NEW JERSEY LIFE INSURANCE EXAMS SCRIPT
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔all of the following are characteristics of credit life - ✔✔- proceeds are paid directly to
the lender
- Benifits are limited to the exact amounts of the loan
- the policy could be group or indivisual
✔✔all the following are considered to be forms of advertising - ✔✔- Materials used for
agent recruiting
- Magazine advertising
- Prepared sales talks
✔✔Constitute replacement when new life insurance is purchased - ✔✔- causing a lapse
of an existing policy
- changing a policy to reduce paid up insurance
- change a policy to extend term insurance
✔✔stock insurer - ✔✔an insurer that is owned by its stockholders and is
mainlyconcerned with making profit
✔✔primary purpose of New Jersey replacement regulations - ✔✔to protect interests of
the policy owner
✔✔provisions of universal life policy - ✔✔- it has a flexible premium
- it permits the policy owner to select from 2 death benefit options
- the policy's face amount may be incresed or decresed
✔✔What happens if an insured with a whole life policy and a waiver of premium rider
suffers a disability - ✔✔There will be no change in policy rates benefits or options other
than premiums will no longer have to be paid
✔✔Accidental deaths - ✔✔Must die within 90 days death benefits could double within
the 90 days
✔✔Insurable interest - ✔✔Is a direct relationship to the insured, parent Spouse
Guardian
✔✔The application - ✔✔The main source of underwriting information for the insurer
✔✔Buy sell agreement - ✔✔Legal document between co-owners of the business
allowing the surviving partners to purchase a deceased partner's share of the business
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔all of the following are characteristics of credit life - ✔✔- proceeds are paid directly to
the lender
- Benifits are limited to the exact amounts of the loan
- the policy could be group or indivisual
✔✔all the following are considered to be forms of advertising - ✔✔- Materials used for
agent recruiting
- Magazine advertising
- Prepared sales talks
✔✔Constitute replacement when new life insurance is purchased - ✔✔- causing a lapse
of an existing policy
- changing a policy to reduce paid up insurance
- change a policy to extend term insurance
✔✔stock insurer - ✔✔an insurer that is owned by its stockholders and is
mainlyconcerned with making profit
✔✔primary purpose of New Jersey replacement regulations - ✔✔to protect interests of
the policy owner
✔✔provisions of universal life policy - ✔✔- it has a flexible premium
- it permits the policy owner to select from 2 death benefit options
- the policy's face amount may be incresed or decresed
✔✔What happens if an insured with a whole life policy and a waiver of premium rider
suffers a disability - ✔✔There will be no change in policy rates benefits or options other
than premiums will no longer have to be paid
✔✔Accidental deaths - ✔✔Must die within 90 days death benefits could double within
the 90 days
✔✔Insurable interest - ✔✔Is a direct relationship to the insured, parent Spouse
Guardian
✔✔The application - ✔✔The main source of underwriting information for the insurer
✔✔Buy sell agreement - ✔✔Legal document between co-owners of the business
allowing the surviving partners to purchase a deceased partner's share of the business
