NJ Life Insurance Exam Correctly Answered 2023.

NJ Life Insurance Exam Correctly Answered 2023.Adverse Selection - ANSWER insuring of risks that are more prone to losses than the average risk lapse - ANSWER policy termination due to nonpayment of premium Insurance - ANSWER transfers risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals Life Insurance - ANSWER protects against loss associated with an insured's death, and pays a death benefit to beneficiaries upon death of the insured solicitation of Insurance - ANSWER an attempt to persuade a person to buy an insurance policy Buyers Guide - ANSWER provides basic, generic information about life insurance policies that contains language approved by the Department of Insurance - Explains how a buyer should go about choosing the amount and type of insurance to buy - Explains how a buyer can save money comparing the costs of familiar policies Policy Summary - ANSWER a written statement describing the features and elements of the policy being issued Must provide: - name and address of agent - full name and home office or administrative office of the insurer - generic name of the basic policy - each rider Illustrations - ANSWER a presentation or depiction that includes non guaranteed elements of a policy of individual or group life insurance over a period of years Life Insurance Illustration - ANSWER Distinguish between guaranteed and projected amounts - clearly state that an illustration is not a party of the contract - identify those values that are not guaranteed as such Field Underwriter - ANSWER An insurance agent who conducts an initial policy solicitation and application. (The company's front line of underwriting) Application - ANSWER starting point and basic source of information used by the company in the risk selection process Application Part 1- General Info - ANSWER includes general questions about the applicant such as name, address, age, birth date, gender, income, marital status, and occupation - inquires about the existing policies and if the proposed insurance will replace them Application Part 2- Medical Info - ANSWER includes information on the prospective insureds medical background, present health, any medical visits in recent years, medical status of living relatives and causes of death of deceased relatives Non-Medical Appplication - ANSWER if the amount of insurance is relatively small, the agent and the proposed insured will complete all of the medical information