NJ Life Insurance Exam Prep 2026
Questions with All Answers Correct
Newest !!Newest!!!2026
What organization protects persons against failure of life and health insurance policies
and annuity contracts because of the impairment or insolvency of the insurer?
Select one:
a. PPACA
b. New Jersey Insurance Board
c. New Jersey Insolvency Protection Board
d. New Jersey Life and Health Guaranty Association - CORRECT ANSWERS-d. New
Jersey Life and Health Guaranty Association
The United States v. South-Eastern Underwriters Association decision ruled that
insurance transactions crossing state lines are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable - CORRECT ANSWERS-c. Interstate Commerce
What is the monetary penalty for multiple knowing violations of the information privacy
rules?
Select one:
a. $2,500
b. $5,000
c. $7,500
d. $10,000 - CORRECT ANSWERS-d. $10,000
Which of the following would NOT be considered unfair discrimination?
Select one:
a. Discrimination abased on genetics
b. Discrimination abased on DNA
c. Discrimination abased on blindness
d. Discrimination abased on occupation - CORRECT ANSWERS-d. Discrimination
based on occupation
An insurance producer who places insurance in an insurance company that he does not
represent as an agent is an:
Select one:
a. Insurance counselor
b. Insurance solicitor
,c. Insurance consultant
d. Insurance broker - CORRECT ANSWERS-d. Insurance Broker
Which of the following is NOT true of an employment contract between a company and
a producer?
Select one:
a. The employment contract must be in writing.
b. The employment contract must include all license authorities of the parties.
c. An employer must notify the Department.
d. The employer must examine the credentials of the employee. - CORRECT
ANSWERS-b. The employment contract must include all license authorities of the
parties.
Inducing a policyholder to switch insurance companies without regard to bad
consequences is:
Select one:
a. Boycott
b. Churning
c. Twisting
d. Defamation - CORRECT ANSWERS-c. Twisting
If the Department determines that an applicant is unqualified, the Department must
transmit it for a hearing to the:
Select one:
a. Office of the Attorney General
b. Office of Administrative Law
c. State Insurance Committee of the legislature
d. Licensing Review Board - CORRECT ANSWERS-b. Office of Administrative Law
If the Commissioner determines that someone has engaged in an unfair method of
competition, he will issue:
Select one:
a. A cease and desist order
b. A contempt of court order
c. A revocation of license decree
d. An arrest warrant - CORRECT ANSWERS-a. A cease and desist order
Existence of a business relationship between two licensed producers by which each
acts as an independent contractor:
Select one:
a. May require the filing of any notice
b. May not require the filing of any notice
c. May create responsibility for the acts of the other in the absence of knowledge
d. May create responsibility for the acts of the other in the absence of concerted action -
CORRECT ANSWERS-b. May not require the filing of any notice
,In the Paul v. Virginia case of 1869 the U.S. Supreme Court ruled that insurance
transactions crossing state lines are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable - CORRECT ANSWERS-b. Not interstate commerce
If an individual requests access to recorded personal information, they must receive it
within:
Select one:
a. 15 days
b. 20 days
c. 30 days
d. 31 days - CORRECT ANSWERS-.c. 30 days
The term of credit life insurance may not extend more than:
Select one:
a. The maturity date of the debt
b. 10 days after the maturity date of the debt
c. 15 days after the maturity date of the debt
d. 30 days after the maturity date of the debt - CORRECT ANSWERS-c. 15 days after
the maturity date of the debt
What U.S. Supreme Court case ruled that insurance transactions crossing state lines
are not interstate commerce?
Select one:
a. Paul v. Virginia
b. Plessy v. Ferguson
c. United States v. South-Eastern Underwriters Association
d. McCarran-Ferguson - CORRECT ANSWERS-a. Paul v. Virginia
The total amount of credit life insurance may be a maximum of what percentage of the
total debt obligation?
Select one:
a. 50%
b. 75%
c. 100%
d. 110% - CORRECT ANSWERS-c. 100%
All funds received by a producer for life policies must be remitted to the insurer within:
Select one:
a. 3 business days
b. 5 business days
c. 7 business days
d. 9 business days - CORRECT ANSWERS-b. 5 business days
, How does the Commissioner get his position?
Select one:
a. Elected in the same general election as the governor
b. Elected in the same general election as the president
c. Appointed by the governor
d. Appointed by the insurers - CORRECT ANSWERS-c. Appointed by the governor
A surplus lines producer may charge an originating broker in connection with the
procurement of any contract of surplus lines insurance a maximum fee of expenses
plus:
Select one:
a. $50
b. $100
c. $125
d. $162 - CORRECT ANSWERS-a. $50
When must an agent provide a notice of information practices to an applicant?
Select one:
a. Before the presentation
b. When the first premium is accepted
c. Within 5 days of accepting the first premium
d. At the time of policy delivery - CORRECT ANSWERS-d. At the time of policy delivery
What authority is granted to an agent by the principal as written in the agency contract?
Select one:
a. Express authority
b. Implied authority
c. Apparent authority
d. Assumed authority - CORRECT ANSWERS-a. Express authority
What is the maximum amount that the New Jersey Life and Health Guaranty
Association will pay to a person for a life insurance cash surrender from an insolvent
insurer?
Select one:
a. $100,000
b. $200,000
c. $300,000
d. $500,000 - CORRECT ANSWERS-a. $100,000
If an insurance producer is indicted for a crime, the Commissioner must be informed
within:
Select one:
a. 15 days
b. 30 days
c. 31 days
Questions with All Answers Correct
Newest !!Newest!!!2026
What organization protects persons against failure of life and health insurance policies
and annuity contracts because of the impairment or insolvency of the insurer?
Select one:
a. PPACA
b. New Jersey Insurance Board
c. New Jersey Insolvency Protection Board
d. New Jersey Life and Health Guaranty Association - CORRECT ANSWERS-d. New
Jersey Life and Health Guaranty Association
The United States v. South-Eastern Underwriters Association decision ruled that
insurance transactions crossing state lines are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable - CORRECT ANSWERS-c. Interstate Commerce
What is the monetary penalty for multiple knowing violations of the information privacy
rules?
Select one:
a. $2,500
b. $5,000
c. $7,500
d. $10,000 - CORRECT ANSWERS-d. $10,000
Which of the following would NOT be considered unfair discrimination?
Select one:
a. Discrimination abased on genetics
b. Discrimination abased on DNA
c. Discrimination abased on blindness
d. Discrimination abased on occupation - CORRECT ANSWERS-d. Discrimination
based on occupation
An insurance producer who places insurance in an insurance company that he does not
represent as an agent is an:
Select one:
a. Insurance counselor
b. Insurance solicitor
,c. Insurance consultant
d. Insurance broker - CORRECT ANSWERS-d. Insurance Broker
Which of the following is NOT true of an employment contract between a company and
a producer?
Select one:
a. The employment contract must be in writing.
b. The employment contract must include all license authorities of the parties.
c. An employer must notify the Department.
d. The employer must examine the credentials of the employee. - CORRECT
ANSWERS-b. The employment contract must include all license authorities of the
parties.
Inducing a policyholder to switch insurance companies without regard to bad
consequences is:
Select one:
a. Boycott
b. Churning
c. Twisting
d. Defamation - CORRECT ANSWERS-c. Twisting
If the Department determines that an applicant is unqualified, the Department must
transmit it for a hearing to the:
Select one:
a. Office of the Attorney General
b. Office of Administrative Law
c. State Insurance Committee of the legislature
d. Licensing Review Board - CORRECT ANSWERS-b. Office of Administrative Law
If the Commissioner determines that someone has engaged in an unfair method of
competition, he will issue:
Select one:
a. A cease and desist order
b. A contempt of court order
c. A revocation of license decree
d. An arrest warrant - CORRECT ANSWERS-a. A cease and desist order
Existence of a business relationship between two licensed producers by which each
acts as an independent contractor:
Select one:
a. May require the filing of any notice
b. May not require the filing of any notice
c. May create responsibility for the acts of the other in the absence of knowledge
d. May create responsibility for the acts of the other in the absence of concerted action -
CORRECT ANSWERS-b. May not require the filing of any notice
,In the Paul v. Virginia case of 1869 the U.S. Supreme Court ruled that insurance
transactions crossing state lines are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable - CORRECT ANSWERS-b. Not interstate commerce
If an individual requests access to recorded personal information, they must receive it
within:
Select one:
a. 15 days
b. 20 days
c. 30 days
d. 31 days - CORRECT ANSWERS-.c. 30 days
The term of credit life insurance may not extend more than:
Select one:
a. The maturity date of the debt
b. 10 days after the maturity date of the debt
c. 15 days after the maturity date of the debt
d. 30 days after the maturity date of the debt - CORRECT ANSWERS-c. 15 days after
the maturity date of the debt
What U.S. Supreme Court case ruled that insurance transactions crossing state lines
are not interstate commerce?
Select one:
a. Paul v. Virginia
b. Plessy v. Ferguson
c. United States v. South-Eastern Underwriters Association
d. McCarran-Ferguson - CORRECT ANSWERS-a. Paul v. Virginia
The total amount of credit life insurance may be a maximum of what percentage of the
total debt obligation?
Select one:
a. 50%
b. 75%
c. 100%
d. 110% - CORRECT ANSWERS-c. 100%
All funds received by a producer for life policies must be remitted to the insurer within:
Select one:
a. 3 business days
b. 5 business days
c. 7 business days
d. 9 business days - CORRECT ANSWERS-b. 5 business days
, How does the Commissioner get his position?
Select one:
a. Elected in the same general election as the governor
b. Elected in the same general election as the president
c. Appointed by the governor
d. Appointed by the insurers - CORRECT ANSWERS-c. Appointed by the governor
A surplus lines producer may charge an originating broker in connection with the
procurement of any contract of surplus lines insurance a maximum fee of expenses
plus:
Select one:
a. $50
b. $100
c. $125
d. $162 - CORRECT ANSWERS-a. $50
When must an agent provide a notice of information practices to an applicant?
Select one:
a. Before the presentation
b. When the first premium is accepted
c. Within 5 days of accepting the first premium
d. At the time of policy delivery - CORRECT ANSWERS-d. At the time of policy delivery
What authority is granted to an agent by the principal as written in the agency contract?
Select one:
a. Express authority
b. Implied authority
c. Apparent authority
d. Assumed authority - CORRECT ANSWERS-a. Express authority
What is the maximum amount that the New Jersey Life and Health Guaranty
Association will pay to a person for a life insurance cash surrender from an insolvent
insurer?
Select one:
a. $100,000
b. $200,000
c. $300,000
d. $500,000 - CORRECT ANSWERS-a. $100,000
If an insurance producer is indicted for a crime, the Commissioner must be informed
within:
Select one:
a. 15 days
b. 30 days
c. 31 days
