insurance Word Scramble

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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

Created by: adelinas18