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| Section | Objectives |
|---|---|
| Topic 1: Life Insurance and Annuities | - Annuity basics
|
| Topic 2: Underwriting and Policy Issuance | - Risk classification
|
| Topic 3: Life Insurance Fundamentals | - Types of life insurance policies
|
| Topic 4: State Regulations (New Jersey) | - Insurance laws and ethics
|
Question 1
Which of the following is true concerning the use of HIV-related tests in life insurance underwriting?
A. They are not permitted.
B. Insurers need only obtain the proposed insured's verbal informed consent prior to testing.
C. Insurers do not need to obtain the proposed insured's informed consent prior to testing.
D. Insurers must obtain the proposed insured's written informed consent prior to testing.
Question 2
Which rider assures the premiums will be paid on a juvenile policy until the insured child reaches a specific age?
A. Payor rider.
B. Guaranteed insurability rider.
C. Automatic premium loan rider.
D. Waiver of premium rider.
Question 3
An insurance company that terminates a producer's agency contract is required to file a written notice of the termination with the Banking and Insurance Department at which of the following times?
A. A maximum of 30 days after the termination date.
B. Immediately.
C. A maximum of 15 days after the termination date.
D. A maximum of 7 days after the termination date.
Question 4
The purpose of advertising regulations is to
A. Ensure that the prospect has all the required information to make an informed decision.
B. Assure full and truthful disclosure to the public.
C. Assure that spokespersons are properly compensated.
D. Ensure that the insurance company is supervising its agents properly.
Question 5
What does the Fair Credit Reporting Act give the consumer the right to do?
A. Question the validity and source of any credit information collected and retained by the insurer.
B. Deny the insurer access to their credit report.
C. Decide which credit agency the insurer can pull their information from.
D. Request a copy of their credit report and an explanation of it from their agent.
Solutions:
| Question 1 Answer: D | Question 2 Answer: A | Question 3 Answer: C | Question 4 Answer: B | Question 5 Answer: A |
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