NJ Life Insurance Practice Exam Correct answers latest update

NJ Life Insurance Practice Exam Correct answers latest update Which of the following is a business agreement that provides for a surviving business partner to buy out another at his or her death? Select one: a. Survivorship Life b. Buy-Sell agreement c. Estate Endowment Life d. Decreasing Term insurance b. Buy-Sell agreement Which is NOT a right of ownership in a life insurance policy? Select one: a. Receiving dividends b. Using the policy as collateral for a bank loan c. Changing irrevocable beneficiaries d. Changing settlement options c. Changing irrevocable beneficiaries Which policy requires premium payments for the longest period of time? Select one: a. Retirement Income Endowment insurance b. Limited-Pay Whole Life insurance c. Decreasing Term insurance d. Whole Life insurance d. Whole Life insurance Which of the following is/are a cost savings typically associated with group insurance? Select one: a. Master policyholder assists in policy administration by deducting premiums from payroll and helping with claim administration. b. Individual underwrites on only those who do not accept coverage within the enrollment period. c. All of the these d. No MIB reports, credit reports or inspection reports are submitted. c. All of the these Which of the following is a financial interest that the policyowner must possess at the time that a life insurance policy is purchased? Select one: a. Insurable interest b. Medical Interest c. Monetary Interest d. Business Interest a. Insurable interest ______________________is often used to provide funds for a family to pay off a mortgage or other loans. Select one: a. Survivorship Life b. A Buy-Sell agreement c. Decreasing Term insurance d. Estate Endowment Life c. Decreasing Term insurance Which of the following insurance plans describes a group of people who don't qualify for group insurance but apply individually and have a group-type policy issued to them with the program administered by a sponsor? Select one: a. Industrial Life insurance b. Franchise Group insurance c. Group insurance d. Key-Employee insurance b. Franchise Group insurance Jacob owns a Whole Life insurance policy and wants to borrow against its cash value. Which of the following statements is true? Select one: a. He must pay the interest rate indicated in the policy or it will be added to the policy loan. b. Since Jacob owns the policy and its cash values, there is no interest on the loan c. Unpaid loans are forgiven at the insured's death. d. The amount of loan that Jacob can take will be determined by the Fair Credit Act. a. He must pay the interest rate indicated in the policy or it will be added to the policy loan. Which of the following is true if the policy owner is someone other than the insured? I.The owner must have insurable interest in the insured's life. II.The owner must sign the application. III.The insured must sign the application. Select one: a. III Only b. I, II, & III c. I Only d. II Only b. I, II, & III Which of the following statements concerning group insurance is or are true? Select one: a. All of the these b. Group insurance is usually Whole Life insurance. c. Each covered person is issued a certificate. d. Most plans are designed to encourage adverse selection. c. Each covered person is issued a certificate. Which of the following might typically be entered into between an employer and one of his best employees? Select one: a. Industrial Life insurance b. Whole Life insurance c. Key Employee protection d. Buy-Sell agreement c. Key Employee protection Which of the following annuity options would yield payments in a fixed amount each month until principal and interest are depleted? Select one: a. Life annuity, fixed amount b. Fixed period c. Life annuity, period certain d. Variable annuity a. Life annuity, fixed amount Life insurance based upon two or more lives, with benefits paid only upon the second death, is called... Select one: a. Estate Endowment Life b. Buy-Sell agreement c. Survivorship Life d. Decreasing Term insurance c. Survivorship Life Which of the following is NOT a non-forfeiture option? Select one: a. Paid-up insurance b. Lump Sum c. Dividends d. Extended Term insurance c. Dividends Which of the following is true if a policy includes an Aviation Exclusion? Select one: