NJ Accident and Health Producer Test Questions and Answers 100% Pass
1. Life income joint and survivor settlement option guarantees...: Income for 2 or more rec
u u u u u u u u u u u u u
ipents
2. A participating insurance policy may do which of the following:...: Pay divi-
u u u u u u u u u u u
udends to the policy owner u u u u
3. What is TRUE about the cash surrender nonforfeiture option?: Funds ex-
u u u u u u u u u u
uceeding the premiums paid are taxable as ordinary income
u u u u u u u u
4. Participating Insurance policy will...: pay dividends to the owner based upon mortality
u u u u u u u u u u u u
cost, interest earned and cost
u u u u
5. Which of the following is an example of a producer being involved in an unfair trade p
u u u u u u u u u u u u u u u u
ractice of rebating?...: Telling a client that his first premium will be waived if he purchased t
u u u u u u u u u u u u u u u u
he insurance policy.
u u
6. Rebating is defined as...: Offering any inducement in the sale of insurance prod-
u u u u u u u u u u u u
uucts that is not specified in the policy, including money, reductions in commissions, promis
u u u u u u u u u u u u u
es, and personal services. Both offer and acceptance of a rebate are illegal
u u u u u u u u u u u u
7. An insurer that holds a Certificate of Authority in the state in which it transacts
u u u u u u u u u u u u u u u
business is considered a/an: Authorized Insurer u u u u u
8. Who is considered authorized or admitted?: Insurers who meet the state's financial req
u u u u u u u u u u u u
uirements and hold a Certificate of Authority to transact business in the state
u u u u u u u u u u u u
9. Which of the following is a key distinction between variable whole life and variable un
u u u u u u u u u u u u u u
iversal life products?: Variable whole life has a guaranteed death benefits
u u u u u u u u u u
10. Which statement about dividends in incorrect?..: Dividends amounts are guarantee
u u u u u u u u u
d in the policy
u u u
11. T or F: Dividends cannot be guaranteed: True
u u u u u u u
12. An organizations licensed as a producer business entity based in New York would lik
u u u u u u u u u u u u u
e to transact insurance in New Jersey. Which of the following is true?: The organization wil
u u u u u u u u u u u u u u u
l need to obtain a nonresident business entity license and its producers will need to obtain n
u u u u u u u u u u u u u u u u
onresident licenses u
13. Misrepresenting an insurance policy as a share of stock is an example of which of th u u u u u u u u u u u u u u u
1u/u31
,e following?: False Advertising
u u u
14. Within how many days of requesting an investigative consumer report must an in
u u u u u u u u u u u u
surer notify the consumer in writing that the report will be ob- tained?: 30 days
u u u u u u u u u u u u u u
15. Which of the following statements about a life insurance policy would be allowed in
u u u u u u u u u u u u u u
an Insurance advertisement?..: Term Life insurance policy
u u u u u u
16. A long stretch of national economic hardship causes a 7% rate of inflation. A policyow
u u u u u u u u u u u u u u
ner notices that the face value of her life insurance policy has been
u u u u u u u u u u u u
2u/u31
,raised 7% as a result. Which policy rider causes this change?: Cost of Living Rider
u u u u u u u u u u u u u u
17. Cost of Living Rider: Allows the policy face amount to be adjusted to account for inflatio
u u u u u u u u u u u u u u u
n based on the consumer price index.
u u u u u u
18. Which of the following is another term for an authorized insurer?: Admitted
u u u u u u u u u u u
19. All of the following are TRUE of the federal tax advantages of a qualified plan EXCEP
u u u u u u u u u u u u u u u
T: At distribution all amounts received by the employees are tax free
u u u u u u u u u u u
20. If an insured continually uses the automatic premium loan option to pay the policy p
u u u u u u u u u u u u u u
remium...: The policy will terminate when the cash value is reduced to nothing
u u u u u u u u u u u u
21. The two types of assignments are...: absolute and collateral
u u u u u u u u
22. By how many days does the discontinuance of a group insurance policy reduce the t
u u u u u u u u u u u u u u
ime limit for providing notice of claim or proof of loss?: 0 days
u u u u u u u u u u u u
23. absolute assigns.....: the entire policy u u u u
24. collateral assigns...: a part or all of the benefits u u u u u u u u
25. What is a material misrepresentation?: A statement by the applicant that, upon disc
u u u u u u u u u u u u
overy, would affect the underwriting decision of the insurance company
u u u u u u u u u
26. If a policy includes a free-
u u u u u
look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no late
u u u u u u u u u u u u u u u u u
r than...: With the policy
u u u u
27. What is reinsurance?: An agreement between a ceding insurer and assuming insurer
u u u u u u u u u u u
28. Within life insurance settlement option guarantees payments got the life-
u u u u u u u u u
utime of the recipient, but also specifies a guaranteed period, during which, if the origina
u u u u u u u u u u u u u u
l recipient dies, the payments will continue to a designed benefi-
u u u u u u u u u u
uciary?: Life Income with period certain
u u u u u
29. Using names or titles that have tendency to misrepresent the true nature of a policy
u u u u u u u u u u u u u u u
is an example of what illegal practice?: False Advertising
u u u u u u u u
30. The type of settlement option which pays throughout the lifetimes of two or more be
u u u u u u u u u u u u u u
neficiaries is called.....: Joint and Survivor u u u u u
31. An insurer is closing a branch office in the state. Within how many days of the office cl
u u u u u u u u u u u u u u u u u
osing must the insurer notify the Department?: 30 days
u u u u u u u u
32. Which of the following is an eligibility requirement for all Social Security Disability I
u u u u u u u u u u u u u
ncome benefits?: Have attained fully insured status
u u u u u u
3u/u31
, 33. Which of the following allows the insurer to relieve a minor insured from premium p
u u u u u u u u u u u u u u
ayments if the minor's parents have died or become disabled?: - Payor Benefit
u u u u u u u u u u u u
34. What is the other term for the cash payment settlement option?: Lump sum
u u u u u u u u u u u u
35. Licensees must notify the Department with how many days of any change of address?
u u u u u u u u u u u u u
: 30 days u u
4u/u31
1. Life income joint and survivor settlement option guarantees...: Income for 2 or more rec
u u u u u u u u u u u u u
ipents
2. A participating insurance policy may do which of the following:...: Pay divi-
u u u u u u u u u u u
udends to the policy owner u u u u
3. What is TRUE about the cash surrender nonforfeiture option?: Funds ex-
u u u u u u u u u u
uceeding the premiums paid are taxable as ordinary income
u u u u u u u u
4. Participating Insurance policy will...: pay dividends to the owner based upon mortality
u u u u u u u u u u u u
cost, interest earned and cost
u u u u
5. Which of the following is an example of a producer being involved in an unfair trade p
u u u u u u u u u u u u u u u u
ractice of rebating?...: Telling a client that his first premium will be waived if he purchased t
u u u u u u u u u u u u u u u u
he insurance policy.
u u
6. Rebating is defined as...: Offering any inducement in the sale of insurance prod-
u u u u u u u u u u u u
uucts that is not specified in the policy, including money, reductions in commissions, promis
u u u u u u u u u u u u u
es, and personal services. Both offer and acceptance of a rebate are illegal
u u u u u u u u u u u u
7. An insurer that holds a Certificate of Authority in the state in which it transacts
u u u u u u u u u u u u u u u
business is considered a/an: Authorized Insurer u u u u u
8. Who is considered authorized or admitted?: Insurers who meet the state's financial req
u u u u u u u u u u u u
uirements and hold a Certificate of Authority to transact business in the state
u u u u u u u u u u u u
9. Which of the following is a key distinction between variable whole life and variable un
u u u u u u u u u u u u u u
iversal life products?: Variable whole life has a guaranteed death benefits
u u u u u u u u u u
10. Which statement about dividends in incorrect?..: Dividends amounts are guarantee
u u u u u u u u u
d in the policy
u u u
11. T or F: Dividends cannot be guaranteed: True
u u u u u u u
12. An organizations licensed as a producer business entity based in New York would lik
u u u u u u u u u u u u u
e to transact insurance in New Jersey. Which of the following is true?: The organization wil
u u u u u u u u u u u u u u u
l need to obtain a nonresident business entity license and its producers will need to obtain n
u u u u u u u u u u u u u u u u
onresident licenses u
13. Misrepresenting an insurance policy as a share of stock is an example of which of th u u u u u u u u u u u u u u u
1u/u31
,e following?: False Advertising
u u u
14. Within how many days of requesting an investigative consumer report must an in
u u u u u u u u u u u u
surer notify the consumer in writing that the report will be ob- tained?: 30 days
u u u u u u u u u u u u u u
15. Which of the following statements about a life insurance policy would be allowed in
u u u u u u u u u u u u u u
an Insurance advertisement?..: Term Life insurance policy
u u u u u u
16. A long stretch of national economic hardship causes a 7% rate of inflation. A policyow
u u u u u u u u u u u u u u
ner notices that the face value of her life insurance policy has been
u u u u u u u u u u u u
2u/u31
,raised 7% as a result. Which policy rider causes this change?: Cost of Living Rider
u u u u u u u u u u u u u u
17. Cost of Living Rider: Allows the policy face amount to be adjusted to account for inflatio
u u u u u u u u u u u u u u u
n based on the consumer price index.
u u u u u u
18. Which of the following is another term for an authorized insurer?: Admitted
u u u u u u u u u u u
19. All of the following are TRUE of the federal tax advantages of a qualified plan EXCEP
u u u u u u u u u u u u u u u
T: At distribution all amounts received by the employees are tax free
u u u u u u u u u u u
20. If an insured continually uses the automatic premium loan option to pay the policy p
u u u u u u u u u u u u u u
remium...: The policy will terminate when the cash value is reduced to nothing
u u u u u u u u u u u u
21. The two types of assignments are...: absolute and collateral
u u u u u u u u
22. By how many days does the discontinuance of a group insurance policy reduce the t
u u u u u u u u u u u u u u
ime limit for providing notice of claim or proof of loss?: 0 days
u u u u u u u u u u u u
23. absolute assigns.....: the entire policy u u u u
24. collateral assigns...: a part or all of the benefits u u u u u u u u
25. What is a material misrepresentation?: A statement by the applicant that, upon disc
u u u u u u u u u u u u
overy, would affect the underwriting decision of the insurance company
u u u u u u u u u
26. If a policy includes a free-
u u u u u
look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no late
u u u u u u u u u u u u u u u u u
r than...: With the policy
u u u u
27. What is reinsurance?: An agreement between a ceding insurer and assuming insurer
u u u u u u u u u u u
28. Within life insurance settlement option guarantees payments got the life-
u u u u u u u u u
utime of the recipient, but also specifies a guaranteed period, during which, if the origina
u u u u u u u u u u u u u u
l recipient dies, the payments will continue to a designed benefi-
u u u u u u u u u u
uciary?: Life Income with period certain
u u u u u
29. Using names or titles that have tendency to misrepresent the true nature of a policy
u u u u u u u u u u u u u u u
is an example of what illegal practice?: False Advertising
u u u u u u u u
30. The type of settlement option which pays throughout the lifetimes of two or more be
u u u u u u u u u u u u u u
neficiaries is called.....: Joint and Survivor u u u u u
31. An insurer is closing a branch office in the state. Within how many days of the office cl
u u u u u u u u u u u u u u u u u
osing must the insurer notify the Department?: 30 days
u u u u u u u u
32. Which of the following is an eligibility requirement for all Social Security Disability I
u u u u u u u u u u u u u
ncome benefits?: Have attained fully insured status
u u u u u u
3u/u31
, 33. Which of the following allows the insurer to relieve a minor insured from premium p
u u u u u u u u u u u u u u
ayments if the minor's parents have died or become disabled?: - Payor Benefit
u u u u u u u u u u u u
34. What is the other term for the cash payment settlement option?: Lump sum
u u u u u u u u u u u u
35. Licensees must notify the Department with how many days of any change of address?
u u u u u u u u u u u u u
: 30 days u u
4u/u31
