NJ ACCIDENT AND HEALTH PRODUCER EXAM 2024/2025
Life income joint and survivor settlement option guarantees... - Precise Answer Income for 2 or more recipents
A participating insurance policy may do which of the following:... - Precise Answer Pay dividends to the policy owner
What is TRUE...
Life income joint and survivor settlement option guarantees... - Precise
Answer ✔✔Income for 2 or more recipents
A participating insurance policy may do which of the following:... -
Precise Answer ✔✔Pay dividends to the policy owner
What is TRUE about the cash surrender nonforfeiture option? - Precise
Answer ✔✔Funds exceeding the premiums paid are taxable as ordinary
income
Participating Insurance policy will... - Precise Answer ✔✔pay dividends
to the owner based upon mortality cost, interest earned and cost
Which of the following is an example of a producer being involved in an
unfair trade practice of rebating?... - Precise Answer ✔✔Telling a client
that his first premium will be waived if he purchased the insurance
policy.
Rebating is defined as... - Precise Answer ✔✔Offering any inducement
in the sale of insurance products that is not specified in the policy,
including money, reductions in commissions, promises, and personal
services. Both offer and acceptance of a rebate are illegal
,An insurer that holds a Certificate of Authority in the state in which it
transacts business is considered a/an - Precise Answer ✔✔Authorized
Insurer
Who is considered authorized or admitted? - Precise Answer
✔✔Insurers who meet the state's financial requirements and hold a
Certificate of Authority to transact business in the state
Which of the following is a key distinction between variable whole life
and variable universal life products? - Precise Answer ✔✔Variable
whole life has a guaranteed death benefits
Which statement about dividends in incorrect?.. - Precise Answer
✔✔Dividends amounts are guaranteed in the policy
T or F: Dividends cannot be guaranteed - Precise Answer ✔✔True
An organizations licensed as a producer business entity based in New
York would like to transact insurance in New Jersey. Which of the
following is true? - Precise Answer ✔✔The organization will need to
obtain a nonresident business entity license and its producers will need
to obtain nonresident licenses
Misrepresenting an insurance policy as a share of stock is an example of
which of the following? - Precise Answer ✔✔False Advertising
,Within how many days of requesting an investigative consumer report
must an insurer notify the consumer in writing that the report will be
obtained? - Precise Answer ✔✔30 days
Which of the following statements about a life insurance policy would
be allowed in an Insurance advertisement?.. - Precise Answer ✔✔Term
Life insurance policy
A long stretch of national economic hardship causes a 7% rate of
inflation. A policyowner notices that the face value of her life insurance
policy has been raised 7% as a result. Which policy rider causes this
change? - Precise Answer ✔✔Cost of Living Rider
Cost of Living Rider - Precise Answer ✔✔Allows the policy face
amount to be adjusted to account for inflation based on the consumer
price index.
Which of the following is another term for an authorized insurer? -
Precise Answer ✔✔Admitted
All of the following are TRUE of the federal tax advantages of a
qualified plan EXCEPT - Precise Answer ✔✔At distribution all
amounts received by the employees are tax free
, If an insured continually uses the automatic premium loan option to pay
the policy premium... - Precise Answer ✔✔The policy will terminate
when the cash value is reduced to nothing
The two types of assignments are... - Precise Answer ✔✔absolute and
collateral
By how many days does the discontinuance of a group insurance policy
reduce the time limit for providing notice of claim or proof of loss? -
Precise Answer ✔✔0 days
collateral assigns... - Precise Answer ✔✔a part or all of the benefits
What is a material misrepresentation? - Precise Answer ✔✔A statement
by the applicant that, upon discovery, would affect the underwriting
decision of the insurance company
If a policy includes a free-look period of at least 10 days, the Buyer's
Guide may be delivered to the applicant no later than... - Precise Answer
✔✔With the policy
What is reinsurance? - Precise Answer ✔✔An agreement between a
ceding insurer and assuming insurer
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