Guarantee ExamFX Life Questions With Complete Solutions

Dividends received on participating life insurance policies are correct answer: ? Which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs? correct answer: Applicants who may require a larger death benefit in the future should buy convertible term insurance An insurance officer, a producer, and a hospital administrator are found to have conspired to defraud policyholders, in violation of the New Jersey Insurance Fraud Act. What is the penalty for the first offense? correct answer: No more than $5000 In which of the following scenarios would a producer be allowed to obtain insurance through an unauthorized insurer? correct answer: If the producer had no knowledge that the company is unathorized An agent tells an insured that if he replaces his current insurance policy with a new one, his dividends will be higher and his premiums will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentation is being committed? correct answer: Twisting Which dividend option will increase the death benefit? correct answer: paid-up additions What would the insurance company do if an insured under a whole life policy with an accidental death rider intentionally kills himself a couple of months after purchasing the policy? correct answer: Deny the death benefit, but refund the premium When an insured terminates membership in the insured group, the insured can convert to correct answer: whole life without proof of insurability an insurer must notify the consumer in writing that an investigative report has been requested, within how many days of the initial request? correct answer: 3 days When one insurer buys insurance from another company to minimize effects of catastrophic losses, they are correct answer: reinsuring There is a particular type of insurance that no insurer in New Jersey offers. In order for New Jersey residents to obtain this insurance, they will need to be covered by correct answer: A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will correct answer: con