Life Insurance
Open a branch office of insurance company must be submitted to State insurance department: a. 10 days b. 30 days c. 60 days d. 90 days
30 days
Replacement forms must be kept on the file by the agent for a minimum of how many years? a) 1 b) 3 c) 5 d) 7
5
Premium refunds to the insured must be paid or credited to the insured's account within__________ after received by the producer. a) 10 calendar days b) 5 business days c) 3 calendar days d) One week
5 business days
Life producer license revoked. Apply for reinstatement if within how many years: a. 1 yr b. 2 yr c. 3 yr d. 5 yr
5 yr
A temporary work authority is granted and valid up to ________ days after being issued. a) 60 b) 90 c) 45 d) 30
60
A temporary work authority is granted and valid up to how many days: a. 10 days b. 30 days c. 60 days d. 90 day
60 days
Which of the following would most likely pay the highest premium all other factors remaining the same? a) A 55 year old male non-nicotine user b) A 65 year old male nicotine user c) A 55 year old female non-nicotine user d) A 65 year old female nicotine user
A 65 year old male nicotine user
A producer may be guilty of misrepresentation if he/she: a) Requested timely written notice of loss for all claims b) Denied a claim for failure of the policyholder to prove damages c) Did not disclose exclusions of the policy d) Issued a settlement check that totally releases the insurer
Did not disclose exclusions of the policy
Credit Life insurance may be issued to a borrower in which of the following forms a. Group whole life b. Individual annuity c. Individual whole life d. Group term life
Group term life
In New Jersey, the producer as an agent transacts business on behalf of a. A financial corporation b. Another producer c. An insured d. An insurance company
An insurance company
A policy owner cannot change the beneficially of he has named a) A spouse b) A revocable beneficially c) A permanent beneficially d) An irrevocable beneficially
An irrevocable beneficially
When acting as an ________. This person receives commission for providing an opinion to the insured about the policy terms. a. Insurance Sales Manager b. Insurance Consultant c. Insurance Agent d. Insurance Broker
Insurance Consultant
A person who have Life Insurance license and Health Insurance license. Which of the following not qualify to sell: a) Life insurance b) Disability insurance c) Annuity d) Mutual fund
Mutual fund
Insurance advertising in local newspaper in regulated by the a) Marketing department of the insurance company b) Attorney general c) Federal Communication Commission d) NJ Department of Banking and Insurance
NJ Department of Banking and Insurance
The life settlement broker shall only represent: a. The policy beneficiary b. The insurance company c. The broker's firm d. The policyowner
The policyowner
An agency appointment will terminate: a. Within 15 days of the appointment termination date
Within 15 days of the appointment termination date
What happens when surrender charge over time: a. Decrease b. Increase c. Level
Decrease
John has a policy with a face amount of $100,000, his policy has an accident death benefit, he dies of a heart attack on the way to work, how much will the insurance company pay him? a) $100,000 b) $200,000
$100,000
An insured has a policy with a state cash value of $1,500 and the insured still owed $500 on a previous loan from his cash value, how much money will the insurer give the insured on the cash surrender value option? a) $500 b) $1000 c) $1500 d) $2000
$1000
Paul is insured and policyowner. Paul named Danny and Kayla as co-primary beneficiaries of Paul's $400,000 policy. Danny and Kayla each have 3 children. Danny dies, then Paul dies. So Kayla is entitled to receive $___________. a. $300,000 b. $400,000 c. $200,000 d. $100,000
$400,000
The commissioner may penalize a licensed agent for violating an unfair method of competition not to exceed ___________. a) $1,000 b) $5,000 c) $2,500 d) $500
$5,000
Bill has a whole life policy with a face value of $200,000 and cost of living rider if CPI has gone up 3%, how much may Bill increase the face value of his policy a) $3000 b) $4000 c) $5000 d) $6000
$6000
A hearing will be held within _______ days after the date the notice of hearing is served. a) 30 b) 10 c) 45 d) 15
10
The free look period for an annuity purchased from a local agent is at least a. 10 days, and not more than 30 days, from the date of policy deliverance b. 15 days, and not more than 45 days from the date of policy deliverance c. 30 days, and not more than 45 days from the date of policy deliverance d. 45 days, and not more than 60 days from the date of policy deliverance
10 days, and not more than 30 days, from the date of policy deliverance
A person who has passed the New Jersey insurance licensing examination must apply for producer's license within a max of how many months? a) 6 b) 9 c) 12 d) 24
12
What's the minimum age requirement in order to become a New Jersey life producer? a) 16 b) 18 c) 19 d) 21
18
Generally, Universal Life has how many death benefit options to choose from? a. 3 b. 1 c. 4 d. 2
2
A producer in his third license term must renew the license every_____________. a. 3 years b. 2 years c. 18 months d. 5 years
2 years
A licensee must complete _____________ credit hours of approved continuing education courses, ______________ of which are related to ethics. a. 12/3 b. 12/2 c. 24/3 d. 24/2
24/3
Lapsed individual life insurance may be reinstated at any time within how many years? a) 2 b) 3 c) 4 d) 5
3
A request to open a branch office of an insurance company must be submitted to the department within how many days of the office opening date? a) 90 b) 30 c) 60 d) 120
30
If a corporation purchases a Group Deferred Annuity, what do the employees get? a. A policy of their own b. A certificate c. A contribution match d. Extra interest credits
A certificate
Which of the following course are considered valid for continuing education credit a) A course on how to motivate a producer's sales force b) A general insurance course offered by an accredited college c) A course on how to sell variable annuities d) A course on a company's product introduction
A general insurance course offered by an accredited college
If the Insurance Commissioner has reason to believe that a producer has engaged in unfair competition, he/she is required to: a) Revoke the producer's license b) Levy a fine c) Put the producer in jail d) Advise the producer that he/she is entitled to a public hearing
Advise the producer that he/she is entitled to a public hearing
Failure of a producer to respond to a notice an administrative penalty will not result in which of the following action? a. A final order will be sent b. An automatic hearing is scheduled c. License suspension d. The producer agrees with the allegations
An automatic hearing is scheduled
Who has the right to review the report: a. Applicant
Applicant
After match of the Supreme Court decision in United States V. The South-Eastern Underwriter 1944: a) Authority State
Authority State
When a producer makes an agreement that unreasonably restrains the potential insured, he/she may have violated regulations against: a) Defamation b) Rebating c) Boycott, coercion, and intimidation d) Unfair discrimination
Boycott, coercion, and intimidation
A 70-year-old woman has five grandchildren and she has $250,000 savings in cash. What should she do in order to not only spend the money herself, but also leave the legacy to her grandchildren after she died: a. Buy a single premium immediately annuity and name her five grandchildren as beneficiaries b. Buy a single premium deferred annuity and name her five grandchildren as beneficiaries c. Give $50,000 cash to each grandchild d. Buy $50,000 life insurance policy for each grandchild
Buy a single premium immediately annuity and name her five grandchildren as beneficiaries
A 70-year-old woman has five grandchildren and she has $250,000 savings in cash what should she do in order to not only spend the money herself, but also leave the legacy to her grandchildren after she died a. Buy a single premium immediately annuity and name her five grandchildren as beneficiaries b. Buy a single premium deferred annuity and name her five grandchildren as beneficiaries c. Give $50,000 cash to each grandchild d. Buy $50,000 life insurance policy for each grandchild
Buy a single premium immediately annuity and name her five grandchildren as beneficiaries
Which of the following document is approved by New Jersey banking and insurance commissioner for life insurance solicitation? a) Policy summary b) Buyer's guide c) Life insurance cost index d) Insurance prospectus
Buyer's Guide
An employer canceled Group life insurance. The insured: a. Cease at the end of grace period b. Cease after 15 days of grace period c. Cease after 30 days of grace period d. Cease after 45 days of grace period
Cease at the end of grace period
When both parties must perform certain duties and follow certain rules of conduct to make a contract enforceable refers to a(n) __________ contract. a) Acceptable b) Personal c) Conditional d) Aleatory
Conditional
When the owner of the policy and insurer must meet certain conditions in order for the health insurance policy to be enforceable, it is referred to as a(n): a) Contract of adhesion b) Conditional contract c) Unilateral contract d) Aleatory contract
Conditional contract
The Insurance Commissioner is required to: a) Approve insurance laws b) Enforce laws relating to insurance c) Approve insurance premium rates d) Write laws relating to insurance
Enforce laws relating to insurance
The nonforfeiture option that provides coverage for the shortest period of time is:_____________ a. Extended term b. Automatic premium loan c. Reduced Paid-up d. Cash surrender value
Extended term
An article that includes false statements about the financial condition of an insurer is an example of: a) Defamation b) False advertising c) Coercion d) False publishing
False Advertising
Legally speaking, a producer has a __________ duty when handling life insurance premiums and applications for an insurer. a) Negotiated b) Undisputed c) Fiduciary d) Professional
Fiduciary
When deterring whether an annuity is suitable for a client, the producer should ask about which of the following a) Financial objective b) Trusts c) Wills d) Power of attorney
Financial objective
Husband bought a life insurance policy and after he died, life insurance proceeds to be paid out a period of 10 years to his wife: a. Interest only b. Life income c. Fix period d. Fix amount
Fix period
A company's advertisement "We have dividends granted, we have dividends guaranteed". This company may has violated regulations of: a. Fraud (trick)
Fraud (trick)
The New Jersey banking and insurance commissioner may revoke, suspend, or refused to renew the license of producer who a) Failed to write any business for three months or more b) Failed to become member of an appropriate producer's association c) Has no appointment with insurer d) Is convicted of a felony
Is convicted of a felony
All of the following policies end when an insured dies, except: a) VariableUniversalLife b) Joint Life c) JuvenileLife d) Joint Survivorship
Joint Survivorship
Which of the following is not an example of a business continuation plan? a) Buy-sellagreement b) Stock redemption plan c) Key insurance d) Deferred compensation
Key Insurance
Which of the following is not the example of third party insurance: a. Key employee buy life insurance for themselves
Key employee buy life insurance for themselves
A certification of license status contains all of the following information except the a) Licensee's place of birth b) Licensee's reference number c) Licensee's expiration date d) Licensee's authority granted
Licensee's place of birth
A producer who employs another producer must take which of the following actions? a) Maintain authorization to write a lease as many lines if insurance as the employee producer b) Offer the employee producer profit sharing plan c) Enter into a written employment agreement with employee producer d) Live in the same state as the employee producer
Maintain authorization to write a lease as many lines if insurance as the employee producer
A producer making an incomplete product comparison in order to introduce/make a replacement. What is called: a. Misrepresentation
Misrepresentation
For a New Jersey insurance producer to charge a prospective insured for analyzing insurance coverage there must be a reasonable relationship between the fee and the? a) Nature of the service performed b) Total commission earned on the coverage purchase c) Average face amount of the policy analyzed d) Average premium of the policies analyzed
Nature of the service performed
A clause that protects a policy owner from misrepresentation caused by an innocent mistake is? a) An elimination clause b) Negligence clause c) An incontestable clause d) A nonforfeiture clause
Negligence clause
Under New Jersey insurance law a domestic mutual insurance company is defined as a company organize under the law of a) NewJersey b) Connecticut, but admitted in New Jersey c) Any country except the US d) Any territory of the US
New Jersey
A group life in which employer pays all the premium for the employee is called: a. Defined benefit b. Defined contribution c. Contributory d. Noncontributory
Noncontributory
A person bought $100,000 5-yr term life insurance and non-renewable. The eighth year, he died. He can get: a. Nothing b. $100,000 c. $200,000 d. $50,000
Nothing
The replacement of the existing policy requires all of the following, except a. Notification of what constitutes a replacement b. Notice that the owner can return the policy within 90 days for a full refund c. Notification of the proposed replacement to the insurer whose policies are intended to be replaced d. A complete comparison of the existing policy to the new policy
Notice that the owner can return the policy within 90 days for a full refund
The producers licensing regulation requires that a) Branch office be open to the public b) Monday to Friday 8am to 5pm c) At least one evening per week and one Saturday per month d) On a posted schedule that provides reasonable access
On a posted schedule that provides reasonable access
Nancy has an IRA and wants to move her funds directly from one financial institution to another while still maintaining the assets within an IRA account. How many times can she do this? a) Once a year b) As often as she likes c) Once a quarter d) Once every 6 month
Once a year
Which of the following dividend options will increase the death benefit a. Guaranteed Insurability b. Reduction of premium c. Paid-up additions d. Spouse term rider
Paid-up additions
The principal that insurance is not a transaction of commerce and so should be regulated by the states was established by the? a) McCarran-Ferguson Act b) Public Act 15 c) Paul v. Virginia d) U.S. v. South Eastern Underwriter's Association
Paul v. Virginia
The name of the beneficiary designation that will pay a deceased beneficiary's share to the heirs of that beneficiary who predeceases the insured is called: a) Per class b) Per stirpes c) Per individual d) Per capita
Per capita
A life insurance policy most often becomes effective when the a) Application is submitted b) Premium is collected and policy is issued c) Agent and individual agree on coverage d) Policy is actually issued
Premium is collected and policy is issued
A person is not conducting a pretext interview if he: a. Pretends to be someone else b. Refuses to give his name c. Pretends to be a customer service representative instead of an adjuster d. Misrepresents the purpose interview
Pretends to be a customer service representative instead of an adjuster
The field underwriter is the _________ and is not a determiner of insurability. a) Mactuaryedical doctor b) Actuary c) Paramedical examiner d) Producer
Producer
In the case of a business entity license cancellation, the department will refuse to accept the cancelled license unless which of the following is provided to the department? a) Proof that all licensed officers or partners consent to the cancellation b) Cancellation notice c) Cancellation notice d) Proof that the designated business entity licensee concurs with the cancellation
Proof that all licensed officers or partners consent to the cancellation
What does the fair credit reporting act give the consumer the right to do? a) Question the validity and source of any credit information collected and retained by the insurer b) Deny the insurers access to their credit report c) Decide which credit agency insurer can pull their information from d) Request a copy of their credit report and an explanation of it from their agent
Question the validity and source of any credit information collected and retained by the insurer
Which of the following is not a major advantage of a traditional endorsement policy? a) Low cost b) Rapid growth of policy cash value c) Tax deferral on cash value growth d) Policy proceeds paid as a death benefit
Rapid growth of policy cash value
A producer who shares commission with a client may be found guilty of a) Fraud b) Redlining c) Rebating d) Commingling
Rebating
When a producer persuades a prospect to purchase a policy by promising to return a portion of the commission, the producer is probably guilty of: a) Rebating b) Conversion c) Fraud d) Improper actions
Rebating
In New Jersey a transaction in which an insured converts a existing life policy to reduce paid insurance in order to purchase a new life policy is known as which of the following a) Termination b) Replacement c) Collateralizing d) Cash value reduction
Replacement
Life business entity applies to conduct life insurance business in New Jersey at least one member of the corporation must be a a) Resident of New Jersey b) Notary public c) Limited line producer d) Licensed producer
Resident of New Jersey
One creditor charge payment from borrower to apply for credit life insurance, but got refused. What happens: a. Return back to the borrower immediately
Return back to the borrower immediately
The Commissioner of Insurance has the power to take which of the following actions? a. Determine the producer's premium commissions b. Limit the number of producer an insurer may appoint c. Revoke a producer's license d. Issue property policies
Revoke a producer's license
Which of the following is not among the rights of the life insurance policy owner? a) Assign or transfer the policy b) Borrow from cash value c) Select and change beneficially d) Revoke an absolute assignment
Revoke an absolute assignment
A type of company consists of members. Like Theme park, water park etc. What stands for: a. Risk Retention Groups
Risk Retention Groups
An indexed annuity interest rate is linked to a market index like the a) Bond Fund b) FINRA c) S & P 500 d) NAIC
S & P 500
If a producer attempts to sell insurance by urging the person to apply for insurance with a specific insurance company, and is called ________________ insurance. a. Negotiating b. Finalizing c. Selling d. Soliciting
Soliciting
Which of the following parties does not sign an application for life insurance? a) The beneficiary b) The agent/producer c) The applicant d) The insured
The beneficiary
Which statements is false regarding an authorized business entity? a. An owner with only 10% ownership must be fingerprinted for a background check b. The business entity can be engaged in business with the general public and the government c. An officer or partner, must be licensed d. A completed application signed by all partners and officers is required
The business entity can be engaged in business with the general public and the government
Under the Modified Endowment Contract rules the 7-Pay Test is defined as: a) Any life insurance policy that endows in 7 years b) The least amount of premium required to be paid in the first 7 years to maintain the policy to age 70 c) The comparison of premiums paid during the first 7 years with the net level premiums that would have ben paid on a 7 year pay whole life of the same death benefit d) The cash value at the end of year 7 exceeds the total premiums paid
The comparison of premiums paid during the first 7 years with the net level premiums that would have ben paid on a 7 year pay whole life of the same death benefit
The main purpose of licensing insurance producers is to protect: a) The families of the producers b) Insurers c) The InsuranceDepartment d) The general public
The general public
Producers/agents act as representatives of ___________ when transacting the business of insurance. a) Theinsurer b) The insured c) TheCommissioner d) Themselves
The insurer
Which of the following best describes the consideration on the part of an insurer? a) The promise to pay in the event of a covered claim b) The reasonable expectations c) The offer of the contract d) The acceptance of the contract
The offer of the contract
A policyowner has chosen the Fixed Settlement Option. Which of the following best describes this option? a. The owner specifies the amount of each periodic payment and the insurer pays that amount until the funds plus interest are depleted b. The death benefit is paid in lump sum fashion c. The insurer determines the number of periods that payments are made d. Only the death benefit with no interest is paid
The owner specifies the amount of each periodic payment and the insurer pays that amount until the funds plus interest are depleted
Which of the following statements is true about premium refunds resulting from the cancellation of credit life policy a) They are prohibited law b) They are permitted only if they will be used to purchase replacement coverage c) They are considered unearned premium and must be paid to the borrower d) They are considered earned premium and may be retained by the creditor as lone security
They are considered unearned premium and must be paid to the borrower
Which provision states that the insurance company must pay claims immediately? a) LegalActions b) Time of Payment of Claims c) Payment of Claims d) Relation of Earnings to Insurance
Time of Payment of Claims
A producer assists the client to convert/replace his policy to reduced paid-up insurance and also sell a new policy to this client. What is called: a. Twist b. Fraud c. Solicit d. Coercion
Twist
The act of using misrepresentation to induce an insured to terminate an existing policy and purchase a new policy is referred as a) Twisting b) Subrogation c) Rebating d) Churning
Twisting
Which statement is false about service fee requirements? a. No service fee for any one policy may exceed $20 b. A fee must bear a reasonable relationship to the service c. Two service fees may be charge per year d. A fee may not be charged for completing an accident form
Two service fees may be charge per year
Which of the following can partial withdraw: a. Whole life b. Universal life c. Variable life d. Term life
Universal life
A credit life insurance got canceled. Which of the following happens: a. Not admitted b. Will keep the premium c. Will lose the premium. It is considered "replace" the old policy to buy a new policy d. Will lose the premium
Will lose the premium. It is considered "replace" the old policy to buy a new policy