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NJ Accident and Health Producer Exam Questions and Complete Solutions Graded A+
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NJ Accident and Health Producer Exam Questions and Complete Solutions Graded A+
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NJ Accident and HealthProducer Exam Questions
and Complete Solutions
Graded A+
Denning [Date] [Course title]
,Life income joint and survivor settlement option guarantees... - Answer: Income for 2 or more recipents
A participating insurance policy may do which of the following:... - Answer: Pay dividends to the policy
owner
What is TRUE about the cash surrender nonforfeiture option? - Answer: Funds exceeding the premiums
paid are taxable as ordinary income
Participating Insurance policy will... - Answer: pay dividends to the owner based upon mortality cost,
interest earned and cost
Which of the following is an example of a producer being involved in an unfair trade practice of
rebating?... - Answer: Telling a client that his first premium will be waived if he purchased the insurance
policy.
Rebating is defined as... - Answer: Offering any inducement in the sale of insurance products that is not
specified in the policy, including money, reductions in commissions, promises, and personal services.
Both offer and acceptance of a rebate are illegal
An insurer that holds a Certificate of Authority in the state in which it transacts business is considered
a/an - Answer: Authorized Insurer
Who is considered authorized or admitted? - Answer: Insurers who meet the state's financial
requirements and hold a Certificate of Authority to transact business in the state
Which of the following is a key distinction between variable whole life and variable universal life
products? - Answer: Variable whole life has a guaranteed death benefits
Which statement about dividends in incorrect?.. - Answer: Dividends amounts are guaranteed in the
policy
T or F: Dividends cannot be guaranteed - Answer: True
, An organizations licensed as a producer business entity based in New York would like to transact
insurance in New Jersey. Which of the following is true? - Answer: The organization will need to obtain
a nonresident business entity license and its producers will need to obtain nonresident licenses
Misrepresenting an insurance policy as a share of stock is an example of which of the following? -
Answer: False Advertising
Within how many days of requesting an investigative consumer report must an insurer notify the
consumer in writing that the report will be obtained? - Answer: 30 days
Which of the following statements about a life insurance policy would be allowed in an Insurance
advertisement?.. - Answer: Term Life insurance policy
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that
the face value of her life insurance policy has been raised 7% as a result. Which policy rider causes this
change? - Answer: Cost of Living Rider
Cost of Living Rider - Answer: Allows the policy face amount to be adjusted to account for inflation
based on the consumer price index.
Which of the following is another term for an authorized insurer? - Answer: Admitted
All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT - Answer: At
distribution all amounts received by the employees are tax free
If an insured continually uses the automatic premium loan option to pay the policy premium... - Answer:
The policy will terminate when the cash value is reduced to nothing
The two types of assignments are... - Answer: absolute and collateral
By how many days does the discontinuance of a group insurance policy reduce the time limit for
providing notice of claim or proof of loss? - Answer: 0 days
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