NJ Life Insurance Test Questions and Answers
A reinstatement clause outlines reinstatement conditions that include - Answer-A. a higher premium charge.
B. payment of outstanding loans within the year.
C. proof of insurability.
D. a decrease in policy limits.
Answer
C
All of the fo...
A reinstatement clause outlines reinstatement conditions that include - Answer-A. a
higher premium charge.
B. payment of outstanding loans within the year.
C. proof of insurability.
D. a decrease in policy limits.
Answer
C
All of the following are characteristics of the Accelerated Death Benefit option EXCEPT
- Answer-A. the maximum benefit is a percentage of the face amount of insurance, and
there may also be a dollar limit
B. specific conditions must exist before payment of the benefit may be made, such as
suffering from a specific disease having only a very limited remaining lifetime due to
illness, or being admitted to a nursing home under doctors orders.
C. the face amount of insurance, the policy premium, and any cash value are unaffected
by the payment.
D. the benefit may be offered as a rider at a specific extra cost or may be at no cost, ot
may be part of the policy itself
Answer
C
To renew an insurance producer license, a renewal applicant must earn 24 continuing
education credits during the previous two years EXCEPT: - Answer-A. Insurance
brokers
B. Resident producers
C. Nonresident producers
D. Insurance consultants
Answer
C
,After a New Jersey producer license has been revoked the licensee may not reapply for
a new license for a MINIMUM of - Answer-A. 5 years.
B. 3 years.
C. 1 year.
D. 6 months.
Answer
5 years
All of the following statements about group life coverage are correct EXCEPT - Answer-
A. coverage may be provided through certificates to classes of employees.
B. coverage may be sponsored by a trade union, professional association, or creditor.
C. coverage is available to the general public through an association organized to take
advantage of low group rates.
D. arrangements may be made for bulk payment of premiums to the insurance
company.
Answer
C
Under New Jersey insurance law, a domestic mutual insurance company is defined as a
company organized under the laws of - Answer-A. New Jersey.
B. Connecticut, but admitted in New Jersey.
C. any country except the United States.
D. any territory of the United States.
Answer
A
The principle that insurance is not a transaction of commerce and so should be
regulated by the states was established by the - Answer-A. the McCarran-Ferguson Act.
B. Public Act 15.
C. Paul v. Virginia.
D. U.S. v. South Eastern Underwriters Association
ANSWER HERE
A
, A contract between two insurance companies that allows one company to transfer risk
to a second company is known as - Answer-A. Reinsurance
B. coinsurance
c. mutual insurance
Answer
A
which of the following dividend options is taxable? - Answer-A. Paid up additions.
B. One-year term.
C. Accumulation at interest.
D. Retum of premium.
Answer
C
A licensed life or health producer who solicits insurance in New Jersey and who has not
selected New Jersey as his home state but resides and maintains the principal office in
another state is defined as - Answer-A. a foreign producer.
B. a nonresident producer.
C. a reciprocal producer.
D. an alien producer.
Answer
B
After a New Jersey producer license has been revoked, the licensee may not reapply
for a new license for a M IMUM of - Answer-A. 5 years.
B. 3 years.
C. 1 year.
D. 6 months.
Answer
A
One of the major tax ADVANTAGES of life insurance is that - Answer-A. the distribution
of the annual earnings is tax free.
B.annual earnings are not taxed on a state or Federal level.
C. employer contributions to an employee's life insurance policy are tax deductible to
the employee.
D. the beneficiary generally does not pay income tax on the proceeds.
Answer
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