NJ LIFE PRODUCER EXAM INSURANCE
AND LAWS LATEST COMPREHENSIVE TEST
PAPER 2026 COMPLETE ANSWERS
ACCURATE
⫸ A Buyer's Guide MUST Answer: have it's content approved by the
Insurance Commissioner
⫸ A debtor may receive Credit Life insurance in which of the following
forms? Answer: Group Term Life
⫸ An insurance consultant is BEST defined as a(n) Answer: producer
who charges fees for advice
⫸ How often must an insurance producer's license in New Jersey be
renewed? Answer: Every two years
⫸ In the state of New Jersey, an applicant must apply for a Producer
license within what period of time from the date of passing the state
exam? Answer: 1 year
⫸ In the state of New Jersey, consultants charging a fee for advice must
be licensed as a(n) Answer: Producer
,⫸ Nina just passed her New Jersey insurance licensing examination.
She is REQUIRED to apply for a producer's license within ___ months.
Answer: 12
⫸ Insurers are required to keep copies of Policy Summaries and Buyer's
Guides on file for at least Answer: Three years after the documents are
used
⫸ All of the following are typically included in a life insurance policy
illustration EXCEPT Answer: Names of the beneficiaries
⫸ The names of the insurance companies represented by the producer
Answer: is available to the public
⫸ Carmen's individual life insurance policy has recently lapsed. She
may reinstate her policy within ___ year(s). Answer: 3
⫸ How long must an insurance company keep records on life insurance
replacement activity? Answer: 5 years
⫸ The treasurer of XYZ Insurance Company discovers that the
treasurer's company is being investigated by the Banking and Insurance
Commissioner. Because the company is in weak financial condition, the
treasurer instructs the company claims manager to delay recording
several large claims settlements. In this situation, the treasurer may be
found guilty of which of the following actions? Answer: Making false
financial statements
, ⫸ Jay the producer is giving insurance advice regarding a prospect's
existing coverage. If Jay were to receive a fee for this advice (in addition
to his commission), he MUST Answer: obtain a signed memorandum
from the prospect acknowledging the amount of compensation
⫸ What is the maximum fine for a producer violating a New Jersey
insurance law for the first time? Answer: $5,000
⫸ Replacement regulation is designed to protect Answer: policyowners
from misrepresentations and loss of benefits
⫸ The New Jersey Life and Health Guaranty Association protects life
insurance death benefit claims up to Answer: $500,000
⫸ Which entity is responsible for regulating insurance advertising in
New Jersey? Answer: New Jersey Department of Banking and Insurance
⫸ Someone who sells, solicits, or negotiates insurance contracts for
compensation on behalf of an insurer is called Answer: an insurance
producer
⫸ The Commissioner must approve Answer: Continuing education
courses
AND LAWS LATEST COMPREHENSIVE TEST
PAPER 2026 COMPLETE ANSWERS
ACCURATE
⫸ A Buyer's Guide MUST Answer: have it's content approved by the
Insurance Commissioner
⫸ A debtor may receive Credit Life insurance in which of the following
forms? Answer: Group Term Life
⫸ An insurance consultant is BEST defined as a(n) Answer: producer
who charges fees for advice
⫸ How often must an insurance producer's license in New Jersey be
renewed? Answer: Every two years
⫸ In the state of New Jersey, an applicant must apply for a Producer
license within what period of time from the date of passing the state
exam? Answer: 1 year
⫸ In the state of New Jersey, consultants charging a fee for advice must
be licensed as a(n) Answer: Producer
,⫸ Nina just passed her New Jersey insurance licensing examination.
She is REQUIRED to apply for a producer's license within ___ months.
Answer: 12
⫸ Insurers are required to keep copies of Policy Summaries and Buyer's
Guides on file for at least Answer: Three years after the documents are
used
⫸ All of the following are typically included in a life insurance policy
illustration EXCEPT Answer: Names of the beneficiaries
⫸ The names of the insurance companies represented by the producer
Answer: is available to the public
⫸ Carmen's individual life insurance policy has recently lapsed. She
may reinstate her policy within ___ year(s). Answer: 3
⫸ How long must an insurance company keep records on life insurance
replacement activity? Answer: 5 years
⫸ The treasurer of XYZ Insurance Company discovers that the
treasurer's company is being investigated by the Banking and Insurance
Commissioner. Because the company is in weak financial condition, the
treasurer instructs the company claims manager to delay recording
several large claims settlements. In this situation, the treasurer may be
found guilty of which of the following actions? Answer: Making false
financial statements
, ⫸ Jay the producer is giving insurance advice regarding a prospect's
existing coverage. If Jay were to receive a fee for this advice (in addition
to his commission), he MUST Answer: obtain a signed memorandum
from the prospect acknowledging the amount of compensation
⫸ What is the maximum fine for a producer violating a New Jersey
insurance law for the first time? Answer: $5,000
⫸ Replacement regulation is designed to protect Answer: policyowners
from misrepresentations and loss of benefits
⫸ The New Jersey Life and Health Guaranty Association protects life
insurance death benefit claims up to Answer: $500,000
⫸ Which entity is responsible for regulating insurance advertising in
New Jersey? Answer: New Jersey Department of Banking and Insurance
⫸ Someone who sells, solicits, or negotiates insurance contracts for
compensation on behalf of an insurer is called Answer: an insurance
producer
⫸ The Commissioner must approve Answer: Continuing education
courses
