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NJ LIFE & HEALTH STATE EXAM - STATE
EXAM SIMULATOR 2026 REAL
QUESTIONS WITH EXPERTLY VERIFIED
ANSWERS.
1. A provision that allows a policyowner to withdraw a policy's
cash value interest free is a(n) - correct answer -partial
surrender
2. Matt is applying for life insurance and requests a double
indemnity rider. A double indemnity benefit will be payable to
Matt's beneficiary if Matt - correct answer -dies instantly from a
car accident
3. Which of the following is INELIGIBLE to participate in a Section
125 Plan? - correct answer -An S-Corp Owner with a greater
than 2% share
4. Kathy pays a monthly premium on her health insurance policy.
How long is her grace period? - correct answer -10 days
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5. An insurer's claim settlement practices are regulated by the -
correct answer -State insurance departments
6. A type of insurer that is owned by its policyowners is called -
correct answer -mutual
7. Which of these is NOT considered to be a common life
insurance nonforfeiture option? - correct answer -Life income
annuity
8. Phil is shopping for an annuity that guarantees he CANNOT
outlive the benefits. Which of these benefit options would he
choose? - correct answer -Guaranteed lifetime withdrawal
benefit
9. The suicide clause of a life insurance policy states that if an
insured commits suicide within a stated period from the policy's
inception, the insurer will only be liable for a return of premiums
paid
10. Minus indebtedness and with interest
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11. During the last 12 months
12. Minus indebtedness and without interest
13. During the last 6 months - correct answer -minus
indebtedness and without interest
14. Long-Term Care policies may provide coverage for claims
arising from - correct answer -senile dementia
15. A medical provider that accepts Medicare Assignment must -
correct answer -accept payment based upon a defined
Medicare schedule as payment in full
16. Which type of business insurance is meant to cover the
costs of continuing to do business while the owner is disabled?
- correct answer -Business overhead expense policy
17. Which of the following is considered to be an alternative to a
life settlement? - correct answer -Accelerated death benefit
rider
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18. Lorenzo is self employed with an S corporation. He is
unmarried and had a net profit for the tax year. What are the
tax ramifications of his health insurance premiums paid for the
year? - correct answer -100% of his health insurance costs can
be deducted from his gross income
19. In the state of New Jersey, consultants charging a fee for
advice must be licensed as a(n) - correct answer -Producer
20. How does one qualify as a fully-insured individual under
Social Security disability coverage?
21. Individual has been credited with the appropriate number of
quarters of coverage
22. Individual is currently covered under Medicaid
23. Individual is expected to be disabled for 5 months
24. Individual is currently employed - correct answer -Individual
has been credited with the appropriate number of quarters of
coverage
25. All of the following are core benefits of Medicare
Supplememt Plan A EXCEPT - correct answer -Deductible
payments for the first 60 days of hospitalization under Medicare
hospitalization insurance
NJ LIFE & HEALTH STATE EXAM - STATE
EXAM SIMULATOR 2026 REAL
QUESTIONS WITH EXPERTLY VERIFIED
ANSWERS.
1. A provision that allows a policyowner to withdraw a policy's
cash value interest free is a(n) - correct answer -partial
surrender
2. Matt is applying for life insurance and requests a double
indemnity rider. A double indemnity benefit will be payable to
Matt's beneficiary if Matt - correct answer -dies instantly from a
car accident
3. Which of the following is INELIGIBLE to participate in a Section
125 Plan? - correct answer -An S-Corp Owner with a greater
than 2% share
4. Kathy pays a monthly premium on her health insurance policy.
How long is her grace period? - correct answer -10 days
, Page | 2
5. An insurer's claim settlement practices are regulated by the -
correct answer -State insurance departments
6. A type of insurer that is owned by its policyowners is called -
correct answer -mutual
7. Which of these is NOT considered to be a common life
insurance nonforfeiture option? - correct answer -Life income
annuity
8. Phil is shopping for an annuity that guarantees he CANNOT
outlive the benefits. Which of these benefit options would he
choose? - correct answer -Guaranteed lifetime withdrawal
benefit
9. The suicide clause of a life insurance policy states that if an
insured commits suicide within a stated period from the policy's
inception, the insurer will only be liable for a return of premiums
paid
10. Minus indebtedness and with interest
, Page | 3
11. During the last 12 months
12. Minus indebtedness and without interest
13. During the last 6 months - correct answer -minus
indebtedness and without interest
14. Long-Term Care policies may provide coverage for claims
arising from - correct answer -senile dementia
15. A medical provider that accepts Medicare Assignment must -
correct answer -accept payment based upon a defined
Medicare schedule as payment in full
16. Which type of business insurance is meant to cover the
costs of continuing to do business while the owner is disabled?
- correct answer -Business overhead expense policy
17. Which of the following is considered to be an alternative to a
life settlement? - correct answer -Accelerated death benefit
rider
, Page | 4
18. Lorenzo is self employed with an S corporation. He is
unmarried and had a net profit for the tax year. What are the
tax ramifications of his health insurance premiums paid for the
year? - correct answer -100% of his health insurance costs can
be deducted from his gross income
19. In the state of New Jersey, consultants charging a fee for
advice must be licensed as a(n) - correct answer -Producer
20. How does one qualify as a fully-insured individual under
Social Security disability coverage?
21. Individual has been credited with the appropriate number of
quarters of coverage
22. Individual is currently covered under Medicaid
23. Individual is expected to be disabled for 5 months
24. Individual is currently employed - correct answer -Individual
has been credited with the appropriate number of quarters of
coverage
25. All of the following are core benefits of Medicare
Supplememt Plan A EXCEPT - correct answer -Deductible
payments for the first 60 days of hospitalization under Medicare
hospitalization insurance
