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NJ LIFE PRODUCER EXAM 2025 | ALL QUESTIONS
AND CORRECT ANSWERS | GRADED A+ | VERIFIED
ANSWERS | LATEST EXAM | JUST RELEASED
In advertisement of life insurance and annuities, all of the following are true EXCEPT ---------CORRECT ANSWER-----------------advertisement must include training material provided to the producer. An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? - --------CORRECT ANSWER-----------------grace period Which of the following is NOT a required provision in an accident and health insurance policy? ---------CORRECT ANSWER-----------------change of occupation An employer is issued a group medical insurance policy. This single contract is known as a(n) ---------CORRECT ANSWER-----------------master policy An interest-sensitive life insurance Policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called ---------CORRECT ANSWER-----------------partial surrender The reinstatement provision in a health insurance policy is --------- CORRECT ANSWER-----------------mandatory
A health insurance policy that allows an insurer to change the policyowner's premiums, but NOT cancel the policy is called a(n) --------- CORRECT ANSWER-----------------guaranteed renewable policy Level premium term life insurance policies ---------CORRECT ANSWER----- ------------automatically convert to permanent at a predetermined date. In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered --------- CORRECT ANSWER-----------------inilateral Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance? ---------CORRECT ANSWER----------------- Medicare in-hospital deductable In an employer-sponsored group accident and health plan, a master contract is issued to the ---------CORRECT ANSWER-----------------employer What is created after policy proceeds are obtained in a lump sum and then immediately invested? ---------CORRECT ANSWER-----------------estate A payment system for health care in which the provider is paid for each service is called ---------CORRECT ANSWER-----------------fee-for-service
Mark continues working after the age of 65 and is covered through his employer's group health plan. Which of the following statements is TRUE? ---------CORRECT ANSWER-----------------medicare is the secondary payer Within how many days must a rollover be completed in order to avoid being taxed as current income? ---------CORRECT ANSWER-----------------60 days What is Medicare Part B also known as? ---------CORRECT ANSWER------- ----------supplementary medical insurance A producer is meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics need to be discussed with the client? ---------CORRECT ANSWER----------------- financial objectives Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit? ------- --CORRECT ANSWER-----------------Increase the premiums on an individual basis States that have "no loss no gain" laws require a replacing policy to --------- CORRECT ANSWER-----------------pay for ongoing claims under the policy it replaces. An insurance broker is someone who represents which of the following? ---- -----CORRECT ANSWER-----------------An insured or prospective insured
A whole life insurance policy accumulates cash value that become --------- CORRECT ANSWER-----------------the policy loan value which the insured may borrow against. Under the disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental? ---------CORRECT ANSWER-----------------accidental bodily injury provision When an insured has a major plan with first dollar coverage, how does this impact the benefits paid? ---------CORRECT ANSWER-----------------no deductible payment is required Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment? ---------CORRECT ANSWER----------------
- it is temporary All of the following are function of an insuring clause EXCEPT --------- CORRECT ANSWER-----------------primarily describes the free-look period. In what part of an insurance policy are benefits found? ---------CORRECT ANSWER-----------------declarations Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face becomes $350,000. What kind of policy is this? ---------CORRECT ANSWER-----------------universal life policy
All of the following are characteristics of a Group Life Insurance Plan EXCEPT ---------CORRECT ANSWER-----------------individual underwriting. All Medicare policies MUST contain which provision? ---------CORRECT ANSWER-----------------Pre-existing conditions may obly be exclyded from coverage for a maximum of 6 months. Which of the following circumstance requires an individual to be a licensed producer? ---------CORRECT ANSWER-----------------Discussing premiums with a potential insured. Which of the following MUST contain a "Statement of Policy Cost and Benefit information"? ---------CORRECT ANSWER-----------------Policy If the commissioner determine that an individual has engaged in an act violating state insurance laws. The Commissioner may issue an order requiring the violator to ... ---------CORRECT ANSWER-----------------Stop engaging in those acts Carmen's individual life insurance policy has recently lapsed. She may reinstate her policy within ____ years. ---------CORRECT ANSWER----------- ------ 3 A newborn is required to be covered for ____ days from the moment of birth. ---------CORRECT ANSWER-----------------30 days
Which entity is responsible for regulating insurance advertising in New Jersey? ---------CORRECT ANSWER-----------------New Jersey Department of Banking and Insurance When the insurer enter into an agency contract with a licensed producer, it must file a Notice of Agency Contract with the Department within how many days? ---------CORRECT ANSWER-----------------15 days Within how many days must a producer notify the Department of Insurance of a change in address? ---------CORRECT ANSWER-----------------30 days An example of rebating would be ... ---------CORRECT ANSWER-------------- ---A producer who share commission with a client. A written statement describing the elements of a policy is called a ... --------- CORRECT ANSWER-----------------Policy summary The replacement of an existing insurance policy requires notice that the owner can return the policy within ___ days for a full refund. --------- CORRECT ANSWER-----------------30 days In New Jersey, health insurance advertisements are required to contain the ... ---------CORRECT ANSWER-----------------Insurance company's name
After an annuity contract has been delivered by the producer, the free look period is a MINIMUM of ... ---------CORRECT ANSWER----------------- 10 days, but now more than 30 days. Which of the following situation would be suitable for a temporary work authority? ---------CORRECT ANSWER-----------------When an applicant passed a licensing examination and answers all background questions negatively. Johan the producer charged a fee to a sales prospect for analyzing insurance coverages. According to New Jersey law, a reasonable relationship must exist between the fee and the ... ---------CORRECT ANSWER-----------------substance of the service performed. Which of these may NOT be used in a health insurance advertisement? ---- -----CORRECT ANSWER-----------------An insurance company's trademark instead of the company's actual name Which of the following designations is regulated by the Department of Banking and Insurance? ---------CORRECT ANSWER-----------------Certified Insurance Counselor An example of an unfair method of competition is ... ---------CORRECT ANSWER-----------------overstating the benefits of an insurance policy. Which of the following would be considered an unfair claim practice? --------
- CORRECT ANSWER-----------------Misrepresenting insurance policy provisions affecting a loss
Replacement regulation is designed to protect ... ---------CORRECT ANSWER-----------------policy owners from misrepresentations and loss of benefits. A Buyer's Guide MUST ... ---------CORRECT ANSWER-----------------have it's content approved by the Insurance Commissioner. The New Jersey and Health Insurance Guaranty Association is ... --------- CORRECT ANSWER-----------------funded by assessments on member companies. Pierre the producer receives a premium for an individual health insurance policy. Pierre MUST remit the premium to his insurer within ___ business days of receipt. ---------CORRECT ANSWER----------------- 7 In New Jersey, group health insurance may be offered to all of these groups EXCEPT ... ---------CORRECT ANSWER-----------------college seminar participants. One of the roles of the Banking and Insurance Commissioner is to ... --------
- CORRECT ANSWER-----------------establish continuing education requirements. What is the free-look period of a Medicare Supplement policy? --------- CORRECT ANSWER-----------------30 days
Once an accident and health insurance policy has been in force for 2 year(s), the policy may NOT be contested by the insurer. ---------CORRECT ANSWER-----------------at least 5 years Jerry voluntarily terminated his producer's license. If he changes his mind, his license may be reinstates during the same license period IF --------- CORRECT ANSWER-----------------he completes a new license application. How often must an insurance producer's license in New Jersey be renewed? ---------CORRECT ANSWER-----------------every two years. During the solicitation of a Life policy, when must an insurer furnish a prospective buyer with a Buyer's Guide and a Policy Summary? --------- CORRECT ANSWER-----------------Prior to, or at the time of policy delivery What is the purpose for a producer voluntarily terminating his/her license? - --------CORRECT ANSWER-----------------Returning his/her license to the Banking and Insurance Department Advertisements of insurance in a local newspaper, must be approved by ... ---------CORRECT ANSWER-----------------commissioner of insurance A producer must notify the Commissioner within ___ days of a felony conviction. ---------CORRECT ANSWER----------------- 30
When a Medicare supplement policy is purchased during the open enrollment period ... ---------CORRECT ANSWER-----------------the policy must be issued regardless of health status. Which of the following MUST contain a "Statement of Policy Cost and Benefit Information"? ---------CORRECT ANSWER-----------------policy summary All of the following are typically included in a life insurance policy illustration EXCEPT ---------CORRECT ANSWER-----------------names of the beneficiaries. The New Jersey Life and Health Guaranty Association protects life insurance death benefit claims up to ---------CORRECT ANSWER------------- ----$500,0 00 How long is the Contestable Period for health insurance policies sold in New Jersey? ---------CORRECT ANSWER-----------------2 years Health insurance advertisements that mention statistical information are required by New Jersey to ---------CORRECT ANSWER----------------- accurately convey all pertinent facts. In the state of New Jersey, an applicant must apply for a Producer License within what period of time from the date of passing the state exam? --------- CORRECT ANSWER-----------------1 year
A document providing basic information about life insurance policies in general is called a ---------CORRECT ANSWER-----------------Buyer's Guide Which of the following is NOT contained in a certification of license status? ---------CORRECT ANSWER-----------------License's place of birth The Guaranty Association Act provides that when a Court Order of Liquidation exists, the insurer ---------CORRECT ANSWER-----------------is insolvent Before a license agent is eligible to transact insurance sales, they must be - --------CORRECT ANSWER-----------------appointed by an insurance company. Which of the following is an example of defamation? ---------CORRECT ANSWER-----------------Using derogatory statements about an insurance company's financial condition. The death benefit of Credit Life and Health Insurance is paid to whom? ----- ----CORRECT ANSWER-----------------the creditor A Producer must file a Branch Office registration form with the DOBI at least how many days before beginning operations? ---------CORRECT ANSWER-----------------30 days
In a group medical expense health insurance plan, coverage for alcoholism is treated as? ---------CORRECT ANSWER-----------------Treated as any other illness, sickness or disease The New Jersey Life and Health Insurance Guaranty Association is --------- CORRECT ANSWER-----------------funded by assessment on member companies. A debtor may receive Credit Life insurance in which of the following forms? ---------CORRECT ANSWER-----------------Group Term Life Which of the following circumstances requires an individual to be licensed producer? ---------CORRECT ANSWER-----------------Discussing premiums with a potential insured. Under the New Jersey Continuance of Benefits Law, notice to extend coverage is required within how many days of a qualifying event? --------- CORRECT ANSWER-----------------30 days An agent is required to keep replacement forms on file for at LEAST --------- CORRECT ANSWER-----------------5 years Which of the following is NOT a duty of the Commissioner? --------- CORRECT ANSWER-----------------establish insurer rates
The law that established insurance transactions should be regulated by the states is called the ---------CORRECT ANSWER-----------------McCarran- Ferguson Act. An insurance producer is issued a(n) _____ as evidence of authority. --------
- CORRECT ANSWER-----------------license After a hearing, if the Commissioner determines that a person has willfully engaged in an unfair practice, the Commissioner may impose a fine of which of the following? ---------CORRECT ANSWER-----------------$5,000 for each violation How old must an individual be to obtain a producer's license? --------- CORRECT ANSWER----------------- 18 When does the open enrollment period begin for Medicare supplements? -- -------CORRECT ANSWER-----------------3 months before you 65th birthday The National Do Not Call List is monitored by which of the following? --------
- CORRECT ANSWER-----------------The Federal Government (Federal Trade Commission) Under the New Jersey Continuance of Benefits Law, notice to extend coverage is required within how many days of a qualifying event? --------- CORRECT ANSWER-----------------30 days
An insurance company may ONLY pay a sales commission to --------- CORRECT ANSWER-----------------individuals licensed by the state. A health insurer must be provided with written proof of loss ___ days after the the date of loss. ---------CORRECT ANSWER----------------- 90 A waiver of premium rider allows an insured to waive premium payments if the insured is ---------CORRECT ANSWER-----------------completely and permanently disabled. In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest? ---------CORRECT ANSWER-----------------Insurable interest can be established sufficiently by sentimental attachment alone. Index whole life insurance contains a securities component that acts as a(n) ---------CORRECT ANSWER-----------------hedge against inflation. When does an immediate annuity begin making payments? --------- CORRECT ANSWER-----------------After the first premium has been paid How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability? ---------CORRECT ANSWER-----------------12 months
