New Jersey Life and Health Final Exam
Questions and Answers
1. Which type of long-term care benefit would be most appropriate
for a stroke victim who requires speech therapy administered at her
home?
ANS Home health care
2. Which of the following is NOT a federal requirement of a qualified
plan?
ANS Employee must be able to make unlimited contributions
3. Why are dividends from a mutual insurer not subject to taxation?
ANS Because dividends are considered to be a return of premium
4. The treasurer of XYZ Insurance Company discovers that the
treasurer's com- pany is being investigated by the Banking and
Insurance Commissioner...
ANS Making false financial statements
5. Which type of rider will waive the premium on a child's life
insurance policy if the parent paying the premium dies?
ANS Payor benefit
,6. Which of these premium payment frequencies is not typically
available to a policy owner?
ANS Bi-weekly
7. Maria the agent would like to advertise an annuity product on a
highway billboard. Which of the following must be included in the
advertisement?
ANS Her name
8. Which disability policy provision would address any concerns of
the value of the benefits decreasing over time?
ANS Cost of living benefit
9. Which of these is NOT a characteristic of the Accelerated
Death Benefit option?
ANS The benefit can be offered as a rider at a specific extra cost or may be at no cost
10. All of the following are included as part of a contract in the
entire contract provision EXCEPT the
ANS Changes made by the producer
11. The power given to an individual producer that is not
specifically addressed in his/her contract is considered what type of
authority?
,ANS Implied
12. Pat is insured with a life insurance policy and Karen is his
primary beneficiary. They are both involved in an automobile
accident where Pat dies instantly and Karen dies 5 days later...
ANS Common disaster clause
13. Key Person Disability Insurance pays benefits to the
ANS Employer
14. Under a disability income policy, which provision would be
payable if the cause of an injury is unexpected and accidental?
ANS Accidental bodily injury provision
15. What will the beneficiary receive if an annuitant dies during
the accumula- tion period?
ANS The greater of the accumulated cash value or the total premium paid
16. Written notice for a health claim must be given to the insurer
days after the occurrence of the loss.
ANS 20
17. Craig submits a $500 claim for medical expenses. With a past
due premium of $100, the insurer pays $400. Which of the Uniform
, Optional Provisions covers this situation?
ANS Unpaid premium
18. How many employees must an employer have for a
terminated employee to be eligible for COBRA?
ANS 20
19. A licensed producer is required to file notice of any change of
address within how many days?
ANS 30
20. Advertising material for a life insurance policy does NOT
need to contain which of the following?
ANS Agent's commission rate
21. What is the maximum fine for a producer violating a New
Jersey Insurance law for the first time?
ANS $5,000
22. How long must an individual be unable to engage in any
gainful activity due physical or mental disability in order to
qualify for Social Security Total Disability?
ANS 12 months
23. Sonya applied for a health insurance policy on April 1. Her
agent submitted the information to the insurance company on April
6. She paid the premium on May 15 with the policy indicating the
Questions and Answers
1. Which type of long-term care benefit would be most appropriate
for a stroke victim who requires speech therapy administered at her
home?
ANS Home health care
2. Which of the following is NOT a federal requirement of a qualified
plan?
ANS Employee must be able to make unlimited contributions
3. Why are dividends from a mutual insurer not subject to taxation?
ANS Because dividends are considered to be a return of premium
4. The treasurer of XYZ Insurance Company discovers that the
treasurer's com- pany is being investigated by the Banking and
Insurance Commissioner...
ANS Making false financial statements
5. Which type of rider will waive the premium on a child's life
insurance policy if the parent paying the premium dies?
ANS Payor benefit
,6. Which of these premium payment frequencies is not typically
available to a policy owner?
ANS Bi-weekly
7. Maria the agent would like to advertise an annuity product on a
highway billboard. Which of the following must be included in the
advertisement?
ANS Her name
8. Which disability policy provision would address any concerns of
the value of the benefits decreasing over time?
ANS Cost of living benefit
9. Which of these is NOT a characteristic of the Accelerated
Death Benefit option?
ANS The benefit can be offered as a rider at a specific extra cost or may be at no cost
10. All of the following are included as part of a contract in the
entire contract provision EXCEPT the
ANS Changes made by the producer
11. The power given to an individual producer that is not
specifically addressed in his/her contract is considered what type of
authority?
,ANS Implied
12. Pat is insured with a life insurance policy and Karen is his
primary beneficiary. They are both involved in an automobile
accident where Pat dies instantly and Karen dies 5 days later...
ANS Common disaster clause
13. Key Person Disability Insurance pays benefits to the
ANS Employer
14. Under a disability income policy, which provision would be
payable if the cause of an injury is unexpected and accidental?
ANS Accidental bodily injury provision
15. What will the beneficiary receive if an annuitant dies during
the accumula- tion period?
ANS The greater of the accumulated cash value or the total premium paid
16. Written notice for a health claim must be given to the insurer
days after the occurrence of the loss.
ANS 20
17. Craig submits a $500 claim for medical expenses. With a past
due premium of $100, the insurer pays $400. Which of the Uniform
, Optional Provisions covers this situation?
ANS Unpaid premium
18. How many employees must an employer have for a
terminated employee to be eligible for COBRA?
ANS 20
19. A licensed producer is required to file notice of any change of
address within how many days?
ANS 30
20. Advertising material for a life insurance policy does NOT
need to contain which of the following?
ANS Agent's commission rate
21. What is the maximum fine for a producer violating a New
Jersey Insurance law for the first time?
ANS $5,000
22. How long must an individual be unable to engage in any
gainful activity due physical or mental disability in order to
qualify for Social Security Total Disability?
ANS 12 months
23. Sonya applied for a health insurance policy on April 1. Her
agent submitted the information to the insurance company on April
6. She paid the premium on May 15 with the policy indicating the
