Which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs?
Applicants who may require a larger death benefit in the future should buy convertible term insurance
An insurance officer, a producer, and a hospital administrator are found to have conspired to defraud policyholders, in violation of the New Jersey Insurance Fraud Act. What is the penalty for the first offense?
No more than $5000
In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer?
If the producer had no knowledge that the company is unathorized
An agent tells an insured that if he replaces his current insurance policy with a new one, his dividends will be higher and his premiums will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentatio
Twisting
Which dividend option will increase the death benefit?
paid-up additions
What would the insurance company do if an insured under a whole life policy with an accidental death rider intentionally kills himself a couple of months after purchasing the policy?
Deny the death benefit, but refund the premium
When an insured terminates membership in the insured group, the insured can convert to
whole life without proof of insurability
an insurer must notify the consumer in writing that an investigative report has been requested, within how many days of the initial request?
3 days
When one insurer buys insurance from another company to minimize effects of catastrophic losses, they are
reinsuring
There is a particular type of insurance that no insurer in New Jersey offers. In order for New Jersey residents to obtain this insurance, they will need to be covered by
...
A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will
continue to increase
Which of the following would be TRUE of both the fixed-period and fixed-amount settlement options?
Both guarantee that the principal and interest will be fully paid out
An insurance producer dies, and his wife takes over his business temporarily through an agreement with another producer. What is the maximum time she can do this?
180 days
In which of the following scenarios will the life insurance be protected from the creditors?
...
All of the folllowing are required for HIV testing EXCEPT
if HIV is present, the person may be rated, but they cannot be declined
All of the following are abilities of the New Jersey Life and Health Guaranty Association in the event of insurer insolvency EXCEPT
...
An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?
10%
Among people in the same class and life expectancy, which of the following factors can be used to influence premium rates?
Occupation
When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?
paid-up additions
which of the following entities is considered the principal?
The insurer issuing a policy
The provision that Sets forth the basic agreement between the insurer and the insured. It states the insurers promise to pay the death benefit upon the insured's death is called
Insuring clause
the policyowner has an option to pledge the life insurance policy as collateral for a bank loan
a collateral assignment
which of the following policies would not offer a policy loan option
Term life
cash value guarantees in a whole life policy are called
nonforfeiture values
All of the following are true of credit life EXCEPT
the insured names the beneficiary
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy is issued with a reduction in cash value
With Adjustable Life, the owner can change all of the following EXCEPT
the insured
J is receiving fixed amount benefit payments from his late wife's insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?
Fixed amount
All of the following are true of annually renewable term insurance EXCEPT
Proof of insurability must be provided at each renewal
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
Which of the following riders pays a Beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy?
An accidental death rider
Which of the following acts stated that the federal government would not regulate insurance as long as the state did an adequate job of regulating the industry?
McCarran-Ferguson Act
In credit life insurance, who is responsible for paying the policy premiums?
borrower only
In a replacement situation, all of the following are prohibited practices EXCRPT
Borrowing 50% of a policy's cash value to fund a new life insurance contract
Dan and Chris buy a life insurance policy on Dan's life to provide for their teenage son Jake, who is listed as the beneficiary. Two years later, Dan is killed in a car accident. Who would collect the death benefit?
Jake
Decreasing Term insurance is often used to
Cover a mortgage
If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?
Never, the insurer has waived its right to those answers by issuing the policy
In which of the following scenarios would a producer be allowed to obtain insurance through an authorized insurer?
If there are no authorized insurers for a specific type of coverage in this state
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
If an applicant is declined for an insurance policy, he or she has no right to know what was in the report