NJ LIFE PRODUCER EXAM QUESTIONS AND
ANSWERS GRADED A+ LATEST UPDATE.
1. A branch office of registration form must be filed with the Banking and
Insurance Commissioner a MINIMUM of how many days before conducting
business at the branch office?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
ANS >>> B
2. A Buyer's guide must be provided to all purchases of which of the following
types of insurance?
A. Five-year level term
B. Ten-year level term
C. Fifteen-year level term
D. Twenty-year level term
ANS >>> B
3. A company decides to purchase Key Employee life insurance for its vice
president of operations. All of the following statements are correct EXCEPT
the:
A. Company pays the premium
B. Company is the beneficiary
C. Employee names the beneficiary
D. Company owns the policy
ANS >>> C
4. A contract that promises to pay an income to an insured until their death is
called?
A. Whole life policy
B. Life annuity
,C. Term insurance
D. Endowment policy
ANS >>> B
5. A creditor collects payment from a borrower for a credit life policy, but the
policy is not issued. What action MUST the creditor take with the advance
payment?
A. Keep it as administrative fee
B. Forward it to the insurance company
C. Return it directly to the borrower
D. Place it in an escrow account
ANS >>> C
6. A life insurance policy that fails to meet the 7-pay test is called a:
A. Modified Endowment Contract
B. Flexible Premium Policy
C. Universal Life Policy
D. Variable Life Policy
ANS >>> A
7. A modification to a life policy is called a:
A. Amendment
B. Rider
C. Endorsement
D. Addendum
ANS >>> B
8. A New Jersey producer who resides in Pennsylvania but maintains a
principal place of business in New Jersey and who has selected New Jersey as
their home state is referred to as which of the following?
A. Nonresident
B. Foreign producer
, C. Resident
D. Alien producer
ANS >>> C
9. A payor benefit rider provides which of the following benefits?
A. A waiver of premium should the insured die
B. A waiver of premium should the payor die, until the insured reaches a
predetermined age
C. Additional death benefit if payor dies
D. Premium refund if payor becomes disabled
ANS >>> B
10. A person failing to comply with a subpoena from the Commissioner may be
charged with:
A. Misdemeanor
B. Felony
C. Contempt
D. Negligence
ANS >>> C
11. A policy illustration given at the time of sale does not typically include the:
A. Premium amounts
B. Death benefit
C. Names of the beneficiary
D. Cash value projections
ANS >>> C
12. A policy that provides lifetime protection for an insured with premiums
payable for 20 years is called a:
A. 20-year term
B. 20 pay-life
ANSWERS GRADED A+ LATEST UPDATE.
1. A branch office of registration form must be filed with the Banking and
Insurance Commissioner a MINIMUM of how many days before conducting
business at the branch office?
A. 15 days
B. 30 days
C. 45 days
D. 60 days
ANS >>> B
2. A Buyer's guide must be provided to all purchases of which of the following
types of insurance?
A. Five-year level term
B. Ten-year level term
C. Fifteen-year level term
D. Twenty-year level term
ANS >>> B
3. A company decides to purchase Key Employee life insurance for its vice
president of operations. All of the following statements are correct EXCEPT
the:
A. Company pays the premium
B. Company is the beneficiary
C. Employee names the beneficiary
D. Company owns the policy
ANS >>> C
4. A contract that promises to pay an income to an insured until their death is
called?
A. Whole life policy
B. Life annuity
,C. Term insurance
D. Endowment policy
ANS >>> B
5. A creditor collects payment from a borrower for a credit life policy, but the
policy is not issued. What action MUST the creditor take with the advance
payment?
A. Keep it as administrative fee
B. Forward it to the insurance company
C. Return it directly to the borrower
D. Place it in an escrow account
ANS >>> C
6. A life insurance policy that fails to meet the 7-pay test is called a:
A. Modified Endowment Contract
B. Flexible Premium Policy
C. Universal Life Policy
D. Variable Life Policy
ANS >>> A
7. A modification to a life policy is called a:
A. Amendment
B. Rider
C. Endorsement
D. Addendum
ANS >>> B
8. A New Jersey producer who resides in Pennsylvania but maintains a
principal place of business in New Jersey and who has selected New Jersey as
their home state is referred to as which of the following?
A. Nonresident
B. Foreign producer
, C. Resident
D. Alien producer
ANS >>> C
9. A payor benefit rider provides which of the following benefits?
A. A waiver of premium should the insured die
B. A waiver of premium should the payor die, until the insured reaches a
predetermined age
C. Additional death benefit if payor dies
D. Premium refund if payor becomes disabled
ANS >>> B
10. A person failing to comply with a subpoena from the Commissioner may be
charged with:
A. Misdemeanor
B. Felony
C. Contempt
D. Negligence
ANS >>> C
11. A policy illustration given at the time of sale does not typically include the:
A. Premium amounts
B. Death benefit
C. Names of the beneficiary
D. Cash value projections
ANS >>> C
12. A policy that provides lifetime protection for an insured with premiums
payable for 20 years is called a:
A. 20-year term
B. 20 pay-life
