Final Exam: NJ Life & Health
Written notice for a health claim must be given to the insurer __ days after the occurrence of the
loss:
-10
-20
-31
-60 - ANS-20 days
The Commissioner may:
-establish continuing education requirements
-set sales quotas
-arbitrate claims
-establish new insurance laws - ANS-Establish continuing education requirements
Which type of coverage pays an amount per day for hospitalization directly to the insured
regardless of the insured's other health insurance:
-MEWA
-Mutual
-Group
-Hospital Indemnity - ANS-Hospital Indemnity
A group Disability Income plan that pays tax-free benefits to covered employees is considered:
-non-contributory
-partially contributory
-group contributory
-fully contributory - ANS-Fully contributory
Under a Modified Endowment Contract, what are the likely tax consequences:
-interest only on policy loans is taxable
-premium payments are tax deductible
-pre-death distributions will become taxable
-cash value cannot be surrendered early - ANS-Pre-death distributions will become taxable
In what part of an insurance policy are policy benefits found:
-declarations
-entire contract
-waivers
-conditions - ANS-Declarations
What is an insurance policy's grace period:
-period of time after the initial premium is paid and before the policy is issued
-period of time it takes for a policy's underwriting to complete
,-period of time after a policy is issued and before it is delivered to the policyowner
-period of time after the premium is due but the policy remains in force - ANS-Period of time
after the premium is due but the policy remains in force
Which of the following circumstances requires an individual to be a licensed producer:
-setting up sales appointments
-following up with a policyowner about a change in address
-discussing premiums with a potential insured
-conduct an agency sales meeting - ANS-Discussing premiums with a potential insured
Insurance premium is determined by each of the following factors except:
-mortality
-interest
-expenses
-liquidity - ANS-Liquidity
The replacement of an existing insurance policy requires notice that the owner can return the
policy within __ days for a full refund:
-15
-30
-45
-60 - ANS-30 days
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific
age is called a:
-waiver of premium rider
-payor rider
-automatic premium loan rider
-juvenile waiver rider - ANS-Payor Rider
Health insurance advertisements that mention statistical information are required by New Jersey
law to: - ANS-Accurately convey all pertinent facts
The New Jersey Temporary Disability Benefits law:
-is only available to employees of state government facilities
-is only available to employees of private NJ employers
-provides occupational disability benefits
-provides non-occupational disability benefits - ANS-Provides non-occupational disability
benefits
Amy has a group medical policy through her employer with a $500 deductible and a 90%
coinsurance provision. She incurs $1,500 in covered health care services. How much will her
group insurance carrier pay:
-$500
, -$900
-$1,000
-$1,350 - ANS-$900: insurance carrier will pay 90% of the covered loss after the deductible has
been applied.
1,500-500=1,000
1,000x90%=900
A life insurance policy written on one contract for two people in which it is payable upon the first
death is called:
-split
-standard
-joint
-survivorship - ANS-Joint
A Medicare Supplement policy can be cancelled by the insurer for:
-excessive filing of claims
-poor health
-smoking
-nonpayment - ANS-Nonpayment
A long-term care policy typically provides all of the following levels of care except:
-skilled care
-intermediate care
-acute care
-custodial care - ANS-Acute care
An insurance producer is issued a _________ as evidence of authority: - ANS-License
All of the following are included as part of a contract in the entire contract provision except the:
-riders
-application
-changes made by the producer
-policy - ANS-Changes made by the producer
Which of the following is not part of an insurance contract:
-policy
-application
-riders
-certificate of authority - ANS-Certificate of Authority
The New Jersey Life and Health Guaranty Association protects life insurance death benefit
claims up to: - ANS-$500,000
Written notice for a health claim must be given to the insurer __ days after the occurrence of the
loss:
-10
-20
-31
-60 - ANS-20 days
The Commissioner may:
-establish continuing education requirements
-set sales quotas
-arbitrate claims
-establish new insurance laws - ANS-Establish continuing education requirements
Which type of coverage pays an amount per day for hospitalization directly to the insured
regardless of the insured's other health insurance:
-MEWA
-Mutual
-Group
-Hospital Indemnity - ANS-Hospital Indemnity
A group Disability Income plan that pays tax-free benefits to covered employees is considered:
-non-contributory
-partially contributory
-group contributory
-fully contributory - ANS-Fully contributory
Under a Modified Endowment Contract, what are the likely tax consequences:
-interest only on policy loans is taxable
-premium payments are tax deductible
-pre-death distributions will become taxable
-cash value cannot be surrendered early - ANS-Pre-death distributions will become taxable
In what part of an insurance policy are policy benefits found:
-declarations
-entire contract
-waivers
-conditions - ANS-Declarations
What is an insurance policy's grace period:
-period of time after the initial premium is paid and before the policy is issued
-period of time it takes for a policy's underwriting to complete
,-period of time after a policy is issued and before it is delivered to the policyowner
-period of time after the premium is due but the policy remains in force - ANS-Period of time
after the premium is due but the policy remains in force
Which of the following circumstances requires an individual to be a licensed producer:
-setting up sales appointments
-following up with a policyowner about a change in address
-discussing premiums with a potential insured
-conduct an agency sales meeting - ANS-Discussing premiums with a potential insured
Insurance premium is determined by each of the following factors except:
-mortality
-interest
-expenses
-liquidity - ANS-Liquidity
The replacement of an existing insurance policy requires notice that the owner can return the
policy within __ days for a full refund:
-15
-30
-45
-60 - ANS-30 days
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific
age is called a:
-waiver of premium rider
-payor rider
-automatic premium loan rider
-juvenile waiver rider - ANS-Payor Rider
Health insurance advertisements that mention statistical information are required by New Jersey
law to: - ANS-Accurately convey all pertinent facts
The New Jersey Temporary Disability Benefits law:
-is only available to employees of state government facilities
-is only available to employees of private NJ employers
-provides occupational disability benefits
-provides non-occupational disability benefits - ANS-Provides non-occupational disability
benefits
Amy has a group medical policy through her employer with a $500 deductible and a 90%
coinsurance provision. She incurs $1,500 in covered health care services. How much will her
group insurance carrier pay:
-$500
, -$900
-$1,000
-$1,350 - ANS-$900: insurance carrier will pay 90% of the covered loss after the deductible has
been applied.
1,500-500=1,000
1,000x90%=900
A life insurance policy written on one contract for two people in which it is payable upon the first
death is called:
-split
-standard
-joint
-survivorship - ANS-Joint
A Medicare Supplement policy can be cancelled by the insurer for:
-excessive filing of claims
-poor health
-smoking
-nonpayment - ANS-Nonpayment
A long-term care policy typically provides all of the following levels of care except:
-skilled care
-intermediate care
-acute care
-custodial care - ANS-Acute care
An insurance producer is issued a _________ as evidence of authority: - ANS-License
All of the following are included as part of a contract in the entire contract provision except the:
-riders
-application
-changes made by the producer
-policy - ANS-Changes made by the producer
Which of the following is not part of an insurance contract:
-policy
-application
-riders
-certificate of authority - ANS-Certificate of Authority
The New Jersey Life and Health Guaranty Association protects life insurance death benefit
claims up to: - ANS-$500,000
