NJ Life Producer Exam Questions and Answers Verified 100% Correct

NJ Life Producer Exam Questions and Answers Verified 100% Correct Which of the following statements regarding a revocable beneficiary is CORRECT? - answer -the policyowner may change the beneficiary without his or her knowledge or approved R has just graduated from law school. R knows that R's future earnings will be much higher than they are now, but wants to purchase a permanent policy now to cover future needs. Which of the following policies would BEST suit R's needs? - answer -modified whole life A policy that provides lifetime protection for an insured with premiums payable for 20 years is called a.. - answer -20 pay-life All of the following are modes of payment in a life policy EXCEPT - answer biweekly A payor benefit rider provides which of the following benefits? - answer -A waiver of premium should the payor die, until the insured reaches a predetermined age The termed used to indicate that a policy beneficiary cannot be changed is.. - answer -Irrevocable Which of the following states the terms of coverage during the underwriting process? - answer -the conditional receipt The provision that addresses misstatements made by applicant on an application is.. - answer -Incontestability clause The grace period in a life insurance policy begins - answer -when the premium is due which of the following would best be used for estate planning purposes? - answer -survivorship life if an insurer wants to obtain an HIV test from an applicant - answer -they must obtain the applicant's written consent standard non-forfeiture benefits include - answer -reduced paid up insurance Which of the following amounts must decrease in a decreasing term? - answer Death benefit In life insurance, insurable interest must exist at the time the.. - answer -Producer writes an on a proposed insured An applicant makes an offer to the insurer when they - answer -pay an initial premium with the application All of the following are true about a stock insurance company EXCEPT: - answer -Their policy holders vote for the members of the board of directors If a policy contains a Guaranteed Insurability rider, the insured has the right to purchase: - answer -coverage on the insurer's children within 15 days after they are born All of the following are true statements regarding representation EXCEPT: - answer -a statement that is guaranteed to be true An insurance company incorporated in Indiana, with its home office in Texas, is licensed to conduct business in all states except Pennsylvania. in Texas, this company would best be described as which of the following? - answer -Foreign A life insurance policy that fails to meet the 7-pay test is called a.. - answer -a Modified Endowment Contract All of the following are true statements regarding policy dividends paid on on a life insurance contract EXCEPT: - answer -They are considered to be taxable income The McCarran-Ferguson Act was passed y Congress to - answer -Redefine the authority of the state and federal government to regulate the insurance industry The principle that insurance is not a transaction of commerce and so should bed regulated by state was established in: - answer -Paul vs. Virginia In New jersey, a producer who violates a New Jersey insurance law for the first time may be fined up to - answer -$5,000 The New Jersey banking and insurance Commissioner has the authority to do all of the following actions EXCEPT: - answer -Establish insurance rates and schedules Which of the following statements is correct about an employment agreement between two producers? - answer -it must be in writing The New jersey banking and Insurance Commissioner may issue which of the following documents to an insurance producer as evidence of authority? - answer a license A producer who employs another producer must take which of the following actions? - answer -enter into a written employment agreement with the employee producer For a New Jersey insurance producer to charge a prospective insured for analyzing coverages, there must be a reasonable relationship between the fee and.. - answer the nature of the services performed A person failing to comply with a subpoena from the Commissioner, may be charged with.. - answer -contempt