NJ LIFE PRODUCER EXAM QUESTIONS AND
DETAILED ANSWERS | 100% VERIFIED
Maria the agent would like to advertise an annuity product on a
highway billboard. Which of the following must be included in
the advertisements? - ✔✔✔ Correct Answer > Her name
Which of the following is considered to be the period when the
accumulated value in an annuity is paid out? - ✔✔✔ Correct
Answer > Annuitization phase
Why are dividends from a mutual insurer not subject to
taxation? - ✔✔✔ Correct Answer > because dividends are
considered to be a return of premiums
A tax-free Section 1035 Exchange of a life insurance policy to a
different policy is permitted if it occurs - ✔✔✔ Correct Answer
> from insurer to insurer and no cash is received by the
policyowner
Of the following dividend options, which of these is taxable? -
✔✔✔ Correct Answer > accumulation at interest
,An insurance company needs to obtain personal information
from a third party concerning an applicant. Which law do all
insurers and their producers need to comply with? - ✔✔✔
Correct Answer > Fair Credit Reporting Act
The state of New Jersey considers Lloyd's London what kind of
insurance company? - ✔✔✔ Correct Answer > Alien
How do interest earnings accumulate in a deferred annuity? -
✔✔✔ Correct Answer > on a tax-deferred basis
Which of the following signatures is not required on an
individual application? - ✔✔✔ Correct Answer > insurer
A rollover from a traditional IRA to another must be done
within ____ days to avoid tax consequences. - ✔✔✔ Correct
Answer > 60 days
Kurt is an active duty serviceman who was recently killed in an
accident while home on leave. Which military service exclusion
clause would pay upon his death? - ✔✔✔ Correct Answer >
Results
, An endorsement found in an insurance plan which modifies the
provisions of the policy is called a(n) - ✔✔✔ Correct Answer >
rider
How are contributions made to a Roth IRA handled for tax
purposes? - ✔✔✔ Correct Answer > Not tax deductible
Which of the following enables a life policy to be replaced with
another life policy and results in the postponement of the tax
consequences. - ✔✔✔ Correct Answer > Section 1035
exchange
Which of the following is true concerning the proceeds of a life
insurance policy? - ✔✔✔ Correct Answer > There is protection
of proceeds against the insured's and the beneficiaries creditors
What types of life insurance companies are normally used for
key employee indemnification? - ✔✔✔ Correct Answer > Term,
whole, and universal
DETAILED ANSWERS | 100% VERIFIED
Maria the agent would like to advertise an annuity product on a
highway billboard. Which of the following must be included in
the advertisements? - ✔✔✔ Correct Answer > Her name
Which of the following is considered to be the period when the
accumulated value in an annuity is paid out? - ✔✔✔ Correct
Answer > Annuitization phase
Why are dividends from a mutual insurer not subject to
taxation? - ✔✔✔ Correct Answer > because dividends are
considered to be a return of premiums
A tax-free Section 1035 Exchange of a life insurance policy to a
different policy is permitted if it occurs - ✔✔✔ Correct Answer
> from insurer to insurer and no cash is received by the
policyowner
Of the following dividend options, which of these is taxable? -
✔✔✔ Correct Answer > accumulation at interest
,An insurance company needs to obtain personal information
from a third party concerning an applicant. Which law do all
insurers and their producers need to comply with? - ✔✔✔
Correct Answer > Fair Credit Reporting Act
The state of New Jersey considers Lloyd's London what kind of
insurance company? - ✔✔✔ Correct Answer > Alien
How do interest earnings accumulate in a deferred annuity? -
✔✔✔ Correct Answer > on a tax-deferred basis
Which of the following signatures is not required on an
individual application? - ✔✔✔ Correct Answer > insurer
A rollover from a traditional IRA to another must be done
within ____ days to avoid tax consequences. - ✔✔✔ Correct
Answer > 60 days
Kurt is an active duty serviceman who was recently killed in an
accident while home on leave. Which military service exclusion
clause would pay upon his death? - ✔✔✔ Correct Answer >
Results
, An endorsement found in an insurance plan which modifies the
provisions of the policy is called a(n) - ✔✔✔ Correct Answer >
rider
How are contributions made to a Roth IRA handled for tax
purposes? - ✔✔✔ Correct Answer > Not tax deductible
Which of the following enables a life policy to be replaced with
another life policy and results in the postponement of the tax
consequences. - ✔✔✔ Correct Answer > Section 1035
exchange
Which of the following is true concerning the proceeds of a life
insurance policy? - ✔✔✔ Correct Answer > There is protection
of proceeds against the insured's and the beneficiaries creditors
What types of life insurance companies are normally used for
key employee indemnification? - ✔✔✔ Correct Answer > Term,
whole, and universal
