NJ Life Producer Questions and Answers Updated 2026

NJ Life Producer Questions and
Answers Updated 2026
TheBWaiverBofBCostBofBInsuranceBriderBisBfoundBinBwhatBtypeBofBinsurance?B-
BAnswerUniversalBLife



IfBanBinsuredBcontinuallyBusesBtheBautomaticBpremiumBloanBoptionBtoBpayBtheBpolicyBpremiu
m,B-BAnswerTheBpolicyBwillBterminateBwhenBtheBcashBvalueBisBreducedBtoBnothing



IfBaBsettlementBoptionBisBnotBchosenBbyBtheBbeneficiaryBorBpolicyowner,BwhichBoptionBwillBb
eBused?B-BAnswerLumpBsum



AnBinsuredBmisstatesBherBageBatBtheBtimeBtheBlifeBinsuranceBapplicationBisBtaken.BThisBmisst
atementBmayBresultBinB-BAnsweradjustmentBinBtheBamountBofBdeathBbenefit



WhenBaBwholeBlifeBpolicyBlapsesBorBisBsurrenderedBpriorBtoBmaturity,BtheBcashBvalueBcanBbe
BusedBtoB-BAnswerPurchaseBaBsingleBpremiumBpolicyBforBaBreducedBfaceBamount.



TheBpolicyownerBwantsBtoBmakeBsureBthatBuponBhisBdeath,BtheBlifeBpolicyBwillBpayBaBportio
nBofBtheBproceedsBannuallyBtoBhisBspouse,BbutBthatBtheBprincipalBwillBbeBpaidBtoBtheirBchild
renBwhenBtheyBreachBaBcertainBage.BWhichBsettlementBoptionBshouldBtheBpolicyownerBchoos
e?B-BAnswerInterestBonlyBoption



AnBindividualBisBpurchasingBaBpermanentBlifeBinsuranceBpolicywBithBaBfaceBvalueBofB$25,000.
BWhileBthisBisBallBtheBinsuranceBthatBheBcanBaffordBatBthisBtime,BheBwantsBtoBbeBsureBthat
BadditionalBcoverageBwillBbeBavailableBinBtheBfuture.BWhichBofBtheBfollowingBoptionsBshouldB
beBincludedBinBtheBpolicy?B-BAnswerGuaranteedBinsurabilityBoption



AllBofBtheBfollowingBstatementsBconcerningBanBemployerBsponsoredBnonqualifiedBretirementB
planBareBtrueBexcept?B-
BAnswerTheBemployerBcanBreceiveBaBcurrentBtaxBdeductionBforBanyBcontributionsBmadeBtoBt
heBplan



ABcorporationBisBtheBownerBandBbeneficiaryBofBtheBkeyBpersonBlifeBpolicy.BIfBtheBcorporation
BcollectsBtheBpolicyBbenefit,Bthen...B-BAnswerTheBbenefitBisBreceivedBtaxBfree

, TheBrequirementBthatBagentsBmustBaccountBforBallBinsuranceBfundsBcollected,BandBareBnotBp
ermittedBtoBcomingleBthoseBfundsBwithBtheirBownBisBknownBasB-
BAnswerFiduciaryBresponsibility



WhenBanBinsuranceBproducerBnegotiatesBforBanBinsuranceBcontractBonBbehalfBofBaBclient,Bth
eBproducerBisBactingBasBaB-BAnswerbroker



WhichBofBtheBfollowingBisBtheBlegalBnameBofBaBcorporationBorBpartnershipBunderBwhichBaBli
ncenseeBconductsBinsuranceBbusiness?B-BAnswerBusinessBname



TheBcompanyBhasBissuedBaBpolicyBandBdelivedBitBtoBProducerBBBonBMayB1st,BMonday.BByBw
hatBdateBmustBtheBpolicyBbeBdeliveredBtoBtheBinsured?B-
BAnswerMayB10thB(withinB10BcalendarBdays?



ProceedsBfromBlifeBinsuranceBpoliciesBareBprotectedBfromBtheBbeneficiary'sBdebtsBunderBallBo
fBtheBfollowingBcircumstancesBEXCEPTB-
BAnswerSomeBofBtheBpremiumsBwerBpaidBinBanBattemptBtoBdefraudBcreditors



IfBanBinsurerBrequiresBanBapplicationBinBorderBtoBrenewBaBlifeBinsuranceBpolicy,BitBisBtheBins
urer'sBresponsibilityBtoBsendBoneBtoBtheBinsuredB-
BAnswerwithinB30BdaysBofBtheBinsured'sBrequest



AllBofBtheBfollowingBstatementsBareBcorrectBregardingBCreditBLifeBInsuranceBEXCEPTB-
BAnswerBenefitsBareBpaidBtoBtheBborrower'sBbeneficiary



LifeBincomeBjointBandBsurvivorBsettlementBoptionBguaranteesB-
BAnswerincomeBforB2BorBmoreBrecipientsBuntilBtheyBdie



WhichBnonforfeitureBoptionBhasBtheBhighestBamountBofBinsuranceBprotection?B-
BAnswerextendedBterm



ABsmallBemployerBownsBaBgroupBhealthBinsuranceBpolicy.BTheBemployerBdoesBnotBpayBtheBp
remiumBbyBtheBpremiumBdueBdateBandBfailsBagainBtoBpayBbyBtheBendBofBtheBgraceBperiod.
BTheBinsurerBcancelsBtheBpolicy.BWhichBofBtheBfollowingBisBtrue?B-
BAnswerTheBinsurerBwillBpayBallBlossesBthroughBtheBendBofBtheBgraceBperiod.