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Free New Jersey Life Producer Exam Practice Questions

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Exam style questions across every NJ-Life-Producer domain

Last Update 4 days ago
Total Questions : 93

Start with our free NJ-Life-Producer practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real New Jersey Insurance Licencing (NJDOBI) exam. Each NJ-Life-Producer exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your Insurance Licensing weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 1

A group life face amount is sometimes written as an amount equal to an employee’s

Options:

A.  

Net worth.

B.  

Age.

C.  

Salary.

D.  

Home value.

Discussion 0
Question # 2

Which of the following must an agent do when replacing a life insurance policy?

Options:

A.  

Obtain with the application the applicant’s justification for why the replacement is suitable.

B.  

Notify the insurer whose policy is being replaced, but not the insurer replacing the policy.

C.  

Submit to the replacing insurer a list of all life insurance policies or annuity contracts proposed to be replaced.

D.  

Forward the signed and completed Disclosure Statement to the replacing insurer and not provide the applicant with a copy.

Discussion 0
Question # 3

A life insurance policy most often becomes effective when the

Options:

A.  

Application is submitted.

B.  

Premium is collected and policy is issued.

C.  

Agent and individual agree on coverage.

D.  

Policy is actually issued.

Discussion 0
Question # 4

What is the purpose of the automatic premium loan rider?

Options:

A.  

Guarantees the insured the right to purchase additional insurance without evidence of insurability.

B.  

Protects the policyowner against an unintentional lapse of coverage.

C.  

The insurer will pay the premium if the insured is permanently disabled.

D.  

Allows partial surrender of a term policy.

Discussion 0
Question # 5

The 1944 U.S. v. South-Eastern Underwriters Association case determined that

Options:

A.  

Insurance is commerce and should be subject to federal regulation.

B.  

Insurance is commerce and should be subject to state regulation.

C.  

Individuals who transact insurance business are subject to the same regulations as investment brokers.

D.  

Insurance companies that transact insurance business are subject to the same regulations as banks and savings and loan associations.

Discussion 0
Question # 6

A policyowner cannot change the beneficiary if he has named

Options:

A.  

A spouse.

B.  

A revocable beneficiary.

C.  

A permanent beneficiary.

D.  

An irrevocable beneficiary.

Discussion 0
Question # 7

What is the purpose of the Accelerated Death Benefit Rider?

Options:

A.  

To increase the death benefit by a stated percentage.

B.  

To provide for the early payment of the death benefit for a terminally ill insured.

C.  

To decrease the tax liability of the insured’s estate.

D.  

To adjust the death benefit to keep up with inflation.

Discussion 0
Question # 8

If a producer makes a sales proposal or presentation that fails to fairly and fully disclose future premium charges, benefits, and any options included in the policy, the producer may be found guilty of

Options:

A.  

Coercion.

B.  

Misrepresentation.

C.  

Fraud.

D.  

Twisting.

Discussion 0
Question # 9

A contract between two insurance companies that allows one company to transfer risk to a second company is known as

Options:

A.  

Coinsurance.

B.  

Reinsurance.

C.  

Excess insurance.

D.  

Surplus lines insurance.

Discussion 0
Question # 10

The policy feature that makes universal life different from whole life insurance policies is its

Options:

A.  

Fixed face amount.

B.  

Flexible premium schedule.

C.  

Assignment options.

D.  

Settlement options.

Discussion 0

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