NJ ACCIDENT AND HEALTH PRODUCER
EXAM Questions and Answers
1. When meeting with a prospect to discuss life insurance, Agent
Tyler makes disparaging comments about the financial stability
and reputation of a
competitor to dissuade the prospect from purchasing its
policies. Which unfair trade practice has Agent Tyler
committed?
A) Defamation
B) Rebating
C) Unfair Discrimination
D) Coercion
ANS A) Defamation
2. ABC Insurance Company fires Renee, a producer. She continues to
interview prospects, make sales presentations with company materials,
and collect
premiums. When dealing with Renee, the prospects believe that she
as what kind of authority from ABC
A) Apparent
B) Actual
,C) Implied
D) Express
ANS A) Apparent
3. What is the goal of the relation of earnings to insurance provision?
A) assure the insured that complete coverage is being provided
B) avoid overinsurance
C) Permit the insured to collect disability income benefits that exceed
pre-dis- ability income
D) protect the insurer against adverse selection
ANS B) avoid overinsurance
4. Which level of long-term care provides ongoing care that is
necessary to address a person's condition but is not needed 24
hours a day?
A) Remedial care
B) skilled nursing care
C) intermediate care
D) custodial care
ANS C) intermediate care
5. Which of the following statements regarding the tax
,treatment of medical expense insurance premiums and benefits
is correct?
A) premiums are not deductible and benefits are taxable
B) premiums are not deductible and benefits are not taxable
C) premiums may be deductible as an unreimbursed medical
expense and benefits are taxable
D) premiums may be deductible as an unreimbursed medical
expense and benefits are not taxable
ANS D) premiums may be deductible as an unreimbursed medical expense and
benefits are not taxable
6. For which of the following will a Medicare participant have to
pay all of the costs?
A) doctor's office visits
B) eyeglasses
C) care in an outpatient facility
D) neurological testing
ANS B) eyeglasses
7. Sasha, Kendall, Adam, and Julio are applying for resident producer
licenses in New Jersey. Which person would most likely not be
eligible for an exemption rom the pre-licensing education
requirements?
, A)Sasha, who was licensed as a producer in Virginia before her
license expired 3 years ago
B) Kendall, who obtained a Bachelor's degree in insurance this year
C) Adam, who is applying for a life insurance producer license and
holds a Certified Financial Planner designation
D) Julio, who is applying for a health and accident license and holds a
Certified Employee Benefits Specialist (CEBS) designation
ANS A) Sasha, who was licensed as a producer in Virginia before her license expired 3
years ago
8. With respect to covering a family in a single medical expense
insurance plan, which of the following statements is correct?
A) a group policy can cover the worker and family, but an individual
policy can only cover the insured so each family member would need
an individual policy
B) an individual policy can cover the insured and family, but a group
policy can only cover the worker so each family member would need
an individual policy
C) both group and individual policies can cover the insured and family
D) neither an individual nor a group policy can cover the insured's
family, so each family member would need an individual policy
ANS C) both group and individual policies can cover the insured and family
9. Candace submitted an application for a producer license and paid
the licens- ing fee on June 1. She also obtained a temporary work
EXAM Questions and Answers
1. When meeting with a prospect to discuss life insurance, Agent
Tyler makes disparaging comments about the financial stability
and reputation of a
competitor to dissuade the prospect from purchasing its
policies. Which unfair trade practice has Agent Tyler
committed?
A) Defamation
B) Rebating
C) Unfair Discrimination
D) Coercion
ANS A) Defamation
2. ABC Insurance Company fires Renee, a producer. She continues to
interview prospects, make sales presentations with company materials,
and collect
premiums. When dealing with Renee, the prospects believe that she
as what kind of authority from ABC
A) Apparent
B) Actual
,C) Implied
D) Express
ANS A) Apparent
3. What is the goal of the relation of earnings to insurance provision?
A) assure the insured that complete coverage is being provided
B) avoid overinsurance
C) Permit the insured to collect disability income benefits that exceed
pre-dis- ability income
D) protect the insurer against adverse selection
ANS B) avoid overinsurance
4. Which level of long-term care provides ongoing care that is
necessary to address a person's condition but is not needed 24
hours a day?
A) Remedial care
B) skilled nursing care
C) intermediate care
D) custodial care
ANS C) intermediate care
5. Which of the following statements regarding the tax
,treatment of medical expense insurance premiums and benefits
is correct?
A) premiums are not deductible and benefits are taxable
B) premiums are not deductible and benefits are not taxable
C) premiums may be deductible as an unreimbursed medical
expense and benefits are taxable
D) premiums may be deductible as an unreimbursed medical
expense and benefits are not taxable
ANS D) premiums may be deductible as an unreimbursed medical expense and
benefits are not taxable
6. For which of the following will a Medicare participant have to
pay all of the costs?
A) doctor's office visits
B) eyeglasses
C) care in an outpatient facility
D) neurological testing
ANS B) eyeglasses
7. Sasha, Kendall, Adam, and Julio are applying for resident producer
licenses in New Jersey. Which person would most likely not be
eligible for an exemption rom the pre-licensing education
requirements?
, A)Sasha, who was licensed as a producer in Virginia before her
license expired 3 years ago
B) Kendall, who obtained a Bachelor's degree in insurance this year
C) Adam, who is applying for a life insurance producer license and
holds a Certified Financial Planner designation
D) Julio, who is applying for a health and accident license and holds a
Certified Employee Benefits Specialist (CEBS) designation
ANS A) Sasha, who was licensed as a producer in Virginia before her license expired 3
years ago
8. With respect to covering a family in a single medical expense
insurance plan, which of the following statements is correct?
A) a group policy can cover the worker and family, but an individual
policy can only cover the insured so each family member would need
an individual policy
B) an individual policy can cover the insured and family, but a group
policy can only cover the worker so each family member would need
an individual policy
C) both group and individual policies can cover the insured and family
D) neither an individual nor a group policy can cover the insured's
family, so each family member would need an individual policy
ANS C) both group and individual policies can cover the insured and family
9. Candace submitted an application for a producer license and paid
the licens- ing fee on June 1. She also obtained a temporary work
