NJ LIFE AND HEALTH INSURANCE TEST

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NJ LIFE AND HEALTH INSURANCE TEST

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -67 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: What is a renewable provision?

Answer:

The renewable provision allows the policy owner the right to renew the coverage at the expiration date without evidence of insurability.

Question 2: what does pure death protection do?

Answer:

• If the the insured dies during the this term, the policy pays the death benefit to the beneficiary.

• If the policy is canceled or expires prior to the insured's death, nothing is payable at the end of the

term 3.There is no cash value or other living benefits.

Question 3: Application Part II-Medical Iformation

Answer:

Medical Information Includes information on the prospective insured's medical background, present health, any medical visits in recent years,medical status of living relatives...For relatively small amounts of insurance-->non medical application For larger amounts-->the insurer will usually require some sort of medical examination by a professional.

Question 4: Investigative Consumer Report (Inspection)

Answer:

General reports of the applicant's finances, character, work, hobbies, and habits that supplement the information of the application.Subject to rules an regulations outlined in Fair Credit Reporting Act.

Question 5: Warranty

Answer:

An absolutely true statement upon which the validity of the insurance policy depends.

Question 6: Insurer

Answer:

party who provides against losses. provides benefits or other services

Question 7: Consequences of Incomplete Applications

Answer:

If Incomplete before issued insurer must return it to the applicant for completion.If a policy is issued with questions left unanswered, the contract will be interpreted as if the insurer waived its right to have an answer to the question.

Question 8: Use and Disclosure of Insurance Informaltion

Answer:

Will state the insurer's practice regarding collection and use of personal information.Must be written in plain language and approved by the head of the Department of Insurance.

Question 9: Agent/Producer

Answer:

A person who acts for another person or entity with regard to contractual arrangements with third parties; a legal representative of an insurance company.The classification of producer usually includes agents and brokers; agents are the agents of the insurer.Insurer is the principal.

Question 10: Premium

Answer:

The money paid to the insurance company for the policy of insurance.

Question 11: What is a convertible Provision?

Answer:

The convertible provision provides the policy owner with the right to convert the policy to a permeant insurance policy without evidence of insurability.

Question 12: Increasing term

Answer:

features level premiums and a death benefit that increases each year over the duration of the policy term.Often uses by insurance companies to fund certain riders that provide a refund or premiums or a gradual increase in total coverage, such as the cost of living or return of premium riders.

Question 13: Death Benefit (Face amount/face value/ coverage)

Answer:

The amount paid when a claim is issued against a policy of insurance.

Question 14: Risk Classification (preferred)

Answer:

those individuals who meet certain requirements and quality fir lower premiums than the standard risk.These applicants have a superior physical condition, lifestyle, and habits.

Question 15: Life Insurance

Answer:

A coverage upon a person's life, and granting, purchasing or disposing of annuitirs

Question 16: Agent's Report (Underwriting)

Answer:

Allows the agent tot communicate with the underwriter and provide information about the applicant known by the agent that may assist in UNDWRT process.

Question 17: Illustrations

Answer:

Means a presentation or depiction that includes nonguaranteed elements of a policy of individual or group life insurance over a period of years.An agent may only use the illustrations of the insurer that have been approved, and may not change them in any way.

Question 18: Fair Credit Reporting Act

Answer:

Established procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used.

Question 19: Insurer ( principal )

Answer:

the company who issues a policy of insurance.

Question 20: Risk Classification (substandard)

Answer:

Applicants are not acceptable at standard rates because of physical condition, personal or family history of disease, occupation, or dangerous habits.These policies are also referred to as "rated because they could be issued with the premium rated-up resulting in a higher premium.

Question 21: Replacment

Answer:

A practice of terminating an existing policy or letting it lapse, and obtaining a new one.

Question 22: Buyer's Guide

Answer:

Provides basic, generic information about life insurance policies that contains, and is limited to, language approved by the Department of Insurance.Explains how a buyer should go about choosing the amount and type of insurance to buy, and how a buyer can save money by comparing the cots of similar policies.Insurers must provide a buyer's guide to all prospective policy applicants prior to accepting their initial premium.

Question 23: Premiums with the Application

Answer:

Agents attempt to collect the initial premium and submit to insurer. Collecting initial premium at the time of the application increases the chance that the applicant will accept the policy once issued.