NJ Life Insurance Exam Questions with Revised Answers New Update
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NJ Life Insurance
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NJ Life Insurance
NJ Life Insurance Exam Questions with Revised Answers New Update
Which is true about the cash surrender non-forfeiture option? - Answer-Funds exceeding the premium paid are taxable as ordinary income
If an immediate annuity is purchased with the face amount at death or with the cash value at su...
NJ Life Insurance Exam Questions
with Revised Answers New Update
Which is true about the cash surrender non-forfeiture option? - Answer-Funds
exceeding the premium paid are taxable as ordinary income
If an immediate annuity is purchased with the face amount at death or with the cash
value at surrender, this would be considered a - Answer-Settlement option
The type of settlement option which pays throughout the lifetimes of two or more
beneficiaries is called - Answer-Joint and Survivor
What is the waiting period on a Waiver of Premium rider in life insurance policies? -
Answer-6 months
A rider that may be attached to a life insurance policy that will adjust the face amount
based upon a specific index, such as the Consumer Price Index, is called - Answer-Cost
of Living Rider
What required provision protects against unintentional policy lapse? - Answer-Grace
Period
Which of the following documents delivered to the policy owner includes information
about premium amounts, cash values, surrender values, and death benefits, for specific
policy years? - Answer-Policy Summary
If an insured withdraws a portion of the face amount in the form of accelerated benefits
because of a terminal illness, how will that affect the payable death benefit from the
policy? - Answer-Death benefit will be smaller
What percentage of a company's employees must take part in a non-contributionary life
plan? - Answer-100%
Which of the following riders would NOT cause the death benefit to increase? - Answer-
Payor Benefit Rider
Which is NOT true about beneficiary designations? - Answer-The beneficiary must have
insurable interest on the insured
Producers licenses are valid for - Answer-2 years
, Which statement is NOT true regarding a straight life policy? - Answer-It's premium
steadily decreases over time in response to it's growing cash value
To cancel an insurance producer license, the producer must - Answer-Send the license
to the insurance department and request cancellation
Which of the following policies would be classified as a traditional level premium
contract? - Answer-Straight Life
All the following are true regarding rebates EXCEPT - Answer-rebates are allowed IF it
is in the best interest of the client
Your consumer doesnt mind paying a higher premium as long as he gets the life
insurance product that would allow for a faster growth of cash value. What kind of policy
would you recommend? - Answer-An endowment policy
If a settlement option is not chosen by the policy owner or the beneficiary, what option
will be used by the insurer? - Answer-Lumpsum
In accordance with the administrative procedure act, what entity has the authority to
make and enforce rules and regulations to implement and carry out the purpose of
insurance laws of NJ? - Answer-Commissioner
Which of the following statements regarding the taxation of modified endowment
contract is FALSE? - Answer-Withdrawals are not taxable
If a policy has an automatic premium loan provision, what happens if the insured dies
before the loan is paid back? - Answer-The balance of the loan will be taken out of the
death benefit
An insurer receives a report regarding a potential insured that includes the insureds
financial status, hobbies and habits. What type of report is that? - Answer-Inspection
Report
The insured under $100,000 life insurance policy with a triple indemnity rider for
accidental death was killed in a car accident. It was determined that the accident was
his fault. The triple indemnity rider in the policy specifies that the death must not be
contributed to by the insured in any manner. In this case, what will the policy beneficiary
receive? - Answer-$100,000
An insurer that holds a Certificate of Authority in the state in which it transacts business
is considered a : - Answer-Authorized Insurer
Which of the following best describes annually renewable term insurance? - Answer-It is
level term insurance.
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