NJ HEALTH AND ACCIDENT QUESTIONS
AND ANSWERS
100% PASS 2026/2027 |A GRADE
In what form do disability income policies typically pay
benefits - ANSWER Periodic income
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
1….
,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
1….
, 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
1….
AND ANSWERS
100% PASS 2026/2027 |A GRADE
In what form do disability income policies typically pay
benefits - ANSWER Periodic income
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
1….
,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
1….
, 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
1….
