NJ Life Producer Exam Questions with Correct Answers
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NJ Life Producer
Institution
NJ Life Producer
NJ Life Producer Exam Questions with Correct Answers
Which of the following policy components contains the company's promise to pay? - Answer-Insuring clause
* The insuring clause contains the company's promise to pay.
Which of the following included in the term "insurance-related conduct"...
NJ Life Producer Exam Questions
with Correct Answers
Which of the following policy components contains the company's promise to pay? -
Answer-Insuring clause
* The insuring clause contains the company's promise to pay.
Which of the following included in the term "insurance-related conduct"? - Answer-
Transmitting funds between producers and the insurance company
*The term "insurance-related conduct" includes acts related to insurance transactions,
such as selling, soliciting, negotiating and binding insurance policies; processing claims;
or transmitting funds between the insured, producers, premium finance companies and
insurance companies.
Which of the following would be considered a nonmedical insurance application? -
Answer-An application on which the medical information is completed by the applicant
and the agent only
*An application on which all of the questions, including medical history questions, do not
need to be completed by medical professionals, and may be completed by the applicant
and the agent.
Which option for Universal life allows the beneficiary to collect both the death benefit
and cash value upon the death of the insured? - Answer-Option B
*Under Option B the death benefit includes the annual increase in cash value so that
the death benefit gradually increases each year by the amount that the cash value
increases. At any point in time, the total death benefit will always be equal to the face
amount of the policy plus the current amount of cash value.
**A producer was found guilty of a 3rd violation of the Insurance Code. What would be
the monetary penalty he will have to pay? - Answer-$10,000
*Any person violating an insurance law or regulation is liable to a penalty of no more
than $5,000 for a first offense and no more than $10,000 for each subsequent offense.
Who can make a fully deductible contribution to a traditional IRA? - Answer-An
individual not covered by an employer-sponsored plan who has earned income
*Individuals who are not covered by an employer-sponsored plan may deduct the full
amount of their IRA contributions regardless of their income level.
, The term "illustration" in a life insurance policy refers to - Answer-A presentation of
nonguaranteed elements of a policy.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this
mean to the beneficiaries? - Answer-The surviving beneficiary will continue receiving
2/3 of the benefit paid when both beneficiaries were alive.
When is the earliest a policy may go into effect? - Answer-When the application is
signed and a check is given to the agent
Which of the following types of insurance would be written by a limited lines agent? -
Answer-Credit insurance
The Waiver of Cost of Insurance rider is found in what type of insurance? - Answer-
Universal Life
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
If a settlement option is not chosen by the beneficiary or policyowner, which option will
be used? - Answer-Lump sum
An insured misstates her age at the time the life insurance application is taken. This
misstatement may result in - Answer-adjustment in the amount of death benefit
When a whole life policy lapses or is surrendered prior to maturity, the cash value can
be used to - Answer-Purchase a single premium policy for a reduced face amount.
The policyowner wants to make sure that upon his death, the life policy will pay a
portion of the proceeds annually to his spouse, but that the principal will be paid to their
children when they reach a certain age. Which settlement option should the policyowner
choose? - Answer-Interest only option
An individual is purchasing a permanent life insurance policyw ith a face value of
$25,000. While this is all the insurance that he can afford at this time, he wants to be
sure that additional coverage will be available in the future. Which of the following
options should be included in the policy? - Answer-Guaranteed insurability option
All of the following statements concerning an employer sponsored nonqualified
retirement plan are true except? - Answer-The employer can receive a current tax
deduction for any contributions made to the plan
A corporation is the owner and beneficiary of the key person life policy. If the
corporation collects the policy benefit, then... - Answer-The benefit is received tax free
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