FINAL EXAM NJ Life and Health 2026 Latest Update 2026
| Exam Prep | 100% Accurate Answers
1. Under what circumstances can an insurer cancel or nonrenew a Medicare
supplement policy?
Death of a spouse
Number of claims submitted
Nonpayment of premium or material misrepresentation in the
application
Solely on the basis of the beneficiary's health status
2. Among the factors that life insurance underwriters consider when
underwriting life insurance, the single most important factor indicating the
length of time a person is likely to live is that person's
Build
Current age
Sex
Weight
3. What is one of the key factors considered in underwriting life insurance?
Family medical history
Personal hobbies
Occupation
Health history
4. Which type of utilization review evaluates the medical necessity of care
actively being provided?
, Retrospective review
Prospective review
Ongoing review
Concurrent review
5. Describe how the employee's contribution to the disability plan affects the
taxability of the disability benefits received.
The benefits are fully taxable regardless of the contribution.
The employee's contribution has no effect on the taxability of
benefits.
The employee's contribution to the premium makes the benefits
received partially taxable.
The benefits are tax-free if the employer pays the entire premium.
6. Describe the importance of including premium amounts in a life insurance
policy summary.
Premium amounts are only important for determining the policy's cash
value.
Premium amounts are irrelevant since they do not affect the policy's
coverage.
Premium amounts are included to confuse policyholders about their
financial obligations.
Premium amounts are crucial as they indicate the cost of
maintaining the policy and help policyholders budget for their
insurance expenses.
,7. What is the term used to describe the period during which an insurer accepts
a late premium without affecting coverage?
Suspension period
Grace period
Renewal period
Coverage period
8. Describe the role of the New Jersey Life and Health Guaranty Association in
protecting policyholders.
The New Jersey Life and Health Guaranty Association offers life
insurance policies directly to consumers.
The New Jersey Life and Health Guaranty Association protects
policyholders by covering claims up to a specified limit in the event
of an insurer's insolvency.
The New Jersey Life and Health Guaranty Association provides
investment advice to policyholders.
The New Jersey Life and Health Guaranty Association regulates
insurance premiums.
9. Describe how the corridor affects the relationship between the cash value
and the death benefit in a Universal Life insurance policy.
The corridor is irrelevant to the cash value and only affects premium
payments.
The corridor allows the cash value to exceed the death benefit,
providing more liquidity to the policyholder.
The corridor ensures that the death benefit remains higher than the
cash value, which is necessary for the policy to qualify as life
insurance under tax laws.
, The corridor limits the growth of cash value to protect the death
benefit.
10. An employee is covered by a disability income policy paid by the employer.
However, 10% of the premium is payroll deducted. If the employee is later
disabled and collects a benefit for one month after the waiting period, what
percentage amount of the monthly benefit will be taxable income?
10%
95%
25%
90%
11. Susan is covered under her employer-sponsored disability group plan. The
premium is $50 a month: Susan pays $10 and the employer pays $40.
Assuming Susan were to become disabled and receive monthly disability
benefits of $700 from the plan, how much, if any, of the monthly benefit
would be taxable income?
$560
$0
$140
$70
12. Which document outlines the specific terms and conditions of an insurance
policy?
Insuring agreement
Declarations page
Exclusions
| Exam Prep | 100% Accurate Answers
1. Under what circumstances can an insurer cancel or nonrenew a Medicare
supplement policy?
Death of a spouse
Number of claims submitted
Nonpayment of premium or material misrepresentation in the
application
Solely on the basis of the beneficiary's health status
2. Among the factors that life insurance underwriters consider when
underwriting life insurance, the single most important factor indicating the
length of time a person is likely to live is that person's
Build
Current age
Sex
Weight
3. What is one of the key factors considered in underwriting life insurance?
Family medical history
Personal hobbies
Occupation
Health history
4. Which type of utilization review evaluates the medical necessity of care
actively being provided?
, Retrospective review
Prospective review
Ongoing review
Concurrent review
5. Describe how the employee's contribution to the disability plan affects the
taxability of the disability benefits received.
The benefits are fully taxable regardless of the contribution.
The employee's contribution has no effect on the taxability of
benefits.
The employee's contribution to the premium makes the benefits
received partially taxable.
The benefits are tax-free if the employer pays the entire premium.
6. Describe the importance of including premium amounts in a life insurance
policy summary.
Premium amounts are only important for determining the policy's cash
value.
Premium amounts are irrelevant since they do not affect the policy's
coverage.
Premium amounts are included to confuse policyholders about their
financial obligations.
Premium amounts are crucial as they indicate the cost of
maintaining the policy and help policyholders budget for their
insurance expenses.
,7. What is the term used to describe the period during which an insurer accepts
a late premium without affecting coverage?
Suspension period
Grace period
Renewal period
Coverage period
8. Describe the role of the New Jersey Life and Health Guaranty Association in
protecting policyholders.
The New Jersey Life and Health Guaranty Association offers life
insurance policies directly to consumers.
The New Jersey Life and Health Guaranty Association protects
policyholders by covering claims up to a specified limit in the event
of an insurer's insolvency.
The New Jersey Life and Health Guaranty Association provides
investment advice to policyholders.
The New Jersey Life and Health Guaranty Association regulates
insurance premiums.
9. Describe how the corridor affects the relationship between the cash value
and the death benefit in a Universal Life insurance policy.
The corridor is irrelevant to the cash value and only affects premium
payments.
The corridor allows the cash value to exceed the death benefit,
providing more liquidity to the policyholder.
The corridor ensures that the death benefit remains higher than the
cash value, which is necessary for the policy to qualify as life
insurance under tax laws.
, The corridor limits the growth of cash value to protect the death
benefit.
10. An employee is covered by a disability income policy paid by the employer.
However, 10% of the premium is payroll deducted. If the employee is later
disabled and collects a benefit for one month after the waiting period, what
percentage amount of the monthly benefit will be taxable income?
10%
95%
25%
90%
11. Susan is covered under her employer-sponsored disability group plan. The
premium is $50 a month: Susan pays $10 and the employer pays $40.
Assuming Susan were to become disabled and receive monthly disability
benefits of $700 from the plan, how much, if any, of the monthly benefit
would be taxable income?
$560
$0
$140
$70
12. Which document outlines the specific terms and conditions of an insurance
policy?
Insuring agreement
Declarations page
Exclusions
