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| Section | Weight | Objectives |
|---|---|---|
| New Jersey Insurance Laws, Rules & Regulations | 20-25% | - Ethics, Fiduciary Duty & Consumer Protection - Trade Practices & Unfair Trade Laws - Licensing Requirements & Procedures - Policy Replacement & Disclosure Rules - State Regulatory Framework & Jurisdiction |
| Types of Life Insurance Policies | 20-25% | - Annuities & Retirement Products - Traditional Whole Life Products - Term Life Insurance - Interest-Sensitive & Universal Life Products - Combination Plans & Policy Variations |
| Application, Underwriting & Policy Delivery | 10-15% | - Completing the Application & Disclosure Requirements - Do Not Call & Privacy Regulations - Policy Delivery & Legal Responsibilities - Underwriting Process & Risk Classification |
| Policy Riders, Provisions, Options & Exclusions | 20-25% | - Common Policy Riders - Required & Optional Policy Provisions - Beneficiary Designations & Settlement Options - Policy Exclusions & Limitations |
| Taxes, Retirement & Advanced Concepts | 15-20% | - Business Insurance & Third-Party Ownership - Social Security & Government Benefits - Retirement Plans & Tax Treatment - Group Life Insurance |
Question 1
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 45 days after the last premium is paid.
B. A maximum of 30 days after the last premium is paid.
C. A maximum of 30 days after the grace period expires.
D. The duration of the grace period.
Question 2
In New Jersey, an insurance company formed in New Jersey with offices in New York is a
A. Foreign insurer.
B. Mutual insurer.
C. Domestic insurer.
D. Alien insurer.
Question 3
The replacement of an existing policy requires all of the following EXCEPT
A. A complete comparison of the existing policy to the new policy.
B. Notice that the owner can return the policy within 90 days for a full refund.
C. Notification of the proposed replacement to the insurer whose policies are intended to be replaced.
D. Notification of what constitutes a replacement.
Question 4
In order to receive fees other than commissions from a life insurance prospect, an insurance producer acting as a consultant must first
A. Present a Notice Regarding Replacement of Life Insurance form to the prospect.
B. Present a Comparative Information form to the prospect.
C. Obtain a signed written memorandum from the prospect stating the amount of compensation.
D. Obtain a written commitment from the prospect to purchase new life insurance.
Question 5
If a policyowner chooses to pay premiums for a specified number of years, this permanent life insurance policy is referred to as
A. A limited-pay policy.
B. A variable whole life policy.
C. A graded-premium whole life policy.
D. An adjustable life policy.
Solutions:
| Question 1 Answer: D | Question 2 Answer: C | Question 3 Answer: B | Question 4 Answer: C | Question 5 Answer: A |
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