NJ - "Life Insurance Exam" Questions and Answers Updated 2026

NJ - "Life Insurance Exam"
Questions and Answers Updated
2026
1)BTheBfullBpremiumBwasBsubmittedBwithBtheBapplicationBforBlifeBinsurance,B&BtheBpolicyBwa
sBissuedB2BweeksBlaterBasBrequested.BWhenBdoesBtheBpolicyBcoverageBbecomeBeffective?

a)BAsBofBpolicyBdeliveryBdate

b)BAsBofBtheBfirstBofBtheBmonthBafterBtheBpolicyBissue

c)BAsBofBtheBpolicyBissueBdate

d)BAsBofBtheBapplicationBdateB-BAnswerd)BAsBofBtheBapplicationBdate



2)BWhichBofBtheBfollowingBisBtrueBregardingBlicenseBcancellationBandBreinstatement?

a)BTheBproducerBmustBallowBitBtoBlapse.BAfterBthatBpoint,BitBcanBbeBreinstatedBanyBtimeBwit
hinBtheBnextB2Byears,BprovidedBthatBtheBcontinuingBeducationBrequirementsBhaveBbeenBmet

b)BTheBlicenseBneedsBtoBbeBreturnedBtoBtheBInsuranceBDepartment.BOnceBthisBoccurs,BitBcan
notBbeBreinstated

c)BTheBproducerBmustBcompleteBaBbriefBinterviewBwithBtheBCommissioner'sBOffice.BTheBlicens
eBmayBthenBbeBreinstateBwithinB1Byear

d)BTheBlicenseBneedsBtoBbeBreturnedBtoBtheBInsuranceBDepartment.BItBcanBbeBreinstatedBby
BfillingBoutBanBapplicationBandBpayingBaBfeeB-
BAnswerd)BTheBlicenseBneedsBtoBbeBreturnedBtoBtheBInsuranceBDepartment.BItBcanBbeBreinst
atedBbyBfillingBoutBanBapplicationBandBpayingBaBfee



3)BOnBitsBadvertisement,BaBcompanyBclaimsBthatBitBhasBfundsBinBitsBpossessionBthatBare,BinB
fact,BnotBavailableBforBtheBpaymentBofBlossesBorBclaims.BTheBcompanyBisBguiltyBof:

a)BTwisting

b)BDefamation

c)BMisrepresentation

d)BCoercionB-BAnswerc)BMisrepresentation



4)BTheBWaiverBofBCostBriderBisBfoundBinBwhatBtypeBofBinsurance?

a)BJointBandBSurvivor

b)BJuvenileBLifeB

c)BUniversalBLife

,d)BWholeBLifeB-BAnswerc)BUniversalBLife



5)BWhichBruleBwouldBapplyBifBanBagentBknowsBanBapplicantBisBgoingBtoBcashBinBanBoldBpoli
cyBandBuseBtheBfundsBtoBpurchaseBnewBinsurance?

a)BReplacementBrule

b)BReinstatementBrule

c)BConversionBrule

d)BDisclosureBruleB-BAnswera)BReplacementBrule



6)BABcontractBbetweenBaBproducerBandBanBinsuranceBcompany:

a)BIsBconsideredBnoncancellable

b)BMustBbeBinBwritingBandBsignedBbyBbothBparties

c)BCanBbeBinBwritingBorBaBverbalBagreement

d)BMustBbeBsignedBbyBatBleastBoneBpartyB-
BAnswerb)BMustBbeBinBwritingBandBsignedBbyBbothBparties



7)BWhichBofBtheBfollowingBexplainsBtheBpolicyBowner'sBrightBtoBchangeBbeneficiaries,Bchoose
Boptions,BandBreceiveBproceedsBofBaBpolicy?

a)BTheBEntireBContractBProvision

b)BTheBConsiderationBClause

c)BAssignmentBRights

d)BOwner'sBRightsB-BAnswerd)BOwner'sBRights



8)BWhatBsignificanceBdidBPaulBvs.BVirginiaBhaveBonBtheBinsuranceBindustry?

a)BItBwasBdecidedBthatBinsuranceBrequiresBaBseparateBfederalBregulatoryBagencyBfromBSecuriti
esBproducts

b)BItBwasBdecidedBthatBinsuranceBlicensesBshouldBnotBbeBissuedBbyBtheBfederalBgovernmentB
andBshouldBinsteadBbeBissuedBbyBindividualBstates

c)BItBwasBdecidedBthatBinsuranceBwasBnotBinterstateBcommerceBandBcouldBnotBbeBregulated
BbyBtheBfederalBgovernment

d)BItBwasBdecidedBthatBinsuranceBwasBinterstateBcommerceBandBshouldBthereforeBbeBregulat
edBbyBtheBfederalBgovernmentB-
BAnswerc)BItBwasBdecidedBthatBinsuranceBwasBnotBinterstateBcommerceBandBcouldBnotBbeBre
gulatedBbyBtheBfederalBgovernment

, 9)BWhichBofBtheBfollowingBentitiesBisBheldBresponsibleBforBtheBcontentsBofBanBinsurer'sBadve
rtisementBonBlocalBTVBstation?

a)BTheBinsuranceBcompany

b)BTheBDepartmentBofBInsurance

c)BTheBTVBstation

d)BTheBGuarantyBAssociationB-BAnswera)BTheBinsuranceBcompany



10)BAnBunderwriterBmayBobtainBinformationBonBanBapplicant'sBhobbies,BfinancialBstatus,BandB
habitsBbyBorderingBa(n):

a)BAttendingBPhysicianBStatement

b)BInspectionBreport

c)BMedicalBInformationBBureauBreport

d)BMedicalBexaminationB-BAnswerb)BInspectionBreport



11)BABpolicyBwillBpayBtheBdeathBbenefitBifBtheBinsuredBdiesBduringBtheB20-yearBpremium-
payingBperiod,BandBnothingBifBdeathBoccursBafterBtheB20-
yearBperiod.BWhatBtypeBofBpolicyBisBthis?

a)BOrdinaryBlifeBpolicy

b)BLimitedBpayBwholeBlife

c)BLevelBterm

d)BTermBtoBspecifiedBageB-BAnswerc)BLevelBterm



12)BAnBinsuredBpurchasedBaBvariableBlifeBinsuranceBpolicyBwithBaBfaceBamountBofB$50,000.B
OverBtheBlifeBofBtheBpolicy,BstockBperformanceBdeclinedBandBtheBcashBvalueBfellB$10,000.BIfB
theBinsuredBdies,BhowBmuchBwillBbeBpaidBout?

a)B$10,000

b)B$40,000

c)B$50,000

d)B$60,000B-BAnswerc)B$50,000



13)BWhichBofBtheBfollowingBallowsBtheBinsurerBtoBrelieveBaBminorBinsuredBfromBpremiumBpa
ymentsBifBtheBminor'sBparentsBhaveBdiedBorBbecomeBdisabled?