Page | 1
NJ LIFE PRODUCER EXAM STUDY
LIFE INSURANCE 2025 BRAND NEW
ACTUAL EXAM WITH ANSWERS.
1. If a credit life insurance policy is terminated prior to the maturity
date of the loan, a refund of unearned premiums is paid to... -
correct answer -The insured debtor
2. In a credit insurance policy, who is the beneficiary? - correct
answer -the creditor
3. Credit life insurance is a form of... - correct answer -Decreasing
term
4. Copies of insurance advertisement must be kept for at least... -
correct answer -5 years
5. In what instance can a credit insurance policy be issued? -
correct answer -Individual policies of life insurance issued to
debtors on a term plan
, Page | 2
6. What type of group plan requires at least 75% of the eligible
members to participate? - correct answer -Contribuatory
7. An employer paid life insurance is called... - correct answer -
non-contribuatory
8. Interest paid on a policy loan is... - correct answer -Not tax
deductable
9. What allows for an insurance policy to remain in force for a
specified number of days beyond the premium due date? -
correct answer -Grace period provision
10. A tax free exchange of one life insurance policy or annuity
for another is called... - correct answer -1035 Exchange
, Page | 3
11. Which of the following prevents the producer from
unilaterally amending a policy? - correct answer -Entire
contract
12. A modification to a life policy is called a... - correct answer -
rider
13. Under a Traditional IRA, owners must begin to receive
payments from their accounts by the time they reach the age
of... - correct answer -70 1/2
14. A policy that provides lifetime protection for an insured with
premiums payable for 20 years is called a... - correct answer -
20-pay life
15. What states the terms of coverage during the underwriting
period? - correct answer -The conditional receipt
16. What Insurance is best used in estate planning? - correct
answer -Survivorship Life
NJ LIFE PRODUCER EXAM STUDY
LIFE INSURANCE 2025 BRAND NEW
ACTUAL EXAM WITH ANSWERS.
1. If a credit life insurance policy is terminated prior to the maturity
date of the loan, a refund of unearned premiums is paid to... -
correct answer -The insured debtor
2. In a credit insurance policy, who is the beneficiary? - correct
answer -the creditor
3. Credit life insurance is a form of... - correct answer -Decreasing
term
4. Copies of insurance advertisement must be kept for at least... -
correct answer -5 years
5. In what instance can a credit insurance policy be issued? -
correct answer -Individual policies of life insurance issued to
debtors on a term plan
, Page | 2
6. What type of group plan requires at least 75% of the eligible
members to participate? - correct answer -Contribuatory
7. An employer paid life insurance is called... - correct answer -
non-contribuatory
8. Interest paid on a policy loan is... - correct answer -Not tax
deductable
9. What allows for an insurance policy to remain in force for a
specified number of days beyond the premium due date? -
correct answer -Grace period provision
10. A tax free exchange of one life insurance policy or annuity
for another is called... - correct answer -1035 Exchange
, Page | 3
11. Which of the following prevents the producer from
unilaterally amending a policy? - correct answer -Entire
contract
12. A modification to a life policy is called a... - correct answer -
rider
13. Under a Traditional IRA, owners must begin to receive
payments from their accounts by the time they reach the age
of... - correct answer -70 1/2
14. A policy that provides lifetime protection for an insured with
premiums payable for 20 years is called a... - correct answer -
20-pay life
15. What states the terms of coverage during the underwriting
period? - correct answer -The conditional receipt
16. What Insurance is best used in estate planning? - correct
answer -Survivorship Life
