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New Jersey life insurance exam Correct answers latest update
New Jersey life insurance exam Correct answers latest update 
adhesion 
(take it or leave it) no changing the contract. take it as is. 
 
 
aleatory contract 
(uneven) You will never pay as much in premium as what you get in coverage 
 
 
peril 
died of a certain way 
 
 
Hazard 
cause of loss 
 
 
Variable Universal Life 
requires FINRA license 
 
 
the difference between insure vs. insured 
Insure (must pay policy benefit "the company") insured (the customer) 
 
 
S & P 500 
Equity index ann...
- Package deal
- Exam (elaborations)
- • 4 pages •
New Jersey life insurance exam Correct answers latest update 
adhesion 
(take it or leave it) no changing the contract. take it as is. 
 
 
aleatory contract 
(uneven) You will never pay as much in premium as what you get in coverage 
 
 
peril 
died of a certain way 
 
 
Hazard 
cause of loss 
 
 
Variable Universal Life 
requires FINRA license 
 
 
the difference between insure vs. insured 
Insure (must pay policy benefit "the company") insured (the customer) 
 
 
S & P 500 
Equity index ann...
NJ Life and Health Insurance Test Correct answers latest update
NJ Life and Health Insurance Test Correct answers latest update 
Agency Contract 
A contract given that is held between an insurer and an agent/producer, containing the expressed authority given to the agent/producer, and the duties and responsibilities to 
the principal. 
 
An agent who is in violation of the agency contract may be held personally liable to the insurer. 
 
 
Agent/Producer 
A person who acts for another person or entity with regard to contractual arrangements with third parties...
- Package deal
- Exam (elaborations)
- • 8 pages •
NJ Life and Health Insurance Test Correct answers latest update 
Agency Contract 
A contract given that is held between an insurer and an agent/producer, containing the expressed authority given to the agent/producer, and the duties and responsibilities to 
the principal. 
 
An agent who is in violation of the agency contract may be held personally liable to the insurer. 
 
 
Agent/Producer 
A person who acts for another person or entity with regard to contractual arrangements with third parties...
NJ Life Insurance Exam Study Set 1 Correct answers latest update
NJ Life Insurance Exam Study Set 1 Correct answers latest update 
What organization protects persons against failure of life and health insurance policies and annuity contracts because of the impairment or insolvency of the insurer? 
Select one: 
a. PPACA 
b. New Jersey Insurance Board 
c. New Jersey Insolvency Protection Board 
d. New Jersey Life and Health Guaranty Association 
d. New Jersey Life and Health Guaranty Association 
 
 
The United States v. South-Eastern Underwriters Association d...
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- Exam (elaborations)
- • 40 pages •
NJ Life Insurance Exam Study Set 1 Correct answers latest update 
What organization protects persons against failure of life and health insurance policies and annuity contracts because of the impairment or insolvency of the insurer? 
Select one: 
a. PPACA 
b. New Jersey Insurance Board 
c. New Jersey Insolvency Protection Board 
d. New Jersey Life and Health Guaranty Association 
d. New Jersey Life and Health Guaranty Association 
 
 
The United States v. South-Eastern Underwriters Association d...
NJ Life Insurance Exam Correct answers latest update
NJ Life Insurance Exam Correct answers latest update 
Insurance is the ____ of risk 
transfer 
 
 
disclosure statements must be given to the applicant no later than 
the time the application is signed 
 
 
buyer's guide 
provides general information about the types of life insurance policies available, in language that can be understood by the average person. 
 
 
buyers guide must be delivered by 
before collecting premium or be delivered with the policy if given at least 10 days free look pe...
- Package deal
- Exam (elaborations)
- • 19 pages •
NJ Life Insurance Exam Correct answers latest update 
Insurance is the ____ of risk 
transfer 
 
 
disclosure statements must be given to the applicant no later than 
the time the application is signed 
 
 
buyer's guide 
provides general information about the types of life insurance policies available, in language that can be understood by the average person. 
 
 
buyers guide must be delivered by 
before collecting premium or be delivered with the policy if given at least 10 days free look pe...
NJ Life Insurance Exam Correct answers latest update
NJ Life Insurance Exam Correct answers latest update 
Adverse Selection 
insuring of risks that are more prone to losses than the average risk 
 
 
lapse 
policy termination due to nonpayment of premium 
 
 
Insurance 
transfers risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals 
 
 
Life Insurance 
protects against loss associated with an insured's death, and pays a death benefit to beneficiaries u...
- Exam (elaborations)
- • 19 pages •
NJ Life Insurance Exam Correct answers latest update 
Adverse Selection 
insuring of risks that are more prone to losses than the average risk 
 
 
lapse 
policy termination due to nonpayment of premium 
 
 
Insurance 
transfers risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals 
 
 
Life Insurance 
protects against loss associated with an insured's death, and pays a death benefit to beneficiaries u...
NJ Life Insurance Practice Exam Correct answers latest update
NJ Life Insurance Practice Exam Correct answers latest update 
Which of the following is a business agreement that provides for a surviving business partner to buy out another at his or her death? 
 
Select one: 
 
a. Survivorship Life 
b. Buy-Sell agreement 
c. Estate Endowment Life 
d. Decreasing Term insurance 
b. Buy-Sell agreement 
 
 
Which is NOT a right of ownership in a life insurance policy? 
 
Select one: 
 
a. Receiving dividends 
b. Using the policy as collateral for a bank loan 
c....
- Package deal
- Exam (elaborations)
- • 8 pages •
NJ Life Insurance Practice Exam Correct answers latest update 
Which of the following is a business agreement that provides for a surviving business partner to buy out another at his or her death? 
 
Select one: 
 
a. Survivorship Life 
b. Buy-Sell agreement 
c. Estate Endowment Life 
d. Decreasing Term insurance 
b. Buy-Sell agreement 
 
 
Which is NOT a right of ownership in a life insurance policy? 
 
Select one: 
 
a. Receiving dividends 
b. Using the policy as collateral for a bank loan 
c....
NJ Life Insurance Test Correct answers latest update
NJ Life Insurance Test Correct answers latest update 
The McCarran-Ferguson Act was passed by Congress to 
Redefine the authority of the state and federal government to regulate the 
insurance industry 
 
 
The principle that insurance is not a transaction of commerce and so should be 
regulated by the state was established in: 
Paul v. Virginia 
 
 
In New Jersey, a producer who violates a New Jersey insurance law for the first time 
may be fined up to 
$5,000 
 
 
The New Jersey Banking and In...
- Package deal
- Exam (elaborations)
- • 12 pages •
NJ Life Insurance Test Correct answers latest update 
The McCarran-Ferguson Act was passed by Congress to 
Redefine the authority of the state and federal government to regulate the 
insurance industry 
 
 
The principle that insurance is not a transaction of commerce and so should be 
regulated by the state was established in: 
Paul v. Virginia 
 
 
In New Jersey, a producer who violates a New Jersey insurance law for the first time 
may be fined up to 
$5,000 
 
 
The New Jersey Banking and In...
NJ Life Producer Exam Correct answers latest update
NJ Life Producer Exam Correct answers latest update 
Which of the following amounts must decrease in a decreasing term? 
Death benefit 
 
 
In life insurance, insurable interest must exist at the time the.. 
Producer writes an on a proposed insured 
 
 
An applicant makes an offer to the insurer when they 
pay an initial premium with the application 
 
 
Which of the following makes Universal Life insurance different from other forms of permanent insurance? 
Premium Schedule 
 
 
An insurer that...
- Package deal
- Exam (elaborations)
- • 9 pages •
NJ Life Producer Exam Correct answers latest update 
Which of the following amounts must decrease in a decreasing term? 
Death benefit 
 
 
In life insurance, insurable interest must exist at the time the.. 
Producer writes an on a proposed insured 
 
 
An applicant makes an offer to the insurer when they 
pay an initial premium with the application 
 
 
Which of the following makes Universal Life insurance different from other forms of permanent insurance? 
Premium Schedule 
 
 
An insurer that...
NJ Life Producer Exam Correct answers latest update
NJ Life Producer Exam Correct answers latest update 
Under a Traditional IRA, interest earned is taxed 
upon distribution 
 
 
Which of these statements regarding the annuitants is CORRECT? 
The annuitant's life expectancy determines the annuity payment 
 
 
What will the beneficiary receive is annuitant dies during the accumulation period? 
The greater the accumulated cash value or the total premium paid 
 
 
Which of the following actions is REQUIRED by an agent who is replacing an existing l...
- Package deal
- Exam (elaborations)
- • 9 pages •
NJ Life Producer Exam Correct answers latest update 
Under a Traditional IRA, interest earned is taxed 
upon distribution 
 
 
Which of these statements regarding the annuitants is CORRECT? 
The annuitant's life expectancy determines the annuity payment 
 
 
What will the beneficiary receive is annuitant dies during the accumulation period? 
The greater the accumulated cash value or the total premium paid 
 
 
Which of the following actions is REQUIRED by an agent who is replacing an existing l...
NJ Life Producer Exam Study Life Insurance Correct answers latest update
NJ Life Producer Exam Study Life Insurance Correct answers latest update 
Renewable Term Life Insurance 
An insurer must renew a renewable term policy at the policyowner's request regardless of the insurability status of the insured. 
 
 
Fixed-amount 
The settlement option that provides for payments to be made in regular installments to a beneficiary until the principal and interest are exhausted best describes: 
 
 
Must give public reasonable access. 
What hours of operation is a branch offi...
- Package deal
- Exam (elaborations)
- • 8 pages •
NJ Life Producer Exam Study Life Insurance Correct answers latest update 
Renewable Term Life Insurance 
An insurer must renew a renewable term policy at the policyowner's request regardless of the insurability status of the insured. 
 
 
Fixed-amount 
The settlement option that provides for payments to be made in regular installments to a beneficiary until the principal and interest are exhausted best describes: 
 
 
Must give public reasonable access. 
What hours of operation is a branch offi...
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