The McCarran Act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by
... [Show More] the:
a. Counties
b. Federal Government
c. Insurers in a state
d. States
?
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
a. False advertising
b. Defamation
c. Coercion
d. Misrepresentation
?
A "certification of license status" report can be run on any currently licensed New Jersey producer, but can only contain information on formal disciplinary actions taken within the past
a. 7 years.
b. 10 years.
c. 6 months.
d. 4 years.
?
Which of the following must an insurer obtain in order to transact insurance within a given state?
a. Business entity license
b. Insurer's license
c. Certificate of authority
d. Producer's certificate
c
Why is an equity indexed annuity considered to be a fixed annuity?
a. It is not tied to an index like the S&P 500.
b. It has a guaranteed minimum interest rate.
c. It has modest investment potential.
d. It has a fixed rate of return.
?
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
a. The customer has no knowledge of this action.
b. The customer's associates, friends, and neighbors provide the report's data.
c. They provide additional information from an outside source about a particular risk.
d. They provide information about a customer's character and reputation.
?
The company owes premium money to the insured. The insurer gave the funds to the producer to return to the insured. Within how many days must the producer pay the insured?
a. 5
b. 10
c. 14
d. 30
a
The Waiver of Cost of Insurance rider is found in what type of insurance?
a. Joint and Survivor
b. Juvenile Life
c. Universal Life
d. Whole Life
c
If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who has the ownership rights?
a. The insured and the policyowner
b. Beneficiary
c. Insured
d. Policyowner
?
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
a. Inducing the insured to drop a policy in favor of another one when it's not in the insured's best interest
b. Charging a client a higher premium for the same policy as another client in the same insuring class
c. Making deceptive statements about a competitor
d. Telling a client that his first premium will be waived if he purchased the insurance policy today
d
Which of the following entities established the Do-Not-Call Registry?
a. The Better Business Bureau
b. The NAIC
c. The Consumer Protection Agency
d. The Federal Trade Commission
d
If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?
a. 7 am
b. 8 am
c. 9 am
d. Noon
b
The company has issued a policy and delivered it to Producer B on May 1st, Monday. By what date must the policy be delivered to the insured?
a. May 2nd (immediately)
b. May 31st (within a month)
c. May 10th (within 10 calendar days)
d. May 12, Friday (within 10 business days)
c
Group life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?
a. 100% participation of members is required in noncontributory plans.
b. Each member covered receives a policy.
c. Coverage cannot be converted when an individual leaves the group.
d. Premiums are determined by age, occupation, and individual underwriting.
?
The Paul vs. Virginia case was decided in 1869. To what extent does the Supreme Court's decision still apply to insurance today?
a. The decision has changed. Insurance and securities are now regulated by the same federal agency.
b. It still stands in full. Insurance is not considered to be interstate commerce, and is not subject to regulation by the federal government.
c. It still stands in full. Insurance and securities are still regulated by two distinct agencies.
d. The decision has changed. Insurance is considered to be interstate commerce, and is subject to regulation by the federal government.
d
The two types of assignments are
a. Complete and partial.
b. Complete and proportionate.
c. Absolute and collateral.
d. Absolute and partial.
c
Who is a third-party owner?
a. An irrevocable beneficiary
b. A policyowner who is not the insured
c. An insurer who issues a policy for two people
d. An employee in a group policy
b
In which of the following situations is it legal to limit coverage based on marital status?
a. Legal separation during the application process
b. Divorce within the last six months of applying for insurance
c. It is never legal to limit coverage based on marital status.
d. Excessive number of divorces, as defined by the Insurance Code
c
Which of the following provide(s) funding for the New Jersey Life and Health Guaranty Association?
a. Insolvent insurers
b. Member insurers
c. Tax payers
d. Fundraising
b
Which of the following best describes a misrepresentation?
a. Discriminating among individuals of the same insuring class
b. Issuing sales material with exaggerated statements about policy benefits
c. Making a deceptive or untrue statement about a person engaged in the insurance business
d. Making a maliciously critical statement that is intended to injure another person
b
Which of the following entities is held responsible for the contents of an insurer's advertisement on local TV station?
a. The insurance company
b. The Department of Insurance
c. The TV station
d. The Guaranty Association
a
What license or licenses are required to sell variable annuities?
a. Only a securities license
b. No license is required
c. Both a life insurance license and a securities license
d. Only a life insurance license
c
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
a. Negotiate a reduced settlement with the beneficiary due to the unusual circumstances involved.
b. Return the premium to Y's estate, since it has no obligation to pay the death claim.
c. Keep the premium and reject the risk on the basis that the applicant died before the policy could be issued.
d. Issue the policy anyway and pay the face value to the beneficiary.
d
How is the Insurance Guaranty Association funded?
a. By NAIC
b. By the Government
c. By its members - authorized insurers
d. By the Department of Insurance
c [Show Less]