Primerica

A Certification of License Status must include all of the following information EXCEPT

Number of years a licensee has been in the busines:

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back?

The balance of the loan will be taken out of the death benefit

If the issuance of a license is denied and a hearing is requested, which entity will be making determination whether or not the license should be issued?

The department of insurance

The National Do Not Call Registry was created to regulate

Telemarketers

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 replacedP

If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people who has the ownershio rights?

Policy owner

What describes the specific information about a policy?

Policy summary

Who can request changes in premium payments, face value, loans, and policy plans?.

Policyowner

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex and occupation of each individual corfificate hölden

Which of the following is NOT required information a producer must provide before soliciting insurance?

Producer contact information

All of the following professional designations are recognized by the Department as acceptable substitutes for education and examination requirements EXCEPT

Professional Insurance Agent (PIA)

A man decided to purchase a $100,000 Annually Renewable Term LIfe policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each ronewal

A life insurance policy 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.

Which of the following best describes an company that has been formed under the laws of this state ?

Domestic

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurer's financial condition

What is the term for how frequently a policyowner is required to pay the policy premium?

Mode

An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?

$10,000, no tax consequence

If a producer has been convicted of a crime, he or she must notify the Commissioner within

30 days.

Within how many days must a producer report claims to the insurer?

5 buisness day

During policy replacement, the replacing insurer must notify existing insurers within what time period?

5 buisness days

In cases where a producer's license has been revoked, the producer must wait for how long before applying for reinstatement?

5 years

Who is a third party owner

A policyowner who is not the insured

Atage 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?

Adjustable Life

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supplythe applicant with the name and address of the consumer reporting company?

Fair Credit Reporting Act

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years or until death, whichever occurs first.

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 allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor benefit

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-vear term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

Who does an insurance agent represent?

The insurer

The Waiver of Cost of Insurance rider is found in what type of insurance?

Universal life

* 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

cost of living rider

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

waiver on premiurs.

All of the following are examples of third-party ownership of a life insurance policy EXCEPT

An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.

Which of the following premium payment modes will incur the lowest overall payment?

Annual

An insurer that holds a Certicate of Authority in the state in which it transacts business is considered as an

Authorized insurer.

Which of the following is an insurance professional who offers advice regarding benefits or advantages of an insurance policy to clients for a fee?

Consultant

According to the entire contract provision, what document must be made part of the insurance policy?

Copy of the original application

When an employee terminates coverage under a group insurance policy, coverage continues in force

For 31 days.

Aninsurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

Foreign

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstances

What are the two components of a universal policy?

Insurance and cash account

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.

Which of the following is TRUE of a qualified plan?

It has a tax benefit for both employer and employee

In which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status.

Death benefits payable to a beneficiary under a life insurance policy are generally

Not subject to Income taxation by the Federal Goveroment

On a participating insurance policy issued by a mutual insurance company, dividends paid to policynolders are

Not taxable since the IRS treats them as a return of a portion of the premium paid.

Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT

Other insurance coverages

Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?

Return the application to the applicant for completion

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks.He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

The insurer will pay the full death benefit from the group policy to the beneficiary.

All of the following are true of an annuity owner EXCEPT

The owner must be the party to receive benefits.

A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?

The purpose of the group was to purchase life insurance.

What is the purpose of the buyers guide!

To allow the consumer to compare the costs of different policies

Which of the following Life Insurance policies would be considered interest sensitive?

Universal life

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50 %

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty

Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of ther die prematurely, the other would befinancially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement

Any form of life insurance

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner

Cash surrender

In accordance with the Administrative Procedure Act, what entity has the authority to make and enforce rules and regulations to implement and carry out the purposes of the Insurance laws of New Jersey?

Commissioner

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated.

The type ot insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

Deadline

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

What significance did US vs. South-Eastern Under writers have on the insurance industry?

It reversed the decision of Paul vs. Virginia, determining that insurance is interstate commerce and should be regulated federally,

Y Which of the following statements is TRUE concerning the Accidental Death Rider?

It will pay double or triple the face amount

Which of the following settlement options in life insurance is known as straisht life?

Life income

an agent wishes to sell variable life policies, what license must the agent obtain?

Securities

Which of the following is a risk classification used by underwriters for life insurance?

Standard

Which of the following policies would be classified as a traditional level premium contract?

Straight life

Which of the following statements about a suicide clause in a life insurance policy is true?

Suicide is excluded for a specific period of years and covered thereafter.

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different polices

When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?

False financial statement