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Insurance Licensing New Jersey Life Producer Sample Questions:
1. A producer who encourages an insured to lapse one policy and buy a new one based on an incomplete comparison of the policies may be engaged in the act of
A) Misrepresentation.
B) Tampering.
C) Twisting.
D) Rebating.
2. A type of life insurance policy that provides for payment of the face amount at the end of the specified period if the insured is still alive is
A) A universal life insurance policy.
B) A modified life insurance policy.
C) A juvenile trust.
D) An endowment policy.
3. An owner of a life insurance policy may transfer ownership temporarily with
A) A transfer assignment.
B) An absolute assignment.
C) A beneficiary assignment.
D) A collateral assignment.
4. An insured has a $100,000 policy with an accidental death benefit rider. If he dies on his way to work due to a heart attack, what will the insurer pay?
A) $150,000.
B) $200,000.
C) $250,000.
D) $100,000.
5. What is the purpose of the Accelerated Death Benefit Rider?
A) To provide for the early payment of the death benefit for a terminally ill insured.
B) To increase the death benefit by a stated percentage.
C) To decrease the tax liability of the insured's estate.
D) To adjust the death benefit to keep up with inflation.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: A |
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