NJ Accident and Health Producer Questions With
Complete Solutions
Life income joint and survivor settlement option guarantees...
Income for 2 or more recipents
A participating insurance policy may do which of the following:...
Pay dividends to the policy owner
What is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premiums paid are taxable as ordinary income
Participating Insurance policy will...
pay dividends to the owner based upon mortality cost, interest earned and cost
Which of the following is an example of a producer being involved in an unfair
trade practice of rebating?...
Telling a client that his first premium will be waived if he purchased the insurance policy.
Rebating is defined as...
Offering any inducement in the sale of insurance products that is not specified in the
policy, including money, reductions in commissions, promises, and personal services.
Both offer and acceptance of a rebate are illegal
An insurer that holds a Certificate of Authority in the state in which it transacts
business is considered a/an
Authorized Insurer
Who is considered authorized or admitted?
Insurers who meet the state's financial requirements and hold a Certificate of Authority
to transact business in the state
Which of the following is a key distinction between variable whole life and
variable universal life products?
,Variable whole life has a guaranteed death benefits
Which statement about dividends in incorrect?..
Dividends amounts are guaranteed in the policy
T or F: Dividends cannot be guaranteed
True
An organizations licensed as a producer business entity based in New York
would like to transact insurance in New Jersey. Which of the following is true?
The organization will need to obtain a nonresident business entity license and its
producers will need to obtain nonresident licenses
Misrepresenting an insurance policy as a share of stock is an example of which
of the following?
False Advertising
Within how many days of requesting an investigative consumer report must an
insurer notify the consumer in writing that the report will be obtained?
30 days
Which of the following statements about a life insurance policy would be allowed
in an Insurance advertisement?..
Term Life insurance policy
A long stretch of national economic hardship causes a 7% rate of inflation. A
policyowner notices that the face value of her life insurance policy has been
raised 7% as a result. Which policy rider causes this change?
Cost of Living Rider
Cost of Living Rider
Allows the policy face amount to be adjusted to account for inflation based on the
consumer price index.
Which of the following is another term for an authorized insurer?
Admitted
All of the following are TRUE of the federal tax advantages of a qualified plan
EXCEPT
At distribution all amounts received by the employees are tax free
, If an insured continually uses the automatic premium loan option to pay the
policy premium...
The policy will terminate when the cash value is reduced to nothing
The two types of assignments are...
absolute and collateral
By how many days does the discontinuance of a group insurance policy reduce
the time limit for providing notice of claim or proof of loss?
0 days
absolute assigns.....
the entire policy
collateral assigns...
a part or all of the benefits
What is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting
decision of the insurance company
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may
be delivered to the applicant no later than...
With the policy
What is reinsurance?
An agreement between a ceding insurer and assuming insurer
Within life insurance settlement option guarantees payments got the lifetime of
the recipient, but also specifies a guaranteed period, during which, if the original
recipient dies, the payments will continue to a designed beneficiary?
Life Income with period certain
Using names or titles that have tendency to misrepresent the true nature of a
policy is an example of what illegal practice?
False Advertising
The type of settlement option which pays throughout the lifetimes of two or more
beneficiaries is called.....
Joint and Survivor
Complete Solutions
Life income joint and survivor settlement option guarantees...
Income for 2 or more recipents
A participating insurance policy may do which of the following:...
Pay dividends to the policy owner
What is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premiums paid are taxable as ordinary income
Participating Insurance policy will...
pay dividends to the owner based upon mortality cost, interest earned and cost
Which of the following is an example of a producer being involved in an unfair
trade practice of rebating?...
Telling a client that his first premium will be waived if he purchased the insurance policy.
Rebating is defined as...
Offering any inducement in the sale of insurance products that is not specified in the
policy, including money, reductions in commissions, promises, and personal services.
Both offer and acceptance of a rebate are illegal
An insurer that holds a Certificate of Authority in the state in which it transacts
business is considered a/an
Authorized Insurer
Who is considered authorized or admitted?
Insurers who meet the state's financial requirements and hold a Certificate of Authority
to transact business in the state
Which of the following is a key distinction between variable whole life and
variable universal life products?
,Variable whole life has a guaranteed death benefits
Which statement about dividends in incorrect?..
Dividends amounts are guaranteed in the policy
T or F: Dividends cannot be guaranteed
True
An organizations licensed as a producer business entity based in New York
would like to transact insurance in New Jersey. Which of the following is true?
The organization will need to obtain a nonresident business entity license and its
producers will need to obtain nonresident licenses
Misrepresenting an insurance policy as a share of stock is an example of which
of the following?
False Advertising
Within how many days of requesting an investigative consumer report must an
insurer notify the consumer in writing that the report will be obtained?
30 days
Which of the following statements about a life insurance policy would be allowed
in an Insurance advertisement?..
Term Life insurance policy
A long stretch of national economic hardship causes a 7% rate of inflation. A
policyowner notices that the face value of her life insurance policy has been
raised 7% as a result. Which policy rider causes this change?
Cost of Living Rider
Cost of Living Rider
Allows the policy face amount to be adjusted to account for inflation based on the
consumer price index.
Which of the following is another term for an authorized insurer?
Admitted
All of the following are TRUE of the federal tax advantages of a qualified plan
EXCEPT
At distribution all amounts received by the employees are tax free
, If an insured continually uses the automatic premium loan option to pay the
policy premium...
The policy will terminate when the cash value is reduced to nothing
The two types of assignments are...
absolute and collateral
By how many days does the discontinuance of a group insurance policy reduce
the time limit for providing notice of claim or proof of loss?
0 days
absolute assigns.....
the entire policy
collateral assigns...
a part or all of the benefits
What is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting
decision of the insurance company
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may
be delivered to the applicant no later than...
With the policy
What is reinsurance?
An agreement between a ceding insurer and assuming insurer
Within life insurance settlement option guarantees payments got the lifetime of
the recipient, but also specifies a guaranteed period, during which, if the original
recipient dies, the payments will continue to a designed beneficiary?
Life Income with period certain
Using names or titles that have tendency to misrepresent the true nature of a
policy is an example of what illegal practice?
False Advertising
The type of settlement option which pays throughout the lifetimes of two or more
beneficiaries is called.....
Joint and Survivor
