NJ ACCIDENT AND HEALTH PRODUCER
Questions & Answers
1.Life income joint and survivor settlement option guarantees...
Answer Income for 2 or more recipents
2.A participating insurance policy may do which of the following...
Answer Pay divi- dends to the policy owner
3.What is TRUE about the cash surrender nonforfeiture option?
Answer Funds ex- ceeding the premiums paid are taxable as ordinary
income
4.Participating Insurance policy will...
Answer pay dividends to the owner based upon mortality cost, interest
earned and cost
5.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.
6.Rebating is defined as...
Answer Offering any inducement in the sale of insurance prod- ucts 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
7.An insurer that holds a Certificate of Authority in the state in which
it transacts business is considered a/an
Answer Authorized Insurer
8.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
9.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
10.Which statement about dividends in incorrect?..
Answer Dividends amounts are guaranteed in the policy
11.T or F
Dividends cannot be guaranteed
Answer True
12.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
13.Misrepresenting an insurance policy as a share of stock is an example
of which of the following?
Answer False Advertising
14.Within how many days of requesting an investigative consumer
report must an insurer notify the consumer in writing that the report will
be ob- tained?
Answer 30 days
15.Which of the following statements about a life insurance policy would
be allowed in an Insurance advertisement?..
Answer Term Life insurance policy
16.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
17.Cost of Living Rider
Answer Allows the policy face amount to be adjusted to account for
, inflation based on the consumer price index.
18.Which of the following is another term for an authorized insurer?
Answer Admitted
19.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
20.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
21.The two types of assignments are...
Answer absolute and collateral
22.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
23.absolute assigns.....
Answer the entire policy
Questions & Answers
1.Life income joint and survivor settlement option guarantees...
Answer Income for 2 or more recipents
2.A participating insurance policy may do which of the following...
Answer Pay divi- dends to the policy owner
3.What is TRUE about the cash surrender nonforfeiture option?
Answer Funds ex- ceeding the premiums paid are taxable as ordinary
income
4.Participating Insurance policy will...
Answer pay dividends to the owner based upon mortality cost, interest
earned and cost
5.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.
6.Rebating is defined as...
Answer Offering any inducement in the sale of insurance prod- ucts 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
7.An insurer that holds a Certificate of Authority in the state in which
it transacts business is considered a/an
Answer Authorized Insurer
8.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
9.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
10.Which statement about dividends in incorrect?..
Answer Dividends amounts are guaranteed in the policy
11.T or F
Dividends cannot be guaranteed
Answer True
12.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
13.Misrepresenting an insurance policy as a share of stock is an example
of which of the following?
Answer False Advertising
14.Within how many days of requesting an investigative consumer
report must an insurer notify the consumer in writing that the report will
be ob- tained?
Answer 30 days
15.Which of the following statements about a life insurance policy would
be allowed in an Insurance advertisement?..
Answer Term Life insurance policy
16.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
17.Cost of Living Rider
Answer Allows the policy face amount to be adjusted to account for
, inflation based on the consumer price index.
18.Which of the following is another term for an authorized insurer?
Answer Admitted
19.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
20.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
21.The two types of assignments are...
Answer absolute and collateral
22.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
23.absolute assigns.....
Answer the entire policy
