NJ Life Producer Exam Correct answers latest update

NJ Life Producer Exam Correct answers latest update Under a Traditional IRA, interest earned is taxed upon distribution Which of these statements regarding the annuitants is CORRECT? The annuitant's life expectancy determines the annuity payment What will the beneficiary receive is annuitant dies during the accumulation period? The greater the accumulated cash value or the total premium paid Which of the following actions is REQUIRED by an agent who is replacing an existing life insurance policy? Submit to to the replacing insurer a list of the policies to be replaced All pre-licensing course completion certificate are valid for a period of ? 2 years A partial surrender is allowed in which of the following life policies? Universal life What happens to interest earned if the annuitant dies before the payout start date? It is taxable How are annuities given favorable tax treatment? gains are taxed at distribution Fixed period settlement options are considered to be a form of a(n) annuity Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt's beneficiary if Matt dies instantly from a car accident A modified insurance contract which accumulates cash values higher than the IRS will allow A life insurance contract which accumulates cash values higher than the IRS will allow A(n) _____ insurance company is one that was formed under the laws of a state other than New Jersey. Foreign An example of a tax-qualified retirement plan would be a(n) defined contribution plan How soon can the benefit payments begin with a deferred annuity? a minimum of 12 months after date of purchase A securities license is required for a life insurance producer to sell Variable Life Insurance A whole life insurance policy accumulates cash value that becomes the policy loan value which the insured may borrow against The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Certificate of coverage and benefits Which of the following policies does NOT build cash value? term When the word "insurance" appears in a producer's business name, which of the following words cannot be approved? company An example of an unfair method of competition is overstating the benefits of an insurance company Under a Modified Endowment Contract, what are the likely tax consequences? Pre-death distributions will become taxable When a decreasing term policy is purchased, it contains a decreasing death benefit and level premiums An immediate annuity has been purchased with a single premium. When does the annuitant typically begin receiving benefit payments? 1 month Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? Human Life Value Approach ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation is called reinsurance Which of the following would be considered an underwriting Completing all applications and collecting initial premiums A renewable Term Life insurance policy allows the policyowner the right to renew the policy Without proof of insurability What is an insurer required to do when faced with an error made under the Misstatement of Age provision? Pay age-corrected benefits Maria would like an annuity that provides a guaranteed accumulation or payout. The type of annuity she is seeking is called annuity certain Which type of life insurance offers flexible premiums, flexible death benefit, and the choice of how the cash value will be invested? Variable Universal Life Which of the following is NOT a federal requirement of a qualified plan? Employee must be able to make unlimited contributions Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? Endowment policy Which of these will have the highest monthly payout upon annuitization? Straight life All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT National Association of Insurance Underwriters Replacement regulation is designed to protect the interests of policyowner Who were Keogh plans designed to provide pension benefits for? The self-employed Johan the producer charged a fee to a sales prospect for analyzing insurance coverages. According to New Jersey law, as reasonable relationship must exist between the fee and the substance of the services performed When does a life insurance policy typically become effective? when the completed application is signed and initial premium is collected Which of these is considered to be a document that describes the critical segments of a life insurance policy? Policy summary