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A wide range of insurance-related terminology and concepts, including topics such as life insurance policies, annuities, insurance contracts, insurance regulations, and insurance industry practices. It provides detailed explanations and definitions for various insurance-related terms and scenarios, making it a valuable resource for individuals seeking to understand the intricacies of the insurance industry. Topics ranging from the purpose and features of different insurance products to the legal and regulatory aspects of the industry, providing a comprehensive overview of the subject matter. With its extensive coverage of insurance-related concepts and terminology, this document could be particularly useful for students, professionals, or anyone interested in gaining a deeper understanding of the insurance industry and its inner workings.
Typology: Exams
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have their principle office in New Jersey - Answer: A producer who wishes to hold a Resident NJ Life Producer license, who lives in another state, must... The ceding insurer - Answer: A insurer procuring insurance for itself from another insurer is called... 90 days - Answer: A business name authorization expires in 12 months - Answer: A first time applicant is someone who has not been licensed as a producer for the previous... 12 months - Answer: When applying for a producer's license, an applicant must have passed the State Licensing Exam within how long from the date of their application for license? Interest-only - Answer: In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? Variable Life - Answer: Under what type of life insurance policy will the death benefit vary, based on the performance of an underlying portfolio of securities?
Not Tax Deductable - Answer: Generally, premiums paid on an individual life insurance policy are: 9 years and 8 months - Answer: A 10 year family income policy was purchased effective April 1,
Pay an amount equivalent to that which the premium would have purchased at the correct age - Answer: If an insured understates her age and this is discovered upon her death, the insurer will... provide income for retirement - Answer: The primary purpose for an annuity is to... premium schedule - Answer: Which of the following features makes Universal Life insurance different from other forms of permanent insurance? Automatic premium loan - Answer: An insured may receive protection against the unintentional lapse of his life insurance policy contract by requesting the... Buy and Sell agreement - Answer: An agreement to purchase a deceased partner's share of a business, using the proceeds from a life insurance policy, is called a... Immediate - Answer: Elisabeth retires. She purchases an annuity. One month later, she starts to receive payments from the annuity. What type of annuity does Elisabeth have? Irrevocable - Answer: The term used to indicate that a policy beneficiary cannot be changed is... Living too long and outlasting one's income. - Answer: What risk does an annuity cover? Decreasing term insurance - Answer: Credit life insurance is a form of... a non-qualified plan - Answer: Split-Dollar Life is a... Incontestability clause - Answer: The provision that addresses misstatements made by applicant on application is... When the premium is due - Answer: The grace period in a life insurance policy begins... A mutual insurance company - Answer: What is the proper term for a company owned by its policy owners? insurance company - Answer: Agents represent the... The beneficiary - Answer: Which party does not have to sign life insurance application?
Unilateral contract - Answer: A contract where only one party gives a legally enforceable promise? The premium paid - Answer: With an insurance contract, what is the insured's consideration? may be subjected to unfavorable tax rules - Answer: Money taken out of a modified endowment contract (MEC)... At the time of policy delivery - Answer: A change in premium due to a rate-up would normally be discussed with a client... Modified Endowment Contract (MEC) - Answer: A life insurance policy that fails to meet the seven-pay test is called a... Competent parties - Answer: To be valid, a contract must be between individuals considered legally able to enter into an agreement. This is known as... Not Taxable - Answer: Dividends are... United States v. Southeastern Underwriters Association (1944) - Answer: Which established that the insurance industry should be considered interstate commerce and therefore subject to federal regulation? The governor - Answer: The Commissioner of the NJ Department of Insurance is appointed by... 10 days - Answer: The Commissioner is required to provide public notice a minimum of how many days prior to holding a hearing to discuss a proposed rule change? $5,000.00 - Answer: Violation of a cease and desist order can result in a maximum fine of... 30 days - Answer: A producer has up to how many days to notify the department of an address change? A certificate of authority - Answer: The Commissioner issues what type of certificate to an insurer?
5 years - Answer: Producers whose licenses have been revoked must wait a minimum of how long before reapplying? Notice Regarding Replacement of Life Insurance and Annuities - Answer: When replacing an existing life insurance policy, the agent should have the applicant sign what form? Domestic mutual insurer - Answer: An insurer that is incorporated under the laws of New Jersey, without permanent stock, and its governing body elected by its policyholders is a... If a legal guardian has been appointed - Answer: When the beneficiary of a life insurance policy is a minor, the insurer can pay the proceeds... 50% - Answer: A producer is not allowed to obtain a license solely to write insurance on the producer's family or business. What percentage of the producer's aggregate commissions must be exceeded to be considered "controlled business"? Twisting - Answer: Illegally inducing an individual to lapse a current plan of life insurance in order to purchase a new one is called... states - Answer: The court case Paul vs Virginia established the regulation of insurance business is the responsibility of the... Rebating - Answer: An agent offering a prospect something of value that is not specified in the insurance contract in order to persuade prospect to purchase insurance is guilty of... A policy summary - Answer: What must be provided to all purchasers of life insurance? 5 years - Answer: Insurers must maintain files of all advertisements used in the solicitation of life insurance for a period of at least... Insurer - Answer: A licensed producer represents the... Mutual insurer - Answer: A insurer's ownership comprised of policyholders is a... Public Law 15 - Answer: The federal antitrust laws would apply to insurance but only to the extent that the state regulation was not effective is... jail - Answer: The Commissioner does not have the power to put you in...
30 - Answer: How many days within a Commissioner's final order does an intervenor have to appeal a decision? Contempt - Answer: A person failing to comply to a subpoena from the Commissioner, may be charged with... Insurance broker - Answer: A person, for a fee or commission represents insured for the purpose of obtaining them a life insurance policy... The State of New Jersey - Answer: Who owns a producer's license? 60 days - Answer: A temporary certificate expires no more then how many days after issuance? 15 days - Answer: Upon cancellation of an agency contract, with a producer, the insurer must give how many days notice to the Commissioner? Commissioner - Answer: Who is responsible for advertising regulations? Member insurers - Answer: The New Jersey Life and Health Guaranty Association is funded by... Legislature ,Executive branch of government and the Courts - Answer: The insurance industry is regulated by the... CLU courses - Answer: The Department of Insurance will count which of the following towards the continuing education requirement? No capital stock - Answer: A trademark of a mutual insurer is... Agency contract - Answer: What contract states the commissions agreement? Individual policies of life insurance issued to debtors on a term plan - Answer: In what instance can a credit insurance policy be issued? Contribuatory - Answer: What type of group plan requires at least 75% of the eligible members to participate?
non-contribuatory - Answer: An employer paid life insurance is called... Not tax deductable - Answer: Interest paid on a policy loan is... Grace period provision - Answer: What allows for an insurance policy to remain in force for a specified number of days beyond the premium due date? 1035 Exchange - Answer: A tax free exchange of one life insurance policy or annuity for another is called... Entire contract - Answer: Which of the following prevents the producer from unilaterally amending a policy? rider - Answer: A modification to a life policy is called a... 70 1/2 - Answer: Under a Traditional IRA, owners must begin to receive payments from their accounts by the time they reach the age of... 20-pay life - Answer: A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a... The conditional receipt - Answer: What states the terms of coverage during the underwriting period? Survivorship Life - Answer: What Insurance is best used in estate planning? additional coverage at specific ages - Answer: A policy containing a Guaranteed Insurability rider allows the insured the right to purchase... Life annuity - Answer: A contract that promises to pay income to an insured until their death is called... An acceleration of life insurance benefit - Answer: A special benefit that prepays a portion of a death benefit during the lifetime of an insured in the event of a specified illness is called... retrocession - Answer: When a reinsurer procures insurance for themselves from another reinsurer. This is known as...
The Superior Court - Answer: A producer wishing to appeal the final order of the Commissioner would appeal to.... Terminated - Answer: If a producer fails to complete the required CE credits before his license expires, their license will be... Immediately after the period of suspension - Answer: If a producer's license is suspended. When can he apply for reinstatement? Misrepresentation - Answer: Twisting is a form of $1,000.00 - Answer: A producer who unknowingly engages in a prohibited trade practice, can be issued a fine not to exceed... Protect the public from insolvent insurers - Answer: The purpose of the NJ life and Health Guaranty Association is to... $500.00 - Answer: Failure to notify the Department of the opening or closing of a branch office is subject to a fine of... 30 days - Answer: How many days does a licensee need to notify the Department when opening a branch office? $500,000.00 - Answer: If Guaranty Association assumes management of an insolvent insurer, the amount of death benefits for which they are liable is... 30 days - Answer: If a producer is indicted of a crime, they must notify the Commissioner within... 3 years - Answer: Copies of policy summary and buyer's guides used with the public must be kept on file for... Insured's estate - Answer: Creditors may attach the death benefits payable to... The insured debtor - Answer: If a credit life insurance policy is terminated prior to the maturity date of the loan, a refund of unearned premiums is paid to... the creditor - Answer: In a credit insurance policy, who is the beneficiary?
Decreasing term - Answer: Credit life insurance is a form of... 5 years - Answer: Copies of insurance advertisement must be kept for at least...