NJ LIFE PRODUCER EXAM STUDY LIFE INSURANCE QUESTIONS AND ANSWERS
Which of the following amounts must decrease in a decreasing term? - (ANSWER)Death benefit
In life insurance, insurable interest must exist at the time the.. - (ANSWER)Producer writes an on a
proposed insured
An applicant makes an offer to the insurer when they - (ANSWER)pay an initial premium with the
application
Which of the following makes Universal Life insurance different from other forms of permanent
insurance? - (ANSWER)Premium Schedule
An insurer that shares its profits with its' policyowners is known as.. - (ANSWER)A mutual insurer
Statements made by an applicant for insurance on the application are considered to be.. -
(ANSWER)Representations
In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? -
(ANSWER)Interest-Only
The primary purpose of an annuity is to.. - (ANSWER)Provide income for retirement
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? - (ANSWER)settlement options
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? - (ANSWER)The insured's signed statement of continued good health
A report of previously submitted life insurance applications to other insurers is known as: - (ANSWER)A
Medical Information Bureau report
, NJ LIFE PRODUCER EXAM STUDY LIFE INSURANCE QUESTIONS AND ANSWERS
A company decides to purchase Key Employee life insurance for its vice president of operations. All of
the following statements are correct EXCEPT the.. - (ANSWER)Employee names the beneficiary
Which of the following features allows an insurance policy to remain in force for a specified number of
days beyond the premium due date? - (ANSWER)Grace period provision
which of the following prevents the producer from unilaterally amending a policy? - (ANSWER)Entire
contract
interest paid on a policy loan is.. - (ANSWER)not tax deductible
An employer paid life insurance policy is called - (ANSWER)Non-contributory group life
A tax free exchange of one life insurance policy or annuity for another is called.. - (ANSWER)1035
exchange
Which of the following group life plans require at least 75% of the eligible members to participate? -
(ANSWER)Contributory
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts will allow the other partner to buy 100 percent of the business interest? - (ANSWER)Buy and
Sell agreement
Under a traditional IRA, owners must begin to receive payments from their accounts by the time they
reach age.. - (ANSWER)70 1/2
social security retirement benefits are determined by all of the following except? - (ANSWER)sex
A modification to a life policy is called a.. - (ANSWER)Rider
Which of the following amounts must decrease in a decreasing term? - (ANSWER)Death benefit
In life insurance, insurable interest must exist at the time the.. - (ANSWER)Producer writes an on a
proposed insured
An applicant makes an offer to the insurer when they - (ANSWER)pay an initial premium with the
application
Which of the following makes Universal Life insurance different from other forms of permanent
insurance? - (ANSWER)Premium Schedule
An insurer that shares its profits with its' policyowners is known as.. - (ANSWER)A mutual insurer
Statements made by an applicant for insurance on the application are considered to be.. -
(ANSWER)Representations
In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? -
(ANSWER)Interest-Only
The primary purpose of an annuity is to.. - (ANSWER)Provide income for retirement
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? - (ANSWER)settlement options
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? - (ANSWER)The insured's signed statement of continued good health
A report of previously submitted life insurance applications to other insurers is known as: - (ANSWER)A
Medical Information Bureau report
, NJ LIFE PRODUCER EXAM STUDY LIFE INSURANCE QUESTIONS AND ANSWERS
A company decides to purchase Key Employee life insurance for its vice president of operations. All of
the following statements are correct EXCEPT the.. - (ANSWER)Employee names the beneficiary
Which of the following features allows an insurance policy to remain in force for a specified number of
days beyond the premium due date? - (ANSWER)Grace period provision
which of the following prevents the producer from unilaterally amending a policy? - (ANSWER)Entire
contract
interest paid on a policy loan is.. - (ANSWER)not tax deductible
An employer paid life insurance policy is called - (ANSWER)Non-contributory group life
A tax free exchange of one life insurance policy or annuity for another is called.. - (ANSWER)1035
exchange
Which of the following group life plans require at least 75% of the eligible members to participate? -
(ANSWER)Contributory
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts will allow the other partner to buy 100 percent of the business interest? - (ANSWER)Buy and
Sell agreement
Under a traditional IRA, owners must begin to receive payments from their accounts by the time they
reach age.. - (ANSWER)70 1/2
social security retirement benefits are determined by all of the following except? - (ANSWER)sex
A modification to a life policy is called a.. - (ANSWER)Rider
