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NJ Life Insurance Exam Questions and
Correct Answers/ Latest Update / Already
Graded
Insurance
Ans: transfers risk of loss from an individual or business entity
to an insurance company which in turn spreads the costs of
unexpected losses to many individuals
Life Insurance
Ans: protects against loss associated with an insured's death,
and pays a death benefit to beneficiaries upon death of the
insured
solicitation of Insurance
Ans: an attempt to persuade a person to buy an insurance
policy
Buyers Guide
Ans: provides basic, generic information about life insurance
policies that contains language approved by the Department of
Insurance
All rights reserved © 2025/ 2026 |
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- Explains how a buyer should go about choosing the amount
and type of insurance to buy
- Explains how a buyer can save money comparing the costs of
familiar policies
Policy Summary
Ans: a written statement describing the features and elements
of the policy being issued
Must provide:
- name and address of agent
- full name and home office or administrative office of the
insurer
- generic name of the basic policy
- each rider
Illustrations
Ans: a presentation or depiction that includes non guaranteed
elements of a policy of individual or group life insurance over a
period of years
Life Insurance Illustration
Ans: Distinguish between guaranteed and projected amounts
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- clearly state that an illustration is not a party of the contract
- identify those values that are not guaranteed as such
Field Underwriter
Ans: An insurance agent who conducts an initial policy
solicitation and application. (The company's front line of
underwriting)
Application
Ans: starting point and basic source of information used by the
company in the risk selection process
Application Part 1- General Info
Ans: includes general questions about the applicant such as
name, address, age, birth date, gender, income, marital status,
and occupation
- inquires about the existing policies and if the proposed
insurance will replace them
Application Part 2- Medical Info
Ans: includes information on the prospective insureds medical
background, present health, any medical visits in recent years,
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medical status of living relatives and causes of death of
deceased relatives
Non-Medical Appplication
Ans: if the amount of insurance is relatively small, the agent
and the proposed insured will complete all of the medical
information
Agents Report
Ans: provides the agents personal observations concerning the
proposed insured.
Required Signatures
Ans: Both the agent and the proposed insured (usually the
applicant) must sign the application.
Consequences of Incomplete Applications
Ans: If the insurer receives an incomplete application, the
insurer must return it to the applicant for complete
Consequences of Incomplete Applications
All rights reserved © 2025/ 2026 |
NJ Life Insurance Exam Questions and
Correct Answers/ Latest Update / Already
Graded
Insurance
Ans: transfers risk of loss from an individual or business entity
to an insurance company which in turn spreads the costs of
unexpected losses to many individuals
Life Insurance
Ans: protects against loss associated with an insured's death,
and pays a death benefit to beneficiaries upon death of the
insured
solicitation of Insurance
Ans: an attempt to persuade a person to buy an insurance
policy
Buyers Guide
Ans: provides basic, generic information about life insurance
policies that contains language approved by the Department of
Insurance
All rights reserved © 2025/ 2026 |
, Page |2
- Explains how a buyer should go about choosing the amount
and type of insurance to buy
- Explains how a buyer can save money comparing the costs of
familiar policies
Policy Summary
Ans: a written statement describing the features and elements
of the policy being issued
Must provide:
- name and address of agent
- full name and home office or administrative office of the
insurer
- generic name of the basic policy
- each rider
Illustrations
Ans: a presentation or depiction that includes non guaranteed
elements of a policy of individual or group life insurance over a
period of years
Life Insurance Illustration
Ans: Distinguish between guaranteed and projected amounts
All rights reserved © 2025/ 2026 |
, Page |3
- clearly state that an illustration is not a party of the contract
- identify those values that are not guaranteed as such
Field Underwriter
Ans: An insurance agent who conducts an initial policy
solicitation and application. (The company's front line of
underwriting)
Application
Ans: starting point and basic source of information used by the
company in the risk selection process
Application Part 1- General Info
Ans: includes general questions about the applicant such as
name, address, age, birth date, gender, income, marital status,
and occupation
- inquires about the existing policies and if the proposed
insurance will replace them
Application Part 2- Medical Info
Ans: includes information on the prospective insureds medical
background, present health, any medical visits in recent years,
All rights reserved © 2025/ 2026 |
, Page |4
medical status of living relatives and causes of death of
deceased relatives
Non-Medical Appplication
Ans: if the amount of insurance is relatively small, the agent
and the proposed insured will complete all of the medical
information
Agents Report
Ans: provides the agents personal observations concerning the
proposed insured.
Required Signatures
Ans: Both the agent and the proposed insured (usually the
applicant) must sign the application.
Consequences of Incomplete Applications
Ans: If the insurer receives an incomplete application, the
insurer must return it to the applicant for complete
Consequences of Incomplete Applications
All rights reserved © 2025/ 2026 |
