NJ Life and Health Insurance Test Correct
answers latest update
Agency Contract
A contract given that is held between an insurer and an agent/producer, containing the expressed
authority given to the agent/producer, and the duties and responsibilities to
the principal.
An agent who is in violation of the agency contract may be held personally liable to the insurer.
Agent/Producer
A person who acts for another person or entity with regard to contractual arrangements with third
parties; a legal representative of an insurance company.
The classification of producer usually includes agents and brokers; agents are the agents of the
insurer.
Insurer is the principal.
Insurer
party who provides against losses. provides benefits or other services
Applicant (proposed insured)
A person who requests or seeks insurance from an insurer.
Beneficiary
The person who receives the benefits from the policy of insurance.
Death Benefit (Face amount/face value/ coverage)
The amount paid when a claim is issued against a policy of insurance.
Insurance Policy
A contract between a policy owner (and/or insured) and an insurance company which agrees to pay
the insured or the beneficiary for loss caused by specific events.
Insured
the person covered by the policy of insurance who may or may not be the applicant or policy owner.
Insurer ( principal )
the company who issues a policy of insurance.
Life Insurance
A coverage upon a person's life, and granting, purchasing or disposing of annuitirs
Policyowner
The person who is entitled to exercise the rights and privileges in the policy and who may or may not
be the insured.
, Premium
The money paid to the insurance company for the policy of insurance.
Solicitation of Insurance
An attempt to persuade a person to buy an insurance poolicy
4 steps to completing application, underwriting, and delivering
1. Solicitation and Slaes Presentations
2. Underwriting: Field and Company
3. Premium Determination
4. Policy Issue and Delivery
Disclosure statement
Will help the applicants to make more informed and educated decisions about their choice of
insurance.
Buyer's Guide
Provides basic, generic information about life insurance policies that contains, and is limited to,
language approved by the Department of Insurance.
Explains how a buyer should go about choosing the amount and type of insurance to buy, and how a
buyer can save money by comparing the cots of similar policies.
Insurers must provide a buyer's guide to all prospective policy applicants prior to accepting their initial
premium.
Policy Summary
A written statement describing the features and elements of the policy being issued.
Must include name and address of the agent, full name and home office or administrative office
address of the insurer, ad the generic name of the basic policy and each rider
Must be provided when the policy is delivered.
Illustrations
Means a presentation or depiction that includes
nonguaranteed elements of a policy of individual or group life insurance over a period of years.
An agent may only use the illustrations of the insurer that have been approved, and may not change
them in any way.
What must a life insurance illustration do?
1. Distinguish between guaranteed and projected amounts
2. Clearly state that an illustration is not a part of the contract
3.Identify those values that are not guaranteed as such.
answers latest update
Agency Contract
A contract given that is held between an insurer and an agent/producer, containing the expressed
authority given to the agent/producer, and the duties and responsibilities to
the principal.
An agent who is in violation of the agency contract may be held personally liable to the insurer.
Agent/Producer
A person who acts for another person or entity with regard to contractual arrangements with third
parties; a legal representative of an insurance company.
The classification of producer usually includes agents and brokers; agents are the agents of the
insurer.
Insurer is the principal.
Insurer
party who provides against losses. provides benefits or other services
Applicant (proposed insured)
A person who requests or seeks insurance from an insurer.
Beneficiary
The person who receives the benefits from the policy of insurance.
Death Benefit (Face amount/face value/ coverage)
The amount paid when a claim is issued against a policy of insurance.
Insurance Policy
A contract between a policy owner (and/or insured) and an insurance company which agrees to pay
the insured or the beneficiary for loss caused by specific events.
Insured
the person covered by the policy of insurance who may or may not be the applicant or policy owner.
Insurer ( principal )
the company who issues a policy of insurance.
Life Insurance
A coverage upon a person's life, and granting, purchasing or disposing of annuitirs
Policyowner
The person who is entitled to exercise the rights and privileges in the policy and who may or may not
be the insured.
, Premium
The money paid to the insurance company for the policy of insurance.
Solicitation of Insurance
An attempt to persuade a person to buy an insurance poolicy
4 steps to completing application, underwriting, and delivering
1. Solicitation and Slaes Presentations
2. Underwriting: Field and Company
3. Premium Determination
4. Policy Issue and Delivery
Disclosure statement
Will help the applicants to make more informed and educated decisions about their choice of
insurance.
Buyer's Guide
Provides basic, generic information about life insurance policies that contains, and is limited to,
language approved by the Department of Insurance.
Explains how a buyer should go about choosing the amount and type of insurance to buy, and how a
buyer can save money by comparing the cots of similar policies.
Insurers must provide a buyer's guide to all prospective policy applicants prior to accepting their initial
premium.
Policy Summary
A written statement describing the features and elements of the policy being issued.
Must include name and address of the agent, full name and home office or administrative office
address of the insurer, ad the generic name of the basic policy and each rider
Must be provided when the policy is delivered.
Illustrations
Means a presentation or depiction that includes
nonguaranteed elements of a policy of individual or group life insurance over a period of years.
An agent may only use the illustrations of the insurer that have been approved, and may not change
them in any way.
What must a life insurance illustration do?
1. Distinguish between guaranteed and projected amounts
2. Clearly state that an illustration is not a part of the contract
3.Identify those values that are not guaranteed as such.
