New Jersey Life & Health Insurance Final Exam
2025 – Latest Exam Prep | Practice Questions
& Study Guide
How long must an insurance company keep records on life insurance replacement
activity? - correct answer5 years
Which type of disability would be less than total impairment and equal to permanent
impairment? - correct answerpermanent partial disability
In contrast to a guaranteed renewable policy, a noncancellable policy - correct
answerMay never raise premiuns
A securities license is required for a life insurance producer to sell - correct
answervariable life insurance
If an insurer receives a Notice of Claim under an individual health policy, and fails to
provide proof of loss forms within 15 days, the insured must? - correct answerFile a
written proof of loss, detailling ocurrence, character and extend of loss
An agent has committed an insurance crime that violates US Code 1033 (interstate
commerce). Who would be responsible for the prosecution of this crime? - correct
answerUS Attorney
An agent is a(n) - correct answerlicensed producer who has a written contract to
represent an insured
A Medicare Supplement policy can be cancelled by the insurer for - correct
answernonpayment
When an insured changes to a more hazardous occupation, which disability policy
provision allows an insurer to adjust policy benefits and rates? - correct answerchange
of occupation
A document providing basic information about life insurance policies in general is called
a - correct answerBuyers guide
All of these are considered key factors in underwriting life insurance EXCEPT - correct
answerMarital Status
The type of policy where the insurer can send a notice to the insured that the policy has
been cancelled in the middle of the term is called - correct answercancelable
,After passing the state Producer licensing exam, application for the license must be
made within - correct answer12 months
Joe is a Medicare participant who receives his benefits through a Managed Health Care
Plan. Which Medicare plan does he have? - correct answerpart C
A clause that allows an insurer the right to terminate coverage at any anniversary date
is called a(n) - correct answeroptional rewability
Which of the following would be considered a possible applicant and contract
policyholder for group health benefits? - correct answeremployeer
Within how many days must a producer notify the Department of Banking and Insurance
of a change in address? - correct answer30
What is the elimination period of an individual disability policy? - correct answertime
period a disable person must wait before benefits are paid
The replacement of an existing insurance policy requires notice that the owner can
return the policy within days for a full refund. - correct answer30
The deeds and actions of a producer indicate what kind of authority? - correct
answerApparent
When does a life insurance policy typically become effective? - correct answerwhen
initial premiun is collected and policy is issued
A Buyer's Guide MUST - correct answerContain content approved by the Commissioner
The entire contract includes the actual policy and the - correct answerapplication
Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - correct answerPolicy Summary
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How
much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - correct answer50.00
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How
much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - correct answerhuman life
Which of these premium payment frequencies is not typically available to a
policyowner? - correct answerbi weekly
,What happens when an insurance policy is backdated? - correct answerthe policy
effective date is earlier than the present
First year commissions may be legally paid to someone holding a - correct answerstate
license and appointment wih the paying insurance
Which of the following is present when an applicant stands to lose value if the insured
dies? - correct answerinsurable interest
The Commissioner may - correct answerEstablish continuing education requirements
Proceeds from a life insurance policy are protected from the beneficiary's creditors by
which clause? - correct answerSpendthrift Clause
Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - correct answerPolicy Summary
The death benefit of Credit Life and Health Insurance is paid to whom? - correct
answerthe creditor
How does one qualify as a fully- insured individual under Social Security disability
coverage? - correct answerhas bee credited with the appropiated numbres of quarters
of coverage
Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - correct answerPolicy summary
All of the following plans allow for employee contributions to be taken on a pre-tax basis
EXCEPT - correct answerHealth Reimbursement Arrangement Plan (HRA's).
In an employer-sponsored contributory group Disability Income plan, the employer pays
60% of the premium and each employee pays 40% of the premium. Any income
benefits paid are taxed to the employee at - correct answer60%
Which scenario would most life insurance policies exclude coverage for? - correct
answerhobby racing cars
Who would make the final determination on whether or not an insurance advertisement
is misleading? - correct answerThe banking and insurance commissioner
An endorsement found in an insurance plan which modifies the provisions of the policy
is called a(n) - correct answerrider
What is implied authority defined as? - correct answerAuthority that is not specifically
given to an agent in the agency contract, but that an agent can reasonably assume to
carry out his/her duties
, An example of a tax-qualified retirement plan would be a(n) - correct answerdefined
contribution plan
An immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payments? - correct answer1 months
The New Jersey Individual Health Coverage Program is designed to provide
comprehensive health benefits for - correct answermedically uninsurable NJ residents
A producer who sells an individual life insurance policy in New Jersey MUST deliver to
the policyowner a(n) - correct answerPolicy summary and buyer guide
Pierre is covered by his employer's group major medical plan. His employer pays for
75% of the premium and he pays for 25%. How much would a $10,000 benefit be
taxable as income under this plan? - correct answer2,500
Which of the following pertains to the analysis of an applicant's personal information and
determining whether insurance should be issued or declined? - correct
answerUnderwriting
How often must an insurance producer's license in New Jersey be renewed? - correct
answerEvery two years
Twisting is best defined as - correct answerUsing misrepresentation to induce an
insured person to terminate an existing policy and purchase a new policy
Which of the following actions is REQUIRED by an agent who is replacing an existing
life insurance policy? - correct answerSubmit to the replacing insurer a list of the
policies to be replaced
An insurer will accept a premium from the insured and continue the coverage in full
force as though it was NOT late during which time period? - correct answergrace period
All of these are considered sources of information that can assist an underwriter in
determining whether or not to accept a risk EXCEPT - correct answerNational
Association of Insurance Underwriters
How many employees must an employer have for a terminated employee to be eligible
for COBRA? - correct answer20
The New Jersey Life and Health Guaranty Association protects life insurance death
benefit claims up to - correct answer500,000
2025 – Latest Exam Prep | Practice Questions
& Study Guide
How long must an insurance company keep records on life insurance replacement
activity? - correct answer5 years
Which type of disability would be less than total impairment and equal to permanent
impairment? - correct answerpermanent partial disability
In contrast to a guaranteed renewable policy, a noncancellable policy - correct
answerMay never raise premiuns
A securities license is required for a life insurance producer to sell - correct
answervariable life insurance
If an insurer receives a Notice of Claim under an individual health policy, and fails to
provide proof of loss forms within 15 days, the insured must? - correct answerFile a
written proof of loss, detailling ocurrence, character and extend of loss
An agent has committed an insurance crime that violates US Code 1033 (interstate
commerce). Who would be responsible for the prosecution of this crime? - correct
answerUS Attorney
An agent is a(n) - correct answerlicensed producer who has a written contract to
represent an insured
A Medicare Supplement policy can be cancelled by the insurer for - correct
answernonpayment
When an insured changes to a more hazardous occupation, which disability policy
provision allows an insurer to adjust policy benefits and rates? - correct answerchange
of occupation
A document providing basic information about life insurance policies in general is called
a - correct answerBuyers guide
All of these are considered key factors in underwriting life insurance EXCEPT - correct
answerMarital Status
The type of policy where the insurer can send a notice to the insured that the policy has
been cancelled in the middle of the term is called - correct answercancelable
,After passing the state Producer licensing exam, application for the license must be
made within - correct answer12 months
Joe is a Medicare participant who receives his benefits through a Managed Health Care
Plan. Which Medicare plan does he have? - correct answerpart C
A clause that allows an insurer the right to terminate coverage at any anniversary date
is called a(n) - correct answeroptional rewability
Which of the following would be considered a possible applicant and contract
policyholder for group health benefits? - correct answeremployeer
Within how many days must a producer notify the Department of Banking and Insurance
of a change in address? - correct answer30
What is the elimination period of an individual disability policy? - correct answertime
period a disable person must wait before benefits are paid
The replacement of an existing insurance policy requires notice that the owner can
return the policy within days for a full refund. - correct answer30
The deeds and actions of a producer indicate what kind of authority? - correct
answerApparent
When does a life insurance policy typically become effective? - correct answerwhen
initial premiun is collected and policy is issued
A Buyer's Guide MUST - correct answerContain content approved by the Commissioner
The entire contract includes the actual policy and the - correct answerapplication
Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - correct answerPolicy Summary
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How
much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - correct answer50.00
Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25. How
much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - correct answerhuman life
Which of these premium payment frequencies is not typically available to a
policyowner? - correct answerbi weekly
,What happens when an insurance policy is backdated? - correct answerthe policy
effective date is earlier than the present
First year commissions may be legally paid to someone holding a - correct answerstate
license and appointment wih the paying insurance
Which of the following is present when an applicant stands to lose value if the insured
dies? - correct answerinsurable interest
The Commissioner may - correct answerEstablish continuing education requirements
Proceeds from a life insurance policy are protected from the beneficiary's creditors by
which clause? - correct answerSpendthrift Clause
Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - correct answerPolicy Summary
The death benefit of Credit Life and Health Insurance is paid to whom? - correct
answerthe creditor
How does one qualify as a fully- insured individual under Social Security disability
coverage? - correct answerhas bee credited with the appropiated numbres of quarters
of coverage
Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - correct answerPolicy summary
All of the following plans allow for employee contributions to be taken on a pre-tax basis
EXCEPT - correct answerHealth Reimbursement Arrangement Plan (HRA's).
In an employer-sponsored contributory group Disability Income plan, the employer pays
60% of the premium and each employee pays 40% of the premium. Any income
benefits paid are taxed to the employee at - correct answer60%
Which scenario would most life insurance policies exclude coverage for? - correct
answerhobby racing cars
Who would make the final determination on whether or not an insurance advertisement
is misleading? - correct answerThe banking and insurance commissioner
An endorsement found in an insurance plan which modifies the provisions of the policy
is called a(n) - correct answerrider
What is implied authority defined as? - correct answerAuthority that is not specifically
given to an agent in the agency contract, but that an agent can reasonably assume to
carry out his/her duties
, An example of a tax-qualified retirement plan would be a(n) - correct answerdefined
contribution plan
An immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payments? - correct answer1 months
The New Jersey Individual Health Coverage Program is designed to provide
comprehensive health benefits for - correct answermedically uninsurable NJ residents
A producer who sells an individual life insurance policy in New Jersey MUST deliver to
the policyowner a(n) - correct answerPolicy summary and buyer guide
Pierre is covered by his employer's group major medical plan. His employer pays for
75% of the premium and he pays for 25%. How much would a $10,000 benefit be
taxable as income under this plan? - correct answer2,500
Which of the following pertains to the analysis of an applicant's personal information and
determining whether insurance should be issued or declined? - correct
answerUnderwriting
How often must an insurance producer's license in New Jersey be renewed? - correct
answerEvery two years
Twisting is best defined as - correct answerUsing misrepresentation to induce an
insured person to terminate an existing policy and purchase a new policy
Which of the following actions is REQUIRED by an agent who is replacing an existing
life insurance policy? - correct answerSubmit to the replacing insurer a list of the
policies to be replaced
An insurer will accept a premium from the insured and continue the coverage in full
force as though it was NOT late during which time period? - correct answergrace period
All of these are considered sources of information that can assist an underwriter in
determining whether or not to accept a risk EXCEPT - correct answerNational
Association of Insurance Underwriters
How many employees must an employer have for a terminated employee to be eligible
for COBRA? - correct answer20
The New Jersey Life and Health Guaranty Association protects life insurance death
benefit claims up to - correct answer500,000
