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NJ LIFE PRODUCER EXAM QUESTIONS AND
CORRECT ANSWERS | GRADED A+ | VERIFIED
ANSWERS | LATEST VERSION (JUST
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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.. -----
- CORRECT ANSWER---------------Assessment on member companies
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? -----
- CORRECT ANSWER---------------nonresident Continuing education credit may be earned for completing which of the following courses? ------CORRECT ANSWER---------------CLU designation courses A New Jersey producer who resides in Pennsylvania but maintains a principal place of business in New Jersey and who has selected New Jersey as their home state is referred to as which of the following? ------ CORRECT ANSWER---------------resident
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
