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Typically, Long-Term Disability benefits are coordinated with which benefit plan?
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insurance
| Question | Answer |
|---|---|
| Typically, Long-Term Disability benefits are coordinated with which benefit plan? | Social Security |
| The focus of major medical insurance is providing coverage for | medical and hospitalization expenses |
| An insured has a stop-loss limit of $5,000 and an 80/20 coinsurance. The insured incurs $25,000 of covered losses. How much will the insured pay? | $5,000 |
| Which type of plan would be the most appropriate for an individual on Medicare and concerned that Medicare will NOT pay for charges exceeding the approved amount? | Medicare supplement Plan F |
| Level premium term life insurance policies | have premiums have averaged over the policy period |
| What happens to the coverage under a children's term rider when that child reaches a certain specified age? | Coverage is eliminated |
| the treasurer of xyz insurance company discovers that the treasurer company is being investigated by the banking and insurance commissioner | Making false financial statements |
| pre-death distributions from a modified endowment contract receive different tax treatment than other life insurance policies because | the mec tends to be an investment vehicle |
| An insurance broker is someone who represents which of the following? | an insured or prospective insured |
| The state of new jersey requires completion of a total of how many continuing education credits upon renewal of a producer's license | 24 credits of 3 of which ethics |
| how often must an insurance producers license in new jersey be renewed | every two years |
| A life insurance policy written on one contract for two people in which it is payable upon the first death is called | Joint Life Insurance provides coverage for two or more persons with the death benefit payable at the first death. |
| Which of the following are retained at the expense of an insurance buyer to give advice on insurance needed by the buyer? | Brokers and consultants |
| An agent has committed an insurance crime that violates US Code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime? | US Attorney General |
| Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application? | A good health statement |
| What is the purpose of the medical information bureau | to help underwriters evaluate risk |
| what is the primary reason for buying an annuity | to provide a future economic security |
| Kathy's annuity is currently experiencing tax deferred growth until she retires. Which phase is this annuity in? | Accumulation period |
| If the annuitant dies before the annuity start date | the premium paid plus interest will be earned and given to the beneficiary |
| An example of a tax qualified retirement plan would be an | defined contribution plan |
| Under a traditional IRA, interest earned is taxed | upon distribution |
| The commissioner may | establish continuing education requirements |
| Replacement regulation is designed to protect | policy owners from misrepresentations and loss of benefits. |
| Nina just passed her New Jersey insurance licensing examination. She is required to apply for a producers license within ____ months | 12 |
| Which of the following would be considered an unfair claim practice | misrepresenting insurance policy provisions affecting a loss |
| what content is approved by the insurance commissioner or contains content approved by the commissioner | A buyer's guide |
| after advertisements are last used insurers are required to keep copies of the ad on file for how many years | 5 years |
| The new jersey life and health insurance guaranty association is | funded by assessments on member companies |
| An insurance consultant is best defined as | a producer who charges fees for advice |
| The guaranty association act provides that when a court order of liquidation exists, the insurer | is insolvent. |
| A document providing basic information about life insurance policies, in general, is called a | buyer guide |
| Which of the following are retained at the expense of an insurance buyer to give on insurance needed by the buyer | brokers and consultants |
| An insurance broker is someone who represents which of the following | 5 years |
| The new jersey life and health insurance guaranty association is | funded by assessments on member companies |
| An insurance consultant is best defined as | a producer who charges fees for advice |
| The guaranty association act provides that when a court order of liquidation exists, the insurer | is insolvent. |
| Which of the following are retained at the expense of an insurance buyer to give on insurance needed by the buyer | brokers and consultants |
| An insurance broker is someone who represents which of the following | An insurance broker is someone who represents which of the following |
| Which of the following may be used as continuing education credit | completing a CLU designing course |
| During the solicitation of a life policy, when must an insurer furnish a prospective buyer with a buyer's guide and a policy summary | Prior to, or at the time of the policy delivery. |
| An agent is an | licensed producer who has a written contract to represent an insurer |
| An ______ insurance company is one that was formed under the laws of a state other than New jersey | foreign |
| In order to be eligible for a non resident producer license an individual must do which of the following | hold a comparable license in another state |
| Each of the following about Branch offices is true to expect | the office must be open 9-5 5 days a week. |
| Advertising regulations exist in order to | demonstrate full and truthful disclosures to the public |
| Twisting is | an unfair trade practice |
| Which of the following is an example of defamation | using derogatory statements about an insurance company financial condition |
| She may reinstate her policy within | 3 years |
| Who would make the final determination on whether or not an insurance advertisement is misleading | banking and insurance commissioner |
| The amount of credit life insurance may at no time | be greater than the amount of debt |
| Someone who sells solicits or negotiates insurance contracts for compensation on behalf of an insurer is called | an insurance producer |
| The purpose of the life and health insurance guaranty association is to | ensure that claims filed against insolvent insurance companies will be paid |
| An insurance company may only pay a sales commission to | individuals license by the state |
| the licensee shall advise the department of banking and insurance of the closing of a branch office within how many days | 30 days in writing |
| which of the following designation is regulated by the department of banking and insurance | certified insurance counselor. |
| when replacing group insurance the replacing policy must cover ongoing claims from the former policies under which of the following | no loss no gain |
| insurers are required to keep copies of policy summaries and buyer guide on file for at least | three years after the doc is used. |
| which of the following is not a duty of the commissioner | establish insurer rates |
| an example of an unfair method of competition is | overstating the benefits of an insurance policy |
| Which of the following is true concerning the proceeds of a life insurance policy | there is a protection of proceeds against the insured and the beneficiary's creditors |
| The insurance commissioner may revoke a producer license for | engaging primarily in controlled business sales |
| What is an insurer required to do when faced with an error made under the Misstatement of Age provision? | Pay age-corrected benefits |
| What will the beneficiary receive if an annuitant dies during the accumulation period | the greater of the accumulated cash value or the total premium paid |
| In the advertising of individual life and insurance policies | 3 months |
| Which policy feature makes a universal life policy different from a whole life policy? | a flexible premium schedule |
| In which of the following relationships would there NOT be an insurable interest? | Business owner to a business customer |
| All of these statements concerning whole life insurance are false EXCEPT | When a whole life policy is surrendered, income taxes may be owed |
| an agent is required to keep replacement forms on file for at least | 5 years |
| in advertisements of life insurance and annuities, all of the following are true except | advertisements must include training materials provided to the producer. |
| What is an insurance policy grace period | period of time after the premium is due but the policy remains in force. |
| The commissioner must approve | continuing education courses |
| The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement | insurable interest can be based on the love and affection of individuals related by blood or law. |
| Which of the following are the premium payments for a universal life policy not used for? | separate account investments |
| Which of the following is true concerning the proceeds of a life insurance policy? | there is protections of proceeds against the insured creditors |
| An example of rebating would be | a producer who shares commissions with a client |
| which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death? | Human life value |
| a life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situation expect | fare-paying passenger |
| shirley has a $500,000 10-year non-renewable level term life policy. if she dies 15 years after the policy's inception date, how much will her beneficiary recieve? | nothing |
| which of the following actions is required by an agent who is replacing an existing life insurance policy? | submit to the replacing insurer a list of the policies to be replaced |
| Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary? | interest only |
| Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? | contingent beneficiary |
| how many months can a life insurance policy normally be backdated from the date of application? | 6 months |
| An error was made on Mary's life insurance application. Which of the following areas are errors commonly made on applications for which the incontestable clause does NOT apply? | Age |
| An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called | partial surrender |
| which type of life insurance is normally associated with a payor benefit rider? | juvenile insurance |
| The department of banking and insurance can make information pertaining to a producer license available through | certificate of license status report. |
| 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 dead benefit if the insured becomes terminally ill |
| The fair credit and reporting act main purpose is to | protect consumers with guidelines regarding credit reporting and distribution |
| What is the automatic continuance of insurance coverage referred to as? | renewal |
| In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST | provide evidence of insurability to the insurer |
| when does a life insurance policy typically become effective? | when initial premium is collected and policy is issued |
| A branch office registration form is required to be filed at least _______ days before selling insurance of that branch | 30 |
| A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called an | nonforfeiture provision |
| When a decreasing term policy is purchased, it contains a decreasing death benefit and | level premiums |
| which of these is not considered to be a purpose of an annuity? | annuities are intended to create an estate |
| How are survivorship life insurance policies helpful in estate planning? | provide funds to help pay taxes |
| Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? | Universal life, a form of permanent life insurance provides policyholders with flexibility on paying premiums, a cash savings component, and a death benefit. |
| which of these is not subject to income taxation under a modified endowment contract (MEC)? | Death Benefit |
| An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made? | refund annuity |
| Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called | annuity certain |
| Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? | universal life policy |
| ABC insurance company transfers part of their risk to XYZ insurance company. The situation is called | reinsurance |
| which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? | pre-death distributions are typically taxable |
| Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this? | equity index whole life |
| 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 of the following is not part of an insurance contract? | certificate of authority |
| An annuity is primarily used to provide? | retirement income |
| All of these are settlement options for life insurance policies EXCEPT | extended term |
| carmen individual life insurance policy has recent lapsed. she may reinstate her policy within ____ year(s) | 3 |
| which of the following designations is regulated by the department of banking and insurance | certified insurance counselor |
| the coverage, conditions, and limitations in the master policy of a group contract can be found in which document? | certificate of coverage and benefits |
| which of these factors helped determine an insured's life insurance premium? | avocation (hobby) |
| An annuitant is guaranteed to NOT outlive their benefits with a(n) | Guaranteed lifetime withdrawal benefit |
| When new Life Insurance is to be purchased, the solicitation will be considered a replacement transaction if, in conjunction with the sale, existing Life Insurance will be subject to borrowing for amounts exceeding which of the following? | 25% of the policy's loan value |
| Converting a group plan to permanent life insurance requires | the conversion being applied for within 31 days of termination |
| which policy feature makes a universal life policy different from a whole life policy | a flexible premium schedule |
| A buyer's Guide and policy summary | must be delivered with or prior to policy delivery |
| which of the following protects a policyowner from a misrepresentation caused by an innocent mistake? | incontestable clause |
| the conversion privilege under a group life plan allows an employee to convert to an | individual plan upon employment termination |
| the license shall advise the department of banking and insurance of the closing of a branch office within how many days? | 30 days in writing |
| when replacement of individual life insurance is involved, an agent must furnish a notice regarding replacement of life insurance to which of the following? | the applicant only |
| the commissioner of insurance may take which of the following actions when a producer has engaged in an unfair trade practice? | issue a cease and desist order |
| which of the following would disqualify company's retirement plan from receiving favorable tax treatment? | it is temporary |
| the suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid | minus indebtedness and without interest |
| the amount of credit life insurance may at no time | be greater than the amount of debt |
| a life insurance policy that is subject to a contact interest rate is referred to as | universal life |
| All of the following statements are correctly describe the purpose of social security except | it provides a source of income for a meaningful standard of living during retirement |
| How soon can the benefit payments begin with a deferred annuity? | a minimum of 12 months after date of purchase |
| Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true? | the face amount and premium will remain constant over the 10-year period |
| an individual most likely will have an insurable interest in insuring a person's life if | an economic interest exists for the continuance of the insured's life |
| Ownership of a life insurance policy may be temporarily transferred with a(n) | collateral assignment |
| which of the following sells reinsurance? | The assuming insurer |
| Which of these ensures that proceeds of a life insurance policy will be free from attachment or seizure by the beneficiary's creditors? | spendthrift clause |
| An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if | the insured outlived the beneficiary |
| which type of rider will waive the premium on a child's life insurance policy if the parent paying premium dies? | payor benefit |
| what happens to the total amount of premium paid for an insurance policy when the payment frequency increases? | inscreases |
| which of the following policies does not build cash value? | term |
| Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended term insurance option. when the term insurance expires | the protection ends |
| which situation accurately describes a reduced paid-up nonforfeiture option? | policy has a decreased face amount |
| An applicant's character and personal habits can be obtained for underwriting purposes from which source? | investigative consumer report |
| Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? | life income |
| the two major actions required for a policyholder to comply with the reinstatement clause are | provide evidence of insurability, pay past due premiums |
| a renewable term life insurance policy allows the policyowner the right to renew the policy | without producing proof of insurability |
| what is the primary feature of a viatical settlement? | reduced death benefit prepayment |
| Which type of beneficiary should be named if the insured wants to give explicit directions on how the policy proceeds should be paid? | individual |
| an insurance producer is often responsible for field underwriting during the application process. all of these are possible field underwriting roles expect | providing commission information to the applicant |
| what is involved when a life insurance policy has been backdated? | making the policy effective on an earlier date than the present |
| a guaranteed issue insurance policy has no | medical underwriting |
| fraternal benefits society has each of the following characteristics except | exist for profit |
| 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 |
| Donald is the primary insured of a life insurance policy and adds a children's term rider. what is the advantage of adding this rider? | can be converted to permanent coverage without evidence of insurability |
| which of these statements concerning traditional IRAs is correct? | earrings are taxable when withdrawn |
| What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? | participating life insurance policy |
| Level premium permanent insurance accumulates a reserve that will eventually | equal the face amount of the policy |
| All of these are characteristics of a universal Life policy EXCEPT | fixed surrender value |
| what happens when an insurance policy is backdate? | the policy's effective date is earlier than the present |
| A renewable term life insurance policy can be renewed | at a predetermined date or age |
| all of the following are characteristics of a group life insurance plan expect | individual underwriting |
| Naming a contingent beneficiary as "all surviving children" is described by which term? | Class designation |
| ABC life insurance company's home office is located in Massachusetts and is incorporated in Massachusetts. in New Jersey they are considered to be | Foreign |
| Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds | will no longer provide insurance protection |
| which of these premium payment frequencies is not typically available to a policyowner? | Bi-weekly |
| a limited payment whole life policy provides | lifetime protection |
| an applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of | fraud |
| Which of these annuities require premium payments that vary from year to year? | flexible premium deferred annuity |
| the statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is | the shorter the payment period, the higher the premium |
| a type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called an? | association or labor group |
| a life insurance policy written on one contract for two people in which it is payable upon the first death is called | joint |
| A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? | no federal income tax is owed on a life insurance proceeds |
| which of the following is considered to be an alternative to a life settlement? | Accelerated death benefit rider |
| which of the following employers is required to follow ERISA regulations? | A local electrical supply company with 12 employees |
| the commissioner issues a subpoena to a producer. the producer decides not to respond. which course of action must be taken by the commissioner? | commissioner may impose an administrative penalty |
| which of the following must contain a statement of policy cost and benefit information? | policy summary |
| in regards to a life insurance contract, which of the following statements is not true regarding the concept of insurable interest? | insurable interest can be established sufficiently by sentimental attachment alone. |
| Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is true? | Net death benefit will be reduced if the loan is not repaid |
| which of these is affected by the frequency of an insurance policy's premium payments? | cost |
| Statements made by an insurance applicant on an application are considered to be | representations |
| who assumes the investment risk with a fixed annuity contract? | the insurer |
| Applicants for surplus lines authority must fulfill all of the following requirements except? | hold a bound as a condition for licensure |
| When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount? | equal to the original policy for as long as the cash values will purchase |
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