NJ Life Producer Midterm Exam Questions And Answers Rated A+ 2024.

The Waiver of Cost of Insurance rider is found in what type of insurance? - Answer Universal Life 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 If a settlement option is not chosen by the beneficiary or policyowner, which option will be used? - Answer Lump sum An insured misstates her age at the time the life insurance application is taken. This misstatement may result in - Answer 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 - Answer 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? - Answer 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? - Answer Guaranteed insurability option All of the following statements concerning an employer sponsored nonqualified retirement plan are true except? - Answer 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... - Answer The benefit is received tax free