Life insurance

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

Which provision of life insurance states the insurers duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Insuring clause

All of the following are Nonforfeiture options except

Interest only is a settlement option

If a credit life policy lapses for nonpayment before the debt is satisfied, within how many days must the creditor either refund the premium paid or apply it against the debt?

60 days

The commission believes the that an insurance rule has been violated, within how many days before a hearing must commissioner issue a notice

10 days

What is the minimum term for credit life insurance place on a 10 year loan

7 years

Producer license are valid for

2 years

Option A

(Level Death Benefit option), the death benefit remains level while the cash value gradually increases. Corridor gap between cash value

In order to become a producer in New Jersey, after submitting an application, candidates must pass a licensing exam within

1 year

The commissioner may revoke a producers license for all of the following reasons EXCEPT

Acting in a fiduciary capacity

What is reinsurance?

An agreement between a ceding insurer and assuming insurer

All of the following are TRUE of the federal tax advantages of a qualified plan except

At distribution, all amounts received by the employee are tax free.

When an insurer negotiates on behalf of a client, the producer is acting on behalf of a client?

Broker

Nonforfeiture Options include

Cash surrender, extended term, reduced paid up —> INTEREST ONLY is a settlement option

All of the following statements are true concerning dividends EXCEPT:

Dividend amounts are guaranteed in the policy

All of the following are dividend options except

Fixed period installments which is a settlement option; Accumulated at interest, Reduction of premiums, and Paid-up additions are dividend options

Qualified plan

Funds accumulate on a tax deferred basis Employer and employee contributions are not counted as income to the employee for income tax purposes Employer contributions are tax deductible as ordinary business expense

Applicants for surplus lines authority must fulfill all of the following requirements except

Hold a bond as a condition for licensure

What is the benefit of choosing extended term non forfeiture option

It has the highest amount of insurance protection as the policy cash value is used to convert to term insurance for as long as the cash value will purchase

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?

Level term

Straight life equals

Life income

Which of the following information about the applicant is NOT included in the General Information section for insurance

Medical background

Death benefits payable to a beneficiary under a life insurance policy are generally

Not subject to income taxation by the Federal Government

The Federal Fair Credit Reporting Act

Regulates consumer reports

Which of the following is a person that is allowed to write business in NJ for insurance companies that do not possess a certificate line of authority in NJ

Surplus lines agent

The interest earned on policy dividends is

Taxable (any interest earned is taxable as ordinary income)

Which of the following is INCORRECT regarding 20yr 100k TERM policy

Term polices do not develop cash values

Which of the following, when attached to a permanent life insurance policy, allows the policy-owner to CUSTOMIZE the policy to provide an additional amount insurance

Term rider

The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husbands death. Who will select the settlement option

The beneficiary

Which is not true about beneficiary designations

The beneficiary must have insurable interest in the insured.

All of the following entities regulate variable life insurance polices except

The guaranty association

All of the following are true of a key person insurance EXCEPT

The plan is funded by permanent insurance only.

What is the earliest a policy may go into effect

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

If an applicant 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

12 months

If an insurer cancels an agency contract, it must notify the Commissioner in writing within how many days?

15 days