NJ ACCIDENT AND HEALTH PRODUCER LATEST EXAMINATION
QUESTIONS WITH VERIFIED ANSWERS. / ALREADY GRADED A+
When meeting with a prospect to discuss life insurance, Agent Tyler makes disparaging comments
about the financial stability and reputation of a competitor to dissuade the prospect from purchasing
its policies. Which unfair trade practice has Agent Tyler committed?
A) Defamation
B) Rebating
C) Unfair Discrimination
D) Coercion
A) Defamation
ABC Insurance Company fires Renee, a producer. She continues to interview prospects, make sales
presentations with company materials, and collect premiums. When dealing with Renee, the
prospects believe that she as what kind of authority from ABC
A) Apparent
B) Actual
C) Implied
D) Express
A) Apparent
What is the goal of the relation of earnings to insurance provision?
A) assure the insured that complete coverage is being provided
B) avoid overinsurance
C) Permit the insured to collect disability income benefits that exceed pre-disability income
D) protect the insurer against adverse selection
B) avoid overinsurance
Which level of long-term care provides ongoing care that is necessary to address a person's condition
but is not needed 24 hours a day?
A) Remedial care
B) skilled nursing care
C) intermediate care
D) custodial care
C) intermediate care
Which of the following statements regarding the tax treatment of medical expense insurance
premiums and benefits is correct?
,A) premiums are not deductible and benefits are taxable
B) premiums are not deductible and benefits are not taxable
C) premiums may be deductible as an unreimbursed medical expense and benefits are taxable
D) premiums may be deductible as an unreimbursed medical expense and benefits are not taxable
D) premiums may be deductible as an unreimbursed medical expense and benefits are not taxable
For which of the following will a Medicare participant have to pay all of the costs?
A) doctor's office visits
B) eyeglasses
C) care in an outpatient facility
D) neurological testing
B) eyeglasses
Sasha, Kendall, Adam, and Julio are applying for resident producer licenses in New Jersey. Which
person would most likely not be eligible for an exemption rom the pre-licensing education
requirements?
A) Sasha, who was licensed as a producer in Virginia before her license expired 3 years ago
B) Kendall, who obtained a Bachelor's degree in insurance this year
C) Adam, who is applying for a life insurance producer license and holds a Certified Financial Planner
designation
D) Julio, who is applying for a health and accident license and holds a Certified Employee Benefits
Specialist (CEBS) designation
A) Sasha, who was licensed as a producer in Virginia before her license expired 3 years ago
With respect to covering a family in a single medical expense insurance plan, which of the following
statements is correct?
A) a group policy can cover the worker and family, but an individual policy can only cover the insured
so each family member would need an individual policy
B) an individual policy can cover the insured and family, but a group policy can only cover the worker
so each family member would need an individual policy
C) both group and individual policies can cover the insured and family
D) neither an individual nor a group policy can cover the insured's family, so each family member
would need an individual policy
C) both group and individual policies can cover the insured and family
Candace submitted an application for a producer license and paid the licensing fee on June 1. She also
obtained a temporary work authority on the same date. When will Candace's work authority expire?
A) 30 days
B) 60 days
, C) 90 days
D) 180 days
B) 60 days
Which statement is correct about insurance regulation?
A) The federal government alone regulates the insurance industry
B) the federal government primarily regulates the insurance industry, and state governments regulate
some aspects of it
C) state governments alone regulate the insurance industry
D) state governments primarily regulate the insurance industry, and the federal government regulates
some aspects of it
D) state governments primarily regulate the insurance industry, and the federal government regulates
some aspects of it
Which of the following is a requirement to obtain a surplus lines license?
A) being licensed as a health or life insurance producer
B) having appointed the Commissioner as the producer's agent for service of process
C) being licensed as a property and casualty producer
D) maintaining a $500,000 bond
C) being licensed as a property and casualty producer
If the insured suffers a disability injury five days after buying a disability income policy with a 15-day
probationary period, which of the following statements is correct?
A) The policy will not cover the loss because the injury occurred during the probationary period
B) The policy will cover a reduced portion of the loss because the injury occurred during the
probationary period
C) The policy will cover the loss only if the insured remains disabled through the probationary period
D) the policy will cover the loss
D) the policy will cover the loss
What is the most common elimination period used in disability income policies that are purchased by
a company for disability buy-out purposes?
A) 18-24 months
B) 6-12 months
C) 180 days
D) 0 days
A) 18-24 months
Abby, Jessica, Dalton, and Kirby are licensed producers in New Jersey. Which producer is not engaged
in insurance-related conduct?
QUESTIONS WITH VERIFIED ANSWERS. / ALREADY GRADED A+
When meeting with a prospect to discuss life insurance, Agent Tyler makes disparaging comments
about the financial stability and reputation of a competitor to dissuade the prospect from purchasing
its policies. Which unfair trade practice has Agent Tyler committed?
A) Defamation
B) Rebating
C) Unfair Discrimination
D) Coercion
A) Defamation
ABC Insurance Company fires Renee, a producer. She continues to interview prospects, make sales
presentations with company materials, and collect premiums. When dealing with Renee, the
prospects believe that she as what kind of authority from ABC
A) Apparent
B) Actual
C) Implied
D) Express
A) Apparent
What is the goal of the relation of earnings to insurance provision?
A) assure the insured that complete coverage is being provided
B) avoid overinsurance
C) Permit the insured to collect disability income benefits that exceed pre-disability income
D) protect the insurer against adverse selection
B) avoid overinsurance
Which level of long-term care provides ongoing care that is necessary to address a person's condition
but is not needed 24 hours a day?
A) Remedial care
B) skilled nursing care
C) intermediate care
D) custodial care
C) intermediate care
Which of the following statements regarding the tax treatment of medical expense insurance
premiums and benefits is correct?
,A) premiums are not deductible and benefits are taxable
B) premiums are not deductible and benefits are not taxable
C) premiums may be deductible as an unreimbursed medical expense and benefits are taxable
D) premiums may be deductible as an unreimbursed medical expense and benefits are not taxable
D) premiums may be deductible as an unreimbursed medical expense and benefits are not taxable
For which of the following will a Medicare participant have to pay all of the costs?
A) doctor's office visits
B) eyeglasses
C) care in an outpatient facility
D) neurological testing
B) eyeglasses
Sasha, Kendall, Adam, and Julio are applying for resident producer licenses in New Jersey. Which
person would most likely not be eligible for an exemption rom the pre-licensing education
requirements?
A) Sasha, who was licensed as a producer in Virginia before her license expired 3 years ago
B) Kendall, who obtained a Bachelor's degree in insurance this year
C) Adam, who is applying for a life insurance producer license and holds a Certified Financial Planner
designation
D) Julio, who is applying for a health and accident license and holds a Certified Employee Benefits
Specialist (CEBS) designation
A) Sasha, who was licensed as a producer in Virginia before her license expired 3 years ago
With respect to covering a family in a single medical expense insurance plan, which of the following
statements is correct?
A) a group policy can cover the worker and family, but an individual policy can only cover the insured
so each family member would need an individual policy
B) an individual policy can cover the insured and family, but a group policy can only cover the worker
so each family member would need an individual policy
C) both group and individual policies can cover the insured and family
D) neither an individual nor a group policy can cover the insured's family, so each family member
would need an individual policy
C) both group and individual policies can cover the insured and family
Candace submitted an application for a producer license and paid the licensing fee on June 1. She also
obtained a temporary work authority on the same date. When will Candace's work authority expire?
A) 30 days
B) 60 days
, C) 90 days
D) 180 days
B) 60 days
Which statement is correct about insurance regulation?
A) The federal government alone regulates the insurance industry
B) the federal government primarily regulates the insurance industry, and state governments regulate
some aspects of it
C) state governments alone regulate the insurance industry
D) state governments primarily regulate the insurance industry, and the federal government regulates
some aspects of it
D) state governments primarily regulate the insurance industry, and the federal government regulates
some aspects of it
Which of the following is a requirement to obtain a surplus lines license?
A) being licensed as a health or life insurance producer
B) having appointed the Commissioner as the producer's agent for service of process
C) being licensed as a property and casualty producer
D) maintaining a $500,000 bond
C) being licensed as a property and casualty producer
If the insured suffers a disability injury five days after buying a disability income policy with a 15-day
probationary period, which of the following statements is correct?
A) The policy will not cover the loss because the injury occurred during the probationary period
B) The policy will cover a reduced portion of the loss because the injury occurred during the
probationary period
C) The policy will cover the loss only if the insured remains disabled through the probationary period
D) the policy will cover the loss
D) the policy will cover the loss
What is the most common elimination period used in disability income policies that are purchased by
a company for disability buy-out purposes?
A) 18-24 months
B) 6-12 months
C) 180 days
D) 0 days
A) 18-24 months
Abby, Jessica, Dalton, and Kirby are licensed producers in New Jersey. Which producer is not engaged
in insurance-related conduct?
