New Jersey Life and Health Final Exam Questions and Correct Answers

New Jersey Life and Health Final Exam
Questions and Correct Answers
Question 1
Which of these riders will pay a death benefit if the insured's spouse dies?
Correct Answer
Family term insurance rider



Question 2
A policy owner may exercise which of these dividend options that uses the dividend
to pay all or part of the next premium due?
Correct Answer
Reduction of premium dividend option



Question 3
Which of the following does Coordination of Benefits allow?
Correct Answer
Allows the secondary payor to reduce their benefit payments so no more than 100%
of the claim is paid



Question 4
A life insurance policy normally contains a provision that restricts coverage in the
event of death under all of the following situations EXCEPT
Correct Answer
fare-paying passenger




Page 1 of 51

,Question 5
Ambiguities in an insurance policy are always resolved in favor of the
Correct Answer
Insured



Question 6
A beneficiary has just received a claim payment for a life insurance policy. Which of
the following is TRUE regarding the federal income tax?
Correct Answer
No federal income tax is owed on life insurance proceeds



Question 7
Which of these is NOT considered to be a nonforfeiture option in a whole life
insurance policy?
Correct Answer
Interest only



Question 8
Which of the following situations would be suitable for a temporary work authority?
Correct Answer
When an applicant passes a licensing examination and answers all background
questions negatively



Question 9
A health insurer must be provided with written proof of loss _____ days after the date
of loss
Correct Answer
90




Page 2 of 51

,Question 10
Naming a contingent beneficiary as "all surviving children" is describing by which
term
Correct Answer
Class designation



Question 11
HIPPA considers which of the following as "individually identifiable health
information"?

Correct Answer
A person's health claim information



Question 12
Where would policy proceeds be paid if both the insured and primary beneficiary
were killed in the same accident?
Correct Answer
Contigent beneficiary



Question 13
What happens to the total amount of premium paid for an insurance policy when the
payment frequency increases?
Correct Answer
Increases



Question 14
What happens to the coverage under a children's term rider when that child reaches a
certain specified age?
Correct Answer
Coverage is eliminated




Page 3 of 51

, Question 15
Under a life insurance policy, what does the insuring clause state?
Correct Answer
The insurer's obligation to pay a death benefit upon an approved death claim



Question 16
Field underwriting performed by the producer involves
Correct Answer
Completing the application and collecting initial premium



Question 17
Kathy pays a monthly premium on her health insurance policy. How long is her grace
period?
Correct Answer
10 days



Question 18
Which of the following statements is CORRECT regarding an individual applying for
life or health insurance?
Correct Answer
The applicant's medical history may be analyzed and reported



Question 19
After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms?
Correct Answer
File written proof of loss




Page 4 of 51