Nj Life Flashcards
A buyers guide and policy summary
Must be delivered with or prior to policy delivery; if policy does not contain a 10 day free look. A buyers guide and policy summary must be given to the applicant at least seven days before the initial premium is accepted.
Insurance advertisements and a local newspaper are regulated by which department in New Jersey
Dobi department of banking and insurance
Who is responsible for regulating insurance advertising and
New Jersey Department of banking and insurance DOBI
What can an insurance producer use to provide as evidence of authority?
License
The purpose of the New Jersey temporary disability benefits law is to
provide non-occupational disability benefits
All health plans that provide coverage to family members of the insured must provide coverage for the insured’s newborn from
moment of birth and for 31 days
Health insurance advertisements that mention the statistical information are required by New Jersey law to
Accurately, convey all pertinent facts
An advertisement shall not use a trade name, name of Insurance, parent company service, slogan, or other symbol without disclosing the name of the insurer
disclosing the name of the insurer (agent’s name)
Who would make the final determination on whether or not an insurance advertisement is misleading NJ
Banking and insurance commissioner
The replacement of an existing insurance policy requires notice that the owner can return the policy within how many days for a full
Life insurance policies and annuity contract must provide a minimum free period of 10 days upon policy delivery during which time policy owner can obtain a full refund. The maximum free look period is typically 30 days.
What is the purpose of advertising regulations?
To ensure full and truthful disclosures to the public
How long is the contestable period for health insurance policy sold in New Jersey
Two years; only fraudulent miss statements in the application may be used to avoid the policy or deny any claim at this point 
During a replacement of individual life insurance and agent must furnish notice regarding replacement of Life Insurance to
The applicant aka hey written comparison and summary statement at the request of the policyholder to follow instructions regarding replacement as obtained from the appointing insure
Hey buyers guide must
Be approved by the insurance commissioner and normally provides information on deciding on how much life insurance to buy comparing life insurance policy rates as well as a comparison of life insurance policy requirements
- Continuing education credit are required to be completed by a producer every
two years to keep their license active; three of those credit must be in ethics; non-resident producers are exam so long as they complete their home state requirements
What should the policy summary contain?
A statement of policy cost and benefit information which provides specific information about the provisions, benefits, and coverage of policy applied for
When is a temporary insurance license provided?
These can be issued in cases where a producer has become disabled or dies, which requires a replacement to service the producers business. It can also be provided to producers that are actively serving in the military. These licenses are valid for 180 days
How long is a producer required to maintain transaction records for business completed
For a period of five years full incorrect transaction records mess be kept for any business done by them
How can I produce Survey voluntarily terminate their insurance license?
They returning their license to the banking and insurance department at any time before expiration to obtain or reinstate their license during the same license. They need a new license application.
What is the maximum fine for a producer violating New Jersey insurance law?
$5000 for the first violation and 10,000 for each subsequent violation
Advertising material for a life insurance policy does not need to contain, which of the following? Agents, commission rate, the parent company’s name, statements that dividends are not guaranteed, whether spokesperson is paid.
Agents, commission rate. The parent company’s name needs to be disclosed, statements that dividends are not guaranteed if applicable is required, whether spokesperson is paid must be indicated
A Medicare supplement policy can be canceled by the insurance for
Nonpayment
How often must an insurance producer’s license in New Jersey be renewed?
Every two years and the last day of the producers birthday month, requiring a fee renewal, application and proof of completion of continuing education, exceptions exist for military service, active or other extenuating circumstances via waiver only via Internet
Group health insurance may be offered to all these groups in Jersey except private employer, city, government, college seminar, participants, small employer
College seminar participant because unmarried children under the age of 19 are considered dependents unless they’re full-time students which are then considered dependent up until age 23
When a new life insurance is to be purchased, the solicitation will be considered a replacement transaction if borrowing amounts exceed
25% of the policies loan value and it comes from an existing policy as cash value in order to use that money for a new policy
With the exception of fraud, the time after a policy has been issued during which, in ensure may contest a health insurance claim due to statements on the application is
Two years
Health insurance advertisements are required to contain, which of the following? Insurance companies trademark, insurance companies name, AM best rating, current standing with the BBB 
Insurance company’s name
What does an insurance producer need to obtain from a prospect to receive anything other than a commission before providing information as a consultant?
Written memorandum stating the amount of compensation
Knowingly making misleading statements that would cause an insured to lapse assign or terminate an insurance policy in order to switch companies is an example of
Twisting; which is an unfair trade practice of replacing an insurance policy from one insured to another based on misrepresentation
Under the New Jersey continuation of benefits, law not to extend coverage is required within how many days of a qualifying event?
Under the New Jersey continuation of benefits, law noticed to extend coverage is required within 30 days of qualifying event and no later than 60 days after the end of coverage
Define agent
A licensed producer who has a written contract to represent an insurer
Which of the following actions is required by an agent who is replacing an existing Life Insurance policy?
Submit to the replacing insurer a list of the policies to be replaced
A written statement describing the elements of a policy is called a buyers guide, policy summary, policy guide, buyers summary
Policy summary, which is designed to summarize the coverage of a specific contract 
All Medicare supplement policies is contain, which provision
Pre-existing conditions must be covered after six months from the effective date of coverage
Under New Jersey law, what may the insurer required to determine the exact cost of death if death appears accidental
Autopsy
Which of these may not be used in health insurance advertising a celebrity endorsement, a statement that highlights coverage amount, a paid testimonial, and insurance companies trademark instead of the companies actual name
An insurance companies trademark instead of the companies actual name
New Jersey insurance law requires eligible individuals to make an election to continue health insurance benefits within X amount of days after coverage termination
60 days no later than
Which type of beneficiary should be named of the insured wants to give explicit directions and how the policy proceeds should be paid? In individual group class Estate.
Individual
Health insurance will typically cover, which of the following perils? Death due to illness, injury due to accident, death due to accident, dismemberment.
Injury due to accident; the two perils covered by health insurance or accident and sickness
Group health plans made in eye participation based upon
Members part-time employment status; full-time employees are typically eligible
The deeds and actions of a producer indicate what kind of authority? Express apparent, implied, conditional.
Apparent authority is the appearance or assumption of authority based on the actions works or deeds of the producer
A provision that allows a policy owner to temporarily give up ownership rights to secure a loan is called
Collateral assignment
Which of the following areas do errors commonly occur on applications and for which the incontestable causes not apply marital status, age, address, income
Age and gender can be contested anytime
In the health insurance policy, when should the written notice of claim be given to the insurer?
Written notice of a claim must be given within 20 days after a covered loss or as soon as reasonably possible within 90 days
Which type of clause describes the following statement, we have issued the policy and consideration of the representation in your applications and payment of the first term premium
Consideration clause
What is the primary purpose of a rating service company such as AMV?
Determine financial strength of an insurance company
The principle of insure will interest in regards to a life. Insurance contract is accurately described by.
The love and affection of individuals related by blood or law
Andre modified endowment contract. What are the likely tax consequences?
Pre-debt distributions will become taxable
Andre modified endowment contract. What are the likely tax consequences?
Pre-debt distributions will become taxable
Index whole life insurance contains the securities component that acts as
A hedge against inflation
A policy owner purchases a standard whole life policy with a 500,000 death benefit when he was 30. His agent told him the policy would paid up if he reached age 100. The cash value of the policy equals 250,000 but policy owner dies at age 60 the death benefit would be?
500,000
A branch office certificate must be filed at least how many days before it conducting business at the specified branch
30 days
In Life Insurance , replacing companies must keep records of all replacement materials and file for how long
Five years or until the next regular examination by the commissioner
And Life Insurance replacing companies must keep records of all replacement materials and file for how long?
Five years or until the next regular examination by the commissioner
All of the following are examples of a business continuation plan except: key person insurance, cross purchase agreement, stock redemption plan, deferred compensation
Deferred compensation
Ivy policy owner exercises a non-furniture option by using his life policies, cash value to purchase an extended term insurance option when the term insurance expires
All of the protection when the charm insurance expires in an extended term option, there is no more protection
A customer owns an insurance policy that is renewable. Only at the option of the insurance company has policy is considered to be.
Which of these is not considered to be a non-forfeiture option in a whole life insurance policy? Interest only, reduce paid up insurance, extended term, cash surrender
Interest only; in whole life insurance policy. All are forfeiture options except interest only.
A clause that allows an insurer the right to terminate coverage at any anniversary date is called
Optionally renewability clause which allows an insurer to terminate coverage at any anniversary or premium due date
A life insurance policy, owner does not have the right to
Revoke an absolute assignment
A life insurance policy, owner does not have the right to
Revoke an absolute assignment
The type of policy were the insurer can send a notice to the insured that the policy has been canceled in the middle of the term called
Cancelable
The two major actions required for a policyholder to comply with the reinstatement clause
Provide evidence of insurability pay past due premiums
Underwriters can acquire information from all of the following sources except… Medical information bureau and MIB consumer report attending physicians statements genetic testing
Genetic testing
Within how many days must a producer notify with the department of banking and insurance of a change of address
30; a producer must submit the department of banking and insurance written notification of an address change with a maximum of 30 days after the change
Which of the following is contain a statement of policy cost, and benefit information
Policy summary
Which of the following would be a valid reason why policy payment would be higher than the standard premium
The insured does not meet establish underwriting requirements
Which situation accurately describes a reduced paid of forfeiture option 
Policy has a decreased face amount with a reduced paid up non-forfeiture option. The policy will have a decreased face amount.
If a producer receives a premium for an individual health insurance policy, they must remit the premium to their insure within how many days of receipt
7
Hey, customer has a benefit at work that enables him to defer his current receipt of income and habit paid at a later date when they will probably be in a lower tax bracket which benefit fits the description
Deferred compensation option
A customer has disability insurance through his employer the employer pay 75% of the premium and Jonas pays the other 25%. What is their tax liability for any benefits paid from the disability plan?
Taxes must be paid in 75% of the benefits received
What kind of life insurance policy covers two or more people with a death benefit payable upon the last person’s death?
Last survivor, Life Insurance
Which of the following protects the policy owner from a misrepresentation caused by an innocent mistake
Incontestable clause
An agent is required to keep replacement forms and file for the last …years
5
Aus and insurance producers license in New Jersey be renewed
Every two years with 24 credit hours of instruction three of which are ethics
The replacement of an existing insurance policy requires notice that the owner can return the policy within how many days for a full
The free look for a replacement policy is 30 days
If an agent has not collected the initial premium on a health policy
The contract is not enforced until the initial premium has been paid
Which of the following with disqualify companies retirement plan from receiving favorable
A retirement plan will not qualify for favorable tax treatment if it’s temporary
Replacement regulation is designed to protect
Policy owners from misrepresentation and loss of benefits
The automatic premium loan provision, authorizes an insurer to withdraw from a policies, cash value the amount of
Past due premiums that have not been paid by the end of the Grace period
Who would make the final determination on whether or not an insurance advertisement is misleading
New Jersey banking and insurance commissioner
Never buy an existing insurance to prevent replacement and continue existing Life Insurance policies enforce is known as
Conservation
In regards to a life insurance contract, which of the following statements is not true regarding the concept of insurable interest
CHERYL interest can be established sufficiently by sentimental attachment alone
After passing the New Jersey insurance license examination in person is required to apply for a producer license within
12 months
After passing the New Jersey insurance license examination in person is required to apply for a producer license within
12 months
When the word Insurance appears in a producers business, the same, which of the following words cannot be approved: corporation, agency, brokerage, company
Company; The name of the insurer will be clearly identified in any advertisement, but it shall not use a trade name name of ensures, parent company, service mark slogan, or other symbol cannot use colors, words or physical materials, which are similar to government programs or agencies. Must be kept for five years
A producer must notify the commissioner within how many days of a felony conviction
30
All of the following are included as part of a contract in the entire contract provision except : writers, application, changes made by the producer, policy
Changes made by the producer
All of the following are functions of an insuring class except: safe conditions under which the policy will pay, outlines the kinds of benefits provided, primarily describes the free look period, provides policy, scope and limits of coverage.
Primarily describes the free look. All others are functions of an insuring clause.
All of the following are considered to be non-forfeiture options available to a policy owner except extended term insurance, surrender, reduction of premium, reduce paid up insurance
Reduction of premium all of these are for non-forfeiture options except reduction of premium
An agent has committed an insurance crime that violates US code 1033 interstate commerce who would be responsible for the prosecution of this
US Attorney General
And insurance company needs to obtain personal information from a third-party concerning an applicant which law do all insurer and their pro producers need to comply with
The fair credit reporting act
Who is responsible for assembling the policy forms for insureds? State insurance department, NAIC, insurance carriers, insurance producers.
Insurance carriers 
A permanent life insurance policy where the policy owner pays premiums for a specified number of years is called
Limited pay policy, which is a permanent life insurance policy where the policy owner pays premiums for a specified number of years
In New Jersey and insurer is required to maintain files of all publish and printed advertisements for
Five years from the date of last use
Which of these writers will pay that benefit if the insured spouse dies
Family term insurance writer provides a death benefit of the spouse of the insured dies
In an insurance contract, the element that shows each party giving something value is called
Consideration the element of an insurance contract, which demonstrates that each party is giving something of value
Insurance premium is determined by each of the following factors except
Mortality, interest, expenses, liquidity
Liquidity
A waiver of premium writer allows an insured to waive premium payments if the insured is
Completely impermanent disabled
A non-participating policy will
Not pay dividends
Andre modified endowment contract. What are the likely tax consequences?
Pre-death distributions will become taxable
A whole life insurance policy accumulates cash value that becomes
A policy loan value which the insured may borrow against
Which of these will have the highest monthly payout upon annuitization?
Life with. Certain, joint and survivor, life, straight life, joint life.
Straight life annuity will have the highest monthly payout
A life insurance policy that has premium fully paid up within a stated time Period is called.
Limited payment insurance
All of these, these are valid options for an adjustable life policy, except
The policies premium can be increased or decreased, the policies death benefit can be increased or decreased, a non-forfeiture option can be used to increase the death benefit, the policies protection. Can be modified.
A non-forfeiture option can be used to increase the death. Benefit is not an option for an adjustable life policy.
Which of the following must contain a statement of policy cost, and benefit information
Policy summary
Which type of policy combines the flexibility of a universal life policy within investment choices
Variable universal life policy; when the structure and flexibility of a universal life policy are combined with investment choices, the result is a variable universal life policy
The replacement of an existing insurance policy requires notice that the owner can return the policy within how many days for a full refund
30 days is the free look for a replacement policy
A partial surrender is allowed in which of the following life policies
Universal life
