New Jersey Life and Health- Final Exam/ Exam Questions
with Correct Verified Answers – Latest Update 2024-2025.
Which type of long-term care benefit would be most appropriate for a stroke victim who requires speech
therapy administered at her home? - ANSWER - Home health care
Which of the following is NOT a federal requirement of a qualified plan? - ANSWER - Employee must be
able to make unlimited contributions
Why are dividends from a mutual insurer not subject to taxation? - ANSWER - Because dividends are
considered to be a return of premium
The treasurer of XYZ Insurance Company discovers that the treasurer's company is being investigated by
the Banking and Insurance Commissioner... - ANSWER - Making false financial statements
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the
premium dies? - ANSWER - Payor benefit
Which of these premium payment frequencies is not typically available to a policy owner? - ANSWER -
Bi-weekly
Maria the agent would like to advertise an annuity product on a highway billboard. Which of the
following must be included in the advertisement? - ANSWER - Her name
Which disability policy provision would address any concerns of the value of the benefits decreasing over
time? - ANSWER - Cost of living benefit
Which of these is NOT a characteristic of the Accelerated Death Benefit option? - ANSWER - The benefit
can be offered as a rider at a specific extra cost or may be at no cost
pg. 1
,All of the following are included as part of a contract in the entire contract provision EXCEPT the -
ANSWER - Changes made by the producer
The power given to an individual producer that is not specifically addressed in his/her contract is
considered what type of authority? - ANSWER - Implied
Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved in
an automobile accident where Pat dies instantly and Karen dies 5 days later... - ANSWER - Common
disaster clause
Key Person Disability Insurance pays benefits to the - ANSWER - Employer
Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? - ANSWER - Accidental bodily injury provision
What will the beneficiary receive if an annuitant dies during the accumulation period? - ANSWER - The
greater of the accumulated cash value or the total premium paid
Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. -
ANSWER - 20
Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays
$400. Which of the Uniform Optional Provisions covers this situation? - ANSWER - Unpaid premium
How many employees must an employer have for a terminated employee to be eligible for COBRA? -
ANSWER - 20
A licensed producer is required to file notice of any change of address within how many days? - ANSWER
- 30
Advertising material for a life insurance policy does NOT need to contain which of the following? -
ANSWER - Agent's commission rate
pg. 2
, What is the maximum fine for a producer violating a New Jersey Insurance law for the first time? -
ANSWER - $5,000
How long must an individual be unable to engage in any gainful activity due physical or mental disability
in order to qualify for Social Security Total Disability? - ANSWER - 12 months
Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the
insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective
date being May 30. On which date would Sonya have coverage? - ANSWER - May 30
Under a life insurance policy, what does the insuring clause state? - ANSWER - The insurer's obligation to
pay a death benefit upon an approved death claim
Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health
policy most likely contains a(n) - ANSWER - deductible
How often must an insurance producer's license in New Jersey be renewed? - ANSWER - Every two years
Pierre the producer receives a premium for an individual health insurance policy. Pierre MUST remit the
premium to his insurer within ___ business days of receipt. - ANSWER - 7
A life insurance policy normally contains a provision that restricts coverage in the event of death under
all of the following situations EXCEPT - ANSWER - fare-paying passenger
An insurance consultant is BEST defines as a - ANSWER - producer who charges fees for advice
An insurance company needs to obtain personal information from a third party concerning an applicant.
Which law do all insurers and their producers need to comply with? - ANSWER - Fair Credit Reporting Act
A professional liability for which producers can be sued for mistakes of putting a policy into effect is
called - ANSWER - Errors and Omissions
pg. 3
with Correct Verified Answers – Latest Update 2024-2025.
Which type of long-term care benefit would be most appropriate for a stroke victim who requires speech
therapy administered at her home? - ANSWER - Home health care
Which of the following is NOT a federal requirement of a qualified plan? - ANSWER - Employee must be
able to make unlimited contributions
Why are dividends from a mutual insurer not subject to taxation? - ANSWER - Because dividends are
considered to be a return of premium
The treasurer of XYZ Insurance Company discovers that the treasurer's company is being investigated by
the Banking and Insurance Commissioner... - ANSWER - Making false financial statements
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the
premium dies? - ANSWER - Payor benefit
Which of these premium payment frequencies is not typically available to a policy owner? - ANSWER -
Bi-weekly
Maria the agent would like to advertise an annuity product on a highway billboard. Which of the
following must be included in the advertisement? - ANSWER - Her name
Which disability policy provision would address any concerns of the value of the benefits decreasing over
time? - ANSWER - Cost of living benefit
Which of these is NOT a characteristic of the Accelerated Death Benefit option? - ANSWER - The benefit
can be offered as a rider at a specific extra cost or may be at no cost
pg. 1
,All of the following are included as part of a contract in the entire contract provision EXCEPT the -
ANSWER - Changes made by the producer
The power given to an individual producer that is not specifically addressed in his/her contract is
considered what type of authority? - ANSWER - Implied
Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved in
an automobile accident where Pat dies instantly and Karen dies 5 days later... - ANSWER - Common
disaster clause
Key Person Disability Insurance pays benefits to the - ANSWER - Employer
Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? - ANSWER - Accidental bodily injury provision
What will the beneficiary receive if an annuitant dies during the accumulation period? - ANSWER - The
greater of the accumulated cash value or the total premium paid
Written notice for a health claim must be given to the insurer ___ days after the occurrence of the loss. -
ANSWER - 20
Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays
$400. Which of the Uniform Optional Provisions covers this situation? - ANSWER - Unpaid premium
How many employees must an employer have for a terminated employee to be eligible for COBRA? -
ANSWER - 20
A licensed producer is required to file notice of any change of address within how many days? - ANSWER
- 30
Advertising material for a life insurance policy does NOT need to contain which of the following? -
ANSWER - Agent's commission rate
pg. 2
, What is the maximum fine for a producer violating a New Jersey Insurance law for the first time? -
ANSWER - $5,000
How long must an individual be unable to engage in any gainful activity due physical or mental disability
in order to qualify for Social Security Total Disability? - ANSWER - 12 months
Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the
insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective
date being May 30. On which date would Sonya have coverage? - ANSWER - May 30
Under a life insurance policy, what does the insuring clause state? - ANSWER - The insurer's obligation to
pay a death benefit upon an approved death claim
Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health
policy most likely contains a(n) - ANSWER - deductible
How often must an insurance producer's license in New Jersey be renewed? - ANSWER - Every two years
Pierre the producer receives a premium for an individual health insurance policy. Pierre MUST remit the
premium to his insurer within ___ business days of receipt. - ANSWER - 7
A life insurance policy normally contains a provision that restricts coverage in the event of death under
all of the following situations EXCEPT - ANSWER - fare-paying passenger
An insurance consultant is BEST defines as a - ANSWER - producer who charges fees for advice
An insurance company needs to obtain personal information from a third party concerning an applicant.
Which law do all insurers and their producers need to comply with? - ANSWER - Fair Credit Reporting Act
A professional liability for which producers can be sued for mistakes of putting a policy into effect is
called - ANSWER - Errors and Omissions
pg. 3
