NJ Life Insurance Study Set Questions with Correct Answers
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NJ Life Insurance
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NJ Life Insurance
NJ Life Insurance Study Set Questions with Correct Answers
What waiver waives all future premiums in the event of total and permanent disability? - Answer-Waiver of premium
Which rider guarantees that at specified ages, dates, or events, the insured may buy additional insurance without a med ex...
NJ Life Insurance Study Set Questions
with Correct Answers
What waiver waives all future premiums in the event of total and permanent disability? -
Answer-Waiver of premium
Which rider guarantees that at specified ages, dates, or events, the insured may buy
additional insurance without a med exam? - Answer-Guaranteed insurability
Annuity Premium Determination Factors - Answer-1. Age
2. Sex
3. Assumed interest rate
4. Income amount & payment guarantee
5. Loading for company expenses
Life annuity - no refund (straight life) - Answer-payout guaranteed for life. Highest
payout available because one risks losing all their investment if they die early
Refund Life Annuity - Answer-Will pay the annuitant for life, but if she dies too soon,
there will be a refund of any undistributed principal or cost of the annuity. Can be paid in
a lump or installments.
Life Annuity Certain - Answer-Does not guarantee lifetime income but provides for a
guaranteed period regardless of whether the annuitant is alive or not. If the annuitant
outlives the guaranteed period, payments increase. If annuitant dies, payments continue
to survivor until guaranteed period is over.
Joint Life and Survivorship Annuity - Answer-Provides benefits for the life of the
annuitant and the life of the survivor. A stated monthly income is paid to annuitant and
upon annuitants death, the same or a lesser amount will be paid to survivor for
remainder of life.
Join Life annuity - Answer-Covers 2+ people. Only provides monthly income until the
first annuitant dies. Once they pass, all income stops.
Which type of annuity is most likely to provide death benefits? - Answer-Deferred
annuity
Is an annuitants retirement date used to determine annuity premiums? - Answer-No
An annuity might be called the flip side of - Answer-Life insurance
What time of annuity is most likely to be used to distribute lottery winnings? - Answer-
Single premium, temporary annuity with amount certain
, All states define a true group as having at least ____ people covered under one master
contract - Answer-10
T or F? A group may be formed for the specific purpose of providing insurance
coverage for it's members? - Answer-False! May NOT be formed.
Legally insurable groups include - Answer--Single-employer groups
- Labor unions
- Trade associations
- Creditor and debtor groups
- Fraternal organizations
Noncontributory insurance - Answer-Employer pays entire premium
Contributory - Answer-Employer pays part of the premium. At least 75% of employees
must be covered
If you are covered under group insurance, you will receive a - Answer-certificate of
insurance
Doris dies 15 days after her group coverage is terminated and before she has a chance
to convert her policy to permanent coverage. Doris's bene will receive - Answer-The full
benefit under the group policy
Temporary Insurance Agreement - Answer-Provides the applicant with immediate life
insurance whether or not the individual is found to be insurable, while the underwriting
process is taking place. Insurer may cancel policy if it does not meet underwriting
requirements, but the insurer is still requires to pay claims filed while the temp insurance
is in place.
Policy Summary - Answer-Shows the specific product being presented for sale.
Identifies the agent, insurer, policy, and each rider. Also includes info on premiums,
dividends, benefit amounts, cash surrender, loan interest rates, and life insurance cost
indexes.
Buyers Guide - Answer-General publication that explains life insurance in a way the
average consumer can understand. Must be delivered by the agent before accepting
the initial premium. Does not address specific product or policy.
Payment Less Than Face Amount - Answer-Occurs when there is an outstanding loan,
premium is due, or if there was an error of the insured's age on the application.
Replacement of Ins disadvantages - Answer-1. Req's applicant to prove insurability
2. May have higher premiums
3. Ne policy provisions
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