New Jersey Life and Health Updated Actual
Question and Answer (2026/2027) | A+
Verified
• What type of injury would NOT be covered under a health insurance policy? -✓✓ work-
related
• XYZ company is looking to replace their existing group health coverage with another
plan. The replacing insurer is REQUIRED to -✓✓ Accept all individuals eligible under
the previous plan
• ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This
situation is called -✓✓ Reinsurance
• A partial is allowed in which of the following life policies? -✓✓ Universal life
• An example of a tax-qualified retirement plan would be a(n) -✓✓ defined contribution
plan
• What type of policy provides coverage for specific types of illnesses
(cancer,stroke,etc)? -✓✓ Dread disease insurance
• Bill the producer is collecting the initial premium on a health policy. Which of the
following statements is true? -✓✓ The contract is not in force without the initial premium
being paid
• What is an insurance policy's grace period? -✓✓ Period of time after the premium is
due but the policy remains in force
• The authority granted to a licensed producer is provided via the -✓✓ Law of Agency
• All of these are characteristics of a universal life insurance policy EXCEPT -✓✓ Fixed
surrender value
• Which type of business insurance is meant to cover the costs of continuing to do
business while the owner is disabled? -✓✓ Business overhead expense policy
• A professional liability for which producers can be sued for mistakes of putting a policy
into effect is called -✓✓ errors and omissions
• How many employees must an employer have for a terminated employee to be eligible
for COBRA? -✓✓ 20
, • Which of the following would disqualify a company's retirement plan from receiving
favorable tax treatment? -✓✓ It is temporary
• Peter has a policy where 80% to 90% of the premium is invested in traditional fixed
income securities and the remainder of the premium is invested in contracts tied to a
stipulated stock index. What kind of policy is this? -✓✓ Equity index whole life
• Benefits provided by a Medicare Supplement policy must NOT -✓✓ duplicate Medicare
benefits
• Under a Traditional IRA, interest earned is taxed -✓✓ upon distribution
• Field underwriting performed by the producer involves -✓✓ completing the application
and collecting initial premium
• Which of these statements about Medicaid is CORRECT? -✓✓ Funded by federal,
state, and local taxes
• A change in an insurance application requires -✓✓ an initial made by the applicant
• The purpose of the New Jersey Temporary Disability Benefits law is to -✓✓ provide
non occupational disability benefits
• Which of these is likely to occur when life of health insurance is being applied for? -✓✓
Medical history from the insured may be reviewed and reported
• Life insurance policies will normally pay for losses arising from -✓✓ commercial
aviation
• What is the contract called that is issued to an employer for a Group Medical
Insurance plan? -✓✓ Master policy
• According to the Health Insurance Portability and Accountability Act (HIPAA), when
can a group health policy renewal be denied? -✓✓ Participation or contribution rules
have been violated
• All of these are valid policy divided opinions for a life insurance policy owner EXCEPT
-✓✓ Accumulate without interest
• Which of the following would be a valid reason why a policy premium would be higher
than the standard premium -✓✓ The insured does not meet established underwriting
requirements
Question and Answer (2026/2027) | A+
Verified
• What type of injury would NOT be covered under a health insurance policy? -✓✓ work-
related
• XYZ company is looking to replace their existing group health coverage with another
plan. The replacing insurer is REQUIRED to -✓✓ Accept all individuals eligible under
the previous plan
• ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This
situation is called -✓✓ Reinsurance
• A partial is allowed in which of the following life policies? -✓✓ Universal life
• An example of a tax-qualified retirement plan would be a(n) -✓✓ defined contribution
plan
• What type of policy provides coverage for specific types of illnesses
(cancer,stroke,etc)? -✓✓ Dread disease insurance
• Bill the producer is collecting the initial premium on a health policy. Which of the
following statements is true? -✓✓ The contract is not in force without the initial premium
being paid
• What is an insurance policy's grace period? -✓✓ Period of time after the premium is
due but the policy remains in force
• The authority granted to a licensed producer is provided via the -✓✓ Law of Agency
• All of these are characteristics of a universal life insurance policy EXCEPT -✓✓ Fixed
surrender value
• Which type of business insurance is meant to cover the costs of continuing to do
business while the owner is disabled? -✓✓ Business overhead expense policy
• A professional liability for which producers can be sued for mistakes of putting a policy
into effect is called -✓✓ errors and omissions
• How many employees must an employer have for a terminated employee to be eligible
for COBRA? -✓✓ 20
, • Which of the following would disqualify a company's retirement plan from receiving
favorable tax treatment? -✓✓ It is temporary
• Peter has a policy where 80% to 90% of the premium is invested in traditional fixed
income securities and the remainder of the premium is invested in contracts tied to a
stipulated stock index. What kind of policy is this? -✓✓ Equity index whole life
• Benefits provided by a Medicare Supplement policy must NOT -✓✓ duplicate Medicare
benefits
• Under a Traditional IRA, interest earned is taxed -✓✓ upon distribution
• Field underwriting performed by the producer involves -✓✓ completing the application
and collecting initial premium
• Which of these statements about Medicaid is CORRECT? -✓✓ Funded by federal,
state, and local taxes
• A change in an insurance application requires -✓✓ an initial made by the applicant
• The purpose of the New Jersey Temporary Disability Benefits law is to -✓✓ provide
non occupational disability benefits
• Which of these is likely to occur when life of health insurance is being applied for? -✓✓
Medical history from the insured may be reviewed and reported
• Life insurance policies will normally pay for losses arising from -✓✓ commercial
aviation
• What is the contract called that is issued to an employer for a Group Medical
Insurance plan? -✓✓ Master policy
• According to the Health Insurance Portability and Accountability Act (HIPAA), when
can a group health policy renewal be denied? -✓✓ Participation or contribution rules
have been violated
• All of these are valid policy divided opinions for a life insurance policy owner EXCEPT
-✓✓ Accumulate without interest
• Which of the following would be a valid reason why a policy premium would be higher
than the standard premium -✓✓ The insured does not meet established underwriting
requirements
