LIFE

A producer was found guilty of a 3rd violation of the Insurance Code. What would be the monetary penalty he will have to pay?

$10,000

What are the penalties for the first, second, and any subsequent violation of the New Jersey Fraud Prevention Act, respectively?

$5,000; $10,000; $15,000

A producer received a group master policy and certificates for delivery to the insured. Within how many days must the policy and certificates be delivered?

10 calendar days

For how long is an insurance company allowed to defer policy loan requests?

6 months

Presenting any written or oral statement in support of or in opposition to a claim payment, while knowing that the statement contains false or misleading information material to the claim, would be best considered

A violation of the New Jersey Insurance Fraud Prevention Act

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Alien Insurer

Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you recommend?

An endowment policy

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice

Which is the primary source of information used for insurance underwriting?

Application

Which of the following would NOT be considered an exception to the National Do Not Call List?

Calls based from outside the United States.

Which of the following will NOT be an appropriate use of deferred annuity?

Creating an estate

Which is TRUE about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income

An individual is purchasing a life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

The type of term insurance that provides increasing death benefits as the insured ages is called

Increasing term

The Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high-risk persons

Which of the following is TRUE about the 10-day free look period in a Life Insurance policy?

It begins when the policy is delivered.

What is the benefit to choosing extended term as a nonforfeiture option?

It has the highest amount of insurance protection

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

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

All of the following would be considered an insurance transaction EXCEPT

Obtaining an insurance license

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium

Which of the following entities established the Do-Not-Call Registry?

The Federal Trade Commission

Which of the following information will be stated in the consideration of a life insurance policy?

The amount of premium payment

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

The date of medical exam

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage

What is the advantage of reinstating a policy instead of applying for a new one?

The original age is used for premium determination

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract

Which of the following is included in the term "insurance-related conduct"?

Transmitting funds between producers and the insurance company