NJ LIFE PRODUCER FINAL EXAM WITH
LATEST VERSION QUESTIONS AND
CORRECT ANSWERS GRADED A+
ABC Insurance Company transfers part of their risk to XYZ
Insurance Company. This situation is called Correct Answer
reinsurance
Which of the following would be considered an underwriting
Correct Answer Completing all applications and collecting initial
premiums
A renewable Term Life insurance policy allows the policyowner
the right to renew the policy Correct Answer Without proof of
insurability
What is an insurer required to do when faced with an error made
under the Misstatement of Age provision? Correct Answer Pay
age-corrected benefits
Maria would like an annuity that provides a guaranteed
accumulation or payout. The type of annuity she is seeking is
called Correct Answer annuity certain
,Which type of life insurance offers flexible premiums, flexible
death benefit, and the choice of how the cash value will be
invested? Correct Answer Variable Universal Life
Which of the following is NOT a federal requirement of a qualified
plan? Correct Answer Employee must be able to make unlimited
contributions
Which type of life insurance policy pays the face amount at the
end of the specified period if the insured is still alive? Correct
Answer Endowment policy
Which of these will have the highest monthly payout upon
annuitization? Correct Answer Straight life
All of these are considered sources of information that can assist
an underwriter in determining whether or not to accept a risk
EXCEPT Correct Answer National Association of Insurance
Underwriters
Replacement regulation is designed to protect the interests of
Correct Answer policyowner
,Who were Keogh plans designed to provide pension benefits for?
Correct Answer The self-employed
Johan the producer charged a fee to a sales prospect for
analyzing insurance coverages. According to New Jersey law, as
reasonable relationship must exist between the fee and the
Correct Answer substance of the services performed
When does a life insurance policy typically become effective?
Correct Answer when the completed application is signed and
initial premium is collected
Which of these is considered to be a document that describes the
critical segments of a life insurance policy? Correct Answer Policy
summary
Jay the producer, is giving insurance advice regarding a
prospects existing coverage. If Jay were to receive a fee for this
advice (in addition his commission) he MUST Correct Answer
obtain a signed memorandum from the prospect acknowledging
the amount of compensation
An agent is required to keep replacement forms on file for at
least____ years Correct Answer 5
, Which type of policy combines the flexibility of a universal life
policy with investment choices? Correct Answer Variable universal
life policy
A waiver of premium rider allows an insured to waive premium
wages if the the insured is Correct Answer Completely and
permanently disabled
A non-contributory health plan helps the insurer avoid Correct
Answer Adverse Selection
The suicide clause of a life insurance policy states that if an
insured commits suicide within a stated period from the policy's
inception, the insurer will only be liable for a return of premiums
paid Correct Answer minus indebtedness and without interest
What is created after policy proceeds are obtained in a lump sum
and then immediately invested? Correct Answer estate
What guarantees that the statements supplied by an insurance
applicant are true? Correct Answer warranty
A guaranteed issue insurance policy has no Correct Answer
medical underwriting
LATEST VERSION QUESTIONS AND
CORRECT ANSWERS GRADED A+
ABC Insurance Company transfers part of their risk to XYZ
Insurance Company. This situation is called Correct Answer
reinsurance
Which of the following would be considered an underwriting
Correct Answer Completing all applications and collecting initial
premiums
A renewable Term Life insurance policy allows the policyowner
the right to renew the policy Correct Answer Without proof of
insurability
What is an insurer required to do when faced with an error made
under the Misstatement of Age provision? Correct Answer Pay
age-corrected benefits
Maria would like an annuity that provides a guaranteed
accumulation or payout. The type of annuity she is seeking is
called Correct Answer annuity certain
,Which type of life insurance offers flexible premiums, flexible
death benefit, and the choice of how the cash value will be
invested? Correct Answer Variable Universal Life
Which of the following is NOT a federal requirement of a qualified
plan? Correct Answer Employee must be able to make unlimited
contributions
Which type of life insurance policy pays the face amount at the
end of the specified period if the insured is still alive? Correct
Answer Endowment policy
Which of these will have the highest monthly payout upon
annuitization? Correct Answer Straight life
All of these are considered sources of information that can assist
an underwriter in determining whether or not to accept a risk
EXCEPT Correct Answer National Association of Insurance
Underwriters
Replacement regulation is designed to protect the interests of
Correct Answer policyowner
,Who were Keogh plans designed to provide pension benefits for?
Correct Answer The self-employed
Johan the producer charged a fee to a sales prospect for
analyzing insurance coverages. According to New Jersey law, as
reasonable relationship must exist between the fee and the
Correct Answer substance of the services performed
When does a life insurance policy typically become effective?
Correct Answer when the completed application is signed and
initial premium is collected
Which of these is considered to be a document that describes the
critical segments of a life insurance policy? Correct Answer Policy
summary
Jay the producer, is giving insurance advice regarding a
prospects existing coverage. If Jay were to receive a fee for this
advice (in addition his commission) he MUST Correct Answer
obtain a signed memorandum from the prospect acknowledging
the amount of compensation
An agent is required to keep replacement forms on file for at
least____ years Correct Answer 5
, Which type of policy combines the flexibility of a universal life
policy with investment choices? Correct Answer Variable universal
life policy
A waiver of premium rider allows an insured to waive premium
wages if the the insured is Correct Answer Completely and
permanently disabled
A non-contributory health plan helps the insurer avoid Correct
Answer Adverse Selection
The suicide clause of a life insurance policy states that if an
insured commits suicide within a stated period from the policy's
inception, the insurer will only be liable for a return of premiums
paid Correct Answer minus indebtedness and without interest
What is created after policy proceeds are obtained in a lump sum
and then immediately invested? Correct Answer estate
What guarantees that the statements supplied by an insurance
applicant are true? Correct Answer warranty
A guaranteed issue insurance policy has no Correct Answer
medical underwriting
