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NJ LIFE PRODUCER EXAM 2025
QUESTIONS WITH COMPLETE SOLUTIONS
Karen is a producer who has obtained personal information about a client without
having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the
minimum penalty for this? - ANSWER ✔✔- $10,000
Which of the following is considered to be the period when the accumulated value
in an annuity is paid out? - ANSWER ✔✔- Annuitization phase
Why are dividends from a mutual insurer not subject to taxation? - ANSWER ✔✔-
because dividends are considered to be a return of premiums
The state of New Jersey considers Lloyd's London what kind of insurance
company? - ANSWER ✔✔- Alien
How do interest earnings accumulate in a deferred annuity? - ANSWER ✔✔- on a
tax-deferred basis
Which of the following signatures is not required on an individual application? -
ANSWER ✔✔- insurer
Which settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - ANSWER ✔✔- interest only
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Which of the following describes a person who is NOT acceptable by an insurer at
standard rates because of health history, occupation, or hobbies? - ANSWER ✔✔-
substandard risk
If the annuitant dies before the annuity start date, - ANSWER ✔✔- the premiums
paid plus interest earned will be given to the beneficiary
After a hearing, if the Commissioner determines that a person has willfully
engaged in an unfair trade practice, the commissioner may impose a fine of which
of the following? - ANSWER ✔✔- $5,000 for each violation
What would be an expense factor in an insurance program? - ANSWER ✔✔-
Mortality costs
How does life insurance create an immediate estate? - ANSWER ✔✔- After first
premium is paid, the face amount may be available to the beneficiary
Fraternal Benefit Society has each of the following characteristics EXCEPT? -
ANSWER ✔✔- Exist for profit
In regards to a life insurance contract, which of the following statements is NOT
true regarding the concept of insurable interest? - ANSWER ✔✔- insurable
interest can be established sufficiently by sentimental attachment alone
The New Jersey Life and Health Insurance Guaranty Association is - ANSWER
✔✔- funded by assessments on member companies
NJ LIFE PRODUCER EXAM 2025
QUESTIONS WITH COMPLETE SOLUTIONS
Karen is a producer who has obtained personal information about a client without
having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the
minimum penalty for this? - ANSWER ✔✔- $10,000
Which of the following is considered to be the period when the accumulated value
in an annuity is paid out? - ANSWER ✔✔- Annuitization phase
Why are dividends from a mutual insurer not subject to taxation? - ANSWER ✔✔-
because dividends are considered to be a return of premiums
The state of New Jersey considers Lloyd's London what kind of insurance
company? - ANSWER ✔✔- Alien
How do interest earnings accumulate in a deferred annuity? - ANSWER ✔✔- on a
tax-deferred basis
Which of the following signatures is not required on an individual application? -
ANSWER ✔✔- insurer
Which settlement option involves having the proceeds remain with the insurer and
earnings paid on a monthly basis to the beneficiary? - ANSWER ✔✔- interest only
, 2|Page
Which of the following describes a person who is NOT acceptable by an insurer at
standard rates because of health history, occupation, or hobbies? - ANSWER ✔✔-
substandard risk
If the annuitant dies before the annuity start date, - ANSWER ✔✔- the premiums
paid plus interest earned will be given to the beneficiary
After a hearing, if the Commissioner determines that a person has willfully
engaged in an unfair trade practice, the commissioner may impose a fine of which
of the following? - ANSWER ✔✔- $5,000 for each violation
What would be an expense factor in an insurance program? - ANSWER ✔✔-
Mortality costs
How does life insurance create an immediate estate? - ANSWER ✔✔- After first
premium is paid, the face amount may be available to the beneficiary
Fraternal Benefit Society has each of the following characteristics EXCEPT? -
ANSWER ✔✔- Exist for profit
In regards to a life insurance contract, which of the following statements is NOT
true regarding the concept of insurable interest? - ANSWER ✔✔- insurable
interest can be established sufficiently by sentimental attachment alone
The New Jersey Life and Health Insurance Guaranty Association is - ANSWER
✔✔- funded by assessments on member companies
