Incorrect Exam FX Life Insurance Questions
what are the penalties for the first, second, and any subsequent violation of the New Jersey Fraud Prevention Act?
$5,000; $10,000, $15,000
If, in order to renew or reinstate a life insurance or annuity policy, an insurer must first receive an application, the insurer must supply this application to the insured within ______ days, upon the insured's request.
30
An employee has ______ days under the conversion privilige to convert to an individual policy
31
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? a)As of the application date b) As of the policy delivery date c)As of the first of the month after the policy issue d)As of the policy issue date
As of the application date
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of a)Coercion. b)Loading c)Defamation d) Twisting
Coercion
A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called a) Accelerate Benefit Rider b)Living need rider c)Payor rider d)Cost of living rider.
Cost of living rider
Which of the following would be the beneficiary in credit life insurance?a)Insured b)Company c)Borrower d)Creditor
Creditor
Which policy component decreases in decreasing term insurance? a)Dividend b)Premium c)Face amount d)Cash Value
Face Value
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
Fixed period
All of the following are among the Commissioner's broad powers EXCEPT: a)Formulate and adopt rules and regulations of companies and licensees b)Have interest in insurance companies regulated by the Department c)Appoint and remove officers employed within the Department d)Report to the Governor about the Department's operations.
Have interest in insurance companies regulated by the Department
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that? a) Agents Report b)Underwriter's Report c)Inspection Report d)Medical Information Bureau's report
Inspection Report
What is the benefit of choosing extended term as a nonforfeiture option? a)It allows for coverage to continue beyond maturity date b)It can be converted to a fixed annuity c)It has the highest amount of insurance protection d) it matures until 100
It has the highest amount of insurance protection
what is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of a)Rebating b)Misrepresentation c)Concealment d)Unfair claims practice
Misrepresentation
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the a)One-year term option b)Paid-up option c)Accelerated endowment d)Paid-up additions
One-year term option
It was decided that insurance was not interstate commerce and could not be regulated by the federal government
Paul vs Virginia
Which of the following is another term for the accumulation period of an annuity?
Pay-in period
Which professional designation is not recognized by the Department as an acceptable substitute for education and examination requirements?
Professional Insurance Agent (PIA)
Nonforfeiture values guarantee which of the following for the policyowner?
That the cash value will not be lost
If the issuance of a license is denied and a hearing is requested, which entity will be making determination whether the license should be issued or not?
The Department of Insurance
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?a)The death benefit can be increased only when the policy has developed a cash value b)The death benefit can be increased only by exchanging the policy for a new one c)The death benefit can be increased by providing evidence of insurability d)The death benefit cannot be increased.
The death benefit can be increased by providing evidence of insurability
Which of the following best describes what the annuity period is? a)The period of time from the accumulation period to the annuitization period b)The period of time during which money is accumulated in an annuity c)The period of time from the effective date of the contract to the date of its termination d)The period of time during which accumulated money is converted into income payments
The period of time during which accumulated money is converted into income payments
what kind of policy allows withdrawals or partial surrenders of the policy cash value?
Universal life
Which of the following would indicate a contractual relationship between a producer and an insurance company? a)A signed contract b)Implied authority c) verbal agreement d)Producer's license
a signed contract
Which of the following will NOT be an appropriate use of a deferred annuity?a)Creating an estate b)Accumulating retirement funds c) Accumulating funds in an IRA d)Funding a child's college education
creating an estate
which of the following will NOT be an appropriate use of a deferred annuity?
creating an estate
which of the following would be the beneficiary in credit life insurance?
creditor
Customer does not mind paying a higher premium and would like life insurance policy to allow for faster growth and cash value. What kind of policy would you recommend?
endowment policy
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?
fixed amount
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
What do individuals use to transfer their risk of loss to a larger group?a)Indemnity b)Insurance c) insurable interest d)Exposure
insurance
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
settlement option
Methods used to pay the death benefits to a beneficiary upon the insured's death are called a)Designation options b)Beneficiary provisions c) Death Benefit options d)Settlement options.
settlement options
All of the following are considered unfair trade practices in the business of insurance EXCEPT
sharing commissions
Which two terms are associated directly with the way an annuity is funded?
single payment or periodic payment
type of insurance policy that allows the policyowner to pay more or less than the planned premium
universal life
A producer's appointment lasts for how long? a) 2 years b)3 years c)5 years d)Until it is terminated
until it is terminated
