NJ Life Producer Questions and Answers Rated A+

NJ Life Producer Questions and Answers Rated A+ The Waiver of Cost of Insurance rider is found in what type of insurance? Universal Life If an insured continually uses the automatic premium loan option to pay the policy premium, The policy will terminate when the cash value is reduced to nothing If a settlement option is not chosen by the beneficiary or policyowner, which option will be used? Lump sum An insured misstates her age at the time the life insurance application is taken. This misstatement may result in adjustment in the amount of death benefit When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to Purchase a single premium policy for a reduced face amount. The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose? Interest only option An individual is purchasing a permanent life insurance policyw ith a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? Guaranteed insurability option All of the following statements concerning an employer sponsored nonqualified retirement plan are true except? The employer can receive a current tax deduction for any contributions made to the plan A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then... The benefit is received tax free The requirement that agents must account for all insurance funds collected, and are not permitted to comingle those funds with their own is known as Fiduciary responsibility When an insurance producer negotiates for an insurance contract on behalf of a client, the producer is acting as a broker Which of the following is the legal name of a corporation or partnership under which a lincensee conducts insurance business? Business name The company has issued a policy and delived it to Producer B on May 1st, Monday. By what date must the policy be delivered to the insured? May 10th (within 10 calendar days? Proceeds from life insurance policies are protected from the beneficiary's debts under all of the following circumstances EXCEPT Some of the premiums wer paid in an attempt to defraud creditors If an insurer requires an application in order to renew a life insurance policy, it is the insurer's responsibility to send one to the insured within 30 days of the insured's request All of the following statements are correct regarding Credit Life Insurance EXCEPT Benefits are paid to the borrower's beneficiary Life income joint and survivor settlement option guarantees income for 2 or more recipients until they die Which nonforfeiture option has the highest amount of insurance protection? extended term A small employer owns a group health insurance policy. The employer does not pay the premium by the premium due date and fails again to pay by the end of the grace period. The insurer cancels the policy. Which of the following is true? The insurer will pay all losses through the end of the grace period. *If a group life or group health policy provides for automatic discontinuance of the policy for nonpayment of premium (after the grace period), the insurer is still liable for valid claims of covered losses incurred before the end of the grace