New Jersey Life and Health FINAL EXAM ALL 500 QUESTIONS AND CORRECT ANSWERS LATEST UPDATE THIS YEAR

Page 1 of 92



New Jersey Life and Health FINAL EXAM ALL 500
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
New Jersey Life and Health FINAL EXAM


QUESTION: A licensed producer is required to file notice of any change of address within how

many days? - ANSWER-30




QUESTION: Advertising material for a life insurance policy does NOT need to contain which of

the following? - ANSWER-Agent's commission rate




QUESTION: What is the maximum fine for a producer violating a New Jersey Insurance law for

the first time? - ANSWER-$5,000




QUESTION: 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




1

, Page 2 of 92


QUESTION: 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




QUESTION: 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




QUESTION: 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




QUESTION: How often must an insurance producer's license in New Jersey be renewed? -

ANSWER-Every two years




QUESTION: 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




2

, Page 3 of 92


QUESTION: 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




QUESTION: An insurance consultant is BEST defines as a - ANSWER-producer who charges fees

for advice




QUESTION: 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




QUESTION: A professional liability for which producers can be sued for mistakes of putting a

policy into effect is called - ANSWER-Errors and Omissions




QUESTION: The Commissioner issues a subpoena to a producer. The producer decides not to

respond. Which course of action must be taken by the Commissioner? - ANSWER-Commissioner

may impose an administrative penalty




3

, Page 4 of 92


QUESTION: A Medicare Supplement basic benefit is - ANSWER-The first 3 pints of blood per

year




QUESTION: 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 the premium

will remain constant over the 10-year period




QUESTION: What amount will be paid under a policy where the insured misstated his/her age? -

ANSWER-An amount the premium would have purchased at the correct age




Q; 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




QUESTION: Which of the following is NOT a federal requirement of a qualified plan? - ANSWER-

Employee must be able to make unlimited contributions




QUESTION: Why are dividends from a mutual insurer not subject to taxation? - ANSWER-

Because dividends are considered to be a return of premium



4