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New Jersey Life Producer Exam Newest 2025-2026/New Jersey Life
Producer Exam Preparation /New Jersey Life Producer Practice
Exam With Complete Questions And Correct Detailed Answers
|Already Graded A+
A permanent life insurance policy where the policy owner pays
premiums for a specified number of years is called a(n) - ANSWER-
limited pay policy
Julie has a $100,000 30-year mortgage on her new home. What type of
life insurance could she purchase that is designed to pay off the loan
balance if she dies within the 30-year period? - ANSWER-decreasing
term insurance
How are survivorship life insurance policies helpful in estate planning? -
ANSWER-Provide funds to help pay taxes
All of these statements concerning whole life insurance are false
EXCEPT - ANSWER-when a whole life policy is surrendered, income
taxes may be owed
A renewable Term Life insurance policy allows the policy owner the
right to renew the policy - ANSWER-without producing proof of
insurability
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The type of policy which pays on the death of the last person is called -
ANSWER-survivorship life
Level premium permanent insurance accumulates a reserve that will
eventually - ANSWER-equal the face amount of the policy
A life insurance policy written on one contract for two people in which it
is payable upon the first death is called - ANSWER-joint
A single premium cash value policy can be described as - ANSWER-a
policy that is paid up after only one payment
Which of the following policies does NOT build cash value? -
ANSWER-term
Krissa purchases a 10-year level term life insurance policy that has a
death benefit of $200,000. Which of these statements is true? -
ANSWER-The face amount and premium will remain constant over the
10- year period
An error was made on Mary's life insurance application. Which of the
following areas are errors commonly made on applications for which the
incontestable clause does NOT apply? - ANSWER-age
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Pat owns a 20-pay life policy with a paid-up dividend option. Which of
the following statements is true? - ANSWER-the policy may be paid up
early by using policy dividers
What is an insurer required to do when faced with an error made under
the Misstatement of Age provision? - ANSWER-Pay age-corrected
benefits
Kurt is an active duty serviceman who was recently killed in an accident
while home on leave. Which military service exclusion clause would pay
upon his death? - ANSWER-results
A life insurance policy owner does NOT have the right to - ANSWER-
revoke an absolute assignment
If an insured's age on a life insurance policy has been misstated, what is
the insurer's liability if the insured dies? - ANSWER-A prorated death
benefit based on the amount of insurance the insureds premiums would
have been if purchased at the correct age
The suicide clause of a life insurance policy states that if an insured
commits suicide within a stated period from the policy's inception, the
insurer will only be liable for a return of premiums paid - ANSWER-
minus indebtedness and without interest
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Of the following dividend options, which of these is taxable? -
ANSWER-Accumulation at interest
What is the purpose for having an accelerated death benefit on a life
insurance policy? - ANSWER-it allows for cash advanced to be paid
against the death benefit if the insured becomes terminally ill
James is the insured on a life insurance policy where his age was
misstated on the application. Which of the following is CORRECT
regarding the death benefit amount? - ANSWER-the death benefit paid
will be what the premium would have purchased at the correct age
What is an insurance policy's grace period? - ANSWER-Period of time
after the premium is due but the policy remains in force
Matt is applying for life insurance and requests a double indemnity rider.
A double indemnity benefit will be payable to Matt's beneficiary if Matt
- ANSWER-dies instantly from a car accident
which of the following is a reinstatement condition? - ANSWER-proof if
insurability
A policy owner may exercise which of these dividend options that uses
the dividend to pay all or part of the next premium due? - ANSWER-
reduction of premium dividend option
New Jersey Life Producer Exam Newest 2025-2026/New Jersey Life
Producer Exam Preparation /New Jersey Life Producer Practice
Exam With Complete Questions And Correct Detailed Answers
|Already Graded A+
A permanent life insurance policy where the policy owner pays
premiums for a specified number of years is called a(n) - ANSWER-
limited pay policy
Julie has a $100,000 30-year mortgage on her new home. What type of
life insurance could she purchase that is designed to pay off the loan
balance if she dies within the 30-year period? - ANSWER-decreasing
term insurance
How are survivorship life insurance policies helpful in estate planning? -
ANSWER-Provide funds to help pay taxes
All of these statements concerning whole life insurance are false
EXCEPT - ANSWER-when a whole life policy is surrendered, income
taxes may be owed
A renewable Term Life insurance policy allows the policy owner the
right to renew the policy - ANSWER-without producing proof of
insurability
,2|Page
The type of policy which pays on the death of the last person is called -
ANSWER-survivorship life
Level premium permanent insurance accumulates a reserve that will
eventually - ANSWER-equal the face amount of the policy
A life insurance policy written on one contract for two people in which it
is payable upon the first death is called - ANSWER-joint
A single premium cash value policy can be described as - ANSWER-a
policy that is paid up after only one payment
Which of the following policies does NOT build cash value? -
ANSWER-term
Krissa purchases a 10-year level term life insurance policy that has a
death benefit of $200,000. Which of these statements is true? -
ANSWER-The face amount and premium will remain constant over the
10- year period
An error was made on Mary's life insurance application. Which of the
following areas are errors commonly made on applications for which the
incontestable clause does NOT apply? - ANSWER-age
,3|Page
Pat owns a 20-pay life policy with a paid-up dividend option. Which of
the following statements is true? - ANSWER-the policy may be paid up
early by using policy dividers
What is an insurer required to do when faced with an error made under
the Misstatement of Age provision? - ANSWER-Pay age-corrected
benefits
Kurt is an active duty serviceman who was recently killed in an accident
while home on leave. Which military service exclusion clause would pay
upon his death? - ANSWER-results
A life insurance policy owner does NOT have the right to - ANSWER-
revoke an absolute assignment
If an insured's age on a life insurance policy has been misstated, what is
the insurer's liability if the insured dies? - ANSWER-A prorated death
benefit based on the amount of insurance the insureds premiums would
have been if purchased at the correct age
The suicide clause of a life insurance policy states that if an insured
commits suicide within a stated period from the policy's inception, the
insurer will only be liable for a return of premiums paid - ANSWER-
minus indebtedness and without interest
, 4|Page
Of the following dividend options, which of these is taxable? -
ANSWER-Accumulation at interest
What is the purpose for having an accelerated death benefit on a life
insurance policy? - ANSWER-it allows for cash advanced to be paid
against the death benefit if the insured becomes terminally ill
James is the insured on a life insurance policy where his age was
misstated on the application. Which of the following is CORRECT
regarding the death benefit amount? - ANSWER-the death benefit paid
will be what the premium would have purchased at the correct age
What is an insurance policy's grace period? - ANSWER-Period of time
after the premium is due but the policy remains in force
Matt is applying for life insurance and requests a double indemnity rider.
A double indemnity benefit will be payable to Matt's beneficiary if Matt
- ANSWER-dies instantly from a car accident
which of the following is a reinstatement condition? - ANSWER-proof if
insurability
A policy owner may exercise which of these dividend options that uses
the dividend to pay all or part of the next premium due? - ANSWER-
reduction of premium dividend option
