nj life producer exam
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150 Terms
Renewable term life insurance
An insurer must renew a renewable term policy at the policy owner’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:
What hours of operation is branch office required to have?
Must give public reasonable access
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 principal office in New Jersey
A producer who wishes to hold a resident, New Jersey life producer license, who lives in another state must
The ceding insurer
A insurer pursuing insurance for itself from another insurer is called….
A business name authorization expires in
90 days
A first time applicant is someone who has not been licensed as a producer for the previous
12 months
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?
Generally, premiums paid on an individual life insurance policy are…
Not tax deducible
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
James the insured died 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
The primary beneficiary dies before the 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 of equivalent to that which the premium would have purchased at the correct age
If an insured under states 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
The insured may receive protection against the unintentional lapse of his life insurance policy contract by requesting The…
Agreement to purchase a deceased partners share of business, using the proceeds from a life insurance policy, is called?
Buy and sell agreement
Bob retires. He purchases an annuity. One month later, he starts to receive payments from the annuity. What type of annuity does he have?
Immediate
The term used to indicate that a policy beneficiary cannot be changed is…
Irrevocable
What Risk does an annuity cover?
Living too long and outlasting ones income
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 misstatement made by applicant on application is…
When the premium due
The grace period and a life insurance policy begins
What is the proper term for a company owned by its policy owners?
A mutual insurance company
Agents represent the…
Insurance company
Which Party does not have to sign life insurance application?
Beneficiary
A contract where only one party gives a legally enforceable promise?
Unilateral contract
With an insurance contract, what is the insured consideration?
The premium paid
Money taken out of a modified endowment contract….
May be subjected to unfavorable tax rules
A change in premium due to a rate up would normally be discussed with a client…
At the time of policy delivery
A life insurance policy that fails to meet the seven pay test is called a…
Modified endowment contract
To be valid, a contract must be between individuals considered legally able to enter into an agreement. This is known as…
Competent parties
Dividends are….
Not taxable
Which established that the insurance industry should be considered interstate commerce, and therefore subject to federal regulation?
United States V.Southeastern underwriters Association (1944)
A commissioner of the New Jersey Department of insurance is appointed by…
The governor
The commissioner is required to prove public notice a minimum of how many days prior to holding a hearing to discuss a proposed role change?
10 days
Violation of a cease and desist order can result in a maximum fine of…
$5,000.00
A producer has up to how many days to notify the department of an address change?
30 days
The commissioner issues what type of certificate to an insurer?
A certificate of authority
Producers whose licenses have been revoked must wait a minimum of how long before reapplying?
5 years
When replacing an existing life insurance policy, the agent should have the applicant sign What form?
Notice regarding replacement of life insurance and annuities
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
The beneficiary of a life insurance policy is a minor, the insurer can pay the proceeds…
If a legal guardian has been appointed
A producer is not allowed to obtain a license solely to write insurance on the producers, family or business.what percentage of the producers Aggregate commissions must be exceeded to be considered “controlled business”?
50 percent
Illegally inducing an individual to lapse a current plan of life insurance in order to purchase a new one is called…
Twisting
The court case Paul versus Virginia established the regulation of insurance business is the responsibility of The…
States
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
Must be provided to all purchasers of life insurance?
A policy summary
Insurers must maintain files of all advertisements used in the solicification of life insurance for a period of at least…
5 years
Insurer
A licensed producer represents the…
insurers ownership comprised of policyholders is a…
Mutual insurers
Federal antitrust laws would apply to insurance, but only to the extent that the state regulation was not effective is…
Public law 15
The Commissioner does not have the power to put you in…
Jail
How many days within a commissioner‘s final order does an intervenor have to appeal a decision?
30
A person failing to comply to Subpoena from the commissioner, may be charged with..
Contempt
Person, for a fee or commission represents insured for the purpose of obtaining them a life insurance policy…
Insurance broker
Who owns a producer’s license?
The state of New Jersey
A temporary certificate expires no more then how many days after issuance?
60 days
Upon cancellation of an agency tract, with a producer, the insurer must give how many days notice to the commissioner?
15 days
Who is responsible for advertising regulations?
Commissioner
The insurance industry is regulated by the…
Legislature, executive branch of government and the courts
The department of insurance will count which of the following towards the continuing education requirement?
CLU courses
A trademark of a mutual insurer is…
No capital stock
What contract states the commissions agreement?
Agency contract
When a reinsurer procures insurance for themselves from another reinsurer. This known as…
Retrocession
A producer wishing to appeal the final order of the commissioner would appeal to…
The superior court
If a producer fails to complete the required CE credits before his license expires, their license will be..
Terminated
If a producer’s license is suspended. When can he apply for reinstatement?
Immediately after the period of suspension
Twisting is a form of
Misrepresentation
A producer who unknowingly engages in a prohibited trade practice, can be issued a fine not to exceed…
$1,000.00
The purpose of the NJ life and health guaranty association is to…
Protect the public from insolvent insurers
Failure to notify the department of the opening or closing of a branch office is subject to a fine of…
$500.00
How many days does a licensee need to notify the department when opening a branch office?
30 days
If guaranty association assumes management of an insolvent insurer, the amount of death benefits for which they are liable is..
$500,000,00
If a producer is indicted of a crime, they must notify the commissioner within..
30 days
Copies of policy summary and buyer’s guides used with the public must be kept on file for…
3 years
Creditors may attach the death benefits payable to..
Insured’s estate
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
In a credit insurance policy, who is the beneficiary?
The creditor
Credit life insurance is a form of…
Decreasing term
Copies of insurance advertisements must be kept for at least….
5 years
In what instance can a credit insurance policy be issued?
Individual policies of life insurance issued to debtors on a term plan
What type of group plan requires at least 75% of the eligible members to participate?
Contribuatory
An employer paid life insurance issued called..
Non-contributory
Interest paid on a policy loan is…
Not tax deductible
What allows for an insurance policy to remain in force for a specified number of days beyond the premium due date?
Grace period provision
A tax free exchange of one life insurance policy or annuity for another is called…
1035 exchange
Which of the following prevents the producer from unilaterally amending a policy?
Entire contract
A modification to a life policy is called a…
Rider
Under a traditional IRA owners must begin to receive payments from their accounts by the time they reach the age of..
70 1/2
A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a…
20-pay life
What states the terms of coverage during the underwriting period?
The conditional receipt
What insurance is best used in estate planning?
Survivorship life