NJ ACCIDENT AND HEALTH STATE COMPLETE ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS 2025/2026
How many days before the insured can bring legal action against the insurer? - CORRECT
ANSWER -90 days
60 days
No contract is in force until ______ is paid? - CORRECT ANSWER -Initial premium
In Key Employee Disability Policy, if the business pays the premium as a tax-deductible expense,
any benefits paid are ______? - CORRECT ANSWER -Fully taxable
Policies that pay higher benefits, command ______ ? - CORRECT ANSWER -Higher premiums
One of the main responsibilities of an underwriter is to protect the insurer against ______? -
CORRECT ANSWER -Adverse selection
Insurers issue preferred risk policies with reduced premiums with the expectation of ______? -
CORRECT ANSWER -Better than normal mortality or morbidity experience
Monitoring the insured's hospital stay to ensure everything is going according to schedule and
that the insured will be released as planned is called ______? - CORRECT ANSWER -Concurrent
review
HIPAA provides that the 10% excise of tax for early withdrawal from IRAs will not apply to the
extent a withdrawal is used for medical expenses that exceed ______ of the individual's
adjusted gross income. - CORRECT ANSWER -7.5%
, One of the most important considerations in replacing medical insurance is ______? - CORRECT
ANSWER -Exclusions or limitations on a new policy
Upon policy delivery, if no initial payment is collected with the application, the producer must
request ______? - CORRECT ANSWER -The applicant to sign a Statement of Good Health
Managed care is provided with which policies, except ______? - CORRECT ANSWER -Covered:
- PPO
- POS (point-of-service)
- HMO
Point of service plan is considered what kind of plan? - CORRECT ANSWER -Managed care plan
Underwriters acquire information from these sources ______ - CORRECT ANSWER -- MIB
- Consumer report
- Attending physician statement
Main field underwriter task is to ______? - CORRECT ANSWER -Ensure accuracy and
completeness of an individual's medical information
Sources of information that can assist underwriters are ______? - CORRECT ANSWER -- Agents
report
- MIB
- Inspection reports
In a specified disease insurance policy to a new policyowner, the producer can expect to collect
all of these, ______? - CORRECT ANSWER -- Initial premium
QUESTIONS AND CORRECT ANSWERS 2025/2026
How many days before the insured can bring legal action against the insurer? - CORRECT
ANSWER -90 days
60 days
No contract is in force until ______ is paid? - CORRECT ANSWER -Initial premium
In Key Employee Disability Policy, if the business pays the premium as a tax-deductible expense,
any benefits paid are ______? - CORRECT ANSWER -Fully taxable
Policies that pay higher benefits, command ______ ? - CORRECT ANSWER -Higher premiums
One of the main responsibilities of an underwriter is to protect the insurer against ______? -
CORRECT ANSWER -Adverse selection
Insurers issue preferred risk policies with reduced premiums with the expectation of ______? -
CORRECT ANSWER -Better than normal mortality or morbidity experience
Monitoring the insured's hospital stay to ensure everything is going according to schedule and
that the insured will be released as planned is called ______? - CORRECT ANSWER -Concurrent
review
HIPAA provides that the 10% excise of tax for early withdrawal from IRAs will not apply to the
extent a withdrawal is used for medical expenses that exceed ______ of the individual's
adjusted gross income. - CORRECT ANSWER -7.5%
, One of the most important considerations in replacing medical insurance is ______? - CORRECT
ANSWER -Exclusions or limitations on a new policy
Upon policy delivery, if no initial payment is collected with the application, the producer must
request ______? - CORRECT ANSWER -The applicant to sign a Statement of Good Health
Managed care is provided with which policies, except ______? - CORRECT ANSWER -Covered:
- PPO
- POS (point-of-service)
- HMO
Point of service plan is considered what kind of plan? - CORRECT ANSWER -Managed care plan
Underwriters acquire information from these sources ______ - CORRECT ANSWER -- MIB
- Consumer report
- Attending physician statement
Main field underwriter task is to ______? - CORRECT ANSWER -Ensure accuracy and
completeness of an individual's medical information
Sources of information that can assist underwriters are ______? - CORRECT ANSWER -- Agents
report
- MIB
- Inspection reports
In a specified disease insurance policy to a new policyowner, the producer can expect to collect
all of these, ______? - CORRECT ANSWER -- Initial premium
