New Jersey Life Producer Exam (NJ-Life-Producer) Free Practice Test

Question 1

Which of the following retirement plans is not restricted to contribution limits set by the IRS?

A. Individual annuity.

B. Roth IRA.

C. Individual Retirement Plan.

D. 401(k).

Correct Answer: A

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Question 2

Which of the following is a characteristic of conversion from group to permanent life insurance?

A. Proof of insurability is required.

B. Conversion must be to term insurance.

C. Premium for the new policy will be based on the age when first covered by the group policy.

D. Conversion must be applied for within 1 month of termination.

Correct Answer: D

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Question 3

Which of the following dividend options is taxable?

A. Return of premium.

B. Paid-up additions.

C. One-year term.

D. Accumulation at interest.

Correct Answer: D

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Question 4

A group life contract that lapses because of nonpayment of premium will continue to cover losses incurred by the insured for

A. A maximum of 30 days after the last premium is paid.

B. A maximum of 30 days after the grace period expires.

C. The duration of the grace period.

D. A maximum of 45 days after the last premium is paid.

Correct Answer: C

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Question 5

A beneficiary is protected from creditors' claims in all of the following situations EXCEPT when the beneficiary is the

A. Insured's estate.

B. Insured's spouse.

C. Insured's business partner.

D. Insured's child.

Correct Answer: A

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Question 6

A policy may contain provisions excluding or restricting coverage as specified in the event of death under all of the following EXCEPT

A. Not provided in the source question.

B. War, or act of war.

C. Fare-paying passenger.

D. A licensed pilot of a personal aircraft.

Correct Answer: C

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Question 7

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

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

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

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

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

Correct Answer: B

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Question 8

Which type of insurance policy is characterized by premiums that are fully paid up within a stated period, after which no further premiums are required?

A. Basic installment insurance.

B. Limited payment life insurance.

C. Lump sum insurance.

D. Prepaid premium insurance.

Correct Answer: B

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Question 9

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

A. Reinsurance.

B. Coinsurance.

C. Surplus lines insurance.

D. Excess insurance.

Correct Answer: A

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Question 10

In New Jersey, an insurance company formed in New Jersey with offices in New York is a

A. Alien insurer.

B. Domestic insurer.

C. Foreign insurer.

D. Mutual insurer.

Correct Answer: B

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Insurance Licensing New Jersey Life Producer (NJ-Life-Producer) Free Practice Test