NJ LIFE PRODUCER EXAM INSURANCE
AND LAWS LATEST FINAL STUDY GUIDE
2026 SOLVED QUESTIONS FULLY CORRECT
⫸ Which of these statements regarding the annuitants is CORRECT?
Answer: The annuitant's life expectancy determines the annuity payment
⫸ What will the beneficiary receive is annuitant dies during the
accumulation period? Answer: The greater the accumulated cash value
or the total premium paid
⫸ Which of the following actions is REQUIRED by an agent who is
replacing an existing life insurance policy? Answer: Submit to to the
replacing insurer a list of the policies to be replaced
⫸ All pre-licensing course completion certificate are valid for a period
of ? Answer: 2 years
⫸ A partial surrender is allowed in which of the following life policies?
Answer: Universal life
⫸ What happens to interest earned if the annuitant dies before the
payout start date? Answer: It is taxable
,⫸ How are annuities given favorable tax treatment? Answer: gains are
taxed at distribution
⫸ Fixed period settlement options are considered to be a form of a(n)
Answer: annuity
⫸ 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 Answer: dies instantly from a car accident
⫸ A modified insurance contract which accumulates cash values higher
than the IRS will allow Answer: A life insurance contract which
accumulates cash values higher than the IRS will allow
⫸ A(n) _____ insurance company is one that was formed under the laws
of a state other than New Jersey. Answer: Foreign
⫸ An example of a tax-qualified retirement plan would be a(n) Answer:
defined contribution plan
⫸ How soon can the benefit payments begin with a deferred annuity?
Answer: a minimum of 12 months after date of purchase
⫸ A securities license is required for a life insurance producer to sell
Answer: Variable Life Insurance
, ⫸ A whole life insurance policy accumulates cash value that becomes
Answer: the policy loan value which the insured may borrow against
⫸ The coverage, conditions, and limitations in the master policy of a
group contract can be found in which document? Answer: Certificate of
coverage and benefits
⫸ Which of the following policies does NOT build cash value? Answer:
term
⫸ When the word "insurance" appears in a producer's business name,
which of the following words cannot be approved? Answer: company
⫸ An example of an unfair method of competition is Answer:
overstating the benefits of an insurance company
⫸ Under a Modified Endowment Contract, what are the likely tax
consequences? Answer: Pre-death distributions will become taxable
⫸ When a decreasing term policy is purchased, it contains a decreasing
death benefit and Answer: level premiums
⫸ An immediate annuity has been purchased with a single premium.
When does the annuitant typically begin receiving benefit payments?
Answer: 1 month
AND LAWS LATEST FINAL STUDY GUIDE
2026 SOLVED QUESTIONS FULLY CORRECT
⫸ Which of these statements regarding the annuitants is CORRECT?
Answer: The annuitant's life expectancy determines the annuity payment
⫸ What will the beneficiary receive is annuitant dies during the
accumulation period? Answer: The greater the accumulated cash value
or the total premium paid
⫸ Which of the following actions is REQUIRED by an agent who is
replacing an existing life insurance policy? Answer: Submit to to the
replacing insurer a list of the policies to be replaced
⫸ All pre-licensing course completion certificate are valid for a period
of ? Answer: 2 years
⫸ A partial surrender is allowed in which of the following life policies?
Answer: Universal life
⫸ What happens to interest earned if the annuitant dies before the
payout start date? Answer: It is taxable
,⫸ How are annuities given favorable tax treatment? Answer: gains are
taxed at distribution
⫸ Fixed period settlement options are considered to be a form of a(n)
Answer: annuity
⫸ 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 Answer: dies instantly from a car accident
⫸ A modified insurance contract which accumulates cash values higher
than the IRS will allow Answer: A life insurance contract which
accumulates cash values higher than the IRS will allow
⫸ A(n) _____ insurance company is one that was formed under the laws
of a state other than New Jersey. Answer: Foreign
⫸ An example of a tax-qualified retirement plan would be a(n) Answer:
defined contribution plan
⫸ How soon can the benefit payments begin with a deferred annuity?
Answer: a minimum of 12 months after date of purchase
⫸ A securities license is required for a life insurance producer to sell
Answer: Variable Life Insurance
, ⫸ A whole life insurance policy accumulates cash value that becomes
Answer: the policy loan value which the insured may borrow against
⫸ The coverage, conditions, and limitations in the master policy of a
group contract can be found in which document? Answer: Certificate of
coverage and benefits
⫸ Which of the following policies does NOT build cash value? Answer:
term
⫸ When the word "insurance" appears in a producer's business name,
which of the following words cannot be approved? Answer: company
⫸ An example of an unfair method of competition is Answer:
overstating the benefits of an insurance company
⫸ Under a Modified Endowment Contract, what are the likely tax
consequences? Answer: Pre-death distributions will become taxable
⫸ When a decreasing term policy is purchased, it contains a decreasing
death benefit and Answer: level premiums
⫸ An immediate annuity has been purchased with a single premium.
When does the annuitant typically begin receiving benefit payments?
Answer: 1 month
