NJ Life Producer Exam Questions and
Answers
1. Under a Traditional IRA, interest earned is taxed
ANS upon distribution
2. Which of these statements regarding the annuitants is CORRECT?
ANS The annuitant's life expectancy determines the annuity payment
3. What will the beneficiary receive is annuitant dies during the
accumulation period?
ANS The greater the accumulated cash value or the total premium paid
4. Which of the following actions is REQUIRED by an agent who is
replacing an existing life insurance policy?
ANS Submit to the replacing insurer a list of the policies to be replaced
5. All pre-licensing course completion certificate are valid for a period of
?
ANS 2 years
6. A partial surrender is allowed in which of the following life policies?
ANS Universal life
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17
,7. What happens to interest earned if the annuitant dies before the
payout start date?
ANS It is taxable
8. How are annuities given favorable tax treatment?
ANS gains are taxed at distribution
9. Fixed period settlement options are considered to be a form of a(n)
ANS annuity
10. Matt is applying for life insurance and requests a double
indemnity rider. A double indemnity benefit will be payable to Matt's
beneficiary if Matt
ANS dies instantly from a car accident
11. A modified insurance contract which accumulates cash values
higher than the IRS will allow
ANS A life insurance contract which accumulates cash values higher than the IRS will allow
12. A(n) insurance company is one that was formed
under the laws of a state other than New Jersey.
ANS Foreign
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17
, 13. An example of a tax-qualified retirement plan would be a(n)
ANS defined contribution plan
14. How soon can the benefit payments begin with a deferred
annuity?
ANS a minimum of 12 months after date of purchase
15. A securities license is required for a life insurance producer to
sell
ANS Variable Life Insurance
16. A whole life insurance policy accumulates cash value that
becomes
ANS the policy loan value which the insured may borrow against
17. The coverage, conditions, and limitations in the master
policy of a group contract can be found in which document?
ANS Certificate of coverage and benefits
18. Which of the following policies does NOT build cash value?
ANS term
19. When the word "insurance" appears in a producer's business
name, which of the following words cannot be approved?
ANS company
3/
17
Answers
1. Under a Traditional IRA, interest earned is taxed
ANS upon distribution
2. Which of these statements regarding the annuitants is CORRECT?
ANS The annuitant's life expectancy determines the annuity payment
3. What will the beneficiary receive is annuitant dies during the
accumulation period?
ANS The greater the accumulated cash value or the total premium paid
4. Which of the following actions is REQUIRED by an agent who is
replacing an existing life insurance policy?
ANS Submit to the replacing insurer a list of the policies to be replaced
5. All pre-licensing course completion certificate are valid for a period of
?
ANS 2 years
6. A partial surrender is allowed in which of the following life policies?
ANS Universal life
1/
17
,7. What happens to interest earned if the annuitant dies before the
payout start date?
ANS It is taxable
8. How are annuities given favorable tax treatment?
ANS gains are taxed at distribution
9. Fixed period settlement options are considered to be a form of a(n)
ANS annuity
10. Matt is applying for life insurance and requests a double
indemnity rider. A double indemnity benefit will be payable to Matt's
beneficiary if Matt
ANS dies instantly from a car accident
11. A modified insurance contract which accumulates cash values
higher than the IRS will allow
ANS A life insurance contract which accumulates cash values higher than the IRS will allow
12. A(n) insurance company is one that was formed
under the laws of a state other than New Jersey.
ANS Foreign
2/
17
, 13. An example of a tax-qualified retirement plan would be a(n)
ANS defined contribution plan
14. How soon can the benefit payments begin with a deferred
annuity?
ANS a minimum of 12 months after date of purchase
15. A securities license is required for a life insurance producer to
sell
ANS Variable Life Insurance
16. A whole life insurance policy accumulates cash value that
becomes
ANS the policy loan value which the insured may borrow against
17. The coverage, conditions, and limitations in the master
policy of a group contract can be found in which document?
ANS Certificate of coverage and benefits
18. Which of the following policies does NOT build cash value?
ANS term
19. When the word "insurance" appears in a producer's business
name, which of the following words cannot be approved?
ANS company
3/
17
