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A comprehensive set of questions and correct answers for the new jersey life insurance producer exam. It covers various topics related to insurance policies, fees, and regulations that producers must be familiar with to obtain their license. Questions on topics such as the relationship between fees and coverages, handling of credit life policies, key employee life insurance, and the timeline for obtaining a producer's license. By studying this document, aspiring insurance producers in new jersey can prepare for the state licensing exam and ensure they have a thorough understanding of the necessary knowledge and requirements to become a licensed life insurance producer.
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For a New Jersey insurance producer to charge a prospective insured for analyzing coverages, there must be a reasonable relationship between the fee and.. ------CORRECT ANSWER---------------the nature of the services performed A person failing to comply with a subpoena from the Commissioner, may be charged with.. ------CORRECT ANSWER---------------contempt To be eligible for a resident producers license an individual must meet which of the following requirements? ------CORRECT ANSWER--------------- complete a course of education approved by the Banking and Insurance Commissioner unless a waiver is obtained from the department What is issued to an insurer, by the Commissioner, demonstrating it's authority to transact insurance business in the state? ------CORRECT ANSWER---------------certificate of authority When an insurer procures insurance for itself from another insurer it is called.. ------CORRECT ANSWER---------------reinsurance In order to receive fees other than commissions, a life insurance producer acting as a consultant must first ------CORRECT ANSWER---------------
obtain a written memorandum from the prospect stating the amount of compensation A producer acting as an agent may take all the following actions EXCEPT: - -----CORRECT ANSWER---------------Place insurance with a company the producer does not represent A voluntarily terminated producer license may be reinstated during the same period if the producer takes which of the following actions? ------ CORRECT ANSWER---------------completes a new license application A producers certification of license status contains all of the following information EXCEPT: ------CORRECT ANSWER---------------place of birth The Banking and Insurance Commissioner may revoke the license of a producer who.. ------CORRECT ANSWER---------------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? ------CORRECT ANSWER---------------5 years The New Jersey Life and Health Guaranty Association is derived from.. -----
When the beneficiary of a life insurance policy is a minor, the insurer can pay the proceeds ------CORRECT ANSWER---------------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? ------CORRECT ANSWER---------------thirty If the Guaranty Association assumes management of an insolvent insurer, the maximum amount of death benefits for which they are liable to is.. ------ CORRECT ANSWER---------------$500,000 per person If a producer changes their address, how many days do they have to notify the Department? ------CORRECT ANSWER--------------- 30 Which of the following activities does not require a license? ------CORRECT ANSWER---------------Scheduling appointments for producers to sell insurance An insurer who is placed under an order of liquidation by a court of competent jurisdiction is defined under the terms of the New Jersey Life and Health Insurance Guaranty act as.. ------CORRECT ANSWER------------ ---an insolvent insurer The first violation of the NJ Fraud Prevention Act can result in a fine of ------ CORRECT ANSWER---------------$5,
A producer assists an insured in converting a life policy to a reduced paid- up insurance in order to buy a new policy. This action is best known as.. ---- --CORRECT ANSWER---------------replacing Which of the following MUST an agent do when replacing a life insurance policy? ------CORRECT ANSWER---------------submit to the replacing insurer a list of all the life insurance policies or annuity contracts proposed to be replaced All of the following actions can be taken by the Commissioner against a producer if he violates the rules of replacement EXCEPT: ------CORRECT ANSWER---------------redirect any commission earned to the insured Replacement rules apply to which of the following products? ------ CORRECT ANSWER---------------individual life policies A Buyer's guide must be provided to all purchases of which of the following types of insurance? ------CORRECT ANSWER---------------Ten year level term Life insurance advertisements ------CORRECT ANSWER---------------all of the above: must be truthful and not misleading; cannot use the terms "investment" or "savings; are designed to persuade the public to purchase life insurance
Credit life insurance may be issued to a borrower in which of the following? ------CORRECT ANSWER---------------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? ------CORRECT ANSWER---------------return it directly to the borrower Which of the following amounts must decrease in a decreasing term? ------ CORRECT ANSWER---------------Death benefit In life insurance, insurable interest must exist at the time the.. ------ CORRECT ANSWER---------------Producer writes an on a proposed insured An applicant makes an offer to the insurer when they ------CORRECT ANSWER---------------pay an initial premium with the application Which of the following makes Universal Life insurance different from other forms of permanent insurance? ------CORRECT ANSWER--------------- Premium Schedule An insurer that shares its profits with its' policyowners is known as.. ------ CORRECT ANSWER---------------A mutual insurer Statements made by an applicant for insurance on the application are considered to be.. ------CORRECT ANSWER---------------Representations
In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? ------CORRECT ANSWER---------------Interest-Only The primary purpose of an annuity is to.. ------CORRECT ANSWER---------- -----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? ------ CORRECT ANSWER---------------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? --- ---CORRECT ANSWER---------------The insured's signed statement of continued good health A report of previously submitted life insurance applications to other insurers is known as: ------CORRECT ANSWER---------------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.. ------CORRECT ANSWER---------------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? ------ CORRECT ANSWER---------------Grace period provision
social security retirement benefits are determined by all of the following except? ------CORRECT ANSWER---------------sex A modification to a life policy is called a.. ------CORRECT ANSWER---------- -----Rider the right to change a beneficiary is reserved for the.. ------CORRECT ANSWER---------------policyownerw Which of the following statements regarding a revocable beneficiary is CORRECT? ------CORRECT ANSWER---------------the policyowner may change the beneficiary without his or her knowledge or approved R has just graduated from law school. R knows that R's future earnings will be much higher than they are now, but wants to purchase a permanent policy now to cover future needs. Which of the following policies would BEST suit R's needs? ------CORRECT ANSWER---------------modified whole life A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a.. ------CORRECT ANSWER--------------- 20 pay-life All of the following are modes of payment in a life policy EXCEPT ------ CORRECT ANSWER---------------bi-weekly
A payor benefit rider provides which of the following benefits? ------ CORRECT ANSWER---------------A waiver of premium should the payor die, until the insured reaches a predetermined age The termed used to indicate that a policy beneficiary cannot be changed is.. ------CORRECT ANSWER---------------Irrevocable Which of the following states the terms of coverage during the underwriting process? ------CORRECT ANSWER---------------the conditional receipt The provision that addresses misstatements made by applicant on an application is.. ------CORRECT ANSWER---------------Incontestability clause The grace period in a life insurance policy begins ------CORRECT ANSWER---------------when the premium is due which of the following would best be used for estate planning purposes? --- ---CORRECT ANSWER---------------survivorship life if an insurer wants to obtain an HIV test from an applicant ------CORRECT ANSWER---------------they must obtain the applicant's written consent standard non-forfeiture benefits include ------CORRECT ANSWER------------ ---reduced paid up insurance
Texas, this company would best be described as which of the following? --- ---CORRECT ANSWER---------------Foreign A life insurance policy that fails to meet the 7-pay test is called a.. ------ CORRECT ANSWER---------------a Modified Endowment Contract All of the following are true statements regarding policy dividends paid on on a life insurance contract EXCEPT: ------CORRECT ANSWER--------------- They are considered to be taxable income The McCarran-Ferguson Act was passed y Congress to ------CORRECT ANSWER---------------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: ------CORRECT ANSWER---------------Paul vs. Virginia In New jersey, a producer who violates a New Jersey insurance law for the first time may be fined up to ------CORRECT ANSWER---------------$5, The New Jersey banking and insurance Commissioner has the authority to do all of the following actions EXCEPT: ------CORRECT ANSWER------------ ---Establish insurance rates and schedules
Which of the following statements is correct about an employment agreement between two producers? ------CORRECT ANSWER---------------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? ------CORRECT ANSWER---------------a license A producer who employs another producer must take which of the following actions? ------CORRECT ANSWER---------------enter into a written employment agreement with the employee producer A producer wishing to appeal the final order of the Commissioner would appeal to.. ------CORRECT ANSWER---------------The superior court which of the following producers does NOT need to satisfy CE credits? -----
If a producer allows his license to lapse, how long before he has to meet all standard pre-licensing requirements again? ------CORRECT ANSWER------ ---------12 months A producer's license is considered the property of ------CORRECT ANSWER---------------The State of New Jersey According to New Jersey law, copies of insurance advertisement must be maintained.. ------CORRECT ANSWER---------------at the company's office All of the following items may be considered forms of advertising for life insurance EXCEPT: ------CORRECT ANSWER---------------Buyer's guide All of the following statements are correct about the Notice Regarding Replacement of Life Insurance EXCEPT that it.. ------CORRECT ANSWER- --------------increases the opportunity for misrepresentations by an agent A policy illustration given at the time of sale does not typically include the.. - -----CORRECT ANSWER---------------names of the beneficiary The primary purpose of the replacement regulation is to.. ------CORRECT ANSWER---------------protect the policyowners from misrepresentation and loss of benefits