NJ Life Producer Exam Questions with
100% Correct Answers | Verified |
Updated (Actual Exam) LATEST
VERSION!!
Which of the following amounts must decrease in a decreasing term? -
CORRECTANSWER Death benefit
In life insurance, insurable interest must exist at the time the.. -CORRECTANSWER
Producer writes an on a proposed insured
An applicant makes an offer to the insurer when they -CORRECTANSWER pay an
initial premium with the application
Which of the following makes Universal Life insurance different from other forms of
permanent insurance? -CORRECTANSWER Premium Schedule
An insurer that shares its profits with its' policyowners is known as.. -
CORRECTANSWER A mutual insurer
Statements made by an applicant for insurance on the application are considered to be..
-CORRECTANSWER Representations
,In which of the following are proceeds left with the insurer and earnings sent to the
beneficiary? -CORRECTANSWER Interest-Only
The primary purpose of an annuity is to.. -CORRECTANSWER Provide income for
retirement
Which of the following provisions in a life policy specifies the manner in which proceeds
will be paid to a beneficiary on the death of insured? -CORRECTANSWER settlement
options
An insurance producer takes an application for a life policy but does not collect the initial
premium. On delivery of policy to the proposed insured, the producer must collect the
initial premium and which of the following? -CORRECTANSWER The insured's signed
statement of continued good health
A report of previously submitted life insurance applications to other insurers is known
as: -CORRECTANSWER A Medical Information Bureau report
A company decides to purchase Key Employee life insurance for its vice president of
operations. All of the following statements are correct EXCEPT the.. -
CORRECTANSWER Employee names the beneficiary
, Which of the following features allows an insurance policy to remain in force for a
specified number of days beyond the premium due date? -CORRECTANSWER Grace
period provision
which of the following prevents the producer from unilaterally amending a policy? -
CORRECTANSWER Entire contract
interest paid on a policy loan is.. -CORRECTANSWER not tax deductible
An employer paid life insurance policy is called -CORRECTANSWER Non-contributory
group life
A tax free exchange of one life insurance policy or annuity for another is called.. -
CORRECTANSWER 1035 exchange
Which of the following group life plans require at least 75% of the eligible members to
participate? -CORRECTANSWER Contributory
Two business partners own life insurance on each other. If one partner dies, which of
the following contracts will allow the other partner to buy 100 percent of the business
interest? -CORRECTANSWER Buy and Sell agreement
100% Correct Answers | Verified |
Updated (Actual Exam) LATEST
VERSION!!
Which of the following amounts must decrease in a decreasing term? -
CORRECTANSWER Death benefit
In life insurance, insurable interest must exist at the time the.. -CORRECTANSWER
Producer writes an on a proposed insured
An applicant makes an offer to the insurer when they -CORRECTANSWER pay an
initial premium with the application
Which of the following makes Universal Life insurance different from other forms of
permanent insurance? -CORRECTANSWER Premium Schedule
An insurer that shares its profits with its' policyowners is known as.. -
CORRECTANSWER A mutual insurer
Statements made by an applicant for insurance on the application are considered to be..
-CORRECTANSWER Representations
,In which of the following are proceeds left with the insurer and earnings sent to the
beneficiary? -CORRECTANSWER Interest-Only
The primary purpose of an annuity is to.. -CORRECTANSWER Provide income for
retirement
Which of the following provisions in a life policy specifies the manner in which proceeds
will be paid to a beneficiary on the death of insured? -CORRECTANSWER settlement
options
An insurance producer takes an application for a life policy but does not collect the initial
premium. On delivery of policy to the proposed insured, the producer must collect the
initial premium and which of the following? -CORRECTANSWER The insured's signed
statement of continued good health
A report of previously submitted life insurance applications to other insurers is known
as: -CORRECTANSWER A Medical Information Bureau report
A company decides to purchase Key Employee life insurance for its vice president of
operations. All of the following statements are correct EXCEPT the.. -
CORRECTANSWER Employee names the beneficiary
, Which of the following features allows an insurance policy to remain in force for a
specified number of days beyond the premium due date? -CORRECTANSWER Grace
period provision
which of the following prevents the producer from unilaterally amending a policy? -
CORRECTANSWER Entire contract
interest paid on a policy loan is.. -CORRECTANSWER not tax deductible
An employer paid life insurance policy is called -CORRECTANSWER Non-contributory
group life
A tax free exchange of one life insurance policy or annuity for another is called.. -
CORRECTANSWER 1035 exchange
Which of the following group life plans require at least 75% of the eligible members to
participate? -CORRECTANSWER Contributory
Two business partners own life insurance on each other. If one partner dies, which of
the following contracts will allow the other partner to buy 100 percent of the business
interest? -CORRECTANSWER Buy and Sell agreement
