Download 2025 NJ Life Producer Exam: Questions and Answers and more Exams Insurance Economics in PDF only on Docsity!
2025 NJ LIFE PRODUCER EXAM | ALL QUESTIONS
AND CORRECT ANSWERS | ALREADY GRADED A+ |
VERIFIED ANSWERS | LATEST EXAM
Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions converse this situation? ---------CORRECT ANSWER--------------- --Unpaid premium Which of the following is an annuity that is linked to a market-related index? ---------CORRECT ANSWER-----------------Equity-indexed annuity In order to obtain a producer's license, the application must be received by the Department within what period of time listed before? ---------CORRECT ANSWER-----------------12 month after passing the state exam Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? ---------CORRECT ANSWER----- ------------$4, An indemnity plan ---------CORRECT ANSWER-----------------provides the insured a specific dollar amount of services. The purpose of the Life and Health Insurance Guaranty Association is to --- ------CORRECT ANSWER-----------------ensure the claims filed against insolvent insurance companies will be paid.
A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured's health is called --------- CORRECT ANSWER-----------------conditionally renewable. Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of ---------CORRECT ANSWER----------------- 100% of costs. The period in which there are no Social Security benefits for the surviving spouse is called the ---------CORRECT ANSWER-----------------blackout period. The elimination period under a hospital indemnity plan is ---------CORRECT ANSWER-----------------the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization. An annuity is primarily used to provide ---------CORRECT ANSWER---------- -------retirement income. Continued coverage under COBRA would be provided to all of the following EXCEPT: ---------CORRECT ANSWER-----------------a covered employees is terminated for gross misconduct. The type of multiple protection coverage that pays on the death of the last person is called a(n) ---------CORRECT ANSWER-----------------survivorship life policy.
Which of the following is NOT a required provision in an accident and health insurance policy? ---------CORRECT ANSWER-----------------change of occupation An employer is issued a group medical insurance policy. This single contract is known as a(n) ---------CORRECT ANSWER-----------------master policy An interest-sensitive life insurance Policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called ---------CORRECT ANSWER-----------------partial surrender The reinstatement provision in a health insurance policy is --------- CORRECT ANSWER-----------------mandatory A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a(n) --------- CORRECT ANSWER-----------------guaranteed renewable policy Level premium term life insurance policies ---------CORRECT ANSWER----- ------------automatically convert to permanent at a predetermined date. In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered --------- CORRECT ANSWER-----------------inilateral
Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance? ---------CORRECT ANSWER----------------- Medicare in-hospital deductable In an employer-sponsored group accident and health plan, a master contract is issued to the ---------CORRECT ANSWER-----------------employer What is created after policy proceeds are obtained in a lump sum and then immediately invested? ---------CORRECT ANSWER-----------------estate A payment system for health care in which the provider is paid for each service is called ---------CORRECT ANSWER-----------------fee-for-service A securities license is required fro a life insurance producer to sell --------- CORRECT ANSWER-----------------variable life insurance. Which of teh following typically does NOT provide a form od managed care? ---------CORRECT ANSWER-----------------major medical indemnity plan Which of the following statements is CORRECT regarding an individual applying for life or health insurance? ---------CORRECT ANSWER------------- ----The applicant's medical history may be analyzed and reported.
A producer is meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics need to be discussed with the client? ---------CORRECT ANSWER----------------- financial objectives Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit? ------- --CORRECT ANSWER-----------------Increase the premiums on an individual basis States that have "no loss no gain" laws require a replacing policy to --------- CORRECT ANSWER-----------------pay for ongoing claims under the policy it replaces. An insurance broker is someone who represents which of the following? ---- -----CORRECT ANSWER-----------------An insured or prospective insured A whole life insurance policy accumulates cash value that become --------- CORRECT ANSWER-----------------the policy loan value which the insured may borrow against. Under the disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental? ---------CORRECT ANSWER-----------------accidental bodily injury provision When an insured has a major plan with first dollar coverage, how does this impact the benefits paid? ---------CORRECT ANSWER-----------------no deductible payment is required
Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? ---------CORRECT ANSWER----------------
- it is temporary All of the following are function of an insuring clause EXCEPT --------- CORRECT ANSWER-----------------primarily describes the free-look period. In what part of an insurance policy are benefits found? ---------CORRECT ANSWER-----------------declarations Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face becomes $350,000. What kind of policy is this? ---------CORRECT ANSWER-----------------universal life policy During the accumulation period, who can surrender an annuity? --------- CORRECT ANSWER-----------------policyowner A change in an insurance application requires ---------CORRECT ANSWER-----------------an initial made by the applicant. Which of these riders will pay a death benefit if the insured's spouse dies? - --------CORRECT ANSWER-----------------family term insurance rider
Which of the following MUST contain a "Statement of Policy Cost and Benefit information"? ---------CORRECT ANSWER-----------------Policy If the commissioner determine that an individual has engaged in an act violating state insurance laws. The Commissioner may issue an order requiring the violator to ... ---------CORRECT ANSWER-----------------Stop engaging in those acts Carmen's individual life insurance policy has recently lapsed. She may reinstate her policy within ____ years. ---------CORRECT ANSWER----------- ------ 3 A newborn is required to be covered for ____ days from the moment of birth. ---------CORRECT ANSWER-----------------30 days Which entity is responsible for regulating insurance advertising in New Jersey? ---------CORRECT ANSWER-----------------New Jersey Department of Banking and Insurance When the insurer enter into an agency contract with a licensed producer, it must file a Notice of Agency Contract with the Department within how many days? ---------CORRECT ANSWER-----------------15 days Within how many days must a producer notify the Department of Insurance of a change in address? ---------CORRECT ANSWER-----------------30 days
An example of rebating would be ... ---------CORRECT ANSWER-------------- ---A producer who share commission with a client. A written statement describing the elements of a policy is called a ... --------- CORRECT ANSWER-----------------Policy summary The replacement of an existing insurance policy requires notice that the owner can return the policy within ___ days for a full refund. --------- CORRECT ANSWER-----------------30 days In New Jersey, health insurance advertisements are required to contain the ... ---------CORRECT ANSWER-----------------Insurance company's name When credit life of health is written, evidence of coverage (a policy or certificate of insurance) must be delivered to the debtor is incurred or within how many days? ---------CORRECT ANSWER-----------------30 days All advertisements for health insurance shale make clear the identity of the ... ---------CORRECT ANSWER-----------------Insurer. ZYX company is looking to replace their existing group health coverage with another plan. The replacing insurer is REQUIRED to ... --------- CORRECT ANSWER-----------------Accept all individuals eligible under the previous plan.
Which of these may NOT be used in a health insurance advertisement? ---- -----CORRECT ANSWER-----------------An insurance company's trademark instead of the company's actual name Which of the following designations is regulated by the Department of Banking and Insurance? ---------CORRECT ANSWER-----------------Certified Insurance Counselor An example of an unfair method of competition is ... ---------CORRECT ANSWER-----------------overstating the benefits of an insurance policy. Which of the following would be considered an unfair claim practice? --------
- CORRECT ANSWER-----------------Misrepresenting insurance policy provisions affecting a loss Replacement regulation is designed to protect ... ---------CORRECT ANSWER-----------------policy owners from misrepresentations and loss of benefits. A Buyer's Guide MUST ... ---------CORRECT ANSWER-----------------have it's content approved by the Insurance Commissioner. The New Jersey and Health Insurance Guaranty Association is ... --------- CORRECT ANSWER-----------------funded by assessments on member companies.
Pierre the producer receives a premium for an individual health insurance policy. Pierre MUST remit the premium to his insurer within ___ business days of receipt. ---------CORRECT ANSWER----------------- 7 In New Jersey, group health insurance may be offered to all of these groups EXCEPT ... ---------CORRECT ANSWER-----------------college seminar participants. One of the roles of the Banking and Insurance Commissioner is to ... --------
- CORRECT ANSWER-----------------establish continuing education requirements. What is the free-look period of a Medicare Supplement policy? --------- CORRECT ANSWER-----------------30 days New Jersey insurance law requires eligible individuals to make an election to continue health insurance benefits within a MAXIMUM of ____ days after coverage termination. ---------CORRECT ANSWER----------------- 60 An insurance consultant is BEST defined as a(n) ... ---------CORRECT ANSWER-----------------producer who charges fees for advice. An agent has committed an insurance crime that violates US Code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime? ---------CORRECT ANSWER-----------------US Attorney General
During the solicitation of a Life policy, when must an insurer furnish a prospective buyer with a Buyer's Guide and a Policy Summary? --------- CORRECT ANSWER-----------------Prior to, or at the time of policy delivery What is the purpose for a producer voluntarily terminating his/her license? - --------CORRECT ANSWER-----------------Returning his/her license to the Banking and Insurance Department Advertisements of insurance in a local newspaper, must be approved by ... ---------CORRECT ANSWER-----------------commissioner of insurance A producer must notify the Commissioner within ___ days of a felony conviction. ---------CORRECT ANSWER----------------- 30 When a Medicare supplement policy is purchased during the open enrollment period ... ---------CORRECT ANSWER-----------------the policy must be issued regardless of health status. Which of the following MUST contain a "Statement of Policy Cost and Benefit Information"? ---------CORRECT ANSWER-----------------policy summary All of the following are typically included in a life insurance policy illustration EXCEPT ---------CORRECT ANSWER-----------------names of the beneficiaries.
The New Jersey Life and Health Guaranty Association protects life insurance death benefit claims up to ---------CORRECT ANSWER------------- ----$500,0 00 How long is the Contestable Period for health insurance policies sold in New Jersey? ---------CORRECT ANSWER-----------------2 years Health insurance advertisements that mention statistical information are required by New Jersey to ---------CORRECT ANSWER----------------- accurately convey all pertinent facts. In the state of New Jersey, an applicant must apply for a Producer License within what period of time from the date of passing the state exam? --------- CORRECT ANSWER-----------------1 year Replacement regulation is designed to protect the interests of --------- CORRECT ANSWER-----------------Policyowners A temporary producer's license may be issued for up to ---------CORRECT ANSWER-----------------180 days A health insurer must provide with written proof of loss ___ days after the date of loss. ---------CORRECT ANSWER----------------- 90
Before a license agent is eligible to transact insurance sales, they must be - --------CORRECT ANSWER-----------------appointed by an insurance company. Which of the following is an example of defamation? ---------CORRECT ANSWER-----------------Using derogatory statements about an insurance company's financial condition. The death benefit of Credit Life and Health Insurance is paid to whom? ----- ----CORRECT ANSWER-----------------the creditor A Producer must file a Branch Office registration form with the DOBI at least how many days before beginning operations? ---------CORRECT ANSWER-----------------30 days In a group medical expense health insurance plan, coverage for alcoholism is treated as? ---------CORRECT ANSWER-----------------Treated as any other illness, sickness or disease The New Jersey Life and Health Insurance Guaranty Association is --------- CORRECT ANSWER-----------------funded by assessment on member companies. A debtor may receive Credit Life insurance in which of the following forms? ---------CORRECT ANSWER-----------------Group Term Life
Which of the following circumstances requires an individual to be licensed producer? ---------CORRECT ANSWER-----------------Discussing premiums with a potential insured. Under the New Jersey Continuance of Benefits Law, notice to extend coverage is required within how many days of a qualifying event? --------- CORRECT ANSWER-----------------30 days An agent is required to keep replacement forms on file for at LEAST --------- CORRECT ANSWER-----------------5 years Which of the following is NOT a duty of the Commissioner? --------- CORRECT ANSWER-----------------establish insurer rates Advertising material for a life insurance policy does NOT need to contain which of the following? ---------CORRECT ANSWER-----------------Agent's commission rate Who would make the final determination on whether or not an insurance advertisement is misleading? ---------CORRECT ANSWER-----------------the banking and insurance commissioner All advertisements for health insurance shall make clear the identity of the - --------CORRECT ANSWER-----------------insurer.
