NJ Life Producer Exam Question & Correct
Answer (A+ Graded)
Which of the following amounts must decrease in a decreasing term? - CORRECT ANSWER-Death benefit
In life insurance, insurable interest must exist at the time the.. - CORRECT ANSWER-Producer writes an
on a proposed insured
An applicant makes an offer to the insurer when they - CORRECT ANSWER-pay an initial premium with
the application
Which of the following makes Universal Life insurance different from other forms of permanent
insurance? - CORRECT ANSWER-Premium Schedule
An insurer that shares its profits with its' policyowners is known as.. - CORRECT ANSWER-A mutual
insurer
Statements made by an applicant for insurance on the application are considered to be.. - CORRECT
ANSWER-Representations
In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? -
CORRECT ANSWER-Interest-Only
The primary purpose of an annuity is to.. - CORRECT ANSWER-Provide income for retirement
Which of the following provisions in a life policy specifies the manner in which proceeds will be paid to a
beneficiary on the death of insured? - CORRECT ANSWER-settlement options
An insurance producer takes an application for a life policy but does not collect the initial premium. On
delivery of policy to the proposed insured, the producer must collect the initial premium and which of
the following? - CORRECT ANSWER-The insured's signed statement of continued good health
, A report of previously submitted life insurance applications to other insurers is known as: - CORRECT
ANSWER-A Medical Information Bureau report
A company decides to purchase Key Employee life insurance for its vice president of operations. All of
the following statements are correct EXCEPT the.. - CORRECT ANSWER-Employee names the beneficiary
Which of the following features allows an insurance policy to remain in force for a specified number of
days beyond the premium due date? - CORRECT ANSWER-Grace period provision
which of the following prevents the producer from unilaterally amending a policy? - CORRECT ANSWER-
Entire contract
interest paid on a policy loan is.. - CORRECT ANSWER-not tax deductible
An employer paid life insurance policy is called - CORRECT ANSWER-Non-contributory group life
A tax free exchange of one life insurance policy or annuity for another is called.. - CORRECT ANSWER-
1035 exchange
Which of the following group life plans require at least 75% of the eligible members to participate? -
CORRECT ANSWER-Contributory
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts will allow the other partner to buy 100 percent of the business interest? - CORRECT ANSWER-
Buy and Sell agreement
Under a traditional IRA, owners must begin to receive payments from their accounts by the time they
reach age.. - CORRECT ANSWER-70 1/2
social security retirement benefits are determined by all of the following except? - CORRECT ANSWER-
sex
Answer (A+ Graded)
Which of the following amounts must decrease in a decreasing term? - CORRECT ANSWER-Death benefit
In life insurance, insurable interest must exist at the time the.. - CORRECT ANSWER-Producer writes an
on a proposed insured
An applicant makes an offer to the insurer when they - CORRECT ANSWER-pay an initial premium with
the application
Which of the following makes Universal Life insurance different from other forms of permanent
insurance? - CORRECT ANSWER-Premium Schedule
An insurer that shares its profits with its' policyowners is known as.. - CORRECT ANSWER-A mutual
insurer
Statements made by an applicant for insurance on the application are considered to be.. - CORRECT
ANSWER-Representations
In which of the following are proceeds left with the insurer and earnings sent to the beneficiary? -
CORRECT ANSWER-Interest-Only
The primary purpose of an annuity is to.. - CORRECT ANSWER-Provide income for retirement
Which of the following provisions in a life policy specifies the manner in which proceeds will be paid to a
beneficiary on the death of insured? - CORRECT ANSWER-settlement options
An insurance producer takes an application for a life policy but does not collect the initial premium. On
delivery of policy to the proposed insured, the producer must collect the initial premium and which of
the following? - CORRECT ANSWER-The insured's signed statement of continued good health
, A report of previously submitted life insurance applications to other insurers is known as: - CORRECT
ANSWER-A Medical Information Bureau report
A company decides to purchase Key Employee life insurance for its vice president of operations. All of
the following statements are correct EXCEPT the.. - CORRECT ANSWER-Employee names the beneficiary
Which of the following features allows an insurance policy to remain in force for a specified number of
days beyond the premium due date? - CORRECT ANSWER-Grace period provision
which of the following prevents the producer from unilaterally amending a policy? - CORRECT ANSWER-
Entire contract
interest paid on a policy loan is.. - CORRECT ANSWER-not tax deductible
An employer paid life insurance policy is called - CORRECT ANSWER-Non-contributory group life
A tax free exchange of one life insurance policy or annuity for another is called.. - CORRECT ANSWER-
1035 exchange
Which of the following group life plans require at least 75% of the eligible members to participate? -
CORRECT ANSWER-Contributory
Two business partners own life insurance on each other. If one partner dies, which of the following
contracts will allow the other partner to buy 100 percent of the business interest? - CORRECT ANSWER-
Buy and Sell agreement
Under a traditional IRA, owners must begin to receive payments from their accounts by the time they
reach age.. - CORRECT ANSWER-70 1/2
social security retirement benefits are determined by all of the following except? - CORRECT ANSWER-
sex
