NJ Accident and Health Producer Exam Review Questions And All Correct Answers.
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Course
NJ Title Producer
Institution
NJ Title Producer
Life income joint and survivor settlement option guarantees... - Answer Income for 2 or more recipents
A participating insurance policy may do which of the following:... - Answer Pay dividends to the policy owner
What is TRUE about the cash surrender nonforfeiture option? - Answer Fu...
NJ Accident and Health Producer Exam
Review Questions And All Correct
Answers.
Life income joint and survivor settlement option guarantees... - Answer Income for 2 or more recipents
A participating insurance policy may do which of the following:... - Answer Pay dividends to the policy
owner
What is TRUE about the cash surrender nonforfeiture option? - Answer Funds exceeding the premiums
paid are taxable as ordinary income
Participating Insurance policy will... - 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?... - Answer Telling a client that his first premium will be waived if he purchased the insurance
policy.
Rebating is defined as... - 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 - Answer Authorized Insurer
Who is considered authorized or admitted? - 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? - Answer Variable whole life has a guaranteed death benefits
,Which statement about dividends in incorrect?.. - Answer Dividends amounts are guaranteed in the
policy
T or F: Dividends cannot be guaranteed - 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? - 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? -
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? - Answer 30 days
Which of the following statements about a life insurance policy would be allowed in an Insurance
advertisement?.. - 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? - Answer Cost of Living Rider
Cost of Living Rider - 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? - Answer Admitted
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT - 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... - Answer
The policy will terminate when the cash value is reduced to nothing
, The two types of assignments are... - 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? - Answer 0 days
absolute assigns..... - Answer the entire policy
collateral assigns... - Answer a part or all of the benefits
What is a material misrepresentation? - 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... - Answer With the policy
What is reinsurance? - Answer An agreement between a ceding insurer and assuming insurer
Within life insurance settlement option guarantees payments got the lifetime of the recipient, but also
specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a
designed beneficiary? - Answer Life Income with period certain
Using names or titles that have tendency to misrepresent the true nature of a policy is an example of
what illegal practice? - Answer False Advertising
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is
called..... - Answer Joint and Survivor
An insurer is closing a branch office in the state. Within how many days of the office closing must the
insurer notify the Department? - Answer 30 days
Which of the following is an eligibility requirement for all Social Security Disability Income benefits? -
Answer Have attained fully insured status
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