NJ Accident and Health Producer Exam
Actual 2025 Questions and Verified Answers
()
1. Life income joint and survivor settlement option guarantees...:Income for 2 or
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
more recipents
,/ ,/
2. A participating insurance policy may do which of the following:...:Pay divi-
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
dends to the policy owner
,/ ,/ ,/ ,/ ,/
3. WhatisTRUE about the cashsurrender nonforfeiture option?:Fundsex-
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
ceeding the premiums paid are taxable as ordinary income
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
4. Participating Insurance policy will...:pay dividends to the owner based upon ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
mortality cost, interest earned and cost
,/ ,/ ,/ ,/ ,/ ,/
5. Which of the following is an example of a producer being involved in an unfair
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
trade practice of rebating?...:Telling a client that his first premium will be waived if he
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
purchased the insurance policy.
,/ ,/ ,/ ,/
6. Rebating is defined as...: Offering anyinducement in the sale of insurance prod- ucts ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
that is not specified in the policy, including money, reductions in commissions, promises,
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
and personal services.Both offer and acceptance of a rebate are illegal
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
7. An insurer that holds a Certificate of Authority in the state in which it
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
transacts business is considered a/an: Authorized Insurer
,/ ,/ ,/ ,/ ,/ ,/ ,/
8. Who is considered authorized or admitted?: Insurers who meet the state's
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
,/ ,/
,,/ financialrequirementsandholdaCertificateofAuthoritytotransactbusinessinthe state
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
9. Which of the following is a key distinction between variable whole life and
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
variable universal life products?: Variable whole life has a guaranteed death
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
benefits
,/
10. Which statement about dividends in incorrect?..:Dividends amounts are
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
guaranteed in the policy
,/ ,/ ,/ ,/
11. T or F:Dividends cannot be guaranteed:True
,/ ,/ ,/ ,/ ,/ ,/ ,/
12. An organizations licensed as a producer business entity based in New York
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
would like to transact insurance in New Jersey.Which of the following is true?:
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
The organization will need to obtain a nonresident business entity license and its
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
producers will need to obtain nonresident licenses
,/ ,/ ,/ ,/ ,/ ,/ ,/
13. Misrepresenting an insurance policy as a share of stock is an example of ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
which of the following?: False Advertising
,/ ,/ ,/ ,/ ,/ ,/
14. Within how many days of requesting an investigative consumer report ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
must an insurer notify the consumer in writing that the report will be ob-
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
tained?: 30 days
,/ ,/ ,/
15. Which of the following statements about a life insurance policy would be
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
allowed in an Insurance advertisement?..: Term Life insurance policy
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
16. Alongstretchofnationaleconomichardshipcausesa7%rateofinflation. A
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
policyownernoticesthatthefacevalueofherlifeinsurancepolicyhasbeen
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
,/ ,/
,raised 7% as a result.Which policy rider causes this change?:Cost of Living Rider
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
17. Cost of Living Rider:Allows the policy face amount to be adjusted to account for
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
inflation based on the consumer price index.
,/ ,/ ,/ ,/ ,/ ,/ ,/
18. Whichofthefollowingisanothertermforanauthorizedinsurer?:Admitted ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
19. All of the following areTRUE of the federal tax advantages of a qualified plan
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
EXCEPT:At distribution all amounts received by the employees are tax free
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
20. If an insured continually uses the automatic premium loan option to pay the
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
policy premium...:Thepolicywillterminate when thecash valueisreducedto nothing
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
21. The two types of assignments are...:absolute and collateral
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
22. By how many days does the discontinuance of a group insurance policy
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
reduce the time limit for providing notice of claim or proof of loss?: 0 days
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
23. absolute assigns.....:the entire policy ,/ ,/ ,/ ,/
24. collateral assigns...:a part or all of the benefits ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
25. What is a material misrepresentation?: A statement by the applicant that, ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
upondiscovery,wouldaffectthe underwritingdecisionoftheinsurancecompany
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
26. Ifapolicyincludesafree-lookperiodofatleast10days,theBuyer'sGuide may
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
be delivered to the applicant no later than...: With the policy
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
27. What is reinsurance?:An agreementbetween a ceding insurer and assuming ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
insurer
,/
28. Within life insurance settlement option guarantees payments got the life- ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
time of the recipient,but also specifies a guaranteed period,during which,if the
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
original recipient dies, the payments will continue to a designed benefi- ciary?:
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
Life Income with period certain
,/ ,/ ,/ ,/ ,/
29. Using names or titles that have tendency to misrepresent the true nature of a ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
policy is an example of what illegal practice?: False Advertising
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
30. The type of settlement option which pays throughout the lifetimes of two or
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
more beneficiaries is called.....: Joint and Survivor
,/ ,/ ,/ ,/ ,/ ,/ ,/
31. Aninsurerisclosingabranchofficeinthestate.Withinhowmanydaysof the
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
,/ ,/
, ,/ office closing must the insurer notify the Department?: 30 days
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
32. Which of the following is an eligibility requirement for all Social Security
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
Disability Income benefits?: Have attained fully insured status
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
33. Which of the following allows the insurer to relieve a minor insured from
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
premium payments if the minor's parents have died or become disabled?:-
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
Payor Benefit
,/ ,/
34. Whatistheothertermforthecashpaymentsettlementoption?:Lumpsum
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
35. LicenseesmustnotifytheDepartmentwithhowmanydaysofanychange of
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
address?: 30 days
,/ ,/ ,/
,/ ,/
Actual 2025 Questions and Verified Answers
()
1. Life income joint and survivor settlement option guarantees...:Income for 2 or
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
more recipents
,/ ,/
2. A participating insurance policy may do which of the following:...:Pay divi-
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
dends to the policy owner
,/ ,/ ,/ ,/ ,/
3. WhatisTRUE about the cashsurrender nonforfeiture option?:Fundsex-
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
ceeding the premiums paid are taxable as ordinary income
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
4. Participating Insurance policy will...:pay dividends to the owner based upon ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
mortality cost, interest earned and cost
,/ ,/ ,/ ,/ ,/ ,/
5. Which of the following is an example of a producer being involved in an unfair
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
trade practice of rebating?...:Telling a client that his first premium will be waived if he
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
purchased the insurance policy.
,/ ,/ ,/ ,/
6. Rebating is defined as...: Offering anyinducement in the sale of insurance prod- ucts ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
that is not specified in the policy, including money, reductions in commissions, promises,
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
and personal services.Both offer and acceptance of a rebate are illegal
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
7. An insurer that holds a Certificate of Authority in the state in which it
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
transacts business is considered a/an: Authorized Insurer
,/ ,/ ,/ ,/ ,/ ,/ ,/
8. Who is considered authorized or admitted?: Insurers who meet the state's
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
,/ ,/
,,/ financialrequirementsandholdaCertificateofAuthoritytotransactbusinessinthe state
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
9. Which of the following is a key distinction between variable whole life and
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
variable universal life products?: Variable whole life has a guaranteed death
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
benefits
,/
10. Which statement about dividends in incorrect?..:Dividends amounts are
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
guaranteed in the policy
,/ ,/ ,/ ,/
11. T or F:Dividends cannot be guaranteed:True
,/ ,/ ,/ ,/ ,/ ,/ ,/
12. An organizations licensed as a producer business entity based in New York
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
would like to transact insurance in New Jersey.Which of the following is true?:
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
The organization will need to obtain a nonresident business entity license and its
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
producers will need to obtain nonresident licenses
,/ ,/ ,/ ,/ ,/ ,/ ,/
13. Misrepresenting an insurance policy as a share of stock is an example of ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
which of the following?: False Advertising
,/ ,/ ,/ ,/ ,/ ,/
14. Within how many days of requesting an investigative consumer report ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
must an insurer notify the consumer in writing that the report will be ob-
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
tained?: 30 days
,/ ,/ ,/
15. Which of the following statements about a life insurance policy would be
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
allowed in an Insurance advertisement?..: Term Life insurance policy
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
16. Alongstretchofnationaleconomichardshipcausesa7%rateofinflation. A
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
policyownernoticesthatthefacevalueofherlifeinsurancepolicyhasbeen
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
,/ ,/
,raised 7% as a result.Which policy rider causes this change?:Cost of Living Rider
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
17. Cost of Living Rider:Allows the policy face amount to be adjusted to account for
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
inflation based on the consumer price index.
,/ ,/ ,/ ,/ ,/ ,/ ,/
18. Whichofthefollowingisanothertermforanauthorizedinsurer?:Admitted ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
19. All of the following areTRUE of the federal tax advantages of a qualified plan
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
EXCEPT:At distribution all amounts received by the employees are tax free
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
20. If an insured continually uses the automatic premium loan option to pay the
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
policy premium...:Thepolicywillterminate when thecash valueisreducedto nothing
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
21. The two types of assignments are...:absolute and collateral
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
22. By how many days does the discontinuance of a group insurance policy
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
reduce the time limit for providing notice of claim or proof of loss?: 0 days
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
23. absolute assigns.....:the entire policy ,/ ,/ ,/ ,/
24. collateral assigns...:a part or all of the benefits ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
25. What is a material misrepresentation?: A statement by the applicant that, ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
upondiscovery,wouldaffectthe underwritingdecisionoftheinsurancecompany
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
26. Ifapolicyincludesafree-lookperiodofatleast10days,theBuyer'sGuide may
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
be delivered to the applicant no later than...: With the policy
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
27. What is reinsurance?:An agreementbetween a ceding insurer and assuming ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
insurer
,/
28. Within life insurance settlement option guarantees payments got the life- ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
time of the recipient,but also specifies a guaranteed period,during which,if the
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
original recipient dies, the payments will continue to a designed benefi- ciary?:
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
Life Income with period certain
,/ ,/ ,/ ,/ ,/
29. Using names or titles that have tendency to misrepresent the true nature of a ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
policy is an example of what illegal practice?: False Advertising
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
30. The type of settlement option which pays throughout the lifetimes of two or
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
more beneficiaries is called.....: Joint and Survivor
,/ ,/ ,/ ,/ ,/ ,/ ,/
31. Aninsurerisclosingabranchofficeinthestate.Withinhowmanydaysof the
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
,/ ,/
, ,/ office closing must the insurer notify the Department?: 30 days
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
32. Which of the following is an eligibility requirement for all Social Security
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
Disability Income benefits?: Have attained fully insured status
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
33. Which of the following allows the insurer to relieve a minor insured from
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
premium payments if the minor's parents have died or become disabled?:-
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
Payor Benefit
,/ ,/
34. Whatistheothertermforthecashpaymentsettlementoption?:Lumpsum
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
35. LicenseesmustnotifytheDepartmentwithhowmanydaysofanychange of
,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/ ,/
address?: 30 days
,/ ,/ ,/
,/ ,/
