Life Insurance Fundamentals: Key Concepts and Regulations, Exams of Socialization and the Life Course

Download Life Insurance Fundamentals: Key Concepts and Regulations and more Exams Socialization and the Life Course in PDF only on Docsity! NJ Life Producer Exam 109 Questions with Verified Solutions Graded A+. Which of the following amounts must decrease in a decreasing term? - ANS Death benefit In life insurance, insurable interest must exist at the time the.. - ANS Producer writes an on a proposed insured An applicant makes an offer to the insurer when they - ANS pay an initial premium with the application Which of the following makes Universal Life insurance different from other forms of permanent insurance? - ANS Premium Schedule An insurer that shares its profits with its' policyowners is known as.. - ANS A mutual insurer Statements made by an applicant for insurance on the application are considered to be.. - ANS Representations In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? - ANS Interest-Only The primary purpose of an annuity is to.. - ANS Provide income for retirement Which of the following provisions in a life policy specifies the manner in which proceeds will be paid to a beneficiary on the death of insured? - ANS settlement options An insurance producer takes an application for a life policy but does not collect the initial premium. On delivery of policy to the proposed insured, the producer must collect the initial premium and which of the following? - ANS The insured's signed statement of continued good health A report of previously submitted life insurance applications to other insurers is known as: - ANS A Medical Information Bureau report A company decides to purchase Key Employee life insurance for its vice president of operations. All of the following statements are correct EXCEPT the.. - ANS Employee names the beneficiary Which of the following features allows an insurance policy to remain in force for a specified number of days beyond the premium due date? - ANS Grace period provision which of the following prevents the producer from unilaterally amending a policy? - ANS Entire contract interest paid on a policy loan is.. - ANS not tax deductible An employer paid life insurance policy is called - ANS Non-contributory group life A tax free exchange of one life insurance policy or annuity for another is called.. - ANS 1035 exchange Which of the following group life plans require at least 75% of the eligible members to participate? - ANS Contributory Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the other partner to buy 100 percent of the business interest? - ANS Buy and Sell agreement Under a traditional IRA, owners must begin to receive payments from their accounts by the time they reach age.. - ANS 70 1/2 social security retirement benefits are determined by all of the following except? - ANS sex A modification to a life policy is called a.. - ANS Rider the right to change a beneficiary is reserved for the.. - ANS policyownerw Which of the following statements regarding a revocable beneficiary is CORRECT? - ANS the policyowner may change the beneficiary without his or her knowledge or approved R has just graduated from law school. R knows that R's future earnings will be much higher than they are now, but wants to purchase a permanent policy now to cover future needs. Which of the following policies would BEST suit R's needs? - ANS modified whole life A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a.. - ANS 20 pay-life All of the following are modes of payment in a life policy EXCEPT - ANS bi-weekly A payor benefit rider provides which of the following benefits? - ANS A waiver of premium should the payor die, until the insured reaches a predetermined age The termed used to indicate that a policy beneficiary cannot be changed is.. - ANS Irrevocable A producer wishing to appeal the final order of the Commissioner would appeal to.. - ANS The superior court which of the following producers does NOT need to satisfy CE credits? - ANS nonresident Continuing education credit may be earned for completing which of the following courses? - ANS CLU designation courses A New Jersey producer who resides in Pennsylvania but maintains a principal place of business in New Jersey and who has selected New Jersey as their home state is referred to as which of the following? - ANS resident What is the MINIMUM age requirement for licensure as a nonresident producer? - ANS 18 When applying for a producer's license, an applicant must have passed the state licensing exam within how long from the date of their application for license? - ANS 12 months When applying for a producer's license, an applicant must have completed a pre- licensing course of education within how long from the date of their license application? - ANS 24 months After an applicant successfully passes the state exam in the line of authority they are applying for, they can be issued a temporary certificate that expires no more then HOW MANY days after insurance? - ANS 60 days Upon cancellation of an agency contract with a producer, the insurer must give written notice to the Commissioner within how many days? - ANS 15 days A temporary work authority to act as a producer is issued at which of the following times? - ANS When an applicant passes a licensing examination and responds negatively to all background questions If a producer allows his license to lapse, how long before he has to meet all standard pre-licensing requirements again? - ANS 12 months A producer's license is considered the property of - ANS The State of New Jersey A voluntarily terminated producer license may be reinstated during the same period if the producer takes which of the following actions? - ANS completes a new license application A producers certification of license status contains all of the following information EXCEPT: - ANS place of birth The Banking and Insurance Commissioner may revoke the license of a producer who.. - ANS uses the license primarily to obtain insurance for his or her family If a producer's license is revoked, he must wait how long before applying for reinstatement? - ANS 5 years The New Jersey Life and Health Guaranty Association is derived from.. - ANS Assessment on member companies If a producer's license is suspended, he must wait how long before applying for reinstatement? - ANS Immediately after the period of suspension The act of using misrepresentations to induce an insured person to terminate an existing policy and purchase a new policy is referred as.. - ANS twisting A producer who shares commission with a client may be found guilty of.. - ANS rebating A producer who knowingly engages in a prohibited trade practice, can be issued a fine not to exceed.. - ANS $5,000 for the first offense; $10,000 for each subsequent offenses A producer who UN-knowingly engages in a prohibited trade practice, can be issued a fine not to exceed.. - ANS $1,000 If an insurer or producer violates a cease and desist order, the Commissioner could assess a penalty not to exceed.. - ANS $5,000 Making statements which are false and derogatory about the financial condition of the insurer is: - ANS defamation When the beneficiary of a life insurance policy is a minor, the insurer can pay the proceeds - ANS if legal guardian has been appointed A branch office of registration form must be filed with the Banking and Insurance Commissioner a MINIMUM of how many days before conducting business at the branch office? - ANS thirty If the Guaranty Association assumes management of an insolvent insurer, the maximum amount of death benefits for which they are liable to is.. - ANS $500,000 per person If a producer changes their address, how many days do they have to notify the Department? - ANS 30 Which of the following activities does not require a license? - ANS Scheduling appointments for producers to sell insurance An insurer who is placed under an order of liquidation by a court of competent jurisdiction is defined under the terms of the New Jersey Life and Health Insurance Guaranty act as.. - ANS an insolvent insurer The first violation of the NJ Fraud Prevention Act can result in a fine of - ANS $5,000 A producer assists an insured in converting a life policy to a reduced paid-up insurance in order to buy a new policy. This action is best known as.. - ANS replacing Which of the following MUST an agent do when replacing a life insurance policy? - ANS submit to the replacing insurer a list of all the life insurance policies or annuity contracts proposed to be replaced All of the following actions can be taken by the Commissioner against a producer if he violates the rules of replacement EXCEPT: - ANS redirect any commission earned to the insured Replacement rules apply to which of the following products? - ANS individual life policies A Buyer's guide must be provided to all purchases of which of the following types of insurance? - ANS Ten year level term Life insurance advertisements - ANS all of the above: must be truthful and not misleading; cannot use the terms "investment" or "savings; are designed to persuade the public to purchase life insurance The replacement of an existing policy requires all of the following EXCEPT: - ANS notice that the owner can return the policy within 90 days for a full refund Which of the following statements is CORRECT? - ANS creditors may attach the death benefits payable to insured's estate A producer is in violation of the Replacement regulation by doing which of the following? - ANS advising the applicant to directly contact their existing insurer to cancel their existing policy What information is NOT required to be included in advertising material for a life product? - ANS the agent's compensation The purpose of advertising regulation is to.. - ANS assure full and truthful disclosure to the public In a credit insurance policy, who is the beneficiary? - ANS the creditor