Final Exam – New Jersey Life and Health Insurance Study Guide with
Questions & Answers
Which type of long-term care benefit would be most appropriate for a stroke victim who requires
speech therapy administered at her home? Home health care << correct answer >>Which of the
following is NOT a federal requirement of a qualified plan? Employee must be able to make
unlimited contributions << correct answer >>Why are dividends from a mutual insurer not subject to
taxation? Because dividends are considered to be a return of premium << correct answer >>The
treasurer of XYZ Insurance Company discovers that the treasurer's company is being investigated by the
Banking and Insurance Commissioner... Making false financial statements << correct answer >>Which
type of rider will waive the premium on a child's life insurance policy if the parent paying the premium
dies? Payor benefit << correct answer >>Which of these premium payment frequencies is not typically
available to a policy owner? Bi-weekly << correct answer >>Maria the agent would like to advertise
an annuity product on a highway billboard. Which of the following must be included in the
advertisement? Her name << correct answer >>Which disability policy provision would address any
concerns of the value of the benefits decreasing over time? Cost of living benefit << correct answer
>>Which of these is NOT a characteristic of the Accelerated Death Benefit option? The benefit can
be offered as a rider at a specific extra cost or may be at no cost << correct answer >>All of the following
are included as part of a contract in the entire contract provision EXCEPT the Changes made by the
producer << correct answer >>The power given to an individual producer that is not specifically
addressed in his/her contract is considered what type of authority? Implied << correct answer
>>Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved
in an automobile accident where Pat dies instantly and Karen dies 5 days later... Common disaster
clause << correct answer >>Key Person Disability Insurance pays benefits to the Employer << correct
answer >>Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? Accidental bodily injury provision << correct answer >>What will the
beneficiary receive if an annuitant dies during the accumulation period? The greater of the accumulated
cash value or the total premium paid << correct answer >>Written notice for a health claim must be
given to the insurer ___ days after the occurrence of the loss. 20 << correct answer >>Craig submits a
$500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the
Uniform Optional Provisions covers this situation? Unpaid premium << correct answer >>How
many employees must an employer have for a terminated employee to be eligible for COBRA? 20 <<
correct answer >>A licensed producer is required to file notice of any change of address within how
many days? 30 << correct answer >>Advertising material for a life insurance policy does NOT need to
contain which of the following? Agent's commission rate << correct answer >>What is the maximum
fine for a producer violating a New Jersey Insurance law for the first time? $5,000 << correct
answer >>How long must an individual be unable to engage in any gainful activity due physical or mental
disability in order to qualify for Social Security Total Disability? 12 months << correct answer >>Sonya
applied for a health insurance policy on April 1. Her agent submitted the information to the insurance
company on April 6. She paid the premium on May 15 with the policy indicating the effective date being
May 30. On which date would Sonya have coverage? May 30 << correct answer >>Under a life
, insurance policy, what does the insuring clause state? The insurer's obligation to pay a death benefit
upon an approved death claim << correct answer >>Jennifer is required to pay a specific sum out of
pocket before any benefits are paid in a year. Her health policy most likely contains a(n) deductible <<
correct answer >>How often must an insurance producer's license in New Jersey be renewed? Every
two years << correct answer >>Pierre the producer receives a premium for an individual health
insurance policy. Pierre MUST remit the premium to his insurer within ___ business days of receipt.
7 << correct answer >>A life insurance policy normally contains a provision that restricts
coverage in the event of death under all of the following situations EXCEPT fare-paying passenger
<< correct answer >>An insurance consultant is BEST defines as a producer who charges fees for
advice << correct answer >>An insurance company needs to obtain personal information from a third
party concerning an applicant. Which law do all insurers and their producers need to comply with?
Fair Credit Reporting Act << correct answer >>A professional liability for which producers can be
sued for mistakes of putting a policy into effect is called Errors and Omissions << correct answer >>The
Commissioner issues a subpoena to a producer. The producer decides not to respond. Which course of
action must be taken by the Commissioner? Commissioner may impose an administrative penalty <<
correct answer >>A Medicare Supplement basic benefit is The first 3 pints of blood per year <<
correct answer >>Krissa purchases a 10-year level term life insurance policy that has a death benefit of
$200,000. Which of these statements is true? The face amount and the premium will remain constant
over the 10-year period << correct answer >>What amount will be paid under a policy where the insured
misstated his/her age? An amount the premium would have purchased at the correct age << correct
answer >>Within how many days must a producer notify the Department of Banking and Insurance of a
change in address? 30 << correct answer >>Which type of coverage pays an amount per day for
hospitalization directly to the insured regardless of the insured's other health insurance?
Hospital Identity << correct answer >>New Jersey insurance law requires eligible individuals to
make an election to continue health insurance benefits within a MAXIMUM of _____ days after
coverage termination 60 << correct answer >>A _____ insurance company is one that was formed
under the laws of a state other than New Jersey foreign << correct answer >>All of the following are
typically included in a life insurance policy illustration EXCEPT Names of the beneficiary << correct
answer >>Claims payable to a Disability Income insured, even when the insured can continue to work,
are the result of a Presumptive disability << correct answer >>XYZ Corp pays the tax-deductible
insurance premiums for a key employee disability policy. Which of the following would be the
appropriate tax consequence? Benefits are fully taxable << correct answer >>What is the purpose of
the Medical Information Bureau (MIB)? To help underwriters evaluate risk << correct answer >>In the
advertising of Individual Life Insurance policies, an "introductory" or "special enrollment" may not be
made available until any previous enrollment period for the same policy has been closed for at least how
long? Three months << correct answer >>An insurance producer is issued a _____ as evidence of
authority License << correct answer >>An individual can enroll in a Part C Medicare Advantage
Plan at what time? When becoming eligible for Medicare << correct answer >>In accordance with
New Jersey law, a Producer must remit health insurance premiums to the insurer within what period?
7 business days << correct answer >>Which of the following situations would be suitable for a
temporary work authority? When an applicant passes a licensing examination and answers all
background questions negatively << correct answer >>Where would policy proceeds be paid if both the
insured and primary beneficiary were killed in the same accident? Contigent beneficiary << correct
answer >>When are group disability benefits considered to be tax-free to the insured? When the
Questions & Answers
Which type of long-term care benefit would be most appropriate for a stroke victim who requires
speech therapy administered at her home? Home health care << correct answer >>Which of the
following is NOT a federal requirement of a qualified plan? Employee must be able to make
unlimited contributions << correct answer >>Why are dividends from a mutual insurer not subject to
taxation? Because dividends are considered to be a return of premium << correct answer >>The
treasurer of XYZ Insurance Company discovers that the treasurer's company is being investigated by the
Banking and Insurance Commissioner... Making false financial statements << correct answer >>Which
type of rider will waive the premium on a child's life insurance policy if the parent paying the premium
dies? Payor benefit << correct answer >>Which of these premium payment frequencies is not typically
available to a policy owner? Bi-weekly << correct answer >>Maria the agent would like to advertise
an annuity product on a highway billboard. Which of the following must be included in the
advertisement? Her name << correct answer >>Which disability policy provision would address any
concerns of the value of the benefits decreasing over time? Cost of living benefit << correct answer
>>Which of these is NOT a characteristic of the Accelerated Death Benefit option? The benefit can
be offered as a rider at a specific extra cost or may be at no cost << correct answer >>All of the following
are included as part of a contract in the entire contract provision EXCEPT the Changes made by the
producer << correct answer >>The power given to an individual producer that is not specifically
addressed in his/her contract is considered what type of authority? Implied << correct answer
>>Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved
in an automobile accident where Pat dies instantly and Karen dies 5 days later... Common disaster
clause << correct answer >>Key Person Disability Insurance pays benefits to the Employer << correct
answer >>Under a disability income policy, which provision would be payable if the cause of an injury is
unexpected and accidental? Accidental bodily injury provision << correct answer >>What will the
beneficiary receive if an annuitant dies during the accumulation period? The greater of the accumulated
cash value or the total premium paid << correct answer >>Written notice for a health claim must be
given to the insurer ___ days after the occurrence of the loss. 20 << correct answer >>Craig submits a
$500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the
Uniform Optional Provisions covers this situation? Unpaid premium << correct answer >>How
many employees must an employer have for a terminated employee to be eligible for COBRA? 20 <<
correct answer >>A licensed producer is required to file notice of any change of address within how
many days? 30 << correct answer >>Advertising material for a life insurance policy does NOT need to
contain which of the following? Agent's commission rate << correct answer >>What is the maximum
fine for a producer violating a New Jersey Insurance law for the first time? $5,000 << correct
answer >>How long must an individual be unable to engage in any gainful activity due physical or mental
disability in order to qualify for Social Security Total Disability? 12 months << correct answer >>Sonya
applied for a health insurance policy on April 1. Her agent submitted the information to the insurance
company on April 6. She paid the premium on May 15 with the policy indicating the effective date being
May 30. On which date would Sonya have coverage? May 30 << correct answer >>Under a life
, insurance policy, what does the insuring clause state? The insurer's obligation to pay a death benefit
upon an approved death claim << correct answer >>Jennifer is required to pay a specific sum out of
pocket before any benefits are paid in a year. Her health policy most likely contains a(n) deductible <<
correct answer >>How often must an insurance producer's license in New Jersey be renewed? Every
two years << correct answer >>Pierre the producer receives a premium for an individual health
insurance policy. Pierre MUST remit the premium to his insurer within ___ business days of receipt.
7 << correct answer >>A life insurance policy normally contains a provision that restricts
coverage in the event of death under all of the following situations EXCEPT fare-paying passenger
<< correct answer >>An insurance consultant is BEST defines as a producer who charges fees for
advice << correct answer >>An insurance company needs to obtain personal information from a third
party concerning an applicant. Which law do all insurers and their producers need to comply with?
Fair Credit Reporting Act << correct answer >>A professional liability for which producers can be
sued for mistakes of putting a policy into effect is called Errors and Omissions << correct answer >>The
Commissioner issues a subpoena to a producer. The producer decides not to respond. Which course of
action must be taken by the Commissioner? Commissioner may impose an administrative penalty <<
correct answer >>A Medicare Supplement basic benefit is The first 3 pints of blood per year <<
correct answer >>Krissa purchases a 10-year level term life insurance policy that has a death benefit of
$200,000. Which of these statements is true? The face amount and the premium will remain constant
over the 10-year period << correct answer >>What amount will be paid under a policy where the insured
misstated his/her age? An amount the premium would have purchased at the correct age << correct
answer >>Within how many days must a producer notify the Department of Banking and Insurance of a
change in address? 30 << correct answer >>Which type of coverage pays an amount per day for
hospitalization directly to the insured regardless of the insured's other health insurance?
Hospital Identity << correct answer >>New Jersey insurance law requires eligible individuals to
make an election to continue health insurance benefits within a MAXIMUM of _____ days after
coverage termination 60 << correct answer >>A _____ insurance company is one that was formed
under the laws of a state other than New Jersey foreign << correct answer >>All of the following are
typically included in a life insurance policy illustration EXCEPT Names of the beneficiary << correct
answer >>Claims payable to a Disability Income insured, even when the insured can continue to work,
are the result of a Presumptive disability << correct answer >>XYZ Corp pays the tax-deductible
insurance premiums for a key employee disability policy. Which of the following would be the
appropriate tax consequence? Benefits are fully taxable << correct answer >>What is the purpose of
the Medical Information Bureau (MIB)? To help underwriters evaluate risk << correct answer >>In the
advertising of Individual Life Insurance policies, an "introductory" or "special enrollment" may not be
made available until any previous enrollment period for the same policy has been closed for at least how
long? Three months << correct answer >>An insurance producer is issued a _____ as evidence of
authority License << correct answer >>An individual can enroll in a Part C Medicare Advantage
Plan at what time? When becoming eligible for Medicare << correct answer >>In accordance with
New Jersey law, a Producer must remit health insurance premiums to the insurer within what period?
7 business days << correct answer >>Which of the following situations would be suitable for a
temporary work authority? When an applicant passes a licensing examination and answers all
background questions negatively << correct answer >>Where would policy proceeds be paid if both the
insured and primary beneficiary were killed in the same accident? Contigent beneficiary << correct
answer >>When are group disability benefits considered to be tax-free to the insured? When the
