NJ Life Insurance Study Questions with Correct Answers
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Course
NJ Life Insurance
Institution
NJ Life Insurance
NJ Life Insurance Study Questions with Correct Answers
Beneficiary - Answer-Person to whom the proceeds of a life or accident policy are payable when the insured dies. The various types of beneficiaries are primary beneficiaries (those first entitled to proceeds), secondary beneficiaries (those ...
NJ Life Insurance Study Questions
with Correct Answers
Beneficiary - Answer-Person to whom the proceeds of a life or accident policy are
payable when the insured dies. The various types of beneficiaries are primary
beneficiaries (those first entitled to proceeds), secondary beneficiaries (those entitled to
proceeds if no primary beneficiary is living when the insured dies), and tertiary
beneficiaries (those entitled to proceeds if no primary or secondary beneficiaries are
alive when the insured dies).
Benefit - Answer-May be either money or a right to the policy owner upon the happening
of the conditions set out in the policy. Benefit period: Maximum length of time that
insurance benefits will be paid for any one accident, illness, or hospital stay.
Best's Insurance Report - Answer-A guide, published by A.M. Best, Inc. that rates
insurers' financial integrity and managerial and operational strengths.
Binding receipt - Answer-Given by a company upon an applicant's first premium
payment. The policy, if approved, becomes effective from the date of the receipt.
Blackout period - Answer-Period following the death of a family breadwinner during
which no Social Security benefits are available to the surviving spouse.
Blanket policy - Answer-Covers a number of individuals who are exposed to the same
hazards, such as members of an athletic team, company officials who are passengers
in the same company plane, and so on.
Annuitant - Answer-One to whom an annuity is payable, or a person upon the
continuance of whose life further payment depends.
Annuity - Answer-A contract that provides a stipulated sum payable at certain regular
intervals during the lifetime of one or more persons, or payable for a specified period
only.
Annuity unit - Answer-The number of annuity units denotes the share of the funds an
annuitant will receive from a variable annuity account after the accumulation period
ends and benefits begin. A formula is used to convert accumulation units to annuity
units.
Any occupation - Answer-A definition of total disability that requires that for disability
income benefits to be payable, the insured must be unable to perform any job for which
the insured is "reasonably suited by reason of education, training, or experience."
, Apparent authority - Answer-The authority an agent appears to have, based on the
principal's (the insurer's) actions, words, deeds, or because of circumstances the
principal (the insurer) created.
Application - Answer-Form supplied by the insurance company, usually filled in by the
agent and medical examiner (if applicable) on the basis of information received from the
applicant. It is signed by the applicant and is part of the insurance policy if it is issued. It
gives information to the home office underwriting department, so it may consider
whether an insurance policy will be issued and, if so, in what classification and at what
premiumrate
Appointment - Answer-Authorization or certification of an agent to act for or represent
an insurance company.
Approval receipt - Answer-Rarely used today, a type of conditional receipt that provides
that coverage is effective as of the date the application is approved (before the policy is
delivered).
Assessment mutual insurer - Answer-An insurance company characterized by member-
insureds who are assessed an individual portion of each loss that occurs. No premium
payment is payable inadvance.
Assignee - Answer-Person (including corporation, partnership, or other organization) to
whom a right or rights under a policy are transferred by means of an assignment.
Assignment provision (health contracts) - Answer-Commercial health policy provision
that allows the policy owner to assign benefit payments from the insurer directly to the
health care provider.
Assignment - Answer-Signed transfer of benefits of a policy by an insured to another
party. The company does not guarantee the validity of an assignment.
Assignor - Answer-Person (including corporation, partnership, or other organization or
entity) who transfers a right or rights under an insurance policy to another by means of
an assignment.
Attained age - Answer-With reference to an insured, the current insurance age.
Authority - Answer-The actions and deeds an agent is authorized to conduct on behalf
of an insurance company, as specified in the agent's contract.
Authorized company - Answer-Company duly authorized by the insurance department
to operate in the state.
Absolute assignment - Answer-Policy assignment under which the assignee (person to
whom the policy is assigned) receives full control over the policy and also full rights to
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