NJ HEALTH AND ACCIDENT STUDY GUIDE
EXAM 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◉ The Mandatory health policy provision states that the policy,
including endorsements and attached papers, constitutes. Answer: The
entire insurance contract between the parties
◉ The entire contract includes the actual policy and the. Answer:
application
◉ employer sponsored group health insurance provides coverage for
which of the following. Answer: Alcoholism
◉ The term which describes the fact that both parties of a contract may
not receive the same value is referred to as. Answer: Aleatory
◉ Tom has a home health care benefit and is confined to his home.
Which of these is NOT typically covered. Answer: Full-time nursing
care
,◉ A Medicare Supplement policy can be cancelled by the insurer for.
Answer: Nonpayment
◉ Credit Accident and Health plans are designed to. Answer: help pay
off existing loans during periods of disability
◉ A payment system for health care in which the provider is paid for
each service given is called. Answer: fee-for-service
◉ An insurance company ONLY pay a sales commission to. Answer:
individuals licensed by the state
◉ Ken is a producer who has obtained Consumer Information Reports
under false pretenses. Under the Fair Credit Reporting Act, what is the
maximum penalty that may be imposed on Ken? Answer: $5000 and 1
year imprisonment
◉ A closed network plan offers a primary physician copay of $25. If a
subscriber chooses a primary care physician outside of the network, the
subscriber will likely pay. Answer: 100% of the billed amount
◉ What is the maximum fine for a producer violating an NJ insurance
law for the first time? Answer: $5000
, ◉ A licensed producer is required to file notice to any changes of
address within how many days. Answer: 30 days
◉ Jonas has disability insurance through his employer. The employer
pays 75% of the premium, and Jonas pays the other 25%. What is
Jonas's tax liability for any benefits paid from the disability plan?
Answer: Taxes must be paid on 75% of the benefits received
◉ After an insured gives notice of loss, what must he/she do if the
insurer does not furnish forms? Answer: File written proof of loss
◉ Which of the following is an example of the insured's consideration?
Answer: A paid premium
◉ A(n) _______ insurance company is one that was formed under the
laws of a state other than NJ. Answer: Foreign
◉ Kathy pays a monthly premium on her health insurance policy. How
long is her grace period? Answer: 10 days
◉ Insurance licenses are intended to be issued for the purpose of
authorizing the transaction of business with members of the general
public and not primarily allowing someone to benefit from commissions
on business that insurers their personal interest. The description of which
of the following? Answer: Controlled business
EXAM 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◉ The Mandatory health policy provision states that the policy,
including endorsements and attached papers, constitutes. Answer: The
entire insurance contract between the parties
◉ The entire contract includes the actual policy and the. Answer:
application
◉ employer sponsored group health insurance provides coverage for
which of the following. Answer: Alcoholism
◉ The term which describes the fact that both parties of a contract may
not receive the same value is referred to as. Answer: Aleatory
◉ Tom has a home health care benefit and is confined to his home.
Which of these is NOT typically covered. Answer: Full-time nursing
care
,◉ A Medicare Supplement policy can be cancelled by the insurer for.
Answer: Nonpayment
◉ Credit Accident and Health plans are designed to. Answer: help pay
off existing loans during periods of disability
◉ A payment system for health care in which the provider is paid for
each service given is called. Answer: fee-for-service
◉ An insurance company ONLY pay a sales commission to. Answer:
individuals licensed by the state
◉ Ken is a producer who has obtained Consumer Information Reports
under false pretenses. Under the Fair Credit Reporting Act, what is the
maximum penalty that may be imposed on Ken? Answer: $5000 and 1
year imprisonment
◉ A closed network plan offers a primary physician copay of $25. If a
subscriber chooses a primary care physician outside of the network, the
subscriber will likely pay. Answer: 100% of the billed amount
◉ What is the maximum fine for a producer violating an NJ insurance
law for the first time? Answer: $5000
, ◉ A licensed producer is required to file notice to any changes of
address within how many days. Answer: 30 days
◉ Jonas has disability insurance through his employer. The employer
pays 75% of the premium, and Jonas pays the other 25%. What is
Jonas's tax liability for any benefits paid from the disability plan?
Answer: Taxes must be paid on 75% of the benefits received
◉ After an insured gives notice of loss, what must he/she do if the
insurer does not furnish forms? Answer: File written proof of loss
◉ Which of the following is an example of the insured's consideration?
Answer: A paid premium
◉ A(n) _______ insurance company is one that was formed under the
laws of a state other than NJ. Answer: Foreign
◉ Kathy pays a monthly premium on her health insurance policy. How
long is her grace period? Answer: 10 days
◉ Insurance licenses are intended to be issued for the purpose of
authorizing the transaction of business with members of the general
public and not primarily allowing someone to benefit from commissions
on business that insurers their personal interest. The description of which
of the following? Answer: Controlled business
