Insurance 2

Annuity is used to provide

Retirement Income

Decreasing term life insurance is often used to

provide coverage for a home mortgage

How are survivorship life insurance policies helpful in estate planning?

Provide funds to help pay taxes.

An example of rebating would be

a producer who shares commissions with a client

Twisting

is an unfair trade practice

What is the name of the provision which states that a copy of the application must be attached to the policy when issued?

Entire Contract

Which of these is considered to be a document that describes the critical segments of a life insurance policy?

Policy Summary

A written statement describing the elements of a policy is called a

policy summary

A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n)

Limited Pay Policy

What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?

Participating Life insurance policy

Which type of policy combines the flexibility of a universal life policy with investment choices?

Variable universal life policy

Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?

Endowment Policy

When the Commissioner suspects a producer is engaged in unfair trade practices, a hearing may be held after giving the person advance notice of at least how many days?

10 days

A temporary producer's license may be issued for up to

180 days

In the state of New Jersey, an applicant must apply for a Producer license within what period of time from the date of passing the state exam?

1 Year

How many months can a life insurance policy normally be backdated from the date of application?

6 months

A licensed producer is required to file notice of any change of address within how many days?

30 days

When credit life or health is written, evidence of coverage (a policy or certificate of insurance) must be delivered to the debtor when the debt is incurred or within how many days?

30 days

A branch office registration form is required to be filed at least ___ days before selling insurance out of that branch?

30 days

After passing the state examination, the producer is issued a Temporary Certificate. How long is the Temporary Certificate valid?

60 Days

When the insurer enters into an agency contract with a licensed producer, it must file a Notice of Agency Contract with the Department within how many days?

15 Days

Carmen's individual life insurance policy has recently lapsed. She may reinstate her policy within ___ year(s).

3 years

Which of the following is the financial penalty for a violation of a cease and desist order?

$5,000

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the maximum penalty for this?

$10,000

Advertisements of insurance in a local newspaper, must be approved by

The commissioner of insurance

What is the purpose for having an accelerated death benefit on a life insurance policy?

It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill

Which of these is NOT a characteristic of the Accelerated Death Benefit option?

The benefit can be offered as a rider at a specific extra cost or may be at no cost

The law that established insurance transactions should be regulated by the states is called the

McCarran-Ferguson Act

An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with?

Fair Credit Reporting Act

Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?

Endowment policy