Page 1 of 73
FINAL EXAM New Jersey Life and Health ALL 350
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
QUESTION: Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25.
How much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - ANSWER-50.00
QUESTION: Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25.
How much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - ANSWER-human life
QUESTION: Which of these premium payment frequencies is not typically available to a
policyowner? - ANSWER-bi weekly
1
, Page 2 of 73
QUESTION: What happens when an insurance policy is backdated? - ANSWER-the policy
effective date is earlier than the present
QUESTION: First year commissions may be legally paid to someone holding a - ANSWER-state
license and appointment wih the paying insurance
QUESTION: Which of the following is present when an applicant stands to lose value if the
insured dies? - ANSWER-insurable interest
QUESTION: The Commissioner may - ANSWER-Establish continuing education requirements
QUESTION: Proceeds from a life insurance policy are protected from the beneficiary's creditors
by which clause? - ANSWER-Spendthrift Clause
QUESTION: Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - ANSWER-Policy Summary
2
, Page 3 of 73
QUESTION: The death benefit of Credit Life and Health Insurance is paid to whom? - ANSWER-
the creditor
QUESTION: How does one qualify as a fully- insured individual under Social Security disability
coverage? - ANSWER-has bee credited with the appropiated numbres of quarters of coverage
QUESTION: Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - ANSWER-Policy summary
QUESTION: All of the following plans allow for employee contributions to be taken on a pre-tax
basis EXCEPT - ANSWER-Health Reimbursement Arrangement Plan (HRA's).
QUESTION: In an employer-sponsored contributory group Disability Income plan, the employer
pays 60% of the premium and each employee pays 40% of the premium. Any income benefits
paid are taxed to the employee at - ANSWER-60%
QUESTION: Which scenario would most life insurance policies exclude coverage for? - ANSWER-
hobby racing cars
3
, Page 4 of 73
QUESTION: Who would make the final determination on whether or not an insurance
advertisement is misleading? - ANSWER-The banking and insurance commissioner
QUESTION: An endorsement found in an insurance plan which modifies the provisions of the
policy is called a(n) - ANSWER-rider
QUESTION: What is implied authority defined as? - ANSWER-Authority that is not specifically
given to an agent in the agency contract, but that an agent can reasonably assume to carry out
his/her duties
QUESTION: An example of a tax-qualified retirement plan would be a(n) - ANSWER-defined
contribution plan
QUESTION: An immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payments? - ANSWER-1 months
4
FINAL EXAM New Jersey Life and Health ALL 350
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
QUESTION: Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25.
How much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - ANSWER-50.00
QUESTION: Kate has a Major Medical Plan with a 75/25 coinsurance and a deductible of $25.
How much will she have to pay if she, not having met any of her deductible, visits the doctor
and receives a bill for $125? - ANSWER-human life
QUESTION: Which of these premium payment frequencies is not typically available to a
policyowner? - ANSWER-bi weekly
1
, Page 2 of 73
QUESTION: What happens when an insurance policy is backdated? - ANSWER-the policy
effective date is earlier than the present
QUESTION: First year commissions may be legally paid to someone holding a - ANSWER-state
license and appointment wih the paying insurance
QUESTION: Which of the following is present when an applicant stands to lose value if the
insured dies? - ANSWER-insurable interest
QUESTION: The Commissioner may - ANSWER-Establish continuing education requirements
QUESTION: Proceeds from a life insurance policy are protected from the beneficiary's creditors
by which clause? - ANSWER-Spendthrift Clause
QUESTION: Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - ANSWER-Policy Summary
2
, Page 3 of 73
QUESTION: The death benefit of Credit Life and Health Insurance is paid to whom? - ANSWER-
the creditor
QUESTION: How does one qualify as a fully- insured individual under Social Security disability
coverage? - ANSWER-has bee credited with the appropiated numbres of quarters of coverage
QUESTION: Which of the following MUST contain a "Statement of Policy Cost and Benefit
Information"? - ANSWER-Policy summary
QUESTION: All of the following plans allow for employee contributions to be taken on a pre-tax
basis EXCEPT - ANSWER-Health Reimbursement Arrangement Plan (HRA's).
QUESTION: In an employer-sponsored contributory group Disability Income plan, the employer
pays 60% of the premium and each employee pays 40% of the premium. Any income benefits
paid are taxed to the employee at - ANSWER-60%
QUESTION: Which scenario would most life insurance policies exclude coverage for? - ANSWER-
hobby racing cars
3
, Page 4 of 73
QUESTION: Who would make the final determination on whether or not an insurance
advertisement is misleading? - ANSWER-The banking and insurance commissioner
QUESTION: An endorsement found in an insurance plan which modifies the provisions of the
policy is called a(n) - ANSWER-rider
QUESTION: What is implied authority defined as? - ANSWER-Authority that is not specifically
given to an agent in the agency contract, but that an agent can reasonably assume to carry out
his/her duties
QUESTION: An example of a tax-qualified retirement plan would be a(n) - ANSWER-defined
contribution plan
QUESTION: An immediate annuity has been purchased with a single premium. When does the
annuitant typically begin receiving benefit payments? - ANSWER-1 months
4
