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NJ LIFE INSURANCE EXAM
QUESTIONS AND ANSWER S
Question 1: What is insurance in terms of risk?
CORRECT ANSWER : transfer
Question 2: When must disclosure statements be given to
the applicant?
CORRECT ANSWER : the time the application is signed
Question 3: What is a buyer's guide?
CORRECT ANSWER : provides general information
about the types of life insurance policies available, in language that can be understood by the average person.
Question 4: When must a buyer's guide be delivered?
CORRECT ANSWER : before collecting premium or be
delivered with the policy if given at least 10 days free look period
Question 5: What is a policy summary?
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CORRECT ANSWER : a written statement describing
the features and elements of the policy being issued
Question 6: What does part 1 of the application contain?
CORRECT ANSWER : general information about the
applicant such as name, age, address, occupation
Question 7: What is a field underwriter?
CORRECT ANSWER : The technical name given to the
insurance producer of an insurer who does not have binding authority to grant coverage.
Question 8: What does part 2 of the application contain?
CORRECT ANSWER : medical information and family
healthy history
Question 9: Is the agent's report part of the entire
contract?
CORRECT ANSWER : no but it is a part of the
application process
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Question 10: What is an agent's report?
CORRECT ANSWER : A written report from the agent
submitted to the insurer along with the application disclosing what the agent knows, observed, or learned about the proposed insured's risks.
Question 11: What signatures are required on the
application?
CORRECT ANSWER : agents -insured -policyowner (if
different than insured)
Question 12: When does policy coverage begin?
CORRECT ANSWER : on the later of the date of
application (if prepaid policy) or the date of the medical exam
Question 13: What is a conditional receipt?
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CORRECT ANSWER : The producer issues a
conditional receipt to the applicant when the application and premium are collected.
Question 14: When may an applicant be covered as early
as?
CORRECT ANSWER : the date of the application
Question 15: What is a warranty?
CORRECT ANSWER : An absolutely true statement
upon which the validity of the insurance policy depends.
Question 16: What are representations?
CORRECT ANSWER : are statements believed to be
true to the best of one's knowledge but are not guaranteed to be true
Question 17: What is a material misrepresentation?
CORRECT ANSWER : a statement that, if discovered,
would alter the underwriting decision
