NJ LIFE INSURANCE EXAM STUDY SET 1

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NJ LIFE INSURANCE EXAM STUDY SET 1

Qs and Ans - Expert- Explanation - ing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: If the Commissioner determines that someone has engaged in an unfair

method of competition, he will issue:

Select one:

• A cease and desist order
• A contempt of court order
• A revocation of license decree
• An arrest warrant

Answer:

• A cease and desist order

Question 2: Existence of a business relationship between two licensed producers by which

each acts as an independent contractor:

Select one:

• May require the filing of any notice
• May not require the filing of any notice
• May create responsibility for the acts of the other in the absence of knowledge
• May create responsibility for the acts of the other in the absence of concerted action

Answer:

• May not require the filing of any notice

Question 3: What is the maximum amount that the New Jersey Life and Health Guaranty Association will pay to a person for the cash surrender value of annuity benefits from an insolvent insurer?

Select one:

• $100,000
• $250,000
• $500,000
• $750,000

Answer:

• $100,000

Question 4: A surplus lines producer may charge an originating broker in connection with the procurement of any contract of surplus lines insurance a maximum fee of expenses plus:

Select one:

• $50
• $100
• $125
• $162

Answer:

• $50

Question 5: Mrs. Selleck runs a Christmas store and needs $200,000 of permanent life insurance in June. Because her business is cyclical, she is "cash poor" until October. How can Mrs.Selleck obtain the insurance she needs?

Select one:

• Preliminary term for interim coverage
• Limited pay policy to keep the cost down
• Temporary insurance agreement

• Monthly renewable term

Answer:

• Preliminary term for interim coverage

Question 6: Who determines whether a licensee's information is private or public?

Select one:

• The Commissioner only
• The Banking Department only
• The Commissioner and the Banking Department
• The Commissioner, the Banking Department and the Attorney General

Answer:

• The Commissioner and the Banking Department

Question 7: Inducing a policyholder to switch insurance companies without regard to bad

consequences is:

Select one:

• Boycott
• Churning
• Twisting
• Defamation

Answer:

• Twisting

Question 8: What is the maximum amount that the New Jersey Life and Health Guaranty Association will pay to a person for a life insurance cash surrender from an insolvent insurer?

Select one:

• $100,000
• $200,000
• $300,000
• $500,000

Answer:

• $100,000

Question 9: How is a life insurance agent similar to a field underwriter?

Select one:

• He/she gathers information from the M.I.B.
• He/she fills out the medical section of the application.
• He/she ly sees the applicant.
• He/she obtains the credit report.

Answer:

• He/she ly sees the applicant.

Question 10: Which of the following would NOT be considered unfair discrimination?

Select one:

• Discrimination abased on genetics
• Discrimination abased on DNA
• Discrimination abased on blindness
• Discrimination abased on occupation

Answer:

• Discrimination based on occupation

Question 11: What is the main purpose of the MIB?

Select one:

• Help doctors and other medical professionals
• Prevent over-insurance
• Provide detailed medical information
• Prevent fraud and misrepresentation

Answer:

• Prevent fraud and misrepresentation