NJ Life Producer Exam Questions and
Answers
1. Which of the following amounts must decrease in a decreasing
term?
ANS Death benefit
2. In life insurance, insurable interest must exist at the time the..
ANS Producer writes an on a proposed insured
3. An applicant makes an offer to the insurer when they
ANS pay an initial premium with the application
4. Which of the following makes Universal Life insurance different
from other forms of permanent insurance?
ANS Premium Schedule
5. An insurer that shares its profits with its' policyowners is known as..
ANS A mutual insurer
6. Statements made by an applicant for insurance on the application
are consid- ered to be..
ANS Representations
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,7. In which of the following are proceeds left with the insurer and
earnings sent to the beneficiary?
ANS Interest-Only
8. The primary purpose of an annuity is to..
ANS Provide income for retirement
9. Which of the following provisions in a life policy specifies the
manner in which proceeds will be paid to a beneficiary on the death of
insured?
ANS settlement options
10. An insurance producer takes an application for a life policy
but does not collect the initial premium. On delivery of policy to the
proposed insured, the producer must collect the initial premium and
which of the following?
ANS The insured's signed statement of continued good health
11. A report of previously submitted life insurance applications to
other insurers is known as
ANS
A Medical Information Bureau report
12. A company decides to purchase Key Employee life
insurance for its vice president of operations. All of the following
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, statements are correct EXCEPT the..
ANS Employee names the beneficiary
13. Which of the following features allows an insurance policy to
remain in force for a specified number of days beyond the premium due
date?
ANS Grace period provision
14. which of the following prevents the producer from
unilaterally amending a policy?
ANS Entire contract
15. interest paid on a policy loan is..
ANS not tax deductible
16. An employer paid life insurance policy is called
ANS Non-contributory group life
17. A tax free exchange of one life insurance policy or annuity
for another is called..
ANS 1035 exchange
18. Which of the following group life plans require at least 75%
of the eligible members to participate?
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18
Answers
1. Which of the following amounts must decrease in a decreasing
term?
ANS Death benefit
2. In life insurance, insurable interest must exist at the time the..
ANS Producer writes an on a proposed insured
3. An applicant makes an offer to the insurer when they
ANS pay an initial premium with the application
4. Which of the following makes Universal Life insurance different
from other forms of permanent insurance?
ANS Premium Schedule
5. An insurer that shares its profits with its' policyowners is known as..
ANS A mutual insurer
6. Statements made by an applicant for insurance on the application
are consid- ered to be..
ANS Representations
1/
18
,7. In which of the following are proceeds left with the insurer and
earnings sent to the beneficiary?
ANS Interest-Only
8. The primary purpose of an annuity is to..
ANS Provide income for retirement
9. Which of the following provisions in a life policy specifies the
manner in which proceeds will be paid to a beneficiary on the death of
insured?
ANS settlement options
10. An insurance producer takes an application for a life policy
but does not collect the initial premium. On delivery of policy to the
proposed insured, the producer must collect the initial premium and
which of the following?
ANS The insured's signed statement of continued good health
11. A report of previously submitted life insurance applications to
other insurers is known as
ANS
A Medical Information Bureau report
12. A company decides to purchase Key Employee life
insurance for its vice president of operations. All of the following
2/
18
, statements are correct EXCEPT the..
ANS Employee names the beneficiary
13. Which of the following features allows an insurance policy to
remain in force for a specified number of days beyond the premium due
date?
ANS Grace period provision
14. which of the following prevents the producer from
unilaterally amending a policy?
ANS Entire contract
15. interest paid on a policy loan is..
ANS not tax deductible
16. An employer paid life insurance policy is called
ANS Non-contributory group life
17. A tax free exchange of one life insurance policy or annuity
for another is called..
ANS 1035 exchange
18. Which of the following group life plans require at least 75%
of the eligible members to participate?
3/
18
