NJ Life Producer Exam Study Life Insurance Correct answers latest update

NJ Life Producer Exam Study Life Insurance Correct answers latest update Renewable Term Life Insurance An insurer must renew a renewable term policy at the policyowner's request regardless of the insurability status of the insured. Fixed-amount The settlement option that provides for payments to be made in regular installments to a beneficiary until the principal and interest are exhausted best describes: Must give public reasonable access. What hours of operation is a branch office required to have? Amount of indeptness Under a Credit Life Policy, the amount of coverage shall not exceed the: 180 Days In most circumstances, a temporary license in New Jersey shall not be valid for a period longer than: 31 Days Telemarketers must update their solicitation lists with the National Do Not Call Registry every... Notify the Producer whose policy is being replaced When replacing existing life insurance, an agent MUST... have their principle office in New Jersey A producer who wishes to hold a Resident NJ Life Producer license, who lives in another state, must... The ceding insurer A insurer procuring insurance for itself from another insurer is called... 90 days A business name authorization expires in 12 months A first time applicant is someone who has not been licensed as a producer for the previous... 12 months 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? Interest-only In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? Variable Life Under what type of life insurance policy will the death benefit vary, based on the performance of an underlying portfolio of securities? Not Tax Deductable Generally, premiums paid on an individual life insurance policy are: 9 years and 8 months A 10 year family income policy was purchased effective April 1, 2007. The insured died August 1, 2007. The beneficiary receives monthly income for: the face amount less the annual premium John the insured dies during the grace period of his life insurance policy and had not paid the annual premium. The insurance company is obligated to pay which of the following to the beneficiary? Contingent beneficiaries If the primary beneficiary dies before an insured, the individuals are paid when the insured dies are... premium mode The aspect of a policy that allows a policyholder to select the timing of premium payments is known as... Pay an amount equivalent to that which the premium would have purchased at the correct age If an insured understates her age and this is discovered upon her death, the insurer will... provide income for retirement The primary purpose for an annuity is to... premium schedule Which of the following features makes Universal Life insurance different from other forms of permanent insurance? Automatic premium loan An insured may receive protection against the unintentional lapse of his life insurance policy contract by requesting the... Buy and Sell agreement An agreement to purchase a deceased partner's share of a business, using the proceeds from a life insurance policy, is called a... Immediate Elisabeth retires. She purchases an annuity. One month later, she starts to receive payments from the annuity. What type of annuity does Elisabeth have? Irrevocable The term used to indicate that a policy beneficiary cannot be changed is... Living too long and outlasting one's income. What risk does an annuity cover? Decreasing term insurance Credit life insurance is a form of... a non-qualified plan Split-Dollar Life is a... Incontestability clause The provision that addresses misstatements made by applicant on application is... When the premium is due The grace period in a life insurance policy begins... A mutual insurance company What is the proper term for a company owned by its policy owners? insurance company Agents represent the... The beneficiary Which party does not have to sign life insurance application? Unilateral contract A contract where only one party gives a legally enforceable promise? The premium paid With an insurance contract, what is the insured's consideration? may be subjected to unfavorable tax rules Money taken out of a modified endowment contract (MEC)... At the time of policy delivery A change in premium due to a rate-up would normally be discussed with a client... Modified Endowment Contract (MEC) A life insurance policy that fails to meet the seven-pay test is called a... Competent parties