NJ-Life-Producer Practice Questions

A.  

Net worth.

B.  

Age.

C.  

Salary.

D.  

Home value.

A.  

Obtain with the application the applicant’s justification for why the replacement is suitable.

B.  

Notify the insurer whose policy is being replaced, but not the insurer replacing the policy.

C.  

Submit to the replacing insurer a list of all life insurance policies or annuity contracts proposed to be replaced.

D.  

Forward the signed and completed Disclosure Statement to the replacing insurer and not provide the applicant with a copy.

A.  

Application is submitted.

B.  

Premium is collected and policy is issued.

C.  

Agent and individual agree on coverage.

D.  

Policy is actually issued.

A.  

Guarantees the insured the right to purchase additional insurance without evidence of insurability.

B.  

Protects the policyowner against an unintentional lapse of coverage.

C.  

The insurer will pay the premium if the insured is permanently disabled.

D.  

Allows partial surrender of a term policy.

A.  

Insurance is commerce and should be subject to federal regulation.

B.  

Insurance is commerce and should be subject to state regulation.

C.  

Individuals who transact insurance business are subject to the same regulations as investment brokers.

D.  

Insurance companies that transact insurance business are subject to the same regulations as banks and savings and loan associations.

A.  

A spouse.

B.  

A revocable beneficiary.

C.  

A permanent beneficiary.

D.  

An irrevocable beneficiary.

A.  

To increase the death benefit by a stated percentage.

B.  

To provide for the early payment of the death benefit for a terminally ill insured.

C.  

To decrease the tax liability of the insured’s estate.

D.  

To adjust the death benefit to keep up with inflation.

A.  

Coercion.

B.  

Misrepresentation.

C.  

Fraud.

D.  

Twisting.

A.  

Coinsurance.

B.  

Reinsurance.

C.  

Excess insurance.

D.  

Surplus lines insurance.

A.  

Fixed face amount.

B.  

Flexible premium schedule.

C.  

Assignment options.

D.  

Settlement options.