NJ LIFE INSURANCE PRACTICE EXAM
Questions and Answers
1. Which of the following is a business agreement that provides for a
surviving business partner to buy out another at his or her death?
Select one
a. Survivorship Life
b. Buy-Sell agreement
c. Estate Endowment Life
d. Decreasing Term insurance
ANS: b. Buy-Sell agreement
2. Which is NOT a right of ownership in a life insurance policy?
Select one
a. Receiving dividends
b. Using the policy as collateral for a bank loan
c. Changing irrevocable beneficiaries
d. Changing settlement options
ANS: c. Changing irrevocable beneficiaries
,3. Which policy requires premium payments for the longest period of
time?
Select one:
a. Retirement Income Endowment insurance
b. Limited-Pay Whole Life insurance
c. Decreasing Term insurance
d. Whole Life insurance
ANS: d. Whole Life insurance
4. Which of the following is/are a cost savings typically associated
with group insurance?
Select one:
a. Master policyholder assists in policy administration by deducting
premiums from payroll and helping with claim administration.
b. Individual underwrites on only those who do not accept coverage
within the
enrollment period.
c. All of the these
d. No MIB reports, credit reports or inspection reports are submitted.
, ANS: c. All of the these
5. Which of the following is a financial interest that the
policyowner must pos- sess at the time that a life insurance
policy is purchased?
Select one:
a. Insurable interest
b. Medical Interest
c. Monetary Interest
d. Business Interest
ANS: a. Insurable interest
6. is often used to provide funds for a
family to pay off a mortgage or other loans.
Select one:
a. Survivorship Life
b. A Buy-Sell agreement
c. Decreasing Term insurance
d. Estate Endowment Life
ANS: c. Decreasing Term insurance
Questions and Answers
1. Which of the following is a business agreement that provides for a
surviving business partner to buy out another at his or her death?
Select one
a. Survivorship Life
b. Buy-Sell agreement
c. Estate Endowment Life
d. Decreasing Term insurance
ANS: b. Buy-Sell agreement
2. Which is NOT a right of ownership in a life insurance policy?
Select one
a. Receiving dividends
b. Using the policy as collateral for a bank loan
c. Changing irrevocable beneficiaries
d. Changing settlement options
ANS: c. Changing irrevocable beneficiaries
,3. Which policy requires premium payments for the longest period of
time?
Select one:
a. Retirement Income Endowment insurance
b. Limited-Pay Whole Life insurance
c. Decreasing Term insurance
d. Whole Life insurance
ANS: d. Whole Life insurance
4. Which of the following is/are a cost savings typically associated
with group insurance?
Select one:
a. Master policyholder assists in policy administration by deducting
premiums from payroll and helping with claim administration.
b. Individual underwrites on only those who do not accept coverage
within the
enrollment period.
c. All of the these
d. No MIB reports, credit reports or inspection reports are submitted.
, ANS: c. All of the these
5. Which of the following is a financial interest that the
policyowner must pos- sess at the time that a life insurance
policy is purchased?
Select one:
a. Insurable interest
b. Medical Interest
c. Monetary Interest
d. Business Interest
ANS: a. Insurable interest
6. is often used to provide funds for a
family to pay off a mortgage or other loans.
Select one:
a. Survivorship Life
b. A Buy-Sell agreement
c. Decreasing Term insurance
d. Estate Endowment Life
ANS: c. Decreasing Term insurance
