NJ Life Final Exam Questions and Answers
1. Which of these is a method of determining the level of funds
required for ongoing support in the event of the breadwinner's
death?
Financial loss value
Human life value
Assessment value
Replacement value
ANS Human life value
2. The Guaranty Association Act provides that when a Court Order of
Liquidation exists, the insurer
ANS Is insolvent
3. An individual most likely will have an insurable interest in insuring
a person's life if
ANS An economic interest exists for the continuance of the insured's life
4. 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?
Marital
,status Age
Address
Income
ANS Age
5. Before conducting an HIV related test, an insurer is REQUIRED
to obtain written authorization from the
ANS Proposed insured
6. One of the roles of the Banking and Insurance Commissioner is to
ANS Establish continuing education requirements
7. If an insured's age on a life insurance policy has been misstated,
what is the insurer's liability if the insured dies?
ANS A prorated death benefit based on the amount of insurance the insured's premiums
would have been if purchased at the age at the correct
8. Unde
r a group life policy, the insurer will issue an individual to
the policyowner for delivery to each person insured
ANS Certificate
9. Jerry voluntarily terminated his producer's license. If he changes his
mind, his license may be reinstated during the same license period if
, ANS He completes a new license application
10. A producer has recently died and leaves behind a spouse. In
order for the producer's insurance business to continue, the
Department of Banking and Insurance may issue to the producer's
spouse a(n)
ANS Temporary insurance license
11. In what part of an insurance policy are policy benefits found?
ANS Declarations
12. A securities license is required for a life insurance producer to
sell
ANS Variable life insurance
13. Barbara's policy includes a rider which allows her to purchase
additional insurance at specific dates or events without evidence of
insurability. This rider is called a(n)
ANS Guaranteed insurability rider
14. Which type of life insurance is normally associated with a
Payor Benefit rider?
ANS Juvenile Insurance
1. Which of these is a method of determining the level of funds
required for ongoing support in the event of the breadwinner's
death?
Financial loss value
Human life value
Assessment value
Replacement value
ANS Human life value
2. The Guaranty Association Act provides that when a Court Order of
Liquidation exists, the insurer
ANS Is insolvent
3. An individual most likely will have an insurable interest in insuring
a person's life if
ANS An economic interest exists for the continuance of the insured's life
4. 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?
Marital
,status Age
Address
Income
ANS Age
5. Before conducting an HIV related test, an insurer is REQUIRED
to obtain written authorization from the
ANS Proposed insured
6. One of the roles of the Banking and Insurance Commissioner is to
ANS Establish continuing education requirements
7. If an insured's age on a life insurance policy has been misstated,
what is the insurer's liability if the insured dies?
ANS A prorated death benefit based on the amount of insurance the insured's premiums
would have been if purchased at the age at the correct
8. Unde
r a group life policy, the insurer will issue an individual to
the policyowner for delivery to each person insured
ANS Certificate
9. Jerry voluntarily terminated his producer's license. If he changes his
mind, his license may be reinstated during the same license period if
, ANS He completes a new license application
10. A producer has recently died and leaves behind a spouse. In
order for the producer's insurance business to continue, the
Department of Banking and Insurance may issue to the producer's
spouse a(n)
ANS Temporary insurance license
11. In what part of an insurance policy are policy benefits found?
ANS Declarations
12. A securities license is required for a life insurance producer to
sell
ANS Variable life insurance
13. Barbara's policy includes a rider which allows her to purchase
additional insurance at specific dates or events without evidence of
insurability. This rider is called a(n)
ANS Guaranteed insurability rider
14. Which type of life insurance is normally associated with a
Payor Benefit rider?
ANS Juvenile Insurance
