NEW JERSEY LIFE INSURANCE EXAM EXAM QUESTIONS

PDF Download

NEW JERSEY LIFE INSURANCE EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -48 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: certificate of authority

Answer:

the ability to transact insurance business in New Jersey is garunteed to an insurer

Question 2: Insure

Answer:

A licensed producer acting as an agent in the state of New Jersey Question 3: Statements on insurance application that are excepted as true and accurate to the best of the applicants believe

Answer:

• types of death benefits

Question 4: Variable Universal Life

Answer:

requires FINRA license

Question 5: And unfair trading practice

Answer:

Result in find $1000 per violation

Question 6: accelerated living benefit

Answer:

pays out death benefit while alive due to illness live threatning reason

Question 7: Differed compensation plans

Answer:

an example of a non qualified retirement plan

Question 8: comparable License

Answer:

to be elegeble for a nonresident producer license the producer must hold compairable license in home state

Question 9: provisions of universal life policy

Answer:

• it has a flexible premium
• it permits the policy owner to select from 2 death benefit options
• the policy's face amount may be incresed or decresed

Question 10: A type of policy in which cash value increases or decreases daily depending upon investment results with no guarantee to the amount of the cash

Answer:

Representation

Question 11: " Life"

Answer:

Until you're 100

Question 12: Fair credit report act

Answer:

the federal law that permits applicants for insurance to question the validity and source of any credit info

Question 13: Hazard

Answer:

cause of loss

Question 14: Has compairable lisence

Reciprocity Good moral character Lisence in good standing

Answer:

What happens if insured dies during grace period

Question 15: Federal tax treatment of life insurance benefit

Answer:

Life insurance benefits are not taxable Dividends paid by mutual company to policy owners are not taxable Policy loans are not taxable

Question 16: Insuring clause

Answer:

Policy provisions States a companies promise to pay benefits

Question 17: Policy summary

Answer:

(specific) The statement of policy cost and benefits

Question 18: uniform simultaneous death act

Answer:

under the common disaster clause if it can't be determined who died first it is assumed the beneficiary

Question 19: the difference between insure vs. insured

Answer:

Insure (must pay policy benefit "the company") insured (the customer)

Question 20: Mutual insurance company in New Jersey

Answer:

It allows policyholders to share profits in the form of dividends

Question 21: conditional receipt

Answer:

serves as proof that the agent confirmed the insurance company will fully insure the applicant

Question 22: McCarran Ferguson

Answer:

Nonresident Producer

Question 23: Accidental deaths

Answer:

Must die within 90 days death benefits could double within the 90 days Question 24: What happens if an insured with a whole life policy and a waiver of premium rider suffers a disability

Answer:

There will be no change in policy rates benefits or options other than premiums will no longer have to be paid

Question 25: Defamation

Answer:

A producer who makes false statement that harm the reputation of another insurance company is guilty of defamation

Question 26: The application

Answer:

The main source of underwriting information for the insurer

Question 27: aleatory contract

Answer:

(uneven) You will never pay as much in premium as what you get in coverage

Question 28: who must sign application of insurance

Answer:

Owner, insured, and agent all three must sign