NJ LIFE GUARANTEED EXAM
which of the following is a person who, for a fee, gives advice regarding the benefits, advantages, or disadvantages under any insurance policy: A: producer B: broker C: counselor D: consultant
D: consultant
guaranteeing future dividends is considered to be an unfair or deceptive act known as: A: churning B: false financial statement C: rebating D: misrepresentation
D: misrepresentation
an applicant for a disability insurance policy has a heart condition of which they are unaware and therefore they answer no to the question pertaining to heart problems on their application. their answer is considered to be a: A: concealment B: fraudulent answer C: representation D: warranty
C: representation
keogh (HR-10) plans are qulified plans for: A: postal workers B: public school teachers C: the self employed D: government employees
C: the self employed
a licensee changed his business address. within how many days must the commissioner be notified: A: 10 days B: 15 days C: 30 days D: 90 days
C: 30 days
with adjustable life, the owner can change all of the following except: A: the premium B: the length of coverage will last C: the insured D: the death benefit
C: the insured
Within how long of completing an approved pre-licensing education course must a candidate submit a license application: A: 3 months B: 6 months C: 1 year D: 2 years
D: 2 years
a stock insurer is defined as an insurer: A: owned by its policyholders B: that invests 20% of its premium income in the stock market C: who pays dividends to its policy owners D: owned by its stock holders
D: owned by its stock holders
All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT: A: it does not have a guaranteed death benefit B: it is funded by a level premium C: it build cash value D: if the insured lives to age 100, the policy matures, and the face amount is paid to the insured
A: it does not have a guaranteed death benefit
which of the following is a provision found in life insurance policies: A: return of premium B:guaranteed insurability C: payor of beneift D: reinstatement
D: reinstatement
when comparing a joint life policy to two individual life policies of the same amount the same insured, which condition is true: A: joint life has a lower premium that the total two individual policies B: joint life has a premium identical to the sum of the two individual policies C: the joint life premium can only be paid monthly D: joint life has a higher premium that the total two individuals policies
A: joint life has a lower premium that the total two individual policies
an insurance officer, a producer, and a hospital administrator are found to have conspired to defraud policyholders, in violation of the new jersey insurance fraud prevention act. what is the penalty for a first offense: A: no more than $5,000 B: at least $10,000 C: no more than $10,000 D: there is no fine for a first offense
A: no more than $5,000
which of the following entities is considered the principal: A: the insurer issuing a policy B: the producer or agent soliciting the policy C: the director of the insurance company D: the head of the department of insurance
A: the insurer issuing a policy
Which of the following will NOT be included in the buyer's guide: A: specific information about the policy B: comparable of policy costs C: explanation on how to choose the amount and type of insurance D: basic information about life insurance policies
D: basic information about life insurance policies
according to the fair credit reporting act, all of the following statements are true EXCEPT: A: if an applicant is declined for an insurance policy , he or she has the no right to know what was in the report B: it protects consumers against the circulation of inaccurate information C: it ensured that consumer reporting agencies are fair in their treatment of consumers D: investigative consumer reports can be used to obtain information on the applicants character and reputation
A: if an applicant is declined for an insurance policy , he or she has the no right to know what was in the report
all of the following are true credit life EXCEPT: A: the insured names the beneficiary B: the death benefit cannot exceed the amount of the loan C: the premium payment is included in the load payment D: the creditor is the policy owner
A: the insured names the beneficiary
how long is the grace period for an individual insurance policy: A: 3 months B: 1 month C: 2 weeks D: 7 to 10 business days
B: 1 month
how many days is the free look period in most life insurance policies: A: 5 days B: 10 days C: 15 days D: 20 DAYS
B: 10 days
among in the same class and life expectancy, which of the following factors can be used to influence premium rates: A: race B: occupation C: ancestry D: marital staus
B: occupation
if the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policy owner: A: when the policy is issued B: when the policy is delivered C: within 15 days of the application D: within 30 days of the policy issue
B: when the policy is delivered
which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured'd death was caused as defined in the policy: A: double indemnity rider B: guaranteed insurability rider C: covered peril rider D: an accidental death rider
D: an accidental death rider
which of the following is NOT an example of the company's location of incorporation: A: domestic B: foreign C: alien D: authorized
D: authorized
if an insured dies, and it is discovered that the insured misstated his/her age or gender, the life insurance policy will: A: adjust the death benefit to what the premium would have purchased at the actual age of gender B: pay the face amount specified at the time pf policy issue C: deny the claims because of the misrepresentation D: adjust the back premiums for the proper age or gender
A: adjust the death benefit to what the premium would have purchased at the actual age of gender
which of the following indicates the person upon whose life the annuity income amount is determined: A: owner B: insured C: annuitant D: beneficiary
C: annuitant
a life insurance policy qualifies for modified endowment contract (MEC) if the amounts of premium paid exceeds the amount that would have provided paid-up insurance in how many years: A: 5 YEARS B: 7 YEARS C: THE LIFE OF THE POLICY D: 3 year
B: 7 YEARS
the policy has an option to pledge the life insurance policy as a collateral for a bank loan. this is called: A: a collateral assignment B: an insurance pledge C: a unilateral agreement D: an absolute assignment
A: a collateral assignment
all of the following are consideration in an insurance policy EXCEPT: A: the premium paid at the time of the application B: the promise to pay covered losses C: the cash value in the policy D: the statements on the application
C: the cash value in the policy
2 individuals of the same age, health status, and life expectancy apply for individual insurance coverage. when policies are issued by the same insurer, the premium rates are different based on the insured's race. what practice does this describe: A: negligent underwriting B: misrepresentation C: unfair discrimination D: defamation
C: unfair discrimination
an agent who knowingly misrepresent material for the purpose if inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice know as: A: twisting B: fraud C: concealment D: misrepresentation
A: twisting
in which of the following scenarios will the life insurance proceeds be protected from the creditors: A: when the benefits are not paid out to the insured or any person affecting the insurance B: when they cover the beneficiary's debts C: when the insured and the beneficiary are the same person D: when the administrator of the insured is the payee of the policy
A: when the benefits are not paid out to the insured or any person affecting the insurance
a licensee is charged (at a hearing) with knowingly violating an insurance regulation. along with a cease and desist order, what will the licensee most likely be fined per charge: A: $3,000 B: $5,000 C: $1,000 D: $2,000
B: $5,000
a life insurance policy qualifies a modified endowment contract (MEC) if the amount of premium paid exceeds the amount that would have provided paid-up insurance in how many years: A: 5 years B: 7 years C: the life of the policy D: 3 years
B: 7 years
All of the following are Nonforfeiture options EXCEPT a)Extended term b)Reduced paid-up c)Interest only d)Cash surrender
c)Interest only
in a noncontributory group policy: A: 100% of eligible employees must participate B: 75% of all employees must elect to join the plan C: 100% of employees must be allowed to participate D: 75% of eligible employees must elect to join the plan.
A: 100% of eligible employees must participate
what guarantees that the information explained in the insurance contract is true: A: a binder B: a warranty C: a representation D: utmost good faith
B: a warranty
under what circumstances will the contingent beneficiary receive the death benefit: A: if the primary beneficiary dies before the insured B: if the tertiary beneficiary dies before the insured C: if designated by the insurer D: if designated by the primary beneficiary
A: if the primary beneficiary dies before the insured
when an agent delivered an insurance policy to the insured, he collected the initial premium, as well as a document verifying that the insured had not had any injuries or illness since the application date. what is this document called: A: statement of insurability B: insuring agreement C: insurability clause D: statement of good health
D: statement of good health
which of the following policies will NOT offer a policy loan option: A: whole life B: universal life C: variable universal life D: term life
D: term life
which of the following statements is INCORRECT: A: a minor, age 15 can purchase insurance in the state of NJ B: a minor, age 16, can be the beneficiary on a policy C: if an insurer receives written notification of a legal guardian of a minor's property, the insurer minor will not receive payment directly from the insurer D: a minor, age 17, is not allowed to purchase insurance in the state of NJ
D: a minor, age 17, is not allowed to purchase insurance in the state of NJ
a whole life policy is surrendered for a reduced- paid up policy. the cash value in the new policy will: A: remain the same B: decrease overtime C: reduce to the pre surrender value D: continue to increase
D: continue to increase
what is the difference between a straight life policy and a 20-pay whole life policy: A: premium payment period B: the benefit settlement option C: the face amount and cash value D: the maturity date
A: premium payment period
the family term rider incorporates: A: key person whole life and dependents term B: cost of living rider and family protection rider C: spouse term and children's term D: whole life and other insured term
C: spouse term and children's term
WHICH OF THE FOLLOWING IS A PERMISSIBLE REASON FOR AN INSURANCE COMPANY TON CONTEST PAYMENT OF A CLAIM BASED ON STATEMENTS: A: the insured died to soon after applying for the policy B: the insurer has already paid out the expected amount of benefits for the year C: the application contains a correction D: the application contains material misstatements
D: the application contains material misstatements
who is the annuity owner: A: the person who receives the benefits B: the person on whose life the annuity is written C: the insurer D: the person who purchases the annuity
D: the person who purchases the annuity
The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years? a)1 year b)2 years c)5 years d)7 years
b)2 years
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: A: the estate of the primary beneficiary and the contingent beneficiary split benefits equally B: the insured died before the primary beneficiary C: the primary beneficiary died before the insured D: the death occurred at the same time:
C: the primary beneficiary died before the insured
an insured decided to surrender his whole life insurance policy. the cash value surrender is higher than the premiums paid into the policy, due to interest. what part of the surrender value would be income taxable: A: the entire cash value B: the difference between the premium paid and the cash value C: nothing D: the amount equal the premium paid
B: the difference between the premium paid and the cash value
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to a)Pay back all premiums owed plus interest. b)Receive payments for a fixed amount. c)Purchase a single premium policy for a reduced face amount. d)Purchase a term rider to attach to the policy.
c)Purchase a single premium policy for a reduced face amount.
which statement below is INCORRECT regarding the type of term insurance that fits best with the applicants needs: A: applicants who may require a larger death benefit in the future should buy convertible term insurance B: applicants concerned with the increasing cost of living should purchase increasing term C: applicants wishing to pay off a mortgage should suffer a premature death might buy a decreasing term plan D: employers looking to provide cost effective group life insurance for theri employees may chose annual renewable term
A: applicants who may require a larger death benefit in the future should buy convertible term insurance
according to the fair credit reporting act, all of the following statements are true EXCEPT: A: if an applicant is declined for an insurance policy, he or she has no right to know what was in the report B: It protects consumers against the circulation of inaccurate information C: it ensures that consumer reporting agencies are fair in their treatment of consumers D: investigative consumer reports can be used to obtain information on the applicants character and reputation
A: if an applicant is declined for an insurance policy, he or she has no right to know what was in the report
which of the following would be TRUE of both the fixed- period and fixed- amount settlement options: A: both guarantee that the principle and interest will be fully paid out B: the amount of payments is based on the recipients life expectancy C: the size of installments decreases after certain period of time D: guarantee payments for life of the beneficiary
A: both guarantee that the principle and interest will be fully paid out
when a whole life policy is surrendered for its nonforfeiture value, what is the automatic option: A: reduce paid up B: extended term C: paid up additions D: cash surrender value
B: extended term
which of the following would be considered a violation of life insurance advertising regulations: A: not guaranteeing dividends B: making oral sales presentations C: informing the applicant the sole subject of the sale is insurance D: calling an insurance policy an investment plan
D: calling an insurance policy an investment plan
an insurer mails an insurance policy to a new policy-owner. when the insurer relinquishes control of the policy is considered: A: mailed B: issued C: relinquished D: delivered
D: delivered
the reduction of premium option uses the dividend to reduce: A: this years premium B: the previous years premium C: the premium on any other policy owned by the policy owner D: next years premium
D: next years premium
how long is the grace period for an individual life insurance policy: A: 3 months B: 1 month C: 2 weeks D: 7 to 10 business days
B: 1 month
an insurance producer dies, and his wife takes over his business temporarily through an agreement with another producer. what is the maximum time that she can do this: A: 90 days B: 180 days C: 1 year D: 4 years
B: 180 days
an insured decides to replace his life insurance policy with on offered by a new insurer. after receiving the policy, he is unsatisfied with the provisions and decides to return it. within how many days must he return the policy in order to receive a full premium refund: A: 15 B: 30 C: 60 D: none, free-look provisions do not apply to replacement policies
B: 30
which of the following acts stated that the federal government would not regulate insurance as long as the states didi an adequate job of regulating the industry: A: paul vs Virginia B: fair credit reporting act C: McCarran- Ferguson act D: US vs South Easter underwriters association
C: McCarran-fergeson act
the entire contract includes all of the following EXCEPT: A: a copy of the application B: any riders amendments C: a buyer's guide D: the life insurance policy
C: a buyer's guide
to purchase insurance, the policy-owner must face the possibility of losing money or something of value in the event of a loss. what is this concept called: A: exposure B: pure loss C: insurable interest D: indemnity
C: insurable interest
within how long of completing an approved pre-licensing education course must a candidate submit a license application: A: 3 months B: 6 months C: 1 year D: 2 years
D: 2 years
Sue's license was revoked 1 year ago. she would like to reinstate it. how much longer will she have to wait before she can apply for reinstatement: A: 1 more year B: 2 more years C: 3 more years D: 4 more years
D: 4 more years
policies written on a third-party ownership basis are usually written to cover which of the following : A: policy-owners who are not insureds B: insureds estate C: policy owner's estate D: policy owners's minor children or business associates
D: policy owners's minor children or business associates
in a life insurance company uses HIV testing as a part of its underwriting. when must an applicant be notified of the procedure: A: prior to ordering a physical examination B: prior to solicitation of the policy C: prior notice is not required D: prior to performance of the test
D: prior to performance of the test
An Adjustable Life policyowner can change which of the following policy features? a)The mortality expense b)The investment account c)The insured d)The coverage period
d)The coverage period
the entire contract includes all of the following EXCEPT: A: a cop of the application B: any riders or amendments C: a buyers guide D: the life insurance policy
C: a buyers guide
in a life insurance application, all of the following signatures will be required EXCEPT: A: the owner (if different from the insured) B: the agent C: the home office underwriter D: the insured
C: the home office underwriter
in a life insurance application, all of the following signatures will be required EXCEPT: A: the owner(if different from insured) B: the agent C: the home office underwriter D: the insured
C: the home office underwriter
With Adjustable Life, the owner can change all of the following EXCEPT A: the premium B: the length of coverage C: the insured D: the death benefit
C: the insured
which statement is an accurate description of life insurance policy dividends: A: they are guaranteed to be paid and they are taxable as income B: they are likely to be larger in nonparticipating policies C: they are not taxable and are not guaranteed D: they are paid as return of the premium to policy owners by stock insures
C: they are not taxable and are not guaranteed
an agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premiums will be slightly lower. the policy, however, would not offer either in of these things. what type of misrepresentation is being committed: A: distorting B: replacement C: twisting D: rebating
C: twisting
if an insured dies, and it is discovered that the insured misstated his/her age or gender, the life insurance company will: A: adjust the death benefit to what the premium would have purchased at the actual age or gender B: pay the face amount specified at the time of the policy issue C: deny all claims because of the misrepresentation D: adjust the back premiums for the proper age
A: adjust the death benefit to what the premium would have purchased at the actual age or gender
which of the following would NOT trigger the payment of accelerated death benefits: A: being permanently disabled B: terminal illness C: requiring an organ transplant for the insured to survive D: being permanently institutionalized
A: being permanently disabled
several insurance consumers have violated laws of new jersey. who has the power to conduct investigations and hold hearings if deemed necessary: A: commissioner
A: commissioner
all of the following are abilities of the New Jersey Life and Health Guaranty Association in the event of insurer insolvency EXCEPT: A: guardianship of all physical properties, documents, and effects of the insurer BL issuing moratoriums on payment C: imposition of contract liens D: assumption of payment of insurer's contractual obligations
A: guardianship of all physical properties, documents, and effects of the insurer
all of the following statements are true regarding an ordinary (straight) life policy except: A: it does not have guaranteed death benefit B: it is funded by a level premium C: it builds cash value D: if the insured lives to age 100, the policy matures, and the face amount is paid to the insured
A: it does not have guaranteed death benefit
dividends received on participating life insurance policies are: A: not taxable because they are a return of unused premium B: taxable because they are return on your investment C: not taxable because they are return on your investment D: taxable because they are return of unused premiums
A: not taxable because they are a return of unused premium
dividends received on participating life insurance policies are: A: not taxable because they are return of unused premiums B: taxable because they are a return on your investment C: not taxable because they are a return on your investment D:taxable because they are a return of unused premiums
A: not taxable because they are return of unused premiums
which of the following is NOT a standard exclusion in life insurance policies: A:disability B: hazardous occupation C: war and military service D: aviation
A:disability
which provision may be added to permanent life insurance policy, at no cost, that insured that the policy will not lapse so long as there is cash value: A: past due premium option B: application to reduce premium option C: automatic premium loan option D: mode of premium option
C: automatic premium loan option
in a variable life insurance policy, all of the following assets are held in the insurance company's general account EXCEPT: A: face amount reserves B: incidental benefit amounts C: cash surrender values D: mortality reserves
C: cash surrender values
an important fact about the financial status of an insurer was deliberately withheld. which of the following terms describes this action: A: twisting B: loading C: false financial statement D: defamation
C: false financial statement
an insurer incorporated under the laws of another state but doing business in this state is considered: A: alien B: domestic C: foreign D: mult-national
C: foreign
all of the following information needs to be included on an application for life insurance EXCEPT: A: the agents statement, if applicable B: medical information about the applicant C: heal insurance policies in force D: life insurance with other insurers
C: heal insurance policies in force
the general business of transacting, including soliciting, negotiation, or communicating with the insureds is know as what: A: insurance business practices B: underwriting C: insurance-related conduct D: general insurance
C: insurance-related conduct
what does the state life and health insurance guranty association guard against: A: overinsurance B: unfair trade practices C: insurer insolvency D: insurance fraud
C: insurer insolvency
when a policy is automatically discontinued, what must an insurer do: A: nothing if discontinuance is automatic B: return all premiums C: send a notice of discontinuance to the policyholder D: send a cease and desist letter to the commissioner
C: send a notice of discontinuance to the policyholder
if a policy contains an unconditional refund provision of at least 10 days, the buyers guide and policy summary can be delivered at what latest possible point: A: when the application is presented B: when the policy is delivered C: when the policy is delivered D: within 30 days of policy delivery
C: when the policy is delivered
in which of the following scenarios will the life insurance proceeds be protected from the creditors: A: when the benefits are not paid out to the insured or any person affecting the insurance B: when they cover the beneficiaries debt C: when the insured and the beneficiary are the same person D: when the administrator of the insured is the payee of the policy
A: when the benefits are not paid out to the insured or any person affecting the insurance
how does insurance distribute the financial consequences of individual losses: A: it transfers the risk to associated of the insured B: it transfers the risk to a small number of persons insured C: it transfers the risk to all person insured D: it retains the financial consequences
C: it transfers the risk to all person insured
your cent 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 guaranteed an income for life. which settlement option should this policy owner select: A: fixed- period installments B: life income C: joint and survivorship D: fixed- amount installments
C: joint and survivorship
guaranteeing future dividends is considered to be an unfair or deceptive act known as: A: churning B: false financial statements C: misrepresentation D: rebating
C: misrepresentation
which dividend option will increase the death benefit: A: extended term B: reduced paid up C: paid up additions D: accumulation
C: paid up additions
in order to reinstate a life insurance policy the insured must do all of the following EXCEPT: A: pay any interest due back premiums B: repay any outstanding loans and interest C: pay next year's premium in advance D: pay back premiums
C: pay next year's premium in advance
the guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT: A: birth of a child B: marriage C: purchase of a new home D: approximately every 3 years between the ages of 25 and 40
C: purchase of a new home
which of the following is NOT a standard exclusion in life insurance policies: A: disability B: hazardous occupation C: war and military service D: aviation
A: disability
during policy solicitation, an insurer exaggerates the financial condition of one of its competitors, and makes it sounds worse than it is. this is an example of an unfair trade practice of: A: defamation B: twisting C: false advertising D: misrepresentation
A: defamation
key person insurance can provide protection for all of the following economic losses to a business EXCEPT: A: fund the cost of training a current employee to perform the duties of a deceased employee B: pay the death benefit to the estate of the insured C: provide deferred compensation retirement benefit if the insured key person survives to retirement D: fund the expense of finding a suitable replacement following death of an employee
B: pay the death benefit to the estate of the insured
which of the following riders pays the beneficiary a death benefit that is double or triple the face amount if the insureds death was caused by an accident as defined in the policy: A: a double indemnity rider B: a guaranteed insurability rider C: a covered peril rider D: an accidental death rider
D: an accidental death rider
which statement below is INCORRECT regarding the type of term insurance that fits with the applicants needs: A: applicants who may require a larger death benefit in the future should buy convertible term insurance B: applicants concerned with the increasing cost of living should purchase increasing term C: applicants wishing to pay off a mortgage should they suffer a premature death might buy a decreasing term plan D: employers looking to provide cost effective group life insurance for their employees may choose annual renewable term
A: applicants who may require a larger death benefit in the future should buy convertible term insurance
which of the following actions does NOT constitute false advertising: A: using names that disguise the true nature of the policy B: stating dividends are not guaranteed C: misrepresenting the term of a policy D: representing an insurance policy as a share of stock
B: stating dividends are not guaranteed
when an insured terminates membership in the insured group, the insured can convert to: A:term with proof of insurability B: whole life without proof of insurability C: whole life with proof of insurability D: term without proof of insurability
B: whole life without proof of insurability
in whole life insurance, when is the policy cash value scheduled to equal the face amount : A: when the insured paid up all the policy loans B: it depends on the type of whole life purchased C: at the insured's age 100 D: by the policy's 10th year
C: at the insured's age 100
policies written on a third party ownership basis are usually written to cover which of the following: A: policy owners who are not insured B: insured's estate C: policy owners' estate D: policy owner's minor children or business associates
D: policy owner's minor children or business associates
an individual has a $200,000 convertible term life insurance policy. if he chooses, he can: A: purchase another term policy and increase his death benefit without proof of insurability B: convert to a whole life policy for the same face amount without proof of insurability C: convert to another term life policy with a lower face amount without proof of insurability D: purchase an individual annuity for any face amount using the 1035 exchange privilege
B: convert to a whole life policy for the same face amount without proof of insurability
an insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. he then takes an extended vacation and forgets to pay the premium. ten days later, his policy is still in effect and has not lapsed. which policy provision allowed for this: A: incontestability B: grace period C: waiver of premium D: automatic premium loan
B: grace period
key person's insurance can provide protection for all of the following economic losses to a business EXCEPT: A: fund the cost of training a current employee to perform the duties of a deceased B: pay the death benefit to the state of the insured C: provide deferred compensation retirement benefit if the insured key person survives to retirement D: fund the expense of finding a suitable replacement following the death of an employee
B: pay the death benefit to the state of the insured
when an insured terminates membership in the insured group, the insured can convert to: A: term with proof of insurability B: whole life without proof of insurability C: whole life with proof of insurability D: term without proof of insurability
B: whole life without proof of insurability
if an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions: A: within 3 months of issuing the policy B: within 30 days of issuing the policy C: at any time within the incontestable period D: never; the insurer waived the right to those answers by issuing the policy
D: never; the insurer waived the right to those answers by issuing the policy
which of the following is True regarding premium in a 10 year level premium policy: A: the premium will be level for the first few years of the policy, but will increase by the 10th B: the premium will remain level for 10 years C: the premium will remain the same at renewal D: the premium will decrease at the end of the term
B: the premium will remain level for 10 years
an annuity owner receives the same guaranteed payment every month. what type of annuity is it: A: fixed B: immediate C: guaranteed D: single
A: fixed
in credit life insurance, who is responsible for paying policy premiums: A: creditors only B: borrower only C: creditor and borrower equally D: creditor and borrower proportionally
B: borrower only
an insurance company that is owned by the policy holders is called a: A: reciprocal insurer B: mutual insurer C: fraternal insurer D: stock insurer
B: mutual insurer
which of the following is a permissible reason for an insurance company to contest payment of a claim baed on statements in the application: A: the insured died to son after applying for the policy B: the insurer has already paid out the expected amount of of benefits for the year C: the application contains a correction D: the application contains material misrepresentation
D: the application contains material misrepresentation
in a noncontributory group policy: A: 100% of eligible employees must participate B: 75% of all employees must elect to join C: 100% of employees must be allowed to participate D: 75% of eligible employees must elect to join the plan
A: 100% of eligible employees must participate
a married couple wants to include the entire family in their whole life policy under one rider. which of the following riders will help them achieve that goal: A: inclusive term B: children's term C: family term D: other - inured term
C: family term
Which of the following is NOT true regarding the annuitant? a)The annuitant must be a natural person .b)The annuitant cannot be the same person as the annuity owner. c)The annuitant's life expectancy is taken into consideration for the annuity. d)The annuitant receives the annuity benefits.
b)The annuitant cannot be the same person as the annuity
the commissioner conducts and investigation regarding a possible misconduct. at a hearing the licensee is found guilty for knowingly violating a cease and desist order. what is a likely penalty: A: $20,000 for each violation B: $5,000 for each violation C: $10,000 for each violation D: $15,000 for each violation
B: $5,000 for each violation
which of the following statements is INCORRECT concerning business operations in a branch office in New Jersey: A: licensees must file a branch office registration form 30 days before business is conducted at said office B: a branch office certificate expires 2 years from the date of filling, regardless of the producers own license expiration C: a branch office is any office other than a principal office where a resident licensee conducts insurance business D: licensees must register with the department to obtain a branch offic certificate
B: a branch office certificate expires 2 years from the date of filling, regardless of the producers own license expiration
applicants for an individual producer license must sybmit prrof of completing certain number of hours of approved continuing education credits. how many hours are required: A: 32 B: 48 C: 18 D: 24
D: 24
J's retirement plan meets all federal requirements and entitles him to certain tax benefits as the owner of the plan. what term best describes J's retirement plan: A: unqualified B: variable C: deferred D: qualified
D: qualified
What is the advantage of reinstating a policy instead of applying for a new one? a)The cash values have gained interest while the policy was lapsed b)The original age is used for premium determination c)Proof of insurability is not required d)The face amount can be increased
b)The original age is used for premium determination