Final Exam - New Jersey Life and Health
Actual Questions & Answers
1.Which type of long-term care benefit would be most appropriate for a
stroke victim who requires speech therapy administered at her home?
Answer Home health care
2.Which of the following is NOT a federal requirement of a qualified plan?
Answer -
Employee must be able to make unlimited contributions
3.Why are dividends from a mutual insurer not subject to taxation?
Answer Because dividends are considered to be a return of premium
4.The treasurer of XYZ Insurance Company discovers that the treasurer's
company is being investigated by the Banking and Insurance
Commission- er...
Answer Making false financial statements
5.Which type of rider will waive the premium on a child's life insurance
policy if the parent paying the premium dies?
Answer Payor benefit
6.Which of these premium payment frequencies is not typically available to
,a policy owner?
Answer Bi-weekly
7.Maria the agent would like to advertise an annuity product on a highway
billboard. Which of the following must be included in the advertisement?
Answer Her name
8.Which disability policy provision would address any concerns of the
value of the benefits decreasing over time?
Answer Cost of living benefit
9.Which of these is NOT a characteristic of the Accelerated Death Benefit
option?
Answer The benefit can be offered as a rider at a specific extra cost
or may be at no cost
10.All of the following are included as part of a contract in the entire
contract provision EXCEPT the
Answer Changes made by the producer
11.The power given to an individual producer that is not specifically ad-
dressed in his/her contract is considered what type of authority?
Answer Implied
12.Pat is insured with a life insurance policy and Karen is his primary
,ben- eficiary. They are both involved in an automobile accident where Pat
dies instantly and Karen dies 5 days later...
Answer Common disaster clause
13.Key Person Disability Insurance pays benefits to the
Answer Employer
14.Under a disability income policy, which provision would be payable if
the cause of an injury is unexpected and accidental?
Answer Accidental bodily injury provision
15.What will the beneficiary receive if an annuitant dies during the
accumula- tion period?
Answer The greater of the accumulated cash value or the total premium
paid
16.Written notice for a health claim must be given to the insurer days
after the occurrence of the loss.
Answer 20
17.Craig submits a $500 claim for medical expenses. With a past due
premium of $100, the insurer pays $400. Which of the Uniform Optional
Provisions covers this situation?
Answer Unpaid premium
, 18.How many employees must an employer have for a terminated
employee to be eligible for COBRA?
Answer 20
19.A licensed producer is required to file notice of any change of
address within how many days?
Answer 30
20.Advertising material for a life insurance policy does NOT need to
contain which of the following?
Answer Agent's commission rate
21.What is the maximum fine for a producer violating a New Jersey
Insurance law for the first time?
Answer $5,000
22.How long must an individual be unable to engage in any gainful activity
due physical or mental disability in order to qualify for Social Security
Total Disability?
Answer 12 months
23.Sonya applied for a health insurance policy on April 1. Her agent
submitted the information to the insurance company on April 6. She paid the
premium on May 15 with the policy indicating the effective date being May
Actual Questions & Answers
1.Which type of long-term care benefit would be most appropriate for a
stroke victim who requires speech therapy administered at her home?
Answer Home health care
2.Which of the following is NOT a federal requirement of a qualified plan?
Answer -
Employee must be able to make unlimited contributions
3.Why are dividends from a mutual insurer not subject to taxation?
Answer Because dividends are considered to be a return of premium
4.The treasurer of XYZ Insurance Company discovers that the treasurer's
company is being investigated by the Banking and Insurance
Commission- er...
Answer Making false financial statements
5.Which type of rider will waive the premium on a child's life insurance
policy if the parent paying the premium dies?
Answer Payor benefit
6.Which of these premium payment frequencies is not typically available to
,a policy owner?
Answer Bi-weekly
7.Maria the agent would like to advertise an annuity product on a highway
billboard. Which of the following must be included in the advertisement?
Answer Her name
8.Which disability policy provision would address any concerns of the
value of the benefits decreasing over time?
Answer Cost of living benefit
9.Which of these is NOT a characteristic of the Accelerated Death Benefit
option?
Answer The benefit can be offered as a rider at a specific extra cost
or may be at no cost
10.All of the following are included as part of a contract in the entire
contract provision EXCEPT the
Answer Changes made by the producer
11.The power given to an individual producer that is not specifically ad-
dressed in his/her contract is considered what type of authority?
Answer Implied
12.Pat is insured with a life insurance policy and Karen is his primary
,ben- eficiary. They are both involved in an automobile accident where Pat
dies instantly and Karen dies 5 days later...
Answer Common disaster clause
13.Key Person Disability Insurance pays benefits to the
Answer Employer
14.Under a disability income policy, which provision would be payable if
the cause of an injury is unexpected and accidental?
Answer Accidental bodily injury provision
15.What will the beneficiary receive if an annuitant dies during the
accumula- tion period?
Answer The greater of the accumulated cash value or the total premium
paid
16.Written notice for a health claim must be given to the insurer days
after the occurrence of the loss.
Answer 20
17.Craig submits a $500 claim for medical expenses. With a past due
premium of $100, the insurer pays $400. Which of the Uniform Optional
Provisions covers this situation?
Answer Unpaid premium
, 18.How many employees must an employer have for a terminated
employee to be eligible for COBRA?
Answer 20
19.A licensed producer is required to file notice of any change of
address within how many days?
Answer 30
20.Advertising material for a life insurance policy does NOT need to
contain which of the following?
Answer Agent's commission rate
21.What is the maximum fine for a producer violating a New Jersey
Insurance law for the first time?
Answer $5,000
22.How long must an individual be unable to engage in any gainful activity
due physical or mental disability in order to qualify for Social Security
Total Disability?
Answer 12 months
23.Sonya applied for a health insurance policy on April 1. Her agent
submitted the information to the insurance company on April 6. She paid the
premium on May 15 with the policy indicating the effective date being May
