NJ Accident and Health Producer Exam
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
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
