Question 1

One area in which errors are commonly made on life insurance applications and for which the incontestable clause does not apply is

Options :

A : Occupation.

B : Age.

C : Education level.

D : State of residence.

Answer: B

Question 2

Continuing education credits may be earned for completing which of the following courses?

Options :

A : Salesmanship courses.

B : CLU designation courses.

C : Personal motivation courses.

D : Prelicensing examination courses.

Answer: B

Question 3

Which of the following statements is true about premium refunds resulting from the cancellation of a credit life policy?

Options :

A : They are prohibited by law.

B : They are permitted only if they will be used to purchase replacement coverage.

C : They are considered unearned premiums and must be paid to the borrower.

D : They are considered earned premiums and may be retained by the creditor as loan security.

Answer: C

Question 4

Generally, if an application is not prepaid, the effective date of coverage begins on the date the

Options :

A : Application is signed.

B : Application is postmarked and mailed to the insurer.

C : Company underwriter approves the risk.

D : Producer delivers the policy and collects a premium.

Answer: D

Question 5

An immediate annuity is designed to make its first benefit payment to the annuitant typically

Options :

A : When the accumulation period, of at least 24 months, ends.

B : In the form of a lump sum payment.

C : Only after all cash surrender values, with interest, have been calculated.

D : One month from the annuity’s purchase date.

Answer: D

Free NJ-Life-Producer Mock Exam – Practice Online Confidently