Explain. search - rtsp.honigschnute-shop.de designed to liquidate principal so they make great retirement products, can cover one or two lives and also create and accumulate funds for college education. It is the most the insurer will pay for all losses during any one policy period. What is the expected forward exchange rate 1 year from now? An insurance classification for applicants who have a lower expectation of incurring loss, and who, therefore, are covered at a reduced rate. What is a post-audit; why do firms use them; and what problems can arise when they are used? A producer who fails to segregate premium monies from his own personal funds is guilty of A presentation or depiction that includes nonguaranteed elements of a policy of life insurance over a period of years. What contract states the commissions agreement? The Federal Trade Commission cooling-off rule allows purchasers of door-to-door sales of more than $25 to rescind the contract within three days, even if there was no undue influence used in the sale. New Jersey Insurance Prelicensing Exam Requirements - ExamFX - AscendBase An applicant or insured who is considered to have an average probability of a loss based on health, vocation and lifestyle. a. c. Assume that investors expect Keenan to pay total dividends of$9,000,000 in 2016 and to have the dividend grow at 10% after 2016. Returning partial premium to an applicant is known as? provides the agents personal observations concerning the proposed insured. The National Association of Insurance Commissioners (NAIC) provides consumers with helpful information about life insurance. Step 2: Schedule your exam with your state's testing provider, PSI. Take this quiz and test your understanding of life and health insurance policies. Be a resident of New Jersey. You can schedule your appointment online or by calling (800) 733-9267. - An act of giving up a life policy, in which the insurer will pay the insured the cash value the policy has built up, Insurance that provides protection for a specific period of time. Life Insurance Life Insurance Practice Test Exam Code: 01-LIP Price: $19.95 Purchase this test Resume test Before purchasing, verify your system meets the system requirements. A contract where only one party gives a legally enforceable promise? A provision that states that the insurer and the insured will share the losses covered by the policy in a proportion agreed upon in advance. An organization that is formed by, or on behalf of, a group of insurers to develop rates for those insurers, and to file the rates with the insurance department on behalf of its members. Which of the following prevents the producer from unilaterally amending a policy? Insurance that pays over and above or in addition to basic policy limits. Causes of loss, exposures, conditions, etc. Find the interest rates earned on each of the following: a. List $59.90 $29.95 SAVE 50%. Period of time after the premium due date during which premiums may still be paid, and the policy and its riders remain in force. Texas Life And Health Insurance Exam Quizlet Who is responsible for advertising regulations? The aspect of a policy that allows a policyholder to select the timing of premium payments is known as Pay an amount equivalent to that which the premium would have purchased at the correct age. 4. Which established that the insurance industry should be considered interstate commerce and therefore subject to federal regulation? A form changing the provisions of and attached to a life insurance policy (also known as a rider). A general term used to refer to various forms of whole life insurance policies that remain in effect to age 100 so long as the premium is paid. Temporary protection because it only provides coverage for a specific period of time. D. It is the single largest limit that applies when a loss is covered by two or more policies issued by the same insurer. Written and /or oral statements regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources. A basic, fundamental insurance policy which pays first with respect to other outstanding policies. The court case Paul vs Virginia established the regulation of insurance business is the responsibility of the 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 What must be provided to all purchasers of life insurance? What is not restricted in contribution limit by the IRS? A rider found in juvenile policies which waives the premiums if the person paying them (often the parent) is disabled or dies while the child is still a minor. An information database that stores the health histories of individuals who have applied for insurance in the past. Business name approved by DOBI can be reserved for? a rider for insurance paid to terminally ill policy holder before their death to help cover costs. The inclusion of causes of loss (perils) which are covered within a scope of a policy. 4. The time during which the sum that has been accumulated during the accumulation period is converted into a stream of income payments to the annuitant. A voluntary terminated producer license may be reinstated during same period if? NJDOBI Consumer Information - Life Insurance - Government of New Jersey Producers whose licenses have been revoked must wait a minimum of how long before reapplying? This person may or may not be the insured. A ledger or proposal used in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements. f. The crossover rate is 13.5252%. No Recurring Charges. PSI Exam Online NJ Life Final Exam Flashcards | Quizlet Calls where a business relationship already exists. Additionally, Washington state callers will have a dedicated phone number to contact PSI. d. What is Keenans long-run average return on equity? A basic principle of insurance under which the risk of financial loss is assigned to another party, A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage, The process of reviewing, accepting or rejecting applications for insurance. An individual who represents an insured in the process of purchasing and negotiating a contract of insurance, A legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled, A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision. What term best describes this arrangement. Any cash value policy that builds cash value faster than a Seven-Pay Whole Life Contract and therefore loses the tax advantages of life insurance. insuring of risks that are more prone to losses than the average risk, policy termination due to nonpayment of premium, transfers risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals, an attempt to persuade a person to buy an insurance policy, provides basic, generic information about life insurance policies that contains language approved by the Department of Insurance, a written statement describing the features and elements of the policy being issued, a presentation or depiction that includes non guaranteed elements of a policy of individual or group life insurance over a period of years, Distinguish between guaranteed and projected amounts, An insurance agent who conducts an initial policy solicitation and application. She purchases an annuity. allows the policy owner the right to renew the coverage at the expiration date without evidence of insurability, Provides the policy owner with the right to convert the policy to a permanent insurance policy without evidence of insurability, a policy that provides a death benefit and builds cash value, provides lifetime protection, and includes a savings element (or cash value). The following competencies make up the General Knowledge section: An employer paid life insurance is called What allows for an insurance policy to remain in force for a specified number of days beyond the premium due date? Complete fingerprinting requirement. The new remote exam option will remain in place permanently . Life and Health Exam Practice Test - Study Guide Zone A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time, lump sum payment, An uncertainty or chance of a loss occurring in a situation that involved the opportunity for either loss or gain, A clause that prevents the debtors of a beneficiary from collecting the benefits before he/she receives them. Intentional misrepresentation or deceit with the intent to induce a person to part with something of value. Type of insurance that combines many features of the whole life with the flexible premium of universal life and the investment component of variable life, making it a securities version of the universal life insurance. 1. the payments that the annuitant makes into the variable annuity are invested in the insurer's separate account, not their general account, a variable annuity is considered a security and is regulated by the SEC in addition to state insurance regulations, fixed annuities that invest on a relatively aggressive basis aim for higher returns. The insured died August 1, 2007. It uses a pure residual dividend policy (40% of the $8.4 million investment is financed with debt and 60% with common equity). Click the card to flip Definition 1 / 109 Death benefit Click the card to flip Flashcards Learn Test Match Created by AliyahMarie31 Insurance and Laws Terms in this set (109) What kind of option is it called? Trish Graber trish.graber@dobi.nj.gov Eva Loayza eva.loayza@dobi.nj.gov (609) 292-5064. serves as a hedge against inflation, and is variable from the standpoint that the annuitant may receive different rates of return on the funds that are paid into the annuity. According to the New Jersey state code, life insurance companies are required to give you a Free Look Period to review your policy and decide if you want to keep it. Reservations may be completed electronically on its web site at www.psiexams.com/njin or by telephone at 1-800-733-9267. The date when an insurance policy begins (also known as the inception date). If it is 8:30 a.m., at what time can you expect to arrive if you keep traveling at that speed? When can he apply for reinstatement? including to cancel existing insurance and replace it with another insurance by misrepresentation. A form of insurance whereby one insurance company (the reinsurer) in consideration of a premium paid to it, agrees to indemnify another insurance company (the ceding company) for part or all of its liabilities from insurance policies it has issued. scheduled to equal the face amount of the policy when the insured reaches age 100 and is paid out to the policy owner. A contractor in need of a bid bond to obtain a contract is an example of a(n): accounting function that describes the act of recording financial transactions into bookkeeping or accounting systems. Explain whether you think it is ethical to offer a certain credit rate to "sell" customers, and then later raise it, even if a customer has complied with all terms in good faith. An unincorporated group of individuals who mutually insure one another, each separately assuming a share of each risk. Self-Practice Exercises focusing on the basic principles of life insurance and NJ specific rules. Notice Regarding Replacement of Life Insurance and Annuities. Note that 2015 was a normal year and that for the past 10 years, earnings have grown at a constant rate of 10%. Both the agent and the proposed insured (usually the applicant) must sign the application. PO Box 325. I took life and health in a 2 week class and was done/passed state exam by week 3. Upon cancellation of an agency contract, with a producer, the insurer must give how many days notice to the Commissioner? NJ Department of Banking & Insurance Launches Remote Licensing Exams for Insurance Producers & Public Adjusters: . [Hint: g=Retention rate [math]\times[/math] ROE=(1.0-Payout rate)(ROE)] e. Does a 2016 dividend of$9,000,000 seem reasonable in view of your answers to parts c and d? (uneven) You will never pay as much in premium as what you get in coverage, the difference between insure vs. insured, Insure (must pay policy benefit "the company") insured (the customer), Equity index annuity would have a minimum guaranteed interest rate, but may have a higher rate of return, Owner, insured, and agent all three must sign, an example of a non qualified retirement plan, serves as proof that the agent confirmed the insurance company will fully insure the applicant, pays out death benefit while alive due to illness live threatning reason, the type of policy that can be changed from one that doen't usually have cash value to one that does, under the common disaster clause if it can't be determined who died first it is assumed the beneficiary, the federal law that permits applicants for insurance to question the validity and source of any credit info, the ability to transact insurance business in New Jersey is garunteed to an insurer, an insurer that is incorporated in New York but authorized to do business in New Jersey, to be elegeble for a nonresident producer license the producer must hold compairable license in home state, non profit legal entity that protects public from company insolvency, all of the following are characteristics of credit life, - proceeds are paid directly to the lender, all the following are considered to be forms of advertising, Constitute replacement when new life insurance is purchased, an insurer that is owned by its stockholders and is mainlyconcerned with making profit, primary purpose of New Jersey replacement regulations, What happens if an insured with a whole life policy and a waiver of premium rider suffers a disability, There will be no change in policy rates benefits or options other than premiums will no longer have to be paid, Must die within 90 days death benefits could double within the 90 days, Is a direct relationship to the insured, parent Spouse Guardian, The main source of underwriting information for the insurer, Legal document between co-owners of the business allowing the surviving partners to purchase a deceased partner's share of the business, Federal tax treatment of life insurance benefit, Policy provisions States a companies promise to pay benefits, Life insurance policies that provide coverage beyond the end of the premium payment period, A licensed producer acting as an agent in the state of New Jersey, A producer who makes false statement that harm the reputation of another insurance company is guilty of defamation, It allows policyholders to share profits in the form of dividends, Giving all or part of your condition in exchange for someone purchasing a policy, Being untruthful on making misleading comparisons in order to secure a sale, (specific) The statement of policy cost and benefits, What happens when any jersey insurance producer license is suspended or revoked, The license must be returned to the department, What happens if insured dies during grace period, If the insured dies during the grace period No death benefit is payable but all prior premium payments will be returned, A type of policy in which cash value increases or decreases daily depending upon investment results with no guarantee to the amount of the cash, Statements on insurance application that are excepted as true and accurate to the best of the applicants believe. tax free distribution of cash from one retirement plan to another. Market Conduct Examination Reports - Government of New Jersey Lessening the possibility or severity of a loss. Luckily, there is a family-owned business in your backyard that can help. Termination of a policy because the premium has not been paid by the end of the grace period. A success rate of 70 percent is required for passing. Established by the Federal Trade Commission to allow consumers to limit number of telemarketing calls they receive. h. Now look at the regular and discounted paybacks. - A choice of ways of receiving policy dividends, nonforfeiture values, death benefits, or cash values. Phone: 609-292-7272. NJ Life Insurance Exam Flashcards | Quizlet used only when the applicant submits a prepaid application. Any life insurance written on the life of a minor. In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? A single policy that is designed to insure two or more lives. The amount of money an insured can borrow using the cash value of his/her life insurance policy as collateral. Are the cutoff criteria equally arbitrary when firms use the NPV and/or the IRR as the criteria? What is the companys cost of equity? A statement or booklet that confirms that a policy has been written and that describes the coverage in general Certificate of Authority A document that authorizes a company to start conducting business and specifies the kind(s) of insurance a company can transact. New York Life. Sample Question An insured wants to purchase a policy with 3 key features: flexible premium, death benefits, and the choice of how the cash value will be invested. Requirements approved by state law that must appear in all insurance policies. An insurer doing business in the jurisdiction in which it is incorporated. Under a Traditional IRA, owners must begin to receive payments from their accounts by the time they reach the age of A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a What states the terms of coverage during the underwriting period? Under the new contract. A disability income policy social insurance supplement (SIS) benefit rider: A. Explain your answer. A period of time, usually required by law, during which a policyowner may inspect a newly issued individual life or health insurance policy for a stated number of days and surrender it in exchange for a full refund of premium if not satisfied for any reason, Period of time after the premium due date during which premiums may still be paid, and the policy and its riders remain in force, Life insurance provided for members of a group, A circumstance that increases the likelihood of a loss, Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal. An Annuity purchased with one lump-sum payment, generally with after tax dollars. What is the purpose of Automatic Premium Loan Rider? Living too long and outlasting one's income. NJ Life Insurance Exam Flashcards | Quizlet Agent appointment termination notice to DOBI within? You simply must prove that you are licensed and in good standing in your home state and pay the required fees. Take unlimited tests of any length. No formal education or experience is required to become a licensed life and health insurance agent. Once you've registered and paid the fee ( $45 for each exam) you must contact PSI to schedule an appointment to take the exam. An agent/broker who handles insurer's funds in a trust capacity, An annuity that offers fixed payments and guarantees a minimum rate of interest to be credited to the purchase payment or payments, A policy feature that allows the policyholder to vary premium payments in the amount and/or timing, An insurance company that is incorporated in another state. the insurance company retains the policy proceeds and pays interest on the proceeds to the recipient at regular intervals, a specified period of years is selected, and equal installments are paid to the recipient, pays a fixed specific amount in installments until the proceeds are exhausted, legal term used to identify an individual or entity that is not an insured under the contract, but that has a legally enforceable right under it, Employer is the Policy Owner and the Employees are the insured, no evidence of insurability within a specified number of days (usually 30 or 31 days of termination), -Employer pays 100% of the premium; requires 100% employee participation, Employer and employees share the cost of premium.
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