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NEW JERSEY LIFE AND HEALTH -
FINAL EXAM 2026 REAL QUESTIONS
WITH EXPERTLY VERIFIED ANSWERS.
1. Which of the following is true concerning the proceeds of a life
insurance policy? - correct answer -There is protection of
proceeds against the insured's and the beneficiary's creditors
2. Susan is insured through her Group Health Insurance plan and
changed her coverage to an individual plan with the same
insurer after her employment was terminated. This change is
called a(n) - correct answer -Conversion
3. Which of the following does Medicare Part D cover? - correct
answer -Prescription drugs
4. Which settlement options pays a stated amount to an annuitant
but no residual value to a beneficiary? - correct answer -Life
income
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5. What does the word "level" in Level Term describe? - correct
answer -The face amount
6. A medicare supplement plan can be canceled by the insurer -
correct answer -For nonpayment of premiums
7. Small employers who are sponsored by an insurer to provide
group benefits to its employees are called - correct answer -
MEWA
8. Health insurance involves two perils, accident and _____ -
correct answer -Sickness
9. When an insured changes to a more hazardous occupation,
which disability policy provision allows an insurer to adjust
policy benefits and rates? - correct answer -Change of
occupation provision
10. Which of these will typically authorize treatment from a
specialist? - correct answer -Gatekeeper
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11. A plan in which an employer pays insurance benefits from a
fund derived from the employer's current revenues is called -
correct answer -A self-funded plan
12. Which of the following enables a life policy to be replaced
with another life policy and results in the postponement of the
tax consequence? - correct answer -Section 1035 exchange
13. Which of these if NOT considered to be a purpose of an
annuity? - correct answer -Annuities are intended to create an
estate
14. Without a Section 125 Plan in place, what would happen to
an employee's payroll contribution to an HSA? - correct answer
-It would be considered taxable income to the employee
15. Which of the following is a reinstatement condition? - correct
answer -Proof of insurability
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16. A branch office registration form is required to be filed at
least _____ days before selling insurance out of that branch -
correct answer -30
17. How long is the Contestable Period for health insurance
policies sold in New Jersey? - correct answer -2 years
18. Kathy pays a monthly premium on her health insurance
policy. How long is her grace period? - correct answer -10 days
19. Which of the following does Coordination of Benefits allow? -
correct answer -Allows the secondary payor to reduce their
benefit payments so no more than 100% of the claim is paid
20. An example of rebating would be - correct answer -A
producer who shares commissions with a client
21. When does a life insurance policy typically become
effective? - correct answer -When initial premium is collected
and policy is issued
NEW JERSEY LIFE AND HEALTH -
FINAL EXAM 2026 REAL QUESTIONS
WITH EXPERTLY VERIFIED ANSWERS.
1. Which of the following is true concerning the proceeds of a life
insurance policy? - correct answer -There is protection of
proceeds against the insured's and the beneficiary's creditors
2. Susan is insured through her Group Health Insurance plan and
changed her coverage to an individual plan with the same
insurer after her employment was terminated. This change is
called a(n) - correct answer -Conversion
3. Which of the following does Medicare Part D cover? - correct
answer -Prescription drugs
4. Which settlement options pays a stated amount to an annuitant
but no residual value to a beneficiary? - correct answer -Life
income
, Page | 2
5. What does the word "level" in Level Term describe? - correct
answer -The face amount
6. A medicare supplement plan can be canceled by the insurer -
correct answer -For nonpayment of premiums
7. Small employers who are sponsored by an insurer to provide
group benefits to its employees are called - correct answer -
MEWA
8. Health insurance involves two perils, accident and _____ -
correct answer -Sickness
9. When an insured changes to a more hazardous occupation,
which disability policy provision allows an insurer to adjust
policy benefits and rates? - correct answer -Change of
occupation provision
10. Which of these will typically authorize treatment from a
specialist? - correct answer -Gatekeeper
, Page | 3
11. A plan in which an employer pays insurance benefits from a
fund derived from the employer's current revenues is called -
correct answer -A self-funded plan
12. Which of the following enables a life policy to be replaced
with another life policy and results in the postponement of the
tax consequence? - correct answer -Section 1035 exchange
13. Which of these if NOT considered to be a purpose of an
annuity? - correct answer -Annuities are intended to create an
estate
14. Without a Section 125 Plan in place, what would happen to
an employee's payroll contribution to an HSA? - correct answer
-It would be considered taxable income to the employee
15. Which of the following is a reinstatement condition? - correct
answer -Proof of insurability
, Page | 4
16. A branch office registration form is required to be filed at
least _____ days before selling insurance out of that branch -
correct answer -30
17. How long is the Contestable Period for health insurance
policies sold in New Jersey? - correct answer -2 years
18. Kathy pays a monthly premium on her health insurance
policy. How long is her grace period? - correct answer -10 days
19. Which of the following does Coordination of Benefits allow? -
correct answer -Allows the secondary payor to reduce their
benefit payments so no more than 100% of the claim is paid
20. An example of rebating would be - correct answer -A
producer who shares commissions with a client
21. When does a life insurance policy typically become
effective? - correct answer -When initial premium is collected
and policy is issued
