Wrong questions from Guaranteed Exam

an insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?

3 days

What must an applicant do before admitting to the state licensing examination?

Complete 20 hours of education for each line of insurance in which the applicant intends to transact, including education regarding state specified regulations

Policies written on a third party ownership basis are usually written to cover which of the following?

Policy owners minor children or business associates

Policies written on a third party ownership basis are usually written to cover which of the following?

Policyowners minors children or business associates

How does insurance distribute the financial consequences of individual losses?

it transfers the risk to all persons insured

Upon the surrender of a life insurance policy, any cash value accumulated in excess of the premium payment is

Taxed as ordinary income

Where are premiums from fixed annuities invested?

a general account

An applicant for surplus lines authority must do all of the following except?

posses a certificate of authority in this state a surplus lines agent is a person or organization that is allowed to write business in NJ for insurance companies that do not possess a certificate of authority in NJ if no authorized insurers in NJ offer the specific of insurance in question. A property and casualty license is REQUIRED

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

possess a certificate of authority in this state

All of the following are true of the survivorship life policy except?

the premium is based on the age of each insured

Which dividend option will increase the DB?

Paid up additions paid up additions uses the dividend to purchase small amounts of the same type of insurance as the original policy. the additional insurance is paid up by the dividend

Which of the following is a provision found in life insurance policies?

Reinstatement

an adjustable life policy can assume the form of?

either term insurance or permanent insurance

Within how long of completing an approved relicensing education course must a candidate submit a license application?

2 years

Which of the following is the correct statement about annuities?

Fixed annuities DO NOT provide protection against inflation

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

Whole life without proof of insurability

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

continue to increase the new policy continues to build its own cash value and will remain in force until the insureds death or maturity

Which of the following statement regarding HIV testing is NOT true?

test results must be sent to the department of insurance

According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT

If an applicant is declined for an insurance policy, he or she has no right to know what was in the report the consumer always has the right to know

What is the difference between a straight life policy and a 20 pay whole life policy

premium payment period a limited pay whole life policy, just like straight life, endows for the face amount if the insured lives to age 100. the premium however is completely paid off in 20 years

when term insurance is added to the main policy to enhance the policy or provide added benefits or coverage, it is called a

term rider term riders are used when an insured adds term insurance to the main policy to modify or enhance the policy

Your clients wants to provide retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed income for life. Which settlement option should this policy owner select?

Joint and survivor under the joint and survivorship settlement option, payments will continue until the death of the last beneficiary

Producers license will not be issued to business entities in which of the following cases?

One partners license has been revoked within the previous 5 years

In contrasting stock insurers with mutual insurers, which statement is true?

Stock insurers are owned by the shareholders and issue nonparticipating policies

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?

When the policy is delivered

A group health insurance policy owner allows the policy to lapse, and fails to reinstate the policy after the grace period expires. To what extent will the insurer cover valid claims made before the end of the grace period?

the insurer is liable for all valid claims made

Which of the following would not be eligible for coverage under key person?

the owner of the shop (he is the principal not the key person)

an insured decides to replace his life insurance policy with one offered by a new insurer. After receiving the policy, he is unsatisfied with the provisions and decides to return it. Within how many days

30 days the replacing insurer must provide a 30 day right for the insured to return the policy or contract and receive an unconditional full refund of all premiums

Which state below is incorrect regarding the type of term insurance that fits best with the applications needs?

Applicants who may require a larger DB in the future should buy convertible term insurance convertible term insurance converts cash value policy with the same death benefit but at a higher premium

When an insured terminates membership in the insured group, the insured can convert to?

Whole Life without proof of insurability

According to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and cannot be determined who has died first, which of the following will be assumed?

the primary beneficiary died before the insured

which of the following would NOT trigger the payment of an accelerated death benefit?

being permanently disabled covers terminal illness, permanent institutionalized or a life threatening medical condition

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

$2,500 it cannot exceed $2,500

A policy matures and pays the face amount if the insured lives to a specified date. This best describes:

An endowment policy

All of the following are true regarding the federal Fair Credit Reporting Act Except

Reports may be sent to anyone who requests one they may only be ordered by those involved in the underwriting process

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

If there is a transfer of value If they are collected in a lump sum then they are more likely to not be federal taxation

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value

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

Both guarantee that the principal and the interest will be fully paid out DOES NOT guarantee income for life