(NJ) NEW JERSEY LIFE INSURANCE EXAM
Questions and Answers
1. adhesion
ANS (take it or leave it) no changing the contract. take it as is.
2. aleatory contract
ANS (uneven) You will never pay as much in premium as what you get in coverage
3. peril
ANS died of a certain way
4. Hazard
ANS cause of loss
5. Variable Universal Life
ANS requires FINRA license
6. the difference between insure vs. insured
ANS Insure (must pay policy benefit "the company")
insured (the customer)
7. S & P 500
ANS Equity index annuity would have a minimum guaranteed interest rate, but may have a higher rate
of return
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, 8. who must sign application of insurance
ANS Owner, insured, and agent all three must sign
9. Differed compensation plans
ANS an example of a non qualified retirement plan
10. Qualified retirement plans
ANS Keogh, 401K, IRA
11. conditional receipt
ANS serves as proof that the agent confirmed the insurance company will fully insure the
applicant
12. accelerated living benefit
ANS pays out death benefit while alive due to illness live threatning reason
13. convertible insurance
ANS the type of policy that can be changed from one that doen't usually have cash
value to one that does
14. uniform simultaneous death act
ANS under the common disaster clause if it can't be determined who died first it is assumed
the beneficiary
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Questions and Answers
1. adhesion
ANS (take it or leave it) no changing the contract. take it as is.
2. aleatory contract
ANS (uneven) You will never pay as much in premium as what you get in coverage
3. peril
ANS died of a certain way
4. Hazard
ANS cause of loss
5. Variable Universal Life
ANS requires FINRA license
6. the difference between insure vs. insured
ANS Insure (must pay policy benefit "the company")
insured (the customer)
7. S & P 500
ANS Equity index annuity would have a minimum guaranteed interest rate, but may have a higher rate
of return
1/
7
, 8. who must sign application of insurance
ANS Owner, insured, and agent all three must sign
9. Differed compensation plans
ANS an example of a non qualified retirement plan
10. Qualified retirement plans
ANS Keogh, 401K, IRA
11. conditional receipt
ANS serves as proof that the agent confirmed the insurance company will fully insure the
applicant
12. accelerated living benefit
ANS pays out death benefit while alive due to illness live threatning reason
13. convertible insurance
ANS the type of policy that can be changed from one that doen't usually have cash
value to one that does
14. uniform simultaneous death act
ANS under the common disaster clause if it can't be determined who died first it is assumed
the beneficiary
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7
