NJ Accident and Health Producer
Exam Questions and Correct Answers|
2026 Updated A+ GRADE
Life income joint and survivor settlement option guarantees...
Income for 2 or more recipients
A participating insurance policy may do which of the following:...
Pay dividends to the policy owner
What is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premiums paid are taxable as ordinary income
Participating Insurance policy will...
pay dividends to the owner based upon mortality cost, interest earned and cost
,Which of the following is an example of a producer being involved in an unfair
trade practice of rebating?...
Telling a client that his first premium will be waived if he purchased the insurance
policy.
Rebating is defined as...
Offering any inducement in the sale of insurance products that is not specified in
the policy, including money, reductions in commissions, promises, and personal
services. Both offer and acceptance of a rebate are illegal
An insurer that holds a Certificate of Authority in the state in which it transacts
business is considered a/an
Authorized Insurer
Who is considered authorized or admitted?
Insurers who meet the state's financial requirements and hold a Certificate of
Authority to transact business in the state
Which of the following is a key distinction between variable whole life and
variable universal life products?
Variable whole life has a guaranteed death benefits
,Which statement about dividends in incorrect?..
Dividends amounts are guaranteed in the policy
T or F: Dividends cannot be guaranteed
True
An organizations licensed as a producer business entity based in New York would
like to transact insurance in New Jersey. Which of the following is true?
The organization will need to obtain a nonresident business entity license and its
producers will need to obtain nonresident licenses
Misrepresenting an insurance policy as a share of stock is an example of which of
the following?
False Advertising
Within how many days of requesting an investigative consumer report must an
insurer notify the consumer in writing that the report will be obtained?
30 days
, Which of the following statements about a life insurance policy would be allowed
in an Insurance advertisement?..
Term Life insurance policy
A long stretch of national economic hardship causes a 7% rate of inflation. A
policyowner notices that the face value of her life insurance policy has been raised
7% as a result. Which policy rider causes this change?
Cost of Living Rider
Cost of Living Rider
Allows the policy face amount to be adjusted to account for inflation based on the
consumer price index.
Which of the following is another term for an authorized insurer?
Admitted
All of the following are TRUE of the federal tax advantages of a qualified plan
EXCEPT
At distribution all amounts received by the employees are tax free
Exam Questions and Correct Answers|
2026 Updated A+ GRADE
Life income joint and survivor settlement option guarantees...
Income for 2 or more recipients
A participating insurance policy may do which of the following:...
Pay dividends to the policy owner
What is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premiums paid are taxable as ordinary income
Participating Insurance policy will...
pay dividends to the owner based upon mortality cost, interest earned and cost
,Which of the following is an example of a producer being involved in an unfair
trade practice of rebating?...
Telling a client that his first premium will be waived if he purchased the insurance
policy.
Rebating is defined as...
Offering any inducement in the sale of insurance products that is not specified in
the policy, including money, reductions in commissions, promises, and personal
services. Both offer and acceptance of a rebate are illegal
An insurer that holds a Certificate of Authority in the state in which it transacts
business is considered a/an
Authorized Insurer
Who is considered authorized or admitted?
Insurers who meet the state's financial requirements and hold a Certificate of
Authority to transact business in the state
Which of the following is a key distinction between variable whole life and
variable universal life products?
Variable whole life has a guaranteed death benefits
,Which statement about dividends in incorrect?..
Dividends amounts are guaranteed in the policy
T or F: Dividends cannot be guaranteed
True
An organizations licensed as a producer business entity based in New York would
like to transact insurance in New Jersey. Which of the following is true?
The organization will need to obtain a nonresident business entity license and its
producers will need to obtain nonresident licenses
Misrepresenting an insurance policy as a share of stock is an example of which of
the following?
False Advertising
Within how many days of requesting an investigative consumer report must an
insurer notify the consumer in writing that the report will be obtained?
30 days
, Which of the following statements about a life insurance policy would be allowed
in an Insurance advertisement?..
Term Life insurance policy
A long stretch of national economic hardship causes a 7% rate of inflation. A
policyowner notices that the face value of her life insurance policy has been raised
7% as a result. Which policy rider causes this change?
Cost of Living Rider
Cost of Living Rider
Allows the policy face amount to be adjusted to account for inflation based on the
consumer price index.
Which of the following is another term for an authorized insurer?
Admitted
All of the following are TRUE of the federal tax advantages of a qualified plan
EXCEPT
At distribution all amounts received by the employees are tax free
