Download NJ Life Producer Exam - Insurance and Laws QUESTIONS AND ANSWERS UPDATED (2025/2026) and more Exams Insurance law in PDF only on Docsity!
NJ Life Producer Exam - Insurance and Laws QUESTIONS
AND ANSWERS UPDATED (202 5 /202 6 ) (VERIFIED ANSWERS)
Which of the following amounts must decrease in a decreasing term? - ✔✔Death benefit In life insurance, insurable interest must exist at the time the.. - ✔✔Producer writes an on a proposed insured An applicant makes an offer to the insurer when they - ✔✔pay an initial premium with the application Which of the following makes Universal Life insurance different from other forms of permanent insurance? - ✔✔Premium Schedule An insurer that shares its profits with its' policyowners is known as.. - ✔✔A mutual insurer Statements made by an applicant for insurance on the application are considered to be.. - ✔✔Representations In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? - ✔✔Interest-Only The primary purpose of an annuity is to.. - ✔✔Provide income for retirement Which of the following provisions in a life policy specifies the manner in which proceeds will be paid to a beneficiary on the death of insured? - ✔✔settlement options An insurance producer takes an application for a life policy but does not collect the initial premium. On delivery of policy to the proposed insured, the producer must collect the initial premium and which of the following? - ✔✔The insured's signed statement of continued good health
A report of previously submitted life insurance applications to other insurers is known as: - ✔✔A Medical Information Bureau report A company decides to purchase Key Employee life insurance for its vice president of operations. All of the following statements are correct EXCEPT the.. - ✔✔Employee names the beneficiary Which of the following features allows an insurance policy to remain in force for a specified number of days beyond the premium due date? - ✔✔Grace period provision which of the following prevents the producer from unilaterally amending a policy? - ✔✔Entire contract interest paid on a policy loan is.. - ✔✔not tax deductible An employer paid life insurance policy is called - ✔✔Non-contributory group life A tax free exchange of one life insurance policy or annuity for another is called.. - ✔✔ 1035 exchange Which of the following group life plans require at least 75% of the eligible members to participate? - ✔✔Contributory Two business partners own life insurance on each other. If one partner dies, which of the following contracts will allow the other partner to buy 100 percent of the business interest? - ✔✔Buy and Sell agreement Under a traditional IRA, owners must begin to receive payments from their accounts by the time they reach age.. - ✔✔70 1/ social security retirement benefits are determined by all of the following except? - ✔✔sex
if an insurer wants to obtain an HIV test from an applicant - ✔✔they must obtain the applicant's written consent standard non-forfeiture benefits include - ✔✔reduced paid up insurance Reinstatement of a life insurance policy requires an insured to take all of the following actions EXCEPT: - ✔✔make collateral assignment to the insurer A contract that promises to pay an income to an insured until their death is called? - ✔✔Life annuity In a life policy, a special benefit that prepays a portion of a death benefit during the lifetime of an insurer in the event of a specified illness: - ✔✔an acceleration of life insurance benefit All of the following are true about a stock insurance company EXCEPT: - ✔✔Their policy holders vote for the members of the board of directors If a policy contains a Guaranteed Insurability rider, the insured has the right to purchase: - ✔✔coverage on the insurer's children within 15 days after they are born All of the following are true statements regarding representation EXCEPT: - ✔✔a statement that is guaranteed to be true An insurance company incorporated in Indiana, with its home office in Texas, is licensed to conduct business in all states except Pennsylvania. in Texas, this company would best be described as which of the following? - ✔✔Foreign A life insurance policy that fails to meet the 7 - pay test is called a.. - ✔✔a Modified Endowment Contract All of the following are true statements regarding policy dividends paid on on a life insurance contract EXCEPT: - ✔✔They are considered to be taxable income
The McCarran-Ferguson Act was passed y Congress to - ✔✔Redefine the authority of the state and federal government to regulate the insurance industry The principle that insurance is not a transaction of commerce and so should bed regulated by state was established in: - ✔✔Paul vs. Virginia In New jersey, a producer who violates a New Jersey insurance law for the first time may be fined up to - ✔✔$5, The New Jersey banking and insurance Commissioner has the authority to do all of the following actions EXCEPT: - ✔✔Establish insurance rates and schedules Which of the following statements is correct about an employment agreement between two producers?
- ✔✔it must be in writing The New jersey banking and Insurance Commissioner may issue which of the following documents to an insurance producer as evidence of authority? - ✔✔a license A producer who employs another producer must take which of the following actions? - ✔✔enter into a written employment agreement with the employee producer For a New Jersey insurance producer to charge a prospective insured for analyzing coverages, there must be a reasonable relationship between the fee and.. - ✔✔the nature of the services performed A person failing to comply with a subpoena from the Commissioner, may be charged with.. - ✔✔contempt To be eligible for a resident producers license an individual must meet which of the following requirements? - ✔✔complete a course of education approved by the Banking and Insurance Commissioner unless a waiver is obtained from the department
After an applicant successfully passes the state exam in the line of authority they are applying for, they can be issued a temporary certificate that expires no more then HOW MANY days after insurance? - ✔✔ 60 days Upon cancellation of an agency contract with a producer, the insurer must give written notice to the Commissioner within how many days? - ✔✔15 days A temporary work authority to act as a producer is issued at which of the following times? - ✔✔When an applicant passes a licensing examination and responds negatively to all background questions If a producer allows his license to lapse, how long before he has to meet all standard pre-licensing requirements again? - ✔✔12 months A producer's license is considered the property of - ✔✔The State of New Jersey A voluntarily terminated producer license may be reinstated during the same period if the producer takes which of the following actions? - ✔✔completes a new license application A producers certification of license status contains all of the following information EXCEPT: - ✔✔place of birth The Banking and Insurance Commissioner may revoke the license of a producer who.. - ✔✔uses the license primarily to obtain insurance for his or her family If a producer's license is revoked, he must wait how long before applying for reinstatement? - ✔✔ 5 years The New Jersey Life and Health Guaranty Association is derived from.. - ✔✔Assessment on member companies If a producer's license is suspended, he must wait how long before applying for reinstatement? - ✔✔Immediately after the period of suspension
The act of using misrepresentations to induce an insured person to terminate an existing policy and purchase a new policy is referred as.. - ✔✔twisting A producer who shares commission with a client may be found guilty of.. - ✔✔rebating A producer who knowingly engages in a prohibited trade practice, can be issued a fine not to exceed.. - ✔✔$5,000 for the first offense; $10,000 for each subsequent offenses A producer who UN-knowingly engages in a prohibited trade practice, can be issued a fine not to exceed.. - ✔✔$1, If an insurer or producer violates a cease and desist order, the Commissioner could assess a penalty not to exceed.. - ✔✔$5, Making statements which are false and derogatory about the financial condition of the insurer is: - ✔✔defamation When the beneficiary of a life insurance policy is a minor, the insurer can pay the proceeds - ✔✔if legal guardian has been appointed A branch office of registration form must be filed with the Banking and Insurance Commissioner a MINIMUM of how many days before conducting business at the branch office? - ✔✔thirty If the Guaranty Association assumes management of an insolvent insurer, the maximum amount of death benefits for which they are liable to is.. - ✔✔$500,000 per person If a producer changes their address, how many days do they have to notify the Department? - ✔✔ 30 Which of the following activities does not require a license? - ✔✔Scheduling appointments for producers to sell insurance
What information is NOT required to be included in advertising material for a life product? - ✔✔the agent's compensation The purpose of advertising regulation is to.. - ✔✔assure full and truthful disclosure to the public In a credit insurance policy, who is the beneficiary? - ✔✔the creditor Insurance advertising in local newspapers is regulated by the: - ✔✔New Jersey Department of Banking and Insurance Credit life insurance may be issued to a borrower in which of the following? - ✔✔group term life A creditor collects payment from a borrower for a credit life policy, but the policy is not issued. What action MUST the creditor take with the advance payment? - ✔✔return it directly to the borrower According to New Jersey law, copies of insurance advertisement must be maintained.. - ✔✔at the company's office All of the following items may be considered forms of advertising for life insurance EXCEPT: - ✔✔Buyer's guide All of the following statements are correct about the Notice Regarding Replacement of Life Insurance EXCEPT that it.. - ✔✔increases the opportunity for misrepresentations by an agent A policy illustration given at the time of sale does not typically include the.. - ✔✔names of the beneficiary The primary purpose of the replacement regulation is to.. - ✔✔protect the policyowners from misrepresentation and loss of benefits
