NJ ACCIDENT AND HEALTH PRODUCER EXAM
Questions and Answers
1. Life income joint and survivor settlement option guarantees...
ANS Income for 2 or more recipient’s
2. A participating insurance policy may do which of the following...
ANS Pay dividends to the policy owner
3. What is TRUE about the cash surrender nonforfeiture option?
ANS Funds exceeding the premiums paid are taxable as ordinary income
4. Participating Insurance policy will...
ANS pay dividends to the owner based upon mortality cost, interest earned and cost
5. Which of the following is an example of a producer being involved
in an unfair trade practice of rebating?...
ANS Telling a client that his first premium will be waived if he purchased the insurance
policy.
6. Rebating is defined as...
ANS Offering any inducement in the sale of insurance products that is not specified in the policy,
including money, reductions in commissions, promises, and personal services. Both otter and acceptance
of a rebate are illegal
,7. An insurer that holds a Certificate of Authority in the state in
which it transacts business is considered a/an
ANS Authorized Insurer
8. Who is considered authorized or admitted?
ANS Insurers who meet the state's financial requirements and hold a Certificate of
Authority to transact business in the state
9. Which of the following is a key distinction between variable
whole life and variable universal life products?
ANS Variable whole life has a guaranteed death benefits
10. Which statement about dividends in incorrect?..
ANS Dividends amounts are guaranteed in the policy
11. T or F
Dividends cannot be guaranteed
ANS True
12. An organizations licensed as a producer business entity based
in New York would like to transact insurance in New Jersey. Which of
the following is true?-
ANS The organization will need to obtain a nonresident business entity license and its producers will need
,to obtain nonresident licenses
13. Misrepresenting an insurance policy as a share of stock is
an example of which of the following?
ANS False Advertising
14. Within how many days of requesting an investigative
consumer report must an insurer notify the consumer in writing that
the report will be obtained?
ANS 30 days
15. Which of the following statements about a life insurance
policy would be allowed in an Insurance advertisement?..
ANS Term Life insurance policy
16. A long stretch of national economic hardship causes a 7% rate
of inflation. A policyowner notices that the face value of her life
insurance policy has been raised 7% as a result. Which policy rider
causes this change?
ANS Cost of Living Rider
17. Cost of Living Rider
ANS Allows the policy face amount to be adjusted to account for inflation based on the
consumer price index.
, 18. Which of the following is another term for an authorized
insurer?
ANS Admitted
19. All of the following are TRUE of the federal tax advantages of a
qualified plan EXCEPT
ANS At distribution all amounts received by the employees are tax free
20. If an insured continually uses the automatic premium loan
option to pay the policy premium...
ANS The policy will terminate when the cash value is reduced to nothing
21. The two types of assignments are...
ANS absolute and collateral
22. By how many days does the discontinuance of a group
insurance policy reduce the time limit for providing notice of claim
or proof of loss?
ANS 0 days
23. absolute assigns.....
ANS the entire policy
24. collateral assigns...
Questions and Answers
1. Life income joint and survivor settlement option guarantees...
ANS Income for 2 or more recipient’s
2. A participating insurance policy may do which of the following...
ANS Pay dividends to the policy owner
3. What is TRUE about the cash surrender nonforfeiture option?
ANS Funds exceeding the premiums paid are taxable as ordinary income
4. Participating Insurance policy will...
ANS pay dividends to the owner based upon mortality cost, interest earned and cost
5. Which of the following is an example of a producer being involved
in an unfair trade practice of rebating?...
ANS Telling a client that his first premium will be waived if he purchased the insurance
policy.
6. Rebating is defined as...
ANS Offering any inducement in the sale of insurance products that is not specified in the policy,
including money, reductions in commissions, promises, and personal services. Both otter and acceptance
of a rebate are illegal
,7. An insurer that holds a Certificate of Authority in the state in
which it transacts business is considered a/an
ANS Authorized Insurer
8. Who is considered authorized or admitted?
ANS Insurers who meet the state's financial requirements and hold a Certificate of
Authority to transact business in the state
9. Which of the following is a key distinction between variable
whole life and variable universal life products?
ANS Variable whole life has a guaranteed death benefits
10. Which statement about dividends in incorrect?..
ANS Dividends amounts are guaranteed in the policy
11. T or F
Dividends cannot be guaranteed
ANS True
12. An organizations licensed as a producer business entity based
in New York would like to transact insurance in New Jersey. Which of
the following is true?-
ANS The organization will need to obtain a nonresident business entity license and its producers will need
,to obtain nonresident licenses
13. Misrepresenting an insurance policy as a share of stock is
an example of which of the following?
ANS False Advertising
14. Within how many days of requesting an investigative
consumer report must an insurer notify the consumer in writing that
the report will be obtained?
ANS 30 days
15. Which of the following statements about a life insurance
policy would be allowed in an Insurance advertisement?..
ANS Term Life insurance policy
16. A long stretch of national economic hardship causes a 7% rate
of inflation. A policyowner notices that the face value of her life
insurance policy has been raised 7% as a result. Which policy rider
causes this change?
ANS Cost of Living Rider
17. Cost of Living Rider
ANS Allows the policy face amount to be adjusted to account for inflation based on the
consumer price index.
, 18. Which of the following is another term for an authorized
insurer?
ANS Admitted
19. All of the following are TRUE of the federal tax advantages of a
qualified plan EXCEPT
ANS At distribution all amounts received by the employees are tax free
20. If an insured continually uses the automatic premium loan
option to pay the policy premium...
ANS The policy will terminate when the cash value is reduced to nothing
21. The two types of assignments are...
ANS absolute and collateral
22. By how many days does the discontinuance of a group
insurance policy reduce the time limit for providing notice of claim
or proof of loss?
ANS 0 days
23. absolute assigns.....
ANS the entire policy
24. collateral assigns...
