NJ Accident and Health Producer
1. Life income joint and survivor set- Income for 2 or more recipents
tlement option guarantees...
2. A participating insurance policy Pay dividends to the policy owner
may do which of the following:...
3. What is TRUE about the cash sur- Funds exceeding the premiums paid are taxable as
render nonforfeiture option? ordinary income
4. Participating Insurance policy pay dividends to the owner based upon mortality cost,
will... interest earned and cost
5. Which of the following is an exam- Telling a client that his first premium will be waived if
ple of a producer being involved in he purchased the insurance policy.
an unfair trade practice of rebat-
ing?...
6. Rebating is defined as... Offering any inducement in the sale of insurance prod-
ucts that is not specified in the policy, including mon-
ey, reductions in commissions, promises, and personal
services. Both offer and acceptance of a rebate are
illegal
7. An insurer that holds a Certificate Authorized Insurer
of Authority in the state in which
it transacts business is considered
a/an
8. Who is considered authorized or Insurers who meet the state's financial requirements
admitted? and hold a Certificate of Authority to transact business
in the state
9. Variable whole life has a guaranteed death benefits
, NJ Accident and Health Producer
Which of the following is a key
distinction between variable whole
life and variable universal life prod-
ucts?
10. Which statement about dividends Dividends amounts are guaranteed in the policy
in incorrect?..
11. T or F: Dividends cannot be guaran- True
teed
12. An organizations licensed as a pro- The organization will need to obtain a nonresident
ducer business entity based in New business entity license and its producers will need to
York would like to transact insur- obtain nonresident licenses
ance in New Jersey. Which of the
following is true?
13. Misrepresenting an insurance poli- False Advertising
cy as a share of stock is an example
of which of the following?
14. Within how many days of request- 30 days
ing an investigative consumer re-
port must an insurer notify the
consumer in writing that the report
will be obtained?
15. Which of the following statements Term Life insurance policy
about a life insurance policy would
be allowed in an Insurance adver-
tisement?..
16. Cost of Living Rider
, NJ Accident and Health Producer
A long stretch of national econom-
ic hardship causes a 7% rate of in-
flation. A policyowner notices that
the face value of her life insurance
policy has been raised 7% as a re-
sult. Which policy rider causes this
change?
17. Cost of Living Rider 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 Admitted
term for an authorized insurer?
19. All of the following are TRUE of the At distribution all amounts received by the employees
federal tax advantages of a quali- are tax free
fied plan EXCEPT
20. If an insured continually uses the The policy will terminate when the cash value is re-
automatic premium loan option to duced to nothing
pay the policy premium...
21. The two types of assignments are... absolute and collateral
22. By how many days does the dis- 0 days
continuance of a group insurance
policy reduce the time limit for pro-
viding notice of claim or proof of
loss?
23. absolute assigns..... the entire policy
24. collateral assigns... a part or all of the benefits
, NJ Accident and Health Producer
25. What is a material misrepresenta- A statement by the applicant that, upon discovery,
tion? would affect the underwriting decision of the insurance
company
26. If a policy includes a free-look peri- With the policy
od of at least 10 days, the Buyer's
Guide may be delivered to the ap-
plicant no later than...
27. What is reinsurance? An agreement between a ceding insurer and assuming
insurer
28. Within life insurance settlement Life Income with period certain
option guarantees payments got
the lifetime of the recipient, but
also specifies a guaranteed period,
during which, if the original recipi-
ent dies, the payments will contin-
ue to a designed beneficiary?
29. Using names or titles that have False Advertising
tendency to misrepresent the true
nature of a policy is an example of
what illegal practice?
30. The type of settlement option Joint and Survivor
which pays throughout the life-
times of two or more beneficiaries
is called.....
31. An insurer is closing a branch office 30 days
in the state. Within how many days
1. Life income joint and survivor set- Income for 2 or more recipents
tlement option guarantees...
2. A participating insurance policy Pay dividends to the policy owner
may do which of the following:...
3. What is TRUE about the cash sur- Funds exceeding the premiums paid are taxable as
render nonforfeiture option? ordinary income
4. Participating Insurance policy pay dividends to the owner based upon mortality cost,
will... interest earned and cost
5. Which of the following is an exam- Telling a client that his first premium will be waived if
ple of a producer being involved in he purchased the insurance policy.
an unfair trade practice of rebat-
ing?...
6. Rebating is defined as... Offering any inducement in the sale of insurance prod-
ucts that is not specified in the policy, including mon-
ey, reductions in commissions, promises, and personal
services. Both offer and acceptance of a rebate are
illegal
7. An insurer that holds a Certificate Authorized Insurer
of Authority in the state in which
it transacts business is considered
a/an
8. Who is considered authorized or Insurers who meet the state's financial requirements
admitted? and hold a Certificate of Authority to transact business
in the state
9. Variable whole life has a guaranteed death benefits
, NJ Accident and Health Producer
Which of the following is a key
distinction between variable whole
life and variable universal life prod-
ucts?
10. Which statement about dividends Dividends amounts are guaranteed in the policy
in incorrect?..
11. T or F: Dividends cannot be guaran- True
teed
12. An organizations licensed as a pro- The organization will need to obtain a nonresident
ducer business entity based in New business entity license and its producers will need to
York would like to transact insur- obtain nonresident licenses
ance in New Jersey. Which of the
following is true?
13. Misrepresenting an insurance poli- False Advertising
cy as a share of stock is an example
of which of the following?
14. Within how many days of request- 30 days
ing an investigative consumer re-
port must an insurer notify the
consumer in writing that the report
will be obtained?
15. Which of the following statements Term Life insurance policy
about a life insurance policy would
be allowed in an Insurance adver-
tisement?..
16. Cost of Living Rider
, NJ Accident and Health Producer
A long stretch of national econom-
ic hardship causes a 7% rate of in-
flation. A policyowner notices that
the face value of her life insurance
policy has been raised 7% as a re-
sult. Which policy rider causes this
change?
17. Cost of Living Rider 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 Admitted
term for an authorized insurer?
19. All of the following are TRUE of the At distribution all amounts received by the employees
federal tax advantages of a quali- are tax free
fied plan EXCEPT
20. If an insured continually uses the The policy will terminate when the cash value is re-
automatic premium loan option to duced to nothing
pay the policy premium...
21. The two types of assignments are... absolute and collateral
22. By how many days does the dis- 0 days
continuance of a group insurance
policy reduce the time limit for pro-
viding notice of claim or proof of
loss?
23. absolute assigns..... the entire policy
24. collateral assigns... a part or all of the benefits
, NJ Accident and Health Producer
25. What is a material misrepresenta- A statement by the applicant that, upon discovery,
tion? would affect the underwriting decision of the insurance
company
26. If a policy includes a free-look peri- With the policy
od of at least 10 days, the Buyer's
Guide may be delivered to the ap-
plicant no later than...
27. What is reinsurance? An agreement between a ceding insurer and assuming
insurer
28. Within life insurance settlement Life Income with period certain
option guarantees payments got
the lifetime of the recipient, but
also specifies a guaranteed period,
during which, if the original recipi-
ent dies, the payments will contin-
ue to a designed beneficiary?
29. Using names or titles that have False Advertising
tendency to misrepresent the true
nature of a policy is an example of
what illegal practice?
30. The type of settlement option Joint and Survivor
which pays throughout the life-
times of two or more beneficiaries
is called.....
31. An insurer is closing a branch office 30 days
in the state. Within how many days
