NJ LIFE PRODUCER EXAM INSURANCE
AND LAWS LATEST PRACTICE GUIDE
UPDATED 2026 TESTED SOLUTIONS
⫸ 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
⫸ Which of the following makes Universal Life insurance different
from other forms of permanent insurance? Answer: Premium Schedule
⫸ An insurer that shares its profits with its' policyowners is known as..
Answer: A mutual insurer
⫸ Statements made by an applicant for insurance on the application are
considered to be.. Answer: Representations
⫸ In which of the following are proceeds left with the insurer and
earnings sent to the beneficiary? Answer: Interest-Only
⫸ The primary purpose of an annuity is to.. 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? 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? Answer: The insured's signed statement of continued good
health
⫸ A report of previously submitted life insurance applications to other
insurers is known as: 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.. 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?
Answer: Grace period provision
⫸ which of the following prevents the producer from unilaterally
amending a policy? Answer: Entire contract
⫸ interest paid on a policy loan is.. Answer: not tax deductible
AND LAWS LATEST PRACTICE GUIDE
UPDATED 2026 TESTED SOLUTIONS
⫸ 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
⫸ Which of the following makes Universal Life insurance different
from other forms of permanent insurance? Answer: Premium Schedule
⫸ An insurer that shares its profits with its' policyowners is known as..
Answer: A mutual insurer
⫸ Statements made by an applicant for insurance on the application are
considered to be.. Answer: Representations
⫸ In which of the following are proceeds left with the insurer and
earnings sent to the beneficiary? Answer: Interest-Only
⫸ The primary purpose of an annuity is to.. 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? 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? Answer: The insured's signed statement of continued good
health
⫸ A report of previously submitted life insurance applications to other
insurers is known as: 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.. 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?
Answer: Grace period provision
⫸ which of the following prevents the producer from unilaterally
amending a policy? Answer: Entire contract
⫸ interest paid on a policy loan is.. Answer: not tax deductible
