Question 1

In New Jersey, an insurance company formed in New Jersey with offices in New York is a

Options :

A : Foreign insurer.

B : Domestic insurer.

C : Alien insurer.

D : Mutual insurer.

Answer: B

Question 2

Generally, if an application is not prepaid, the effective date of coverage begins on the date the

Options :

A : Application is signed.

B : Application is postmarked and mailed to the insurer.

C : Company underwriter approves the risk.

D : Producer delivers the policy and collects a premium.

Answer: D

Question 3

An individual must be a licensed producer in order to take which of the following actions?

Options :

A : Compile the names and addresses of prospective insureds for marketing purposes.

B : Accept premiums from insureds at a recorded place of business.

C : Discuss the effects of age or health on premiums with a prospective insured.

D : Type binders or certificates.

Answer: C

Question 4

One area in which errors are commonly made on life insurance applications and for which the incontestable clause does not apply is

Options :

A : Occupation.

B : Age.

C : Education level.

D : State of residence.

Answer: B

Question 5

An immediate annuity is designed to make its first benefit payment to the annuitant typically

Options :

A : When the accumulation period, of at least 24 months, ends.

B : In the form of a lump sum payment.

C : Only after all cash surrender values, with interest, have been calculated.

D : One month from the annuity’s purchase date.

Answer: D