NJ Health Insurance Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
agent or producer legal representative of an insurance
company:
the classification of producer usually
includes
agents & brokers; agents are the agents of
the
insurer
applicant or proposed insured a person applying for insurance
consent permission to do something
insurable interest the policy owner facing the possibility of
losing
something of value in the event of loss;
proven
by love and affection, economic or
financial
loss, required at time of policy issuance
,insurance policy a contract between policy owner (and/or
insured) & an insurance company which
agrees
to pay the insured or the beneficiary for
loss
caused by specific events
insured a person covered by an insurance policy;
may
or may not be the policy owner
insurer (principal) the company who issues an insurance
policy
policy owner the person entitled to exercise the rights
and
privileges in the policy
premium the money paid to the insurance company
for
the insurance policy
completing application and producers 1st major role in transacting
delivering the policy insurance
steps of application process completing the form
collecting the premium
delivering the policy
, contract law for contracts to be legally binding, they
must
have:
1. agreement - offer & acceptance
2. consideration
3. competent parties
4. legal purpose
acceptance occurs when insurers underwriter
approves
application and issues a policy
consideration binding force in any contract, something of
value each party gives to each other
insured consideration the payment of premium and the
representations made in the application
insurer consideration the promise to pay for losses
conditional contract requires that certain conditions must be
met by
the policy owner and the company in order
for
the contract to be executed, and before
each
party fulfills its obligations
unilateral contract only one of the parties to the contract is
legally
bound to do anything
Answers with Verified Solutions | Latest
Updated 2026
agent or producer legal representative of an insurance
company:
the classification of producer usually
includes
agents & brokers; agents are the agents of
the
insurer
applicant or proposed insured a person applying for insurance
consent permission to do something
insurable interest the policy owner facing the possibility of
losing
something of value in the event of loss;
proven
by love and affection, economic or
financial
loss, required at time of policy issuance
,insurance policy a contract between policy owner (and/or
insured) & an insurance company which
agrees
to pay the insured or the beneficiary for
loss
caused by specific events
insured a person covered by an insurance policy;
may
or may not be the policy owner
insurer (principal) the company who issues an insurance
policy
policy owner the person entitled to exercise the rights
and
privileges in the policy
premium the money paid to the insurance company
for
the insurance policy
completing application and producers 1st major role in transacting
delivering the policy insurance
steps of application process completing the form
collecting the premium
delivering the policy
, contract law for contracts to be legally binding, they
must
have:
1. agreement - offer & acceptance
2. consideration
3. competent parties
4. legal purpose
acceptance occurs when insurers underwriter
approves
application and issues a policy
consideration binding force in any contract, something of
value each party gives to each other
insured consideration the payment of premium and the
representations made in the application
insurer consideration the promise to pay for losses
conditional contract requires that certain conditions must be
met by
the policy owner and the company in order
for
the contract to be executed, and before
each
party fulfills its obligations
unilateral contract only one of the parties to the contract is
legally
bound to do anything
