NJ Life Insurance Practice Test Questions and Answers
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Course
NJ Life Insurance
Institution
NJ Life Insurance
NJ Life Insurance Practice Test Questions and Answers
Grace Period - Answer-When the cash value account of a universal life policy reaches zero and the policy owner doesn't make a premium payment
Cash values at age 65 when converting a term policy to a whole life policy at attained age - Answer...
NJ Life Insurance Practice Test
Questions and Answers
Grace Period - Answer-When the cash value account of a universal life policy reaches
zero and the policy owner doesn't make a premium payment
Cash values at age 65 when converting a term policy to a whole life policy at attained
age - Answer-Lower than if ordinary life had been purchases at original age
Deferred annuity pays a death benefit to beneficiary - Answer-when the annuitant dies
before receiving any annuity payments
TSAs are tax-sheltered retirement programs for employees of all the following kinds of
organizations - Answer-Charitable
Educational
Religious
Flexible premium annuity - Answer-provides for flexible premium payment amount
Whole Life Insurance - Answer-the cash value is greatest at the end of the policy period
The insurance protection is greatest at the start of the policy
Variable Universal Life premiums - Answer-can vary in amount as well as payment
schedule
Agents selling variable life insurance - Answer-Need a life license and be registered
with FINRA
Factors used to determine annuity premiums - Answer-An assumed interest rate
Annuitant's age
Income and payment gurantee
Refund Life Annuity - Answer-When annuity holder dies before he is paid amount at
least equal to the purchase price, a beneficiary continues to receive annuity payments
until the face amount is reached.
Deferred Fixed Annuity - Answer-Guaranteed growth rate and will pay a specified
monthly income beginning at a certain age in future.
, When a policy is lapsed, it can be reinstated provided insured shows proof if - Answer-
all back premiums due plus back interest have been repaid
Less than 3 years have gone by
Irrevocable beneficiary of a policy proceed - Answer-Holder can borrow against the
policy's cash values but only with beneficiary's permission
Payor Rider - Answer-Used to keep juvenile insurance policy in force
Common Disaster Provision - Answer-to provide a sequence of beneficiaries for the
distribution of proceeds in the event of the simultaneous death of both the insured and
the primary beneficiary
Assume the holder of the policy survived longer so money goes to kids instead of
beneficiary's estate
Primary beneficiary dies first
Do not assume it has 2 month policy
Do not call list - Answer-Federal trade commission and Federal Communications
Commission created this to allow consumers to join it if they do not want to be reached.
When a policy has been in force for over two years - Answer-the company can void the
policy for non-payment of premium
Accidental death benefit - Answer-Most companies require the insured die within 90
days of the accident
Life insurance is the most practical means of meeting obligations arising from a
premature death because... - Answer-it creates an immediate estate
Cash value of a life insurance policy - Answer-can be used for loans or later as
retirement income
Money taken out of a Modified Endowment Contract - Answer-May be subject to
unfavorable tax rules
Limited Pay Life Policy - Answer-A life insurance policy that continues to provide
protection after the premium period ended
Convertible Term Policy - Answer-Type of policy that can be changed from one that
does not accumulate cash values to one that does
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