NJ Life Producer Practice Exam Questions with Answers
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NJ Life Producer
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NJ Life Producer
NJ Life Producer Practice Exam Questions with Answers
According to the Health Insurance Portability and Accountability Act (HIPPA), when can a group health policy renewal be denied? - Answer-Participation or contribution rules have been violated
Which of the following actions is REQUIRED by a...
NJ Life Producer Practice
Exam Questions with
Answers
According to the Health Insurance Portability and Accountability Act (HIPPA), when can
a group health policy renewal be denied? - Answer-Participation or contribution rules
have been violated
Which of the following actions is REQUIRED by an agent who is replacing an existing
life insurance policy? - Answer-Submit to the replacing insurer a life of the policies to be
replaced.
Which market index is normally associated with an indexed annuity's rate of return? -
Answer-S & P 500
A Medicare Supplement policy can be cancelled by the insurer for ... - Answer-
nonpayment.
Once an accident and health insurance policy has been in force for ___ year(s), the
policy may NOT be contested by the insurer. - Answer-2
Once an accident and health insurance policy has been in force for 2 year(s), the policy
may NOT be contested by the insurer. - 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 - Answer-he completes a new
license application.
How often must an insurance producer's license in New Jersey be renewed? - 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? - Answer-Prior to, or at the time of policy
delivery
What is the purpose for a producer voluntarily terminating his/her license? - Answer-
Returning his/her license to the Banking and Insurance Department
,Advertisements of insurance in a local newspaper, must be approved by ... - Answer-
commissioner of insurance
A producer must notify the Commissioner within ___ days of a felony conviction. -
Answer-30
When a Medicare supplement policy is purchased during the open enrollment period ...
- Answer-the policy must be issued regardless of health status.
What is the process for a producer voluntarily terminating his/her license? - Answer-
Returning his/her license to the Banking and INsuracne Department
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase
an extended-term insurance option. When the term insurance expires, _____. - Answer-
the protection ends.
Which type of annuity guarantees a states number of income payments, whether or ot
the annuitant is still alive to receive them? - Answer-Life annuity certain
Peter has a policy where 80% to 90% of the premium is invested in traditional fixed-
income securities and the remained of the premium is invested in contracts tied to a
stipulated stock index, what kind of policy is this? - Answer-Equity index whole life
What is involved when a life insurance policy has been backdated? - Answer-Making
the policy effective on an earlier date than the present
All of these are valid policy dividend options for a life insurance policy owner EXCEPT -
Answer-accumulate without interest.
Statements made by an insurance applicant on an application are considered to be -
Answer-representation.
What guarantees that the statements supplied by an insurance applicant are true? -
Answer-warranty
Tara the producer is delivering a specified disease insurance policy to a new policy
owner. Upon delivery, she may be expected to collect all of the following EXCEPT -
Answer-a(n) modified application with a new signature.
Tonya has replaced her whole life policy with an annuity without incurring a tax penalty.
This transaction is called a(n) - Answer-1035 Exchange.
A professional liability for which producers can be sued for mistakes of pouting a policy
into effect is called - Answer-errors and omissions.
,A life insurance rider that allows an individual to purchase insurance as they grow older,
regardless of insurability, is called a(n) - Answer-guaranteed insurability rider.
Which type of clause describes the following statement: "we have issued the policy in
consideration of the representations in your applications and payment of the first-
termpremium". - Answer-consideration clause
Chris is an insured bricklayer who severed his left hand in an automobile accident.
Although his primary duty cannot be performed, Christ is also a substitute high school
teacher. He collects a full disability check every month. How does this policy define total
disability? - Answer-own occupation
All Medicare policies MUST contain which provision? - 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? -
Answer-Discussing premiums with a potential insured.
Which of the following MUST contain a "Statement of Policy Cost and Benefit
information"? - 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 ... -
Answer-Stop engaging in those acts
Carmen's individual life insurance policy has recently lapsed. She may reinstate her
policy within ____ years. - Answer-3
A newborn is required to be covered for ____ days from the moment of birth. - Answer-
30 days
Which entity is responsible for regulating insurance advertising in New Jersey? -
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? - Answer-15
days
Within how many days must a producer notify the Department of Insurance of a change
in address? - Answer-30 days
An example of rebating would be ... - Answer-A producer who share commission with a
client.
A written statement describing the elements of a policy is called a ... - 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. - Answer-30 days
In New Jersey, health insurance advertisements are required to contain the ... - Answer-
Insurance company's name
When credit life of health is written, evidence of coverage (a policy or certificate of
insurance) must be delivered to the debtor is incurred or within how many days? -
Answer-30 days
All advertisements for health insurance shale make clear the identity of the ... - Answer-
Insurer.
ZYX company is looking to replace their existing group health coverage with another
plan. The replacing insurer is REQUIRED to ... - Answer-Accept all individuals eligible
under the previous plan.
In the state of New Jersey, consultants charging a fee for advice must be licensed as
a(n) ... - Answer-Producer
The New Jersey Temporary Disability Benefits law... - Answer-provides non-
occupational disability benefits.
Twisting is he defined as ... - Answer-Using misrepresentation to induce an insured
person to terminate an existing policy and purchase a new policy
Which of the following may be used as continuation education credit? - Answer-
Completing a CLU designation course
After an annuity contract has been delivered by the producer, the free look period is a
MINIMUM of ... - Answer-10 days, but now more than 30 days.
Which of the following situation would be suitable for a temporary work authority? -
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 ... - Answer-substance of the service performed.
Which of these may NOT be used in a health insurance advertisement? - 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? - Answer-Certified Insurance Counselor
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