NJ Life Insurance Exam Questions with Correct Answers
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NJ Life Insurance
Institution
NJ Life Insurance
NJ Life Insurance Exam Questions with Correct Answers
Which of the following will NOT be included in the buyer's guide?
a) Explanation on how to choose the amount and type of insurance
b) Basic information about life insurance policies
c) Specific information about the policy
d) Comparison o...
NJ Life Insurance Exam Questions with
Correct Answers
Which of the following will NOT be included in the buyer's guide?
a) Explanation on how to choose the amount and type of insurance
b) Basic information about life insurance policies
c) Specific information about the policy
d) Comparison of policy costs - Answer-c) Specific information about the policy
All of the following statements about mutual insurance companies are correct EXCEPT
a) Mutual companies issue policies referred to as participating
b) Policy dividends issued by mutual companies are guaranteed and not taxable
c) Dividends allow policyholders to share in a mutual company's divisible surplus
d) Dividends are a return of unused premiums - Answer-b) Policy dividends issued by
mutual companies are guaranteed and not taxable
If a life insurance company uses HIV testing as a part of its underwriting, when must an
applicant be notified of the procedure?
a) Prior to ordering a physical examination
b) Prior to solicitation of the policy
c) Prior notice is not required
d) Prior to performance of the test - Answer-d) Prior to performance of the test
Which of the following would be considered a violation of Life Insurance Advertising
regulations?
a) Calling a variable insurance policy an investment plan
b) Not guaranteeing dividends
c) Making oral sales presentations
d) Informing the applicant the sole subject of the sale is insurance - Answer-a) Calling a
variable insurance policy an investment plan.
If an insurance company issues a policy even though some questions on the application
were unanswered, when can the insurer get the answers to those questions?
a) Within 3 months of issuing the policy
b) Within 30 days of issuing the policy
c) At any time within the incontestable period
d) Never; the insurer has waived its right to answer those answers by issuing the policy
- Answer-d) Never; the insurer has waived its right to answer those answers by issuing
the policy.
If an insured dies, and it is discovered that the insured misstated their age or gender,
the life insurance company will: - Answer-Adjust the death benefit to what the premium
would have purchased at the actual age or gender
, 1) The full premium was submitted with the application for life insurance, & the policy
was issued 2 weeks later as requested. When does the policy coverage become
effective?
a) As of policy delivery date
b) As of the first of the month after the policy issue
c) As of the policy issue date
d) As of the application date - Answer-d) As of the application date
To purchase insurance, the policyowner must face the possibility of losing money or
something of value in the event of a loss. This is called:
a) Indemnity
b) Exposure
c) Pure loss
d) Insurable interest - Answer-d) Insurable interest
2) Which of the following is true regarding license cancellation and reinstatement?
a) The producer must allow it to lapse. After that point, it can be reinstated any time
within the next 2 years, provided that the continuing education requirements have been
met
b) The license needs to be returned to the Insurance Department. Once this occurs, it
cannot be reinstated
c) The producer must complete a brief interview with the Commissioner's Office. The
license may then be reinstate within 1 year
d) The license needs to be returned to the Insurance Department. It can be reinstated
by filling out an application and paying a fee - Answer-d) The license needs to be
returned to the Insurance Department. It can be reinstated by filling out an application
and paying a fee
3) On its advertisement, a company claims that it has funds in its possession that are, in
fact, not available for the payment of losses or claims. The company is guilty of:
a) Twisting
b) Defamation
c) Misrepresentation
d) Coercion - Answer-c) Misrepresentation
4) The Waiver of Cost rider is found in what type of insurance?
a) Joint and Survivor
b) Juvenile Life
c) Universal Life
d) Whole Life - Answer-c) Universal Life
5) Which rule would apply if an agent knows an applicant is going to cash in an old
policy and use the funds to purchase new insurance?
a) Replacement rule
b) Reinstatement rule
c) Conversion rule
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