NJ Life Insurance Test Questions and Answers Updated 2026

NJ Life Insurance Test Questions
and Answers Updated 2026
TheBprincipleBthatBinsuranceBisBnotBaBtransactionBofBcommerceBandBsoBshouldBbeBregulatedB
byBtheBstatesBwasBestablishedBbyBthe



A.BtheBMcCarran-FergusonBAct.



B.BPublicBActB15.



C.BPaulBv.BVirginia.



D.BU.S.Bv.BSouthBEasternBUnderwritersBAssociationB-BAnswerANSWERBHERE

A.BTheBMcCarran-FergusonBAct



ABcontractBbetweenBtwoBinsuranceBcompaniesBthatBallowsBoneBcompanyBtoBtransferBriskBtoB
aBsecondBcompanyBisBknownBas



A.BReinsurance

B.Bcoinsurance

c.BmutualBinsuranceB-BAnswerA.BReinsurance



whichBofBtheBfollowingBdividendBoptionsBisBtaxable?



A.BPaidBupBadditions.

B.BOne-yearBterm.

C.BAccumulationBatBinterest.

D.BRetumBofBpremium.B-BAnswerC.BAccumulationBatBinterest



ABlicensedBlifeBorBhealthBproducerBwhoBsolicitsBinsuranceBinBNewBJerseyBandBwhoBhasBnotBs
electedBNewBJerseyBasBhisBhomeBstateBbutBresidesBandBmaintainsBtheBprincipalBofficeBinBano
therBstateBisBdefinedBas

,A.BaBforeignBproducer.

B.BaBnonresidentBproducer.

C.BaBreciprocalBproducer.

D.BanBalienBproducer.B-BAnswerB.BNon-ResidentBProducer



AfterBaBNewBJerseyBproducerBlicenseBhasBbeenBrevoked,BtheBlicenseeBmayBnotBreapplyBforBa
BnewBlicenseBforBaBMINIMUMBof



A.B5Byears.

B.B3Byears.

C.B1Byear.

D.B6Bmonths.B-BAnswerA.B5Byears.



OneBofBtheBmajorBtaxBADVANTAGESBofBlifeBinsuranceBisBthat



A.BtheBdistributionBofBtheBannualBearningsBisBtaxBfree.



B.annualBearningsBareBnotBtaxedBonBaBstateBorBFederalBlevel.



C.BemployerBcontributionsBtoBanBemployee'sBlifeBinsuranceBpolicyBareBtaxBdeductibleBtoBtheB
employee.



D.BtheBbeneficiaryBgenerallyBdoesBnotBpayBincomeBtaxBonBtheBproceeds.B-
BAnswerD.BTheBbeneficiaryBgenerallyBdoesBnotBpayBincomeBtaxBonBtheBproceeds



TheBProducerBLicensingBregulationBrequiresBthatBaBbranchBofficeBbeBopenBtoBtheBpublic



A.BnoBlessBthanBfortyBhoursBperBweek.



B.BMondayBthroughBFridayBfromB8Ba.m.BtoB5Bp.m.



C.atBleastBoneBeveningBperBweekBandBoneBSaturdayBperBmonth.

, D.BonBaBpostedBscheduleBthatBprovidesBreasonableBaccess.B-
BAnswerD.BOnBaBPostedBScheduleBthatBprovidesBreasonableBaccess



IfBaBproducerBmakesBaBsalesBproposalBorBpresentationBthatBfailsBtoBfairlyBandBfullyBdiscloseBf
utureBpremiumBcharges,Bbenefits,BandBanyBoptionsBtheBproducerBmayBbeBfoundBguiltyBof



A.Bcoercion.

B.Bmisrepresentation.

C.Bfraud.

D.Btwisting.B-BAnswerB.BMisrepresentation



WhichBtypeBofBinsuranceBpolicyBisBcharacterizedBbyBpremiumsBthatBareBfullyBpaidBupBwithinB
aBstatedBperiod,BafterBwhichBnoBfurtherBpremiumsBareBREQUIRED?



A.BLumpBsumBinsurance.

B.BBasicBinstallmentBinsurance.

C.BPrepaidBpremiumBinsurance.

D.BLimitedBpaymentBlifeBinsurance.B-BAnswerD.BLimitedBpaymentBlifeBinsurance



ABreinstatementBclauseBoutlinesBreinstatementBconditionsBthatBinclude



A.BaBhigherBpremiumBcharge.



B.BLaymentBofBoutstandingBloansBwithinBtheByear.



C.BproofBofBinsurability.



D.BaBdecreaseBinBpolicyBlimitsB-BAnswerC.BProofBOfBinsurability



InsuranceBpurchasedBonBtheBlifeBofBaBborrowerBtoBprovideBindemnityBforBaBloanBbalanceBifB
theBborrowerBdiesBisBreferredBtoBas