NJ Life Insurance Practice Exam Correct
answers latest update
Which of the following is a business agreement that provides for a surviving business partner to buy
out another at his or her death?
Select one:
a. Survivorship Life
b. Buy-Sell agreement
c. Estate Endowment Life
d. Decreasing Term insurance
b. Buy-Sell agreement
Which is NOT a right of ownership in a life insurance policy?
Select one:
a. Receiving dividends
b. Using the policy as collateral for a bank loan
c. Changing irrevocable beneficiaries
d. Changing settlement options
c. Changing irrevocable beneficiaries
Which policy requires premium payments for the longest period of time?
Select one:
a. Retirement Income Endowment insurance
b. Limited-Pay Whole Life insurance
c. Decreasing Term insurance
d. Whole Life insurance
d. Whole Life insurance
Which of the following is/are a cost savings typically associated with group insurance?
Select one:
a. Master policyholder assists in policy administration by deducting premiums from payroll and
helping with claim administration.
b. Individual underwrites on only those who do not accept coverage within the enrollment period.
c. All of the these
d. No MIB reports, credit reports or inspection reports are submitted.
c. All of the these
Which of the following is a financial interest that the policyowner must possess at the time that a life
insurance policy is purchased?
Select one:
a. Insurable interest
b. Medical Interest
c. Monetary Interest
, d. Business Interest
a. Insurable interest
______________________is often used to provide funds for a family to pay off a mortgage or other
loans.
Select one:
a. Survivorship Life
b. A Buy-Sell agreement
c. Decreasing Term insurance
d. Estate Endowment Life
c. Decreasing Term insurance
Which of the following insurance plans describes a group of people who don't qualify for group
insurance but apply individually and have a group-type policy issued to them with the program
administered by a sponsor?
Select one:
a. Industrial Life insurance
b. Franchise Group insurance
c. Group insurance
d. Key-Employee insurance
b. Franchise Group insurance
Jacob owns a Whole Life insurance policy and wants to borrow against its cash value. Which of the
following statements is true?
Select one:
a. He must pay the interest rate indicated in the policy or it will be added to the policy loan.
b. Since Jacob owns the policy and its cash values, there is no interest on the loan
c. Unpaid loans are forgiven at the insured's death.
d. The amount of loan that Jacob can take will be determined by the Fair Credit Act.
a. He must pay the interest rate indicated in the policy or it will be added to the policy loan.
Which of the following is true if the policy owner is someone other than the insured? I.The owner
must have insurable interest in the insured's life. II.The owner must sign the application. III.The
insured must sign the application.
Select one:
a. III Only
b. I, II, & III
c. I Only
d. II Only
b. I, II, & III
Which of the following statements concerning group insurance is or are true?
Select one:
answers latest update
Which of the following is a business agreement that provides for a surviving business partner to buy
out another at his or her death?
Select one:
a. Survivorship Life
b. Buy-Sell agreement
c. Estate Endowment Life
d. Decreasing Term insurance
b. Buy-Sell agreement
Which is NOT a right of ownership in a life insurance policy?
Select one:
a. Receiving dividends
b. Using the policy as collateral for a bank loan
c. Changing irrevocable beneficiaries
d. Changing settlement options
c. Changing irrevocable beneficiaries
Which policy requires premium payments for the longest period of time?
Select one:
a. Retirement Income Endowment insurance
b. Limited-Pay Whole Life insurance
c. Decreasing Term insurance
d. Whole Life insurance
d. Whole Life insurance
Which of the following is/are a cost savings typically associated with group insurance?
Select one:
a. Master policyholder assists in policy administration by deducting premiums from payroll and
helping with claim administration.
b. Individual underwrites on only those who do not accept coverage within the enrollment period.
c. All of the these
d. No MIB reports, credit reports or inspection reports are submitted.
c. All of the these
Which of the following is a financial interest that the policyowner must possess at the time that a life
insurance policy is purchased?
Select one:
a. Insurable interest
b. Medical Interest
c. Monetary Interest
, d. Business Interest
a. Insurable interest
______________________is often used to provide funds for a family to pay off a mortgage or other
loans.
Select one:
a. Survivorship Life
b. A Buy-Sell agreement
c. Decreasing Term insurance
d. Estate Endowment Life
c. Decreasing Term insurance
Which of the following insurance plans describes a group of people who don't qualify for group
insurance but apply individually and have a group-type policy issued to them with the program
administered by a sponsor?
Select one:
a. Industrial Life insurance
b. Franchise Group insurance
c. Group insurance
d. Key-Employee insurance
b. Franchise Group insurance
Jacob owns a Whole Life insurance policy and wants to borrow against its cash value. Which of the
following statements is true?
Select one:
a. He must pay the interest rate indicated in the policy or it will be added to the policy loan.
b. Since Jacob owns the policy and its cash values, there is no interest on the loan
c. Unpaid loans are forgiven at the insured's death.
d. The amount of loan that Jacob can take will be determined by the Fair Credit Act.
a. He must pay the interest rate indicated in the policy or it will be added to the policy loan.
Which of the following is true if the policy owner is someone other than the insured? I.The owner
must have insurable interest in the insured's life. II.The owner must sign the application. III.The
insured must sign the application.
Select one:
a. III Only
b. I, II, & III
c. I Only
d. II Only
b. I, II, & III
Which of the following statements concerning group insurance is or are true?
Select one:
