NEW JERSEY LIFE PRODUCER REAL EXAM
PRACTICE QUESTIONS WITH VERIFIED
SOLUTIONS NEW MODIFIED GRADED A+
CURRENTLY TESTED AND APPROVED 2026
LATEST
The power given to an individual producer that is not specifically addressed in
his/her contract is considered what type of authority? --CORRECT ANSWER--
Implied
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... --CORRECT ANSWER--Common disaster clause
Key Person Disability Insurance pays benefits to the --CORRECT ANSWER--
Employer
Under a disability income policy, which provision would be payable if the cause
of an injury is unexpected and accidental? --CORRECT ANSWER--Accidental
bodily injury provision
What will the beneficiary receive if an annuitant dies during the accumulation
period? --CORRECT ANSWER--The greater of the accumulated cash value or
the total premium paid
Page | 1
,Written notice for a health claim must be given to the insurer ___ days after the
occurrence of the loss. --CORRECT ANSWER--20
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? --CORRECT ANSWER--Unpaid premium
How many employees must an employer have for a terminated employee to be
eligible for COBRA? --CORRECT ANSWER--20
A licensed producer is required to file notice of any change of address within
how many days? --CORRECT ANSWER--30
Advertising material for a life insurance policy does NOT need to contain which
of the following? --CORRECT ANSWER--Agent's commission rate
What is the maximum fine for a producer violating a New Jersey Insurance law
for the first time? --CORRECT ANSWER--$5,000
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? --CORRECT ANSWER--12 months
Page | 2
,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? --CORRECT ANSWER--May 30
Under a life insurance policy, what does the insuring clause state? --CORRECT
ANSWER--The insurer's obligation to pay a death benefit upon an approved
death claim
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) --CORRECT
ANSWER--deductible
How often must an insurance producer's license in New Jersey be renewed? --
CORRECT ANSWER--Every two years
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. --CORRECT ANSWER--7
A life insurance policy normally contains a provision that restricts coverage in
the event of death under all of the following situations EXCEPT --CORRECT
ANSWER--fare-paying passenger
Page | 3
, An insurance consultant is BEST defines as a --CORRECT ANSWER--
producer who charges fees for advice
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? --CORRECT ANSWER--Fair Credit Reporting Act
A professional liability for which producers can be sued for mistakes of putting
a policy into effect is called --CORRECT ANSWER--Errors and Omissions
The Commissioner issues a subpoena to a producer. The producer decides not to
respond. Which course of action must be taken by the Commissioner? --
CORRECT ANSWER--Commissioner may impose an administrative penalty
A Medicare Supplement basic benefit is --CORRECT ANSWER--The first 3
pints of blood per year
Krissa purchases a 10-year level term life insurance policy that has a death
benefit of $200,000. Which of these statements is true? --CORRECT
ANSWER--The face amount and the premium will remain constant over the 10-
year period
What amount will be paid under a policy where the insured misstated his/her
age? --CORRECT ANSWER--An amount the premium would have purchased
at the correct age
Page | 4
PRACTICE QUESTIONS WITH VERIFIED
SOLUTIONS NEW MODIFIED GRADED A+
CURRENTLY TESTED AND APPROVED 2026
LATEST
The power given to an individual producer that is not specifically addressed in
his/her contract is considered what type of authority? --CORRECT ANSWER--
Implied
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... --CORRECT ANSWER--Common disaster clause
Key Person Disability Insurance pays benefits to the --CORRECT ANSWER--
Employer
Under a disability income policy, which provision would be payable if the cause
of an injury is unexpected and accidental? --CORRECT ANSWER--Accidental
bodily injury provision
What will the beneficiary receive if an annuitant dies during the accumulation
period? --CORRECT ANSWER--The greater of the accumulated cash value or
the total premium paid
Page | 1
,Written notice for a health claim must be given to the insurer ___ days after the
occurrence of the loss. --CORRECT ANSWER--20
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? --CORRECT ANSWER--Unpaid premium
How many employees must an employer have for a terminated employee to be
eligible for COBRA? --CORRECT ANSWER--20
A licensed producer is required to file notice of any change of address within
how many days? --CORRECT ANSWER--30
Advertising material for a life insurance policy does NOT need to contain which
of the following? --CORRECT ANSWER--Agent's commission rate
What is the maximum fine for a producer violating a New Jersey Insurance law
for the first time? --CORRECT ANSWER--$5,000
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? --CORRECT ANSWER--12 months
Page | 2
,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? --CORRECT ANSWER--May 30
Under a life insurance policy, what does the insuring clause state? --CORRECT
ANSWER--The insurer's obligation to pay a death benefit upon an approved
death claim
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) --CORRECT
ANSWER--deductible
How often must an insurance producer's license in New Jersey be renewed? --
CORRECT ANSWER--Every two years
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. --CORRECT ANSWER--7
A life insurance policy normally contains a provision that restricts coverage in
the event of death under all of the following situations EXCEPT --CORRECT
ANSWER--fare-paying passenger
Page | 3
, An insurance consultant is BEST defines as a --CORRECT ANSWER--
producer who charges fees for advice
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? --CORRECT ANSWER--Fair Credit Reporting Act
A professional liability for which producers can be sued for mistakes of putting
a policy into effect is called --CORRECT ANSWER--Errors and Omissions
The Commissioner issues a subpoena to a producer. The producer decides not to
respond. Which course of action must be taken by the Commissioner? --
CORRECT ANSWER--Commissioner may impose an administrative penalty
A Medicare Supplement basic benefit is --CORRECT ANSWER--The first 3
pints of blood per year
Krissa purchases a 10-year level term life insurance policy that has a death
benefit of $200,000. Which of these statements is true? --CORRECT
ANSWER--The face amount and the premium will remain constant over the 10-
year period
What amount will be paid under a policy where the insured misstated his/her
age? --CORRECT ANSWER--An amount the premium would have purchased
at the correct age
Page | 4
