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Last Updated: Aug 26, 2026
No. of Questions: 95 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Policy Riders, Provisions, Options & Exclusions | 20-25% | - Policy Exclusions & Limitations - Required & Optional Policy Provisions - Beneficiary Designations & Settlement Options - Common Policy Riders |
| Topic 2: Application, Underwriting & Policy Delivery | 10-15% | - Underwriting Process & Risk Classification - Do Not Call & Privacy Regulations - Policy Delivery & Legal Responsibilities - Completing the Application & Disclosure Requirements |
| Topic 3: Taxes, Retirement & Advanced Concepts | 15-20% | - Business Insurance & Third-Party Ownership - Group Life Insurance - Social Security & Government Benefits - Retirement Plans & Tax Treatment |
| Topic 4: Types of Life Insurance Policies | 20-25% | - Traditional Whole Life Products - Interest-Sensitive & Universal Life Products - Term Life Insurance - Annuities & Retirement Products - Combination Plans & Policy Variations |
| Topic 5: New Jersey Insurance Laws, Rules & Regulations | 20-25% | - Trade Practices & Unfair Trade Laws - Licensing Requirements & Procedures - Ethics, Fiduciary Duty & Consumer Protection - Policy Replacement & Disclosure Rules - State Regulatory Framework & Jurisdiction |
1. If a life policy is replaced by a new life policy, all of the following forms are needed EXCEPT
A) A Policy Summary.
B) A statement signed by the agent.
C) A complete dividend history of the policy to be replaced.
D) A statement signed by the applicant.
2. An owner of a life insurance policy may transfer ownership temporarily with
A) A collateral assignment.
B) A transfer assignment.
C) An absolute assignment.
D) A beneficiary assignment.
3. A licensed life or health producer who solicits insurance in New Jersey, has not selected New Jersey as his home state, and resides and maintains the principal office in another state is defined as
A) An alien producer.
B) A nonresident producer.
C) A reciprocal producer.
D) A foreign producer.
4. What is the purpose of the automatic premium loan rider?
A) Guarantees the insured the right to purchase additional insurance without evidence of insurability.
B) The insurer will pay the premium if the insured is permanently disabled.
C) Allows partial surrender of a term policy.
D) Protects the policyowner against an unintentional lapse of coverage.
5. For a New Jersey insurance producer to charge a prospective insured for analyzing insurance coverages, there must be a reasonable relationship between the fee and the
A) Average face amount of the policies analyzed.
B) Average premium of the policies analyzed.
C) Nature of the services performed.
D) Total commission earned on the coverages purchased.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |
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