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| Section | Objectives |
|---|---|
| Topic 1: Completing the Application, Underwriting, and Delivering the Policy | - Underwriting - Policy Delivery - Application Process |
| Topic 2: State Laws, Rules, and Regulations | - Ethics and Consumer Protection - New Jersey Insurance Regulations - Marketing Practices - Producer Licensing Requirements |
| Topic 3: Retirement and Other Insurance Concepts | - Qualified Plans - Life Insurance Needs Analysis - Retirement Plans |
| Topic 4: Policy Riders, Provisions, Options, and Exclusions | - Policy Provisions and Options - Policy Exclusions - Policy Riders |
| Topic 5: Types of Policies | - Traditional Whole Life Products - Annuities - Interest-Sensitive Life Products - Combination Plans and Variations - Term Life Insurance |
Question 1
Jerry purchased a life insurance policy and deliberately misstated his age in order to reduce his premium payment. The insurer did not discover Jerry's misrepresentation until a claim was filed on the policy when Jerry was killed in a car accident. In this situation, it is likely that the insurer will
A. Deny payment of policy proceeds based on Jerry's material misrepresentation of age at the inception of the policy.
B. Collect all proper back premiums, plus interest based on Jerry's true age, from the policy proceeds.
C. Decrease the amount of proceeds to whatever the premium paid would have purchased at the correct age.
D. Decrease the cash surrender value of the policy by the amount of premium that should have been paid.
Question 2
Printing derogatory statements about an insurance company's financial condition is known as
A. Defamation.
B. Not provided in the source question.
C. Alienation.
D. Misrepresentation.
Question 3
Which of the following policies allows for a partial surrender?
A. Term life.
B. Universal life.
C. Modified whole life.
D. Variable whole life.
Question 4
One area in which errors are commonly made on life insurance applications and for which the incontestable clause does not apply is
A. Education level.
B. Age.
C. State of residence.
D. Occupation.
Question 5
An insured has a $100,000 policy with an accidental death benefit rider. If he dies on his way to work due to a heart attack, what will the insurer pay?
A. $200,000.
B. $100,000.
C. $150,000.
D. $250,000.
Solutions:
| Question 1 Answer: C | Question 2 Answer: A | Question 3 Answer: B | Question 4 Answer: B | Question 5 Answer: B |
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