Life Exam
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?
12 months
In New Jersey, what is the minimum age at which a person can purchase a life insurance policy on his or her own life
15
A "certification of license status" report can be run on any currently licensed New Jersey Producer, but can only contain information on formal disciplinary actions taken within the past
4 Years
How many days does a producer have to remit the collected premiums to the insurer
5 business days
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
After its issuance, the temporary work authority expires after how many days?
60 Days
After its issuance, the temporary work authority expires after how many days?
60 days
Which of the following is the required number of participants in a contributory group plan?
75%
Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts
Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
A policy summary
Which of the following would be considered an unfair claims settlement practice
Advising the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered
An insurer that holds a certificate of authority in the state in which it transacts business is considered a/an
Authorized insurer
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
Cash Option
A tax-sheltered annuity is a special tax favored retirement plan available to
Certain group of employees only
A tax-sheltered annuity is a special tax-favored retirement plan available to
Certain groups of employees only
What happens when a policy is surrendered for its cash value
Coverage ends and the policy cannot be reinstated
what happens when a policy is surrendered for its cash value
Coverage ends and the policy cannot be reinstated
Which of the following would be the beneficiary is credit life insurance
Creditor
What is another name for interest-sensitive whole life insurance
Current assumption life
A producer must do all of the following when delivering a new policy to the insured EXCEPT
Disclose commissions earned from the sale of policy
A producer must do all of the following when delivering the new policy to the insured EXCEPT
Disclose commissions earned from the sale of the policy
An annuity owner is funding an annuity that will supplement her retirement, because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of Standard and Poor's 500 index. She would likely purchase a(n)
Equity Indexed Annuity
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)
Equity Indexed Annuity
All of the following actions can be described as twisting EXCEPT
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
Life Insurance Death Proceed are
Generally not taxed as income
Life insurance death proceeds are
Generally not taxed as income
What provision in an insurance policy extends coverage beyond the premium due date
Grace Period
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
Guaranteed Insurability rider
At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. this rider is called
Guaranteed insurability
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. in which of the following scenarios will the rider waive the pay of premium?
If the father is disabled for more than 6 months
An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary under what circumstances could the collect the death benefit?
If the primary beneficiary predeceased the insured
Producer's and insurer's actions related to insurance transactions, from selling insurance to processing claims are referred to as
Insurance related conducts
Producer's and insurer's actions related to insurance transactions, from selling insurance to processing claims are referred to as
Insurance-related conduct
Which of the following best describes a misrepresentation
Issuing sale material with exaggerated statements about policy benefits
Which of the following best describes a misrepresentation
Issuing sales material with exaggerated statements about policy benefits
Which of the following is TRUE about the 10-day free-look period in Life Insurance policy?
It begins when the policy is delivered
Why is an equity indexed annuity considered to be a fixed annuity
It has a guaranteed minimum rate
Which of the following is correct regarding credit life insurance
It insures the life of a debtor
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor
When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?
It is reduced to the amount of what the cash value would buy as a single premium
A life insurance policey 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
It is the policyowner's responsibility to request the reinstatement application the insurer must then deliver it within 30 days
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called
Joint and Survivor
Which of the following provide(s) funding for New Jersey Life and Health Guaranty Association?
Member Insurers
Which of the following most likely would NOT be required to complete continuing education hours in this state
Nonresident producers
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do
Pay the death benefit
Which of the following will be included in a policy summary
Premium amounts and surrender values
Which of the following is NOT required information a producer must provide before soliciting insurance
Producer Contact Information
Which of the following is NOT required information a producer must provide before soliciting insurance
Producer contact information
Which of the following licenses is required for a surplus lines producer
Property and Casualty
which of the following licenses is required for a surplus lines producer
Property and Casualty
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
In New Jersey, the public is protected by a notice of discontinuance when is discontinued for nonpayment of premiums. when a policy is discontinued, all of the following are required EXCEPT
Refund of premiums
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint
Which type of beneficiary is changeable at any point?
Revocable
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium
Proceeds from a life insurance policy are protected from the beneficiary's debts under all of the following circumstances EXCEPT
Some of the premiums were paid in an attempt to defraud creditors
Which of the following applicants would NOT qualify for a Keogh Plan
Someone who works 400 hours per year
All of the following are considered limited lines of authority EXCEPT
Surplus lines
Which of the following is a person or organization that is allowed to write business in New Jersey for insurance companies that do not possess a certificate of authority in New Jersey, if no authorized insurers in New Jersey offer the specific type of insurance in question
Surplus lines agent
Which of the following may NOT be included in an insurance company's advertisement?
That its policies are covered by a state Guaranty Association
Nonforfeiture values guarantee which of the following for the policyowner?
That the cash value will not be lost
All of the following entities regulate variable life policies EXCEPT
The Guaranty Association
all of the following entities regulate variable life policies EXCEPT
The Guaranty Association
If a life insurance policy has an irrevocable beneficiary designation,
The beneficiary can only be changed with written permission of the beneficiary
The Paul Vs. Virginia case was decided in 1869. to what extent does the supreme court's decisions still apply to insurance today?
The decision has changed. Insurance is considered to be interstate commerce, and is subject to regulation by the federal government
The Paul vs. Virginia case was decided in 1869. To what extent does the does the Supreme Court's decision still apply to insurance today?
The decision has changed. Insurance is considered to be interstate commerce, and is subject to regulation by the federal government
Which of the following best describes the tax advantage of a qualified retirement plan
The earnings in a qualified plan accumulate tax deferred
Which of the following best describes the tax advantage of a qualified retirement plan?
The earnings in a qualified plan accumulate tax deferred
All of following are true statements regarding the accumulation at interest option EXCEPT
The interest is not taxable since it remain inside the insurance policy
An applicant for a producer's license has successfully completed all of the steps necessary to obtain the license the soon-to-be producer does not want to wait until he receives his license in order to begin working. which of the following is possible
The person can obtain a temporary work authority
If an insured continually uses the automatic premium loan option to pay the policy premium,
The policy will terminate when the cash value is reduced to nothing
Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly
The producer
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provide the applicant with a Notice Regarding Replacement
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
How are contributions to a tax-sheltered annuity treated with regards to taxation?
They are not included as income for the employee, but are taxable upon distribution
Which of the following is TRUE about nonforfeiture values?
They are required by state law to be included in the policy
Which of the following statements is TRUE concerning irrevocable beneficiaries
They can be change only with the written consent of that beneficiary
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of premium
The main difference between immediate and deferred annuities is
When the income payments begin
The two types of assignments are
absolute and collateral
All of the following are true regarding insurance policy loans EXCEPT
policy loans can be made on policies that do not accumulate cash value
all of the following are considered limited lines of authority EXCEPT
surplus lines
