Download NJ Life Producer Exam Study Life Insurance QUESTIONS AND 100% VERIFIED ANSWERS 2025/2026 and more Exams Business Administration in PDF only on Docsity!
NJ Life Producer Exam Study Life Insurance QUESTIONS
AND 1 00% VERIFIED ANSWERS 2025 /2026 GRADED
Renewable Term Life Insurance An insurer must renew a renewable term policy at the policyowner's request regardless of the insurability status of the insured. Fixed-amount The settlement option that provides for payments to be made in regular installments to a beneficiary until the principal and interest are exhausted best describes: Must give public reasonable access. What hours of operation is a branch office required to have? Amount of indeptness Under a Credit Life Policy, the amount of coverage shall not exceed the: 180 Days In most circumstances, a temporary license in New Jersey shall not be valid for a period longer than: 31 Days Telemarketers must update their solicitation lists with the National Do Not Call Registry every... Notify the Producer whose policy is being replaced When replacing existing life insurance, an agent MUST... have their principle office in New Jersey A producer who wishes to hold a Resident NJ Life Producer license, who lives in another state, must...
The ceding insurer A insurer procuring insurance for itself from another insurer is called... 90 days A business name authorization expires in 12 months A first time applicant is someone who has not been licensed as a producer for the previous... 12 months When applying for a producer's license, an applicant must have passed the State Licensing Exam within how long from the date of their application for license? Interest-only In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? Variable Life Under what type of life insurance policy will the death benefit vary, based on the performance of an underlying portfolio of securities? Not Tax Deductable Generally, premiums paid on an individual life insurance policy are: 9 years and 8 months A 10 year family income policy was purchased effective April 1, 2007. The insured died August 1,
- The beneficiary receives monthly income for: the face amount less the annual premium
Elisabeth retires. She purchases an annuity. One month later, she starts to receive payments from the annuity. What type of annuity does Elisabeth have? Irrevocable The term used to indicate that a policy beneficiary cannot be changed is... Living too long and outlasting one's income. What risk does an annuity cover? Decreasing term insurance Credit life insurance is a form of... a non-qualified plan Split-Dollar Life is a... Incontestability clause The provision that addresses misstatements made by applicant on application is... When the premium is due The grace period in a life insurance policy begins... A mutual insurance company What is the proper term for a company owned by its policy owners? insurance company Agents represent the... The beneficiary Which party does not have to sign life insurance application? Unilateral contract A contract where only one party gives a legally enforceable promise?
The premium paid With an insurance contract, what is the insured's consideration? may be subjected to unfavorable tax rules Money taken out of a modified endowment contract (MEC)... At the time of policy delivery A change in premium due to a rate-up would normally be discussed with a client... Modified Endowment Contract (MEC) A life insurance policy that fails to meet the seven-pay test is called a... Competent parties To be valid, a contract must be between individuals considered legally able to enter into an agreement. This is known as... Not Taxable Dividends are... United States v. Southeastern Underwriters Association (1944) Which established that the insurance industry should be considered interstate commerce and therefore subject to federal regulation? The governor The Commissioner of the NJ Department of Insurance is appointed by... 10 days The Commissioner is required to provide public notice a minimum of how many days prior to holding a hearing to discuss a proposed rule change? $5,000.
states The court case Paul vs Virginia established the regulation of insurance business is the responsibility of the... Rebating An agent offering a prospect something of value that is not specified in the insurance contract in order to persuade prospect to purchase insurance is guilty of... A policy summary What must be provided to all purchasers of life insurance? 5 years Insurers must maintain files of all advertisements used in the solicitation of life insurance for a period of at least... Insurer A licensed producer represents the... Mutual insurer A insurer's ownership comprised of policyholders is a... Public Law 15 The federal antitrust laws would apply to insurance but only to the extent that the state regulation was not effective is... jail The Commissioner does not have the power to put you in... 30 How many days within a Commissioner's final order does an intervenor have to appeal a decision?
Contempt A person failing to comply to a subpoena from the Commissioner, may be charged with... Insurance broker A person, for a fee or commission represents insured for the purpose of obtaining them a life insurance policy... The State of New Jersey Who owns a producer's license? 60 days A temporary certificate expires no more then how many days after issuance? 15 days Upon cancellation of an agency contract, with a producer, the insurer must give how many days notice to the Commissioner? Commissioner Who is responsible for advertising regulations? Member insurers The New Jersey Life and Health Guaranty Association is funded by... Legislature ,Executive branch of government and the Courts The insurance industry is regulated by the... CLU courses The Department of Insurance will count which of the following towards the continuing education requirement? No capital stock
30 days How many days does a licensee need to notify the Department when opening a branch office? $500,000. If Guaranty Association assumes management of an insolvent insurer, the amount of death benefits for which they are liable is... 30 days If a producer is indicted of a crime, they must notify the Commissioner within... 3 years Copies of policy summary and buyer's guides used with the public must be kept on file for... Insured's estate Creditors may attach the death benefits payable to... The insured debtor If a credit life insurance policy is terminated prior to the maturity date of the loan, a refund of unearned premiums is paid to... the creditor In a credit insurance policy, who is the beneficiary? Decreasing term Credit life insurance is a form of... 5 years Copies of insurance advertisement must be kept for at least... Individual policies of life insurance issued to debtors on a term plan In what instance can a credit insurance policy be issued?
Contribuatory What type of group plan requires at least 75% of the eligible members to participate? non-contribuatory An employer paid life insurance is called... Not tax deductable Interest paid on a policy loan is... Grace period provision What allows for an insurance policy to remain in force for a specified number of days beyond the premium due date? 1035 Exchange A tax free exchange of one life insurance policy or annuity for another is called... Entire contract Which of the following prevents the producer from unilaterally amending a policy? rider A modification to a life policy is called a... 70 1/ Under a Traditional IRA, owners must begin to receive payments from their accounts by the time they reach the age of... 20 - pay life A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a... The conditional receipt
