NJ Life Producer Exam (Insurance and
Laws) Questions With 100% Correct
Answers.
Which of the following amounts must decrease in a decreasing term? Answer -
Death benefit
In life insurance, insurable interest must exist at the time the.. Answer - Producer
writes an on a proposed insured
An applicant makes an offer to the insurer when they Answer - pay an initial premium
with the application
Which of the following makes Universal Life insurance different from other forms of
permanent insurance? Answer - Premium Schedule
An insurer that shares its profits with its' policyowners is known as.. Answer - A
mutual insurer
Statements made by an applicant for insurance on the application are considered to
be.. Answer - Representations
In which of the following are proceeds left with the insurer and earnings sent to the
beneficiary? Answer - Interest-Only
The primary purpose of an annuity is to.. Answer - Provide income for retirement
Which of the following provisions in a life policy specifies the manner in which
proceeds will be paid to a beneficiary on the death of insured? Answer - settlement
options
An insurance producer takes an application for a life policy but does not collect the
initial premium. On delivery of policy to the proposed insured, the producer must
collect the initial premium and which of the following? Answer - The insured's signed
statement of continued good health
A report of previously submitted life insurance applications to other insurers is known
as: Answer - A Medical Information Bureau report
A company decides to purchase Key Employee life insurance for its vice president of
operations. All of the following statements are correct EXCEPT the.. Answer -
Employee names the beneficiary
, Which of the following features allows an insurance policy to remain in force for a
specified number of days beyond the premium due date? Answer - Grace period
provision
which of the following prevents the producer from unilaterally amending a policy?
Answer - Entire contract
interest paid on a policy loan is.. Answer - not tax deductible
An employer paid life insurance policy is called Answer - Non-contributory group life
A tax free exchange of one life insurance policy or annuity for another is called..
Answer - 1035 exchange
Which of the following group life plans require at least 75% of the eligible members
to participate? Answer - Contributory
Two business partners own life insurance on each other. If one partner dies, which of
the following contracts will allow the other partner to buy 100 percent of the business
interest? Answer - Buy and Sell agreement
Under a traditional IRA, owners must begin to receive payments from their accounts
by the time they reach age.. Answer - 70 1/2
social security retirement benefits are determined by all of the following except?
Answer - sex
A modification to a life policy is called a.. Answer - Rider
the right to change a beneficiary is reserved for the.. Answer - policyownerw
Which of the following statements regarding a revocable beneficiary is CORRECT?
Answer - the policyowner may change the beneficiary without his or her knowledge
or approved
R has just graduated from law school. R knows that R's future earnings will be much
higher than they are now, but wants to purchase a permanent policy now to cover
future needs. Which of the following policies would BEST suit R's needs? Answer -
modified whole life
A policy that provides lifetime protection for an insured with premiums payable for 20
years is called a.. Answer - 20 pay-life
All of the following are modes of payment in a life policy EXCEPT Answer - bi-weekly
A payor benefit rider provides which of the following benefits? Answer - A waiver of
premium should the payor die, until the insured reaches a predetermined age
The termed used to indicate that a policy beneficiary cannot be changed is.. Answer
- Irrevocable
Laws) Questions With 100% Correct
Answers.
Which of the following amounts must decrease in a decreasing term? Answer -
Death benefit
In life insurance, insurable interest must exist at the time the.. Answer - Producer
writes an on a proposed insured
An applicant makes an offer to the insurer when they Answer - pay an initial premium
with the application
Which of the following makes Universal Life insurance different from other forms of
permanent insurance? Answer - Premium Schedule
An insurer that shares its profits with its' policyowners is known as.. Answer - A
mutual insurer
Statements made by an applicant for insurance on the application are considered to
be.. Answer - Representations
In which of the following are proceeds left with the insurer and earnings sent to the
beneficiary? Answer - Interest-Only
The primary purpose of an annuity is to.. Answer - Provide income for retirement
Which of the following provisions in a life policy specifies the manner in which
proceeds will be paid to a beneficiary on the death of insured? Answer - settlement
options
An insurance producer takes an application for a life policy but does not collect the
initial premium. On delivery of policy to the proposed insured, the producer must
collect the initial premium and which of the following? Answer - The insured's signed
statement of continued good health
A report of previously submitted life insurance applications to other insurers is known
as: Answer - A Medical Information Bureau report
A company decides to purchase Key Employee life insurance for its vice president of
operations. All of the following statements are correct EXCEPT the.. Answer -
Employee names the beneficiary
, Which of the following features allows an insurance policy to remain in force for a
specified number of days beyond the premium due date? Answer - Grace period
provision
which of the following prevents the producer from unilaterally amending a policy?
Answer - Entire contract
interest paid on a policy loan is.. Answer - not tax deductible
An employer paid life insurance policy is called Answer - Non-contributory group life
A tax free exchange of one life insurance policy or annuity for another is called..
Answer - 1035 exchange
Which of the following group life plans require at least 75% of the eligible members
to participate? Answer - Contributory
Two business partners own life insurance on each other. If one partner dies, which of
the following contracts will allow the other partner to buy 100 percent of the business
interest? Answer - Buy and Sell agreement
Under a traditional IRA, owners must begin to receive payments from their accounts
by the time they reach age.. Answer - 70 1/2
social security retirement benefits are determined by all of the following except?
Answer - sex
A modification to a life policy is called a.. Answer - Rider
the right to change a beneficiary is reserved for the.. Answer - policyownerw
Which of the following statements regarding a revocable beneficiary is CORRECT?
Answer - the policyowner may change the beneficiary without his or her knowledge
or approved
R has just graduated from law school. R knows that R's future earnings will be much
higher than they are now, but wants to purchase a permanent policy now to cover
future needs. Which of the following policies would BEST suit R's needs? Answer -
modified whole life
A policy that provides lifetime protection for an insured with premiums payable for 20
years is called a.. Answer - 20 pay-life
All of the following are modes of payment in a life policy EXCEPT Answer - bi-weekly
A payor benefit rider provides which of the following benefits? Answer - A waiver of
premium should the payor die, until the insured reaches a predetermined age
The termed used to indicate that a policy beneficiary cannot be changed is.. Answer
- Irrevocable
