NJ Accident and Health Producer Exam
Actual 2025 Questions and Verified Answers
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1. Life income joint and survivor settlement option guarantees...: Income for 2 or
more recipents
2. A participating insurance policy may do which of the following:...: Pay divi-
dends to the policy owner
3. What is TRUE about the cash surrender nonforfeiture option?: Funds ex-
ceeding the premiums paid are taxable as ordinary income
4. Participating Insurance policy will...: pay dividends to the owner based upon
mortality cost, interest earned and cost
5. Which of the following is an example of a producer being involved in an
unfair trade practice of rebating?...: Telling a client that his first premium will be
waived if he purchased the insurance policy.
6. Rebating is defined as...: Offering any inducement in the sale of insurance prod-
ucts that is not specified in the policy, including money, reductions in commissions,
promises, and personal services. Both offer and acceptance of a rebate are illegal
7. An insurer that holds a Certificate of Authority in the state in which it
transacts business is considered a/an: Authorized Insurer
8. Who is considered authorized or admitted?: Insurers who meet the state's
,financial requirements and hold a Certificate of Authority to transact business in the
state
9. Which of the following is a key distinction between variable whole life and
variable universal life products?: Variable whole life has a guaranteed death
benefits
10. Which statement about dividends in incorrect?..: Dividends amounts are
guaranteed in the policy
11. T or F: Dividends cannot be guaranteed: True
12. An organizations licensed as a producer business entity based in New
York would like to transact insurance in New Jersey. Which of the following
is true?: The organization will need to obtain a nonresident business entity license
and its producers will need to obtain nonresident licenses
13. Misrepresenting an insurance policy as a share of stock is an example of
which of the following?: False Advertising
14. Within how many days of requesting an investigative consumer report
must an insurer notify the consumer in writing that the report will be ob-
tained?: 30 days
15. Which of the following statements about a life insurance policy would be
allowed in an Insurance advertisement?..: Term Life insurance policy
16. A long stretch of national economic hardship causes a 7% rate of inflation.
A policyowner notices that the face value of her life insurance policy has been
,raised 7% as a result. Which policy rider causes this change?: Cost of Living
Rider
17. Cost of Living Rider: Allows the policy face amount to be adjusted to account
for inflation based on the consumer price index.
18. Which of the following is another term for an authorized insurer?: Admitted
19. All of the following are TRUE of the federal tax advantages of a qualified
plan EXCEPT: At distribution all amounts received by the employees are tax free
20. If an insured continually uses the automatic premium loan option to pay
the policy premium...: The policy will terminate when the cash value is reduced to
nothing
21. The two types of assignments are...: absolute and collateral
22. By how many days does the discontinuance of a group insurance policy
reduce the time limit for providing notice of claim or proof of loss?: 0 days
23. absolute assigns.....: the entire policy
24. collateral assigns...: a part or all of the benefits
25. What is a material misrepresentation?: A statement by the applicant that,
upon discovery, would affect the underwriting decision of the insurance company
26. If a policy includes a free-look period of at least 10 days, the Buyer's Guide
may be delivered to the applicant no later than...: With the policy
27. What is reinsurance?: An agreement between a ceding insurer and assuming
insurer
28. Within life insurance settlement option guarantees payments got the life-
time of the recipient, but also specifies a guaranteed period, during which, if
the original recipient dies, the payments will continue to a designed benefi-
ciary?: Life Income with period certain
29. Using names or titles that have tendency to misrepresent the true nature
of a policy is an example of what illegal practice?: False Advertising
30. The type of settlement option which pays throughout the lifetimes of two
, or more beneficiaries is called.....: Joint and Survivor
31. An insurer is closing a branch office in the state. Within how many days of
the office closing must the insurer notify the Department?: 30 days
32. Which of the following is an eligibility requirement for all Social Security
Disability Income benefits?: Have attained fully insured status
33. Which of the following allows the insurer to relieve a minor insured from
premium payments if the minor's parents have died or become disabled?: -
Payor Benefit
34. What is the other term for the cash payment settlement option?: Lump sum
35. Licensees must notify the Department with how many days of any change
of address?: 30 days
Actual 2025 Questions and Verified Answers
()
1. Life income joint and survivor settlement option guarantees...: Income for 2 or
more recipents
2. A participating insurance policy may do which of the following:...: Pay divi-
dends to the policy owner
3. What is TRUE about the cash surrender nonforfeiture option?: Funds ex-
ceeding the premiums paid are taxable as ordinary income
4. Participating Insurance policy will...: pay dividends to the owner based upon
mortality cost, interest earned and cost
5. Which of the following is an example of a producer being involved in an
unfair trade practice of rebating?...: Telling a client that his first premium will be
waived if he purchased the insurance policy.
6. Rebating is defined as...: Offering any inducement in the sale of insurance prod-
ucts that is not specified in the policy, including money, reductions in commissions,
promises, and personal services. Both offer and acceptance of a rebate are illegal
7. An insurer that holds a Certificate of Authority in the state in which it
transacts business is considered a/an: Authorized Insurer
8. Who is considered authorized or admitted?: Insurers who meet the state's
,financial requirements and hold a Certificate of Authority to transact business in the
state
9. Which of the following is a key distinction between variable whole life and
variable universal life products?: Variable whole life has a guaranteed death
benefits
10. Which statement about dividends in incorrect?..: Dividends amounts are
guaranteed in the policy
11. T or F: Dividends cannot be guaranteed: True
12. An organizations licensed as a producer business entity based in New
York would like to transact insurance in New Jersey. Which of the following
is true?: The organization will need to obtain a nonresident business entity license
and its producers will need to obtain nonresident licenses
13. Misrepresenting an insurance policy as a share of stock is an example of
which of the following?: False Advertising
14. Within how many days of requesting an investigative consumer report
must an insurer notify the consumer in writing that the report will be ob-
tained?: 30 days
15. Which of the following statements about a life insurance policy would be
allowed in an Insurance advertisement?..: Term Life insurance policy
16. A long stretch of national economic hardship causes a 7% rate of inflation.
A policyowner notices that the face value of her life insurance policy has been
,raised 7% as a result. Which policy rider causes this change?: Cost of Living
Rider
17. Cost of Living Rider: Allows the policy face amount to be adjusted to account
for inflation based on the consumer price index.
18. Which of the following is another term for an authorized insurer?: Admitted
19. All of the following are TRUE of the federal tax advantages of a qualified
plan EXCEPT: At distribution all amounts received by the employees are tax free
20. If an insured continually uses the automatic premium loan option to pay
the policy premium...: The policy will terminate when the cash value is reduced to
nothing
21. The two types of assignments are...: absolute and collateral
22. By how many days does the discontinuance of a group insurance policy
reduce the time limit for providing notice of claim or proof of loss?: 0 days
23. absolute assigns.....: the entire policy
24. collateral assigns...: a part or all of the benefits
25. What is a material misrepresentation?: A statement by the applicant that,
upon discovery, would affect the underwriting decision of the insurance company
26. If a policy includes a free-look period of at least 10 days, the Buyer's Guide
may be delivered to the applicant no later than...: With the policy
27. What is reinsurance?: An agreement between a ceding insurer and assuming
insurer
28. Within life insurance settlement option guarantees payments got the life-
time of the recipient, but also specifies a guaranteed period, during which, if
the original recipient dies, the payments will continue to a designed benefi-
ciary?: Life Income with period certain
29. Using names or titles that have tendency to misrepresent the true nature
of a policy is an example of what illegal practice?: False Advertising
30. The type of settlement option which pays throughout the lifetimes of two
, or more beneficiaries is called.....: Joint and Survivor
31. An insurer is closing a branch office in the state. Within how many days of
the office closing must the insurer notify the Department?: 30 days
32. Which of the following is an eligibility requirement for all Social Security
Disability Income benefits?: Have attained fully insured status
33. Which of the following allows the insurer to relieve a minor insured from
premium payments if the minor's parents have died or become disabled?: -
Payor Benefit
34. What is the other term for the cash payment settlement option?: Lump sum
35. Licensees must notify the Department with how many days of any change
of address?: 30 days
