NJ LIFE INSURANCE Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
Agency An insurance sales office or company
agent An individual who is licensed to sell,
negotiate,
or effect insurance contracts on behalf of
the
insurer.
agent appointment The authorization of an agent to act for or
represent an insurer
aleatory A contract in which participating parties
exchange unequal amounts. Insurance
contracts are aleatory in that the amount
the
insured will pay in premiums is unequal to
the
amount the insurer will pay in the event of
a
loss.
alien insurer An insurance company that is incorporated
outside the United States.
,annual statement A detailed financial report that an
insurance
company must submit every year to the
insurance department of state(s) in which it
conducts business.
annuity A contract that provides income for a
specified
period of years, or for life
apparent authority The appearance or the assumption of
authority
based on the actions, words, or deeds of
the
principal or because of circumstances the
principal created
applicant A person making application for, or offering
himself, herself or another to be insured
under
an insurance contract
Application - A document that provides information for
underwriting purposes. After the policy is
issued, any unanswered questions are
considered waived by the insurer
assignment The transfer of ownership rights of a life
insurance policy from one person to
attained age The age of the insured at a determined
date
, attending Physcian's Statement A statement usually obtained from the
(APS) applicant's doctor.
Authorized (Admitted) Insurer An insurance company authorized and
licensed to transact business in a
particular
state.
Avoidance A method of dealing with risk by
deliberately
keeping away from it (e.g. if a person
wanted to
avoid the risk of being killed in an airplane
crash, he or she might choose to never fly
in a
plane).
Basic Illustration A ledger or proposal used in the sale of a
life
insurance policy that shows both
guaranteed
and nonguaranteed elements.
Beneficiary The person who receives the proceeds
from
the policy when the insured dies.
Answers with Verified Solutions | Latest
Updated 2026
Agency An insurance sales office or company
agent An individual who is licensed to sell,
negotiate,
or effect insurance contracts on behalf of
the
insurer.
agent appointment The authorization of an agent to act for or
represent an insurer
aleatory A contract in which participating parties
exchange unequal amounts. Insurance
contracts are aleatory in that the amount
the
insured will pay in premiums is unequal to
the
amount the insurer will pay in the event of
a
loss.
alien insurer An insurance company that is incorporated
outside the United States.
,annual statement A detailed financial report that an
insurance
company must submit every year to the
insurance department of state(s) in which it
conducts business.
annuity A contract that provides income for a
specified
period of years, or for life
apparent authority The appearance or the assumption of
authority
based on the actions, words, or deeds of
the
principal or because of circumstances the
principal created
applicant A person making application for, or offering
himself, herself or another to be insured
under
an insurance contract
Application - A document that provides information for
underwriting purposes. After the policy is
issued, any unanswered questions are
considered waived by the insurer
assignment The transfer of ownership rights of a life
insurance policy from one person to
attained age The age of the insured at a determined
date
, attending Physcian's Statement A statement usually obtained from the
(APS) applicant's doctor.
Authorized (Admitted) Insurer An insurance company authorized and
licensed to transact business in a
particular
state.
Avoidance A method of dealing with risk by
deliberately
keeping away from it (e.g. if a person
wanted to
avoid the risk of being killed in an airplane
crash, he or she might choose to never fly
in a
plane).
Basic Illustration A ledger or proposal used in the sale of a
life
insurance policy that shows both
guaranteed
and nonguaranteed elements.
Beneficiary The person who receives the proceeds
from
the policy when the insured dies.
