NJ Life Insurance Test Copy Questions and Answers Updated 2026

NJ Life Insurance Test Copy
Questions and Answers Updated
2026
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byBtheBstatesBwasBestablishedBbyBtheB-BAnswerA.BtheBMcCarran-FergusonBAct.



ABcontractBbetweenBtwoBinsuranceBcompaniesBthatBallowsBoneBcompanyBtoBtransferBriskBtoB
aBsecondBcompanyBisBknownBasB-BAnswerA.BReinsurance



whichBofBtheBfollowingBdividendBoptionsBisBtaxable?B-BAnswerC.BAccumulationBatBinterest.



ABlicensedBlifeBorBhealthBproducerBwhoBsolicitsBinsuranceBinBNewBJerseyBandBwhoBhasBnotBs
electedBNewBJerseyBasBhisBhomeBstateBbutBresidesBandBmaintainsBtheBprincipalBofficeBinBano
therBstateBisBdefinedBasB-BAnswerB.BaBnonresidentBproducer.



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BnewBlicenseBforBaBMBIMUMBofB-BAnswerA.B5Byears.



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BAnswerD.BtheBbeneficiaryBgenerallyBdoesBnotBpayBincomeBtaxBonBtheBproceeds.



TheBProducerBLicensingBregulationBrequiresBthatBaBbranchBofficeBbeBopenBtoBtheBpublicB-
BAnswerD.BonBaBpostedBscheduleBthatBprovidesBreasonableBaccess.



IfBaBproducerBmakesBaBsalesBproposalBorBpresentationBthatBfailsBtoBfairlyBandBfullyBdiscloseBf
utureBpremiumBcharges,Bbenefits,BandBanyBoptionsBtheBproducerBmayBbeBfoundBguiltyBofB-
BAnswerB.Bmisrepresentation.



WhichBtypeBofBinsuranceBpolicyBisBcharacterizedBbyBpremiumsBthatBareBfullyBpaidBupBwithinB
aBstatedBperiod,BafterBwhichBnoBfurtherBpremiumsBareBREQUIRED?B-
BAnswerD.BLimitedBpaymentBlifeBinsurance.



ABreinstatementBclauseBoutlinesBreinstatementBconditionsBthatBincludeB-
BAnswerC.BproofBofBinsurability.

, InsuranceBpurchasedBonBtheBlifeBofBaBborrowerBtoBprovideBindemnityBforBaBloanBbalanceBifB
theBborrowerBdiesBisBreferredBtoBasB-BAnswerВ.creditBlifeBinsurance.



NewBJerseyBreplacementBregulations,BitBisBtheBdutyBofBtheBreplacingBinsuranceBcompanyBtoBt
akeBallBofBtheBfollowingBactionsBEXCEPTB-BAnsweraBlistBofBallBpoliciesBthatBwillBbeBreplaced.



ABpolicyownerBCANNOTBchangeBtheBbeneficiaryBifBheBhasBnamedB-
BAnswerD.BanBirrevocableBbeneficiary.



TheBpolicyBfeatureBthatBmakesBuniversalBlifeBdifferentBfromBwholeBlifeBinsuranceBpoliciesBisBit
sB-BAnswerB.BflexibleBpremiumBschedule.



AfterBdiscussingBfinancialBstatus,BtaxBstatus,BinvestmentBobjectives,BandBanyBotherBinformation
BconsideredBtoBbeBrelevant,BtheBproducerBandBtheBclientBdecidedBthisBwillBachieveBtheBclient
'sBfinancialBgoal.BThisBannuityBpurchaseBisBdeemedBtoBbeB-BAnswerB.Bsuitable



WhichBsituationBaccuratelyBdescribesBaBreducedBpaid-upBnonforfeitureBoption?B-
BAnswerA.BTheBnewBpolicyBwillBhaveBaBdecreasedBfaceBamount.



AnBinsuranceBcompany,BownedBbyBitsBstockholdersBwhoBhaveBcontributedBtoBitsBcapitalBandB
surplusBandBtoBwhomBdividendsBareBpaid,BisBknownBasB-BAnswerD.BaBstockBcompany.



ABpublishedBadvertisementBforBaBfixedBannuityBMUSTBcontainBallBofBtheBfollowingBinformatio
nBEXCEPTB-BAnswerB.BthatBitBisBinsuredBbyBtheBstate



WhichBofBtheBfollowingBtransactionsBwouldBNOTBbeBsubjectBtoBincomeBtaxBunderBaBModified
BEndowmentBContractB(MEC)?B-BAnswerD.BTheBdeathBbenefit.



WhichBofBtheBfollowingBstatementsBisBCORRECTBaboutBanBapplicantBwhoseBproducerBlicenseB
hasBbeenBdenied?B-
BAnswerB.BTheBapplicantBisBentitledBtoBaBhearingBbeforeBtheBOfficeBofBAdministrativeBLaw.



TheB1944BU.S.Bvs.BSouth-EasternBUnderwritersBAssociationBcaseBdeterminedBthatB-
BAnswerA.BinsuranceBisBcommerceBandBshouldBbeBsubjectBtoBfederalBregulation.