NJ Life Insurance Test Copy
Questions and Answers Updated
2026
TheBprincipleBthatBinsuranceBisBnotBaBtransactionBofBcommerceBandBsoBshouldBbeBregulatedB
byBtheBstatesBwasBestablishedBbyBtheB-BAnswerA.BtheBMcCarran-FergusonBAct.
ABcontractBbetweenBtwoBinsuranceBcompaniesBthatBallowsBoneBcompanyBtoBtransferBriskBtoB
aBsecondBcompanyBisBknownBasB-BAnswerA.BReinsurance
whichBofBtheBfollowingBdividendBoptionsBisBtaxable?B-BAnswerC.BAccumulationBatBinterest.
ABlicensedBlifeBorBhealthBproducerBwhoBsolicitsBinsuranceBinBNewBJerseyBandBwhoBhasBnotBs
electedBNewBJerseyBasBhisBhomeBstateBbutBresidesBandBmaintainsBtheBprincipalBofficeBinBano
therBstateBisBdefinedBasB-BAnswerB.BaBnonresidentBproducer.
AfterBaBNewBJerseyBproducerBlicenseBhasBbeenBrevoked,BtheBlicenseeBmayBnotBreapplyBforBa
BnewBlicenseBforBaBMBIMUMBofB-BAnswerA.B5Byears.
OneBofBtheBmajorBtaxBADVANTAGESBofBlifeBinsuranceBisBthatB-
BAnswerD.BtheBbeneficiaryBgenerallyBdoesBnotBpayBincomeBtaxBonBtheBproceeds.
TheBProducerBLicensingBregulationBrequiresBthatBaBbranchBofficeBbeBopenBtoBtheBpublicB-
BAnswerD.BonBaBpostedBscheduleBthatBprovidesBreasonableBaccess.
IfBaBproducerBmakesBaBsalesBproposalBorBpresentationBthatBfailsBtoBfairlyBandBfullyBdiscloseBf
utureBpremiumBcharges,Bbenefits,BandBanyBoptionsBtheBproducerBmayBbeBfoundBguiltyBofB-
BAnswerB.Bmisrepresentation.
WhichBtypeBofBinsuranceBpolicyBisBcharacterizedBbyBpremiumsBthatBareBfullyBpaidBupBwithinB
aBstatedBperiod,BafterBwhichBnoBfurtherBpremiumsBareBREQUIRED?B-
BAnswerD.BLimitedBpaymentBlifeBinsurance.
ABreinstatementBclauseBoutlinesBreinstatementBconditionsBthatBincludeB-
BAnswerC.BproofBofBinsurability.
, InsuranceBpurchasedBonBtheBlifeBofBaBborrowerBtoBprovideBindemnityBforBaBloanBbalanceBifB
theBborrowerBdiesBisBreferredBtoBasB-BAnswerВ.creditBlifeBinsurance.
NewBJerseyBreplacementBregulations,BitBisBtheBdutyBofBtheBreplacingBinsuranceBcompanyBtoBt
akeBallBofBtheBfollowingBactionsBEXCEPTB-BAnsweraBlistBofBallBpoliciesBthatBwillBbeBreplaced.
ABpolicyownerBCANNOTBchangeBtheBbeneficiaryBifBheBhasBnamedB-
BAnswerD.BanBirrevocableBbeneficiary.
TheBpolicyBfeatureBthatBmakesBuniversalBlifeBdifferentBfromBwholeBlifeBinsuranceBpoliciesBisBit
sB-BAnswerB.BflexibleBpremiumBschedule.
AfterBdiscussingBfinancialBstatus,BtaxBstatus,BinvestmentBobjectives,BandBanyBotherBinformation
BconsideredBtoBbeBrelevant,BtheBproducerBandBtheBclientBdecidedBthisBwillBachieveBtheBclient
'sBfinancialBgoal.BThisBannuityBpurchaseBisBdeemedBtoBbeB-BAnswerB.Bsuitable
WhichBsituationBaccuratelyBdescribesBaBreducedBpaid-upBnonforfeitureBoption?B-
BAnswerA.BTheBnewBpolicyBwillBhaveBaBdecreasedBfaceBamount.
AnBinsuranceBcompany,BownedBbyBitsBstockholdersBwhoBhaveBcontributedBtoBitsBcapitalBandB
surplusBandBtoBwhomBdividendsBareBpaid,BisBknownBasB-BAnswerD.BaBstockBcompany.
ABpublishedBadvertisementBforBaBfixedBannuityBMUSTBcontainBallBofBtheBfollowingBinformatio
nBEXCEPTB-BAnswerB.BthatBitBisBinsuredBbyBtheBstate
WhichBofBtheBfollowingBtransactionsBwouldBNOTBbeBsubjectBtoBincomeBtaxBunderBaBModified
BEndowmentBContractB(MEC)?B-BAnswerD.BTheBdeathBbenefit.
WhichBofBtheBfollowingBstatementsBisBCORRECTBaboutBanBapplicantBwhoseBproducerBlicenseB
hasBbeenBdenied?B-
BAnswerB.BTheBapplicantBisBentitledBtoBaBhearingBbeforeBtheBOfficeBofBAdministrativeBLaw.
TheB1944BU.S.Bvs.BSouth-EasternBUnderwritersBAssociationBcaseBdeterminedBthatB-
BAnswerA.BinsuranceBisBcommerceBandBshouldBbeBsubjectBtoBfederalBregulation.
Questions and Answers Updated
2026
TheBprincipleBthatBinsuranceBisBnotBaBtransactionBofBcommerceBandBsoBshouldBbeBregulatedB
byBtheBstatesBwasBestablishedBbyBtheB-BAnswerA.BtheBMcCarran-FergusonBAct.
ABcontractBbetweenBtwoBinsuranceBcompaniesBthatBallowsBoneBcompanyBtoBtransferBriskBtoB
aBsecondBcompanyBisBknownBasB-BAnswerA.BReinsurance
whichBofBtheBfollowingBdividendBoptionsBisBtaxable?B-BAnswerC.BAccumulationBatBinterest.
ABlicensedBlifeBorBhealthBproducerBwhoBsolicitsBinsuranceBinBNewBJerseyBandBwhoBhasBnotBs
electedBNewBJerseyBasBhisBhomeBstateBbutBresidesBandBmaintainsBtheBprincipalBofficeBinBano
therBstateBisBdefinedBasB-BAnswerB.BaBnonresidentBproducer.
AfterBaBNewBJerseyBproducerBlicenseBhasBbeenBrevoked,BtheBlicenseeBmayBnotBreapplyBforBa
BnewBlicenseBforBaBMBIMUMBofB-BAnswerA.B5Byears.
OneBofBtheBmajorBtaxBADVANTAGESBofBlifeBinsuranceBisBthatB-
BAnswerD.BtheBbeneficiaryBgenerallyBdoesBnotBpayBincomeBtaxBonBtheBproceeds.
TheBProducerBLicensingBregulationBrequiresBthatBaBbranchBofficeBbeBopenBtoBtheBpublicB-
BAnswerD.BonBaBpostedBscheduleBthatBprovidesBreasonableBaccess.
IfBaBproducerBmakesBaBsalesBproposalBorBpresentationBthatBfailsBtoBfairlyBandBfullyBdiscloseBf
utureBpremiumBcharges,Bbenefits,BandBanyBoptionsBtheBproducerBmayBbeBfoundBguiltyBofB-
BAnswerB.Bmisrepresentation.
WhichBtypeBofBinsuranceBpolicyBisBcharacterizedBbyBpremiumsBthatBareBfullyBpaidBupBwithinB
aBstatedBperiod,BafterBwhichBnoBfurtherBpremiumsBareBREQUIRED?B-
BAnswerD.BLimitedBpaymentBlifeBinsurance.
ABreinstatementBclauseBoutlinesBreinstatementBconditionsBthatBincludeB-
BAnswerC.BproofBofBinsurability.
, InsuranceBpurchasedBonBtheBlifeBofBaBborrowerBtoBprovideBindemnityBforBaBloanBbalanceBifB
theBborrowerBdiesBisBreferredBtoBasB-BAnswerВ.creditBlifeBinsurance.
NewBJerseyBreplacementBregulations,BitBisBtheBdutyBofBtheBreplacingBinsuranceBcompanyBtoBt
akeBallBofBtheBfollowingBactionsBEXCEPTB-BAnsweraBlistBofBallBpoliciesBthatBwillBbeBreplaced.
ABpolicyownerBCANNOTBchangeBtheBbeneficiaryBifBheBhasBnamedB-
BAnswerD.BanBirrevocableBbeneficiary.
TheBpolicyBfeatureBthatBmakesBuniversalBlifeBdifferentBfromBwholeBlifeBinsuranceBpoliciesBisBit
sB-BAnswerB.BflexibleBpremiumBschedule.
AfterBdiscussingBfinancialBstatus,BtaxBstatus,BinvestmentBobjectives,BandBanyBotherBinformation
BconsideredBtoBbeBrelevant,BtheBproducerBandBtheBclientBdecidedBthisBwillBachieveBtheBclient
'sBfinancialBgoal.BThisBannuityBpurchaseBisBdeemedBtoBbeB-BAnswerB.Bsuitable
WhichBsituationBaccuratelyBdescribesBaBreducedBpaid-upBnonforfeitureBoption?B-
BAnswerA.BTheBnewBpolicyBwillBhaveBaBdecreasedBfaceBamount.
AnBinsuranceBcompany,BownedBbyBitsBstockholdersBwhoBhaveBcontributedBtoBitsBcapitalBandB
surplusBandBtoBwhomBdividendsBareBpaid,BisBknownBasB-BAnswerD.BaBstockBcompany.
ABpublishedBadvertisementBforBaBfixedBannuityBMUSTBcontainBallBofBtheBfollowingBinformatio
nBEXCEPTB-BAnswerB.BthatBitBisBinsuredBbyBtheBstate
WhichBofBtheBfollowingBtransactionsBwouldBNOTBbeBsubjectBtoBincomeBtaxBunderBaBModified
BEndowmentBContractB(MEC)?B-BAnswerD.BTheBdeathBbenefit.
WhichBofBtheBfollowingBstatementsBisBCORRECTBaboutBanBapplicantBwhoseBproducerBlicenseB
hasBbeenBdenied?B-
BAnswerB.BTheBapplicantBisBentitledBtoBaBhearingBbeforeBtheBOfficeBofBAdministrativeBLaw.
TheB1944BU.S.Bvs.BSouth-EasternBUnderwritersBAssociationBcaseBdeterminedBthatB-
BAnswerA.BinsuranceBisBcommerceBandBshouldBbeBsubjectBtoBfederalBregulation.
