nwm life real

A 10 year family income policy was purchased effective April 1, 2007. The insured died August 1, 2007. The beneficiary receives monthly income for:

9 years and 8 months

A business name authorization expires in

90 days

A change in premium due to a rate-up would normally be discussed with a client...

At the time of policy delivery

A contract that promises to pay income to an insured until their death is called...

Life annuity

A contract where only one party gives a legally enforceable promise?

Unilateral contract

A first time applicant is someone who has not been licensed as a producer for the previous...

12 months

A insurer procuring insurance for itself from another insurer is called...

The ceding insurer

A insurer's ownership comprised of policyholders is a...

Mutual insurer

A licensed producer represents the...

Insurer

A life insurance policy that fails to meet the seven-pay test is called a...

Modified Endowment Contract (MEC)

A modification to a life policy is called a...

rider

A person failing to comply to a subpoena from the Commissioner, may be charged with...

Contempt

A person, for a fee or commission represents insured for the purpose of obtaining them a life insurance policy...

Insurance broker

A policy containing a Guaranteed Insurability rider allows the insured the right to purchase...

additional coverage at specific ages

A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a...

20-pay life

A producer has up to how many days to notify the department of an address change?

30 days

A producer is not allowed to obtain a license solely to write insurance on the producer's family or business. What percentage of the producer's aggregate commissions must be exceeded to be considered "controlled business"?

50%

A producer who unknowingly engages in a prohibited trade practice, can be issued a fine not to exceed...

$1,000.00

A producer who wishes to hold a Resident NJ Life Producer license, who lives in another state, must...

have their principle office in New Jersey

A producer wishing to appeal the final order of the Commissioner would appeal to....

The Superior Court

A special benefit that prepays a portion of a death benefit during the lifetime of an insured in the event of a specified illness is called...

An acceleration of life insurance benefit

A tax free exchange of one life insurance policy or annuity for another is called...

1035 Exchange

A temporary certificate expires no more then how many days after issuance?

60 days

A trademark of a mutual insurer is...

No capital stock

Agents represent the...

insurance company

An agent offering a prospect something of value that is not specified in the insurance contract in order to persuade prospect to purchase insurance is guilty of...

Rebating

An agreement to purchase a deceased partner's share of a business, using the proceeds from a life insurance policy, is called a...

Buy and Sell agreement

An employer paid life insurance is called...

non-contribuatory

An insured may receive protection against the unintentional lapse of his life insurance policy contract by requesting the...

Automatic premium loan

An insurer must renew a renewable term policy at the policyowner's request regardless of the insurability status of the insured.

Renewable Term Life Insurance

An insurer that is incorporated under the laws of New Jersey, without permanent stock, and its governing body elected by its policyholders is a...

Domestic mutual insurer

Copies of insurance advertisement must be kept for at least...

5 years

Copies of policy summary and buyer's guides used with the public must be kept on file for...

3 years

Credit life insurance is a form of...

Decreasing term

Credit life insurance is a form of...

Decreasing term insurance

Creditors may attach the death benefits payable to...

Insured's estate

Dividends are...

Not Taxable

Elisabeth retires. She purchases an annuity. One month later, she starts to receive payments from the annuity. What type of annuity does Elisabeth have?

Immediate

Failure to notify the Department of the opening or closing of a branch office is subject to a fine of...

$500.00

Generally, premiums paid on an individual life insurance policy are:

Not Tax Deductable

How many days does a licensee need to notify the Department when opening a branch office?

30 days

How many days within a Commissioner's final order does an intervenor have to appeal a decision?

30

If a credit life insurance policy is terminated prior to the maturity date of the loan, a refund of unearned premiums is paid to...

The insured debtor

If a producer fails to complete the required CE credits before his license expires, their license will be...

Terminated

If a producer is indicted of a crime, they must notify the Commissioner within...

30 days

If a producer's license is suspended. When can he apply for reinstatement?

Immediately after the period of suspension

If an insured understates her age and this is discovered upon her death, the insurer will...

Pay an amount equivalent to that which the premium would have purchased at the correct age

If Guaranty Association assumes management of an insolvent insurer, the amount of death benefits for which they are liable is...

$500,000.00

If the primary beneficiary dies before an insured, the individuals are paid when the insured dies are...

Contingent beneficiaries

Illegally inducing an individual to lapse a current plan of life insurance in order to purchase a new one is called...

Twisting

In a credit insurance policy, who is the beneficiary?

the creditor

In most circumstances, a temporary license in New Jersey shall not be valid for a period longer than:

180 Days

In what instance can a credit insurance policy be issued?

Individual policies of life insurance issued to debtors on a term plan

In which of the following are proceeds left with the insurer and earnings sent to the beneficiary?

Interest-only

Insurers must maintain files of all advertisements used in the solicitation of life insurance for a period of at least...

5 years

Interest paid on a policy loan is...

Not tax deductable

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?

the face amount less the annual premium

Money taken out of a modified endowment contract (MEC)...

may be subjected to unfavorable tax rules

Producers whose licenses have been revoked must wait a minimum of how long before reapplying?

5 years

Split-Dollar Life is a...

a non-qualified plan

Telemarketers must update their solicitation lists with the National Do Not Call Registry every...

31 Days

The aspect of a policy that allows a policyholder to select the timing of premium payments is known as...

premium mode

The Commissioner does not have the power to put you in...

jail

The Commissioner is required to provide public notice a minimum of how many days prior to holding a hearing to discuss a proposed rule change?

10 days

The Commissioner issues what type of certificate to an insurer?

A certificate of authority

The Commissioner of the NJ Department of Insurance is appointed by...

The governor

The court case Paul vs Virginia established the regulation of insurance business is the responsibility of the...

states

The Department of Insurance will count which of the following towards the continuing education requirement?

CLU courses

The federal antitrust laws would apply to insurance but only to the extent that the state regulation was not effective is...

Public Law 15

The grace period in a life insurance policy begins...

When the premium is due

The insurance industry is regulated by the...

Legislature ,Executive branch of government and the Courts

The New Jersey Life and Health Guaranty Association is funded by...

Member insurers

The primary purpose for an annuity is to...

provide income for retirement

The provision that addresses misstatements made by applicant on application is...

Incontestability clause

The purpose of the NJ life and Health Guaranty Association is to...

Protect the public from insolvent insurers

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:

Fixed-amount

The term used to indicate that a policy beneficiary cannot be changed is...

Irrevocable

To be valid, a contract must be between individuals considered legally able to enter into an agreement. This is known as...

Competent parties

Twisting is a form of

Misrepresentation

Under a Credit Life Policy, the amount of coverage shall not exceed the:

Amount of indeptness

Under a Traditional IRA, owners must begin to receive payments from their accounts by the time they reach the age of...

70 1/2

Under what type of life insurance policy will the death benefit vary, based on the performance of an underlying portfolio of securities?

Variable Life

Upon cancellation of an agency contract, with a producer, the insurer must give how many days notice to the Commissioner?

15 days

Violation of a cease and desist order can result in a maximum fine of...

$5,000.00

What allows for an insurance policy to remain in force for a specified number of days beyond the premium due date?

Grace period provision

What contract states the commissions agreement?

Agency contract

What hours of operation is a branch office required to have?

Must give public reasonable access.

What Insurance is best used in estate planning?

Survivorship Life

What is the proper term for a company owned by its policy owners?

A mutual insurance company

What must be provided to all purchasers of life insurance?

A policy summary

What risk does an annuity cover?

Living too long and outlasting one's income.

What states the terms of coverage during the underwriting period?

The conditional receipt

What type of group plan requires at least 75% of the eligible members to participate?

Contribuatory

When a reinsurer procures insurance for themselves from another reinsurer. This is known as...

retrocession

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?

12 months

When replacing an existing life insurance policy, the agent should have the applicant sign what form?

Notice Regarding Replacement of Life Insurance and Annuities

When replacing existing life insurance, an agent MUST...

Notify the Producer whose policy is being replaced

When the beneficiary of a life insurance policy is a minor, the insurer can pay the proceeds...

If a legal guardian has been appointed

Which established that the insurance industry should be considered interstate commerce and therefore subject to federal regulation?

United States v. Southeastern Underwriters Association (1944)

Which of the following features makes Universal Life insurance different from other forms of permanent insurance?

premium schedule