NJ Life Producer Exam Correct answers latest
update
Under a Traditional IRA, interest earned is taxed
upon distribution
Which of these statements regarding the annuitants is CORRECT?
The annuitant's life expectancy determines the annuity payment
What will the beneficiary receive is annuitant dies during the accumulation period?
The greater the accumulated cash value or the total premium paid
Which of the following actions is REQUIRED by an agent who is replacing an existing life insurance
policy?
Submit to to the replacing insurer a list of the policies to be replaced
All pre-licensing course completion certificate are valid for a period of ?
2 years
A partial surrender is allowed in which of the following life policies?
Universal life
What happens to interest earned if the annuitant dies before the payout start date?
It is taxable
How are annuities given favorable tax treatment?
gains are taxed at distribution
Fixed period settlement options are considered to be a form of a(n)
annuity
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
dies instantly from a car accident
A modified insurance contract which accumulates cash values higher than the IRS will allow
A life insurance contract which accumulates cash values higher than the IRS will allow
A(n) _____ insurance company is one that was formed under the laws of a state other than New
Jersey.
Foreign
An example of a tax-qualified retirement plan would be a(n)
defined contribution plan
, How soon can the benefit payments begin with a deferred annuity?
a minimum of 12 months after date of purchase
A securities license is required for a life insurance producer to sell
Variable Life Insurance
A whole life insurance policy accumulates cash value that becomes
the policy loan value which the insured may borrow against
The coverage, conditions, and limitations in the master policy of a group contract can be found in
which document?
Certificate of coverage and benefits
Which of the following policies does NOT build cash value?
term
When the word "insurance" appears in a producer's business name, which of the following words
cannot be approved?
company
An example of an unfair method of competition is
overstating the benefits of an insurance company
Under a Modified Endowment Contract, what are the likely tax consequences?
Pre-death distributions will become taxable
When a decreasing term policy is purchased, it contains a decreasing death benefit and
level premiums
An immediate annuity has been purchased with a single premium. When does the annuitant typically
begin receiving benefit payments?
1 month
Which approach predicts a person's earning potential and determines how much of that amount
would be devoted to dependents?
Human Life Value Approach
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation is called
reinsurance
Which of the following would be considered an underwriting
Completing all applications and collecting initial premiums
update
Under a Traditional IRA, interest earned is taxed
upon distribution
Which of these statements regarding the annuitants is CORRECT?
The annuitant's life expectancy determines the annuity payment
What will the beneficiary receive is annuitant dies during the accumulation period?
The greater the accumulated cash value or the total premium paid
Which of the following actions is REQUIRED by an agent who is replacing an existing life insurance
policy?
Submit to to the replacing insurer a list of the policies to be replaced
All pre-licensing course completion certificate are valid for a period of ?
2 years
A partial surrender is allowed in which of the following life policies?
Universal life
What happens to interest earned if the annuitant dies before the payout start date?
It is taxable
How are annuities given favorable tax treatment?
gains are taxed at distribution
Fixed period settlement options are considered to be a form of a(n)
annuity
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
dies instantly from a car accident
A modified insurance contract which accumulates cash values higher than the IRS will allow
A life insurance contract which accumulates cash values higher than the IRS will allow
A(n) _____ insurance company is one that was formed under the laws of a state other than New
Jersey.
Foreign
An example of a tax-qualified retirement plan would be a(n)
defined contribution plan
, How soon can the benefit payments begin with a deferred annuity?
a minimum of 12 months after date of purchase
A securities license is required for a life insurance producer to sell
Variable Life Insurance
A whole life insurance policy accumulates cash value that becomes
the policy loan value which the insured may borrow against
The coverage, conditions, and limitations in the master policy of a group contract can be found in
which document?
Certificate of coverage and benefits
Which of the following policies does NOT build cash value?
term
When the word "insurance" appears in a producer's business name, which of the following words
cannot be approved?
company
An example of an unfair method of competition is
overstating the benefits of an insurance company
Under a Modified Endowment Contract, what are the likely tax consequences?
Pre-death distributions will become taxable
When a decreasing term policy is purchased, it contains a decreasing death benefit and
level premiums
An immediate annuity has been purchased with a single premium. When does the annuitant typically
begin receiving benefit payments?
1 month
Which approach predicts a person's earning potential and determines how much of that amount
would be devoted to dependents?
Human Life Value Approach
ABC Insurance Company transfers part of their risk to XYZ Insurance Company. This situation is called
reinsurance
Which of the following would be considered an underwriting
Completing all applications and collecting initial premiums
