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Insurance Licensing NJ-Life-Producer Exam Syllabus Topics:

SectionObjectives
Topic 1: Underwriting and Policy Issuance- Risk classification
  • 1. Medical underwriting factors
    • 2. Moral hazard and adverse selection
      Topic 2: Life Insurance Fundamentals- Types of life insurance policies
      • 1. Whole life insurance
        • 2. Term life insurance
          • 3. Universal life insurance
            - Policy provisions and clauses
            • 1. Grace period
              • 2. Incontestability clause
                Topic 3: State Regulations (New Jersey)- Insurance laws and ethics
                • 1. Unfair trade practices
                  • 2. Producer licensing requirements
                    Topic 4: Life Insurance and Annuities- Annuity basics
                    • 1. Fixed annuities
                      • 2. Variable annuities

                        Insurance Licensing New Jersey Life Producer Sample Questions:

                        1. 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 modified life insurance policy.
                        B) A juvenile trust.
                        C) A universal life insurance policy.
                        D) An endowment policy.


                        2. When can the beneficiary be changed in a life insurance policy?

                        A) The insured can usually change the beneficiary at any time during the policy term.
                        B) The insurer determines specified dates within the policy to allow for changes.
                        C) A beneficiary change can occur upon the request of the revocable beneficiary.
                        D) The beneficiary can never be changed once the policy is issued.


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

                        A) Insurance companies that transact insurance business are subject to the same regulations as banks and savings and loan associations.
                        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 is commerce and should be subject to federal regulation.


                        4. The premium mode defines the

                        A) Frequency of the premium payment.
                        B) Premium limit.
                        C) Premium amount.
                        D) Method of premium payment.


                        5. Under New Jersey replacement regulations, it is the duty of the replacing insurance company to take all of the following actions EXCEPT

                        A) Retain a copy of the completed replacement Disclosure Statement.
                        B) Postpone underwriting until the existing insurer is notified.
                        C) Require a list of all policies that will be replaced.
                        D) Require its producers to comply with the regulations.


                        Solutions:

                        Question # 1
                        Answer: D
                        Question # 2
                        Answer: A
                        Question # 3
                        Answer: D
                        Question # 4
                        Answer: A
                        Question # 5
                        Answer: B

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