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NJ Life Insurance Test Questions and
Correct Answers/ Latest Update / Already
Graded
The principle that insurance is not a transaction of commerce and so
should be regulated by the states was established by the
Ans: A. the McCarran-Ferguson Act.
B. Public Act 15.
C. Paul v. Virginia.
D. U.S. v. South Eastern Underwriters Association
ANSWER HERE
A
A contract between two insurance companies that allows one
company to transfer risk to a second company is known as
Ans: A. Reinsurance
B. coinsurance
c. mutual insurance
Answer
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A
which of the following dividend options is taxable?
Ans: A. Paid up additions.
B. One-year term.
C. Accumulation at interest.
D. Retum of premium.
Answer
C
A licensed life or health producer who solicits insurance in New Jersey
and who has not selected New Jersey as his home state but resides and
maintains the principal office in another state is defined as
Ans: A. a foreign producer.
B. a nonresident producer.
C. a reciprocal producer.
D. an alien producer.
Answer
B
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After a New Jersey producer license has been revoked, the licensee
may not reapply for a new license for a M IMUM of
Ans: A. 5 years.
B. 3 years.
C. 1 year.
D. 6 months.
Answer
A
One of the major tax ADVANTAGES of life insurance is that
Ans: A. the distribution of the annual earnings is tax free.
B.annual earnings are not taxed on a state or Federal level.
C. employer contributions to an employee's life insurance policy
are tax deductible to the employee.
D. the beneficiary generally does not pay income tax on the
proceeds.
Answer
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D
The Producer Licensing regulation requires that a branch office be
open to the public
Ans: A. no less than forty hours per week.
B. Monday through Friday from 8 a.m. to 5 p.m.
C.at least one evening per week and one Saturday per month.
D. on a posted schedule that provides reasonable access.
Answer
D
If a producer makes a sales proposal or presentation that fails to fairly
and fully disclose future premium charges, benefits, and any options
the producer may be found guilty of
Ans: A. coercion.
B. misrepresentation.
C. fraud.
D. twisting.
All rights reserved © 2025/ 2026 |
NJ Life Insurance Test Questions and
Correct Answers/ Latest Update / Already
Graded
The principle that insurance is not a transaction of commerce and so
should be regulated by the states was established by the
Ans: A. the McCarran-Ferguson Act.
B. Public Act 15.
C. Paul v. Virginia.
D. U.S. v. South Eastern Underwriters Association
ANSWER HERE
A
A contract between two insurance companies that allows one
company to transfer risk to a second company is known as
Ans: A. Reinsurance
B. coinsurance
c. mutual insurance
Answer
All rights reserved © 2025/ 2026 |
, Page |2
A
which of the following dividend options is taxable?
Ans: A. Paid up additions.
B. One-year term.
C. Accumulation at interest.
D. Retum of premium.
Answer
C
A licensed life or health producer who solicits insurance in New Jersey
and who has not selected New Jersey as his home state but resides and
maintains the principal office in another state is defined as
Ans: A. a foreign producer.
B. a nonresident producer.
C. a reciprocal producer.
D. an alien producer.
Answer
B
All rights reserved © 2025/ 2026 |
, Page |3
After a New Jersey producer license has been revoked, the licensee
may not reapply for a new license for a M IMUM of
Ans: A. 5 years.
B. 3 years.
C. 1 year.
D. 6 months.
Answer
A
One of the major tax ADVANTAGES of life insurance is that
Ans: A. the distribution of the annual earnings is tax free.
B.annual earnings are not taxed on a state or Federal level.
C. employer contributions to an employee's life insurance policy
are tax deductible to the employee.
D. the beneficiary generally does not pay income tax on the
proceeds.
Answer
All rights reserved © 2025/ 2026 |
, Page |4
D
The Producer Licensing regulation requires that a branch office be
open to the public
Ans: A. no less than forty hours per week.
B. Monday through Friday from 8 a.m. to 5 p.m.
C.at least one evening per week and one Saturday per month.
D. on a posted schedule that provides reasonable access.
Answer
D
If a producer makes a sales proposal or presentation that fails to fairly
and fully disclose future premium charges, benefits, and any options
the producer may be found guilty of
Ans: A. coercion.
B. misrepresentation.
C. fraud.
D. twisting.
All rights reserved © 2025/ 2026 |
