NJ Accident and Health Producer Exam
Questions and Guide Answers
100% Verified Graded A+
1. Life income joint and survivor settlement option guarantees...
Answer: Income for 2 or more recipents
2. A participating insurance policy may do which of the following
Answer:...: Pay dividends to the policy owner
3. What is TRUE about the cash surrender nonforfeiture option?
Answer: Funds exceeding the premiums paid are taxable as ordinary income
4. Participating Insurance policy will...
Answer: pay dividends to the owner based upon mortality cost, interest earned and cost
5. Which of the following is an example of a producer being involved in an unfair
trade practice of rebating?...
Answer: Telling a client that his first premium will be waived if he purchased the insurance policy.
6. Rebating is defined as...
,Answer: Ottering any inducement in the sale of insurance products that is not specified in the policy,
including money, reductions in commissions, promises, and personal services. Both otter and acceptance of a rebate
are illegal
7. An insurer that holds a Certificate of Authority in the state in which it
transacts business is considered a/an
Answer: Authorized Insurer
8. Who is considered authorized or admitted?
Answer: Insurers who meet the state's financial require-ments and hold a Certificate of Authority to
transact business in the state
9. Which of the following is a key distinction between variable whole life and
variable universal life products?
Answer: Variable whole life has a guaranteed death benefits
10. Which statement about dividends in incorrect?..
Answer: Dividends amounts are guaranteed in the policy
11. T or F Dividends cannot be guaranteed
Answer: True
12. An organizations licensed as a producer business entity based in New York
would like to transact insurance in New Jersey. Which of the following is
true?
,Answer: The organization will need to obtain a nonresident business entity license and its producers will need to
obtain nonresident licenses
13. Misrepresenting an insurance policy as a share of stock is an example of
which of the following?
Answer: False Advertising
14. Within how many days of requesting an investigative consumer report must
an insurer notify the consumer in writing that the report will be ob-tained?
Answer: 30 days
15. Which of the following statements about a life insurance policy would be
allowed in an Insurance advertisement?..
Answer: Term Life insurance policy
16. A long stretch of national economic hardship causes a 7% rate of inflation.
A policyowner notices that the face value of her life insurance policy has been
raised 7% as a result. Which policy rider causes this change?
Answer: Cost of Living Rider
17. Cost of Living Rider
Answer: Allows the policy face amount to be adjusted to account for inflation based on the consumer price
index.
18. Which of the following is another term for an authorized insurer?
, Answer: Admitted
19. All of the following are TRUE of the federal tax advantages of a qualified
plan EXCEPT
Answer: At distribution all amounts received by the employees are tax free
20. If an insured continually uses the automatic premium loan option to pay
the policy premium...
Answer: The policy will terminate when the cash value is reduced to nothing
21. The two types of assignments are...
Answer: absolute and collateral
22. By how many days does the discontinuance of a group insurance policy
reduce the time limit for providing notice of claim or proof of loss?
Answer: 0 days
23. absolute assigns.....
Answer: the entire policy
24. collateral assigns...
Answer: a part or all of the benefits
25. What is a material misrepresentation?
Answer: A statement by the applicant that, upon discovery, would attect the underwriting decision
of the insurance company
Questions and Guide Answers
100% Verified Graded A+
1. Life income joint and survivor settlement option guarantees...
Answer: Income for 2 or more recipents
2. A participating insurance policy may do which of the following
Answer:...: Pay dividends to the policy owner
3. What is TRUE about the cash surrender nonforfeiture option?
Answer: Funds exceeding the premiums paid are taxable as ordinary income
4. Participating Insurance policy will...
Answer: pay dividends to the owner based upon mortality cost, interest earned and cost
5. Which of the following is an example of a producer being involved in an unfair
trade practice of rebating?...
Answer: Telling a client that his first premium will be waived if he purchased the insurance policy.
6. Rebating is defined as...
,Answer: Ottering any inducement in the sale of insurance products that is not specified in the policy,
including money, reductions in commissions, promises, and personal services. Both otter and acceptance of a rebate
are illegal
7. An insurer that holds a Certificate of Authority in the state in which it
transacts business is considered a/an
Answer: Authorized Insurer
8. Who is considered authorized or admitted?
Answer: Insurers who meet the state's financial require-ments and hold a Certificate of Authority to
transact business in the state
9. Which of the following is a key distinction between variable whole life and
variable universal life products?
Answer: Variable whole life has a guaranteed death benefits
10. Which statement about dividends in incorrect?..
Answer: Dividends amounts are guaranteed in the policy
11. T or F Dividends cannot be guaranteed
Answer: True
12. An organizations licensed as a producer business entity based in New York
would like to transact insurance in New Jersey. Which of the following is
true?
,Answer: The organization will need to obtain a nonresident business entity license and its producers will need to
obtain nonresident licenses
13. Misrepresenting an insurance policy as a share of stock is an example of
which of the following?
Answer: False Advertising
14. Within how many days of requesting an investigative consumer report must
an insurer notify the consumer in writing that the report will be ob-tained?
Answer: 30 days
15. Which of the following statements about a life insurance policy would be
allowed in an Insurance advertisement?..
Answer: Term Life insurance policy
16. A long stretch of national economic hardship causes a 7% rate of inflation.
A policyowner notices that the face value of her life insurance policy has been
raised 7% as a result. Which policy rider causes this change?
Answer: Cost of Living Rider
17. Cost of Living Rider
Answer: Allows the policy face amount to be adjusted to account for inflation based on the consumer price
index.
18. Which of the following is another term for an authorized insurer?
, Answer: Admitted
19. All of the following are TRUE of the federal tax advantages of a qualified
plan EXCEPT
Answer: At distribution all amounts received by the employees are tax free
20. If an insured continually uses the automatic premium loan option to pay
the policy premium...
Answer: The policy will terminate when the cash value is reduced to nothing
21. The two types of assignments are...
Answer: absolute and collateral
22. By how many days does the discontinuance of a group insurance policy
reduce the time limit for providing notice of claim or proof of loss?
Answer: 0 days
23. absolute assigns.....
Answer: the entire policy
24. collateral assigns...
Answer: a part or all of the benefits
25. What is a material misrepresentation?
Answer: A statement by the applicant that, upon discovery, would attect the underwriting decision
of the insurance company
