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NJ LIFE INSURANCE Questions and
Correct Answers/ Latest Update / Already
Graded
Agency
Ans: An insurance sales office or company
agent
Ans: An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer.
agent appointment
Ans: The authorization of an agent to act for or represent an
insurer
aleatory
Ans: A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the
amount the insured will pay in premiums is unequal to the
amount the insurer will pay in the event of a loss.
alien insurer
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Ans: An insurance company that is incorporated outside the
United States.
annual statement
Ans: A detailed financial report that an insurance company
must submit every year to the insurance department of state(s)
in which it conducts business.
annuity
Ans: A contract that provides income for a specified period of
years, or for life
apparent authority
Ans: The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of
circumstances the principal created
applicant
Ans: A person making application for, or offering himself,
herself or another to be insured under an insurance contract
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Application
Ans: - A document that provides information for underwriting
purposes. After the policy is issued, any unanswered questions
are considered waived by the insurer
assignment
Ans: The transfer of ownership rights of a life insurance policy
from one person to
attained age
Ans: The age of the insured at a determined date
attending Physcian's Statement (APS)
Ans: A statement usually obtained from the applicant's doctor.
Authorized (Admitted) Insurer
Ans: An insurance company authorized and licensed to transact
business in a particular state.
Avoidance
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Ans: A method of dealing with risk by deliberately keeping
away from it (e.g. if a person wanted to avoid the risk of being
killed in an airplane crash, he or she might choose to never fly
in a plane).
Basic Illustration
Ans: A ledger or proposal used in the sale of a life insurance
policy that shows both guaranteed and nonguaranteed
elements.
Beneficiary
Ans: The person who receives the proceeds from the policy
when the insured dies.
Birthday Rule
Ans: The method of determining primary coverage for a
dependent child, under which the plan of the parent whose
birthday occurs first in the calendar year is designated as
primary.
Broker
All rights reserved © 2025/ 2026 |
NJ LIFE INSURANCE Questions and
Correct Answers/ Latest Update / Already
Graded
Agency
Ans: An insurance sales office or company
agent
Ans: An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer.
agent appointment
Ans: The authorization of an agent to act for or represent an
insurer
aleatory
Ans: A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the
amount the insured will pay in premiums is unequal to the
amount the insurer will pay in the event of a loss.
alien insurer
All rights reserved © 2025/ 2026 |
, Page |2
Ans: An insurance company that is incorporated outside the
United States.
annual statement
Ans: A detailed financial report that an insurance company
must submit every year to the insurance department of state(s)
in which it conducts business.
annuity
Ans: A contract that provides income for a specified period of
years, or for life
apparent authority
Ans: The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of
circumstances the principal created
applicant
Ans: A person making application for, or offering himself,
herself or another to be insured under an insurance contract
All rights reserved © 2025/ 2026 |
, Page |3
Application
Ans: - A document that provides information for underwriting
purposes. After the policy is issued, any unanswered questions
are considered waived by the insurer
assignment
Ans: The transfer of ownership rights of a life insurance policy
from one person to
attained age
Ans: The age of the insured at a determined date
attending Physcian's Statement (APS)
Ans: A statement usually obtained from the applicant's doctor.
Authorized (Admitted) Insurer
Ans: An insurance company authorized and licensed to transact
business in a particular state.
Avoidance
All rights reserved © 2025/ 2026 |
, Page |4
Ans: A method of dealing with risk by deliberately keeping
away from it (e.g. if a person wanted to avoid the risk of being
killed in an airplane crash, he or she might choose to never fly
in a plane).
Basic Illustration
Ans: A ledger or proposal used in the sale of a life insurance
policy that shows both guaranteed and nonguaranteed
elements.
Beneficiary
Ans: The person who receives the proceeds from the policy
when the insured dies.
Birthday Rule
Ans: The method of determining primary coverage for a
dependent child, under which the plan of the parent whose
birthday occurs first in the calendar year is designated as
primary.
Broker
All rights reserved © 2025/ 2026 |
