an unlicensed person can contract with another insurance producer to continue this person's insurance transactions for

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Income for 2 or more recipients until they die.

Life income joint and survivor settlement option guarantees

It is intended to provide coverage on a date earlier than the date of the issuance of the policy.

What is the purpose of a conditional receipt?

The earnings in the plan accumulate tax deferred.

Which of the following describes the tax advantage of a qualified retirement plan?

The Federal Trade Commission

Which of the following entities established the Do-Not-Call Registry?