New Jersey Life Producer Exam Version 1
Practice exam for Life Insurance Producer under Insurance Exams (Licensing Exams). 5 sample questions.
Sample Questions
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Question 1
The McCarran-Ferguson Act was passed by Congress to
Correct Answer: D
Rationale: The McCarran-Ferguson Act (1945) grants states primary authority to regulate the insurance industry, limiting federal oversight unless state regulation is absent or inadequate. Choice A is correct. Choice B is incorrect as the Act does not address insurance companies' authority to issue policies. Choice C is incorrect as the FCC does not regulate insurance advertising. Choice D is incorrect because, while the Act clarifies insurance is not interstate commerce for certain regulatory purposes, its primary focus is state vs. federal authority.
Rationale: The McCarran-Ferguson Act (1945) grants states primary authority to regulate the insurance industry, limiting federal oversight unless state regulation is absent or inadequate. Choice A is correct. Choice B is incorrect as the Act does not address insurance companies' authority to issue policies. Choice C is incorrect as the FCC does not regulate insurance advertising. Choice D is incorrect because, while the Act clarifies insurance is not interstate commerce for certain regulatory purposes, its primary focus is state vs. federal authority.
Question 2
Which rider allows the wife of the insured to be added to the primary insured's coverage?
Correct Answer: A
Rationale: The Spouse Term Rider adds the spouse to the policy with term coverage. Choice A is correct. Choice B provides income to the family upon the insured's death, not spouse coverage. Choice C reduces the death benefit over time, typically for loans. Choice D adjusts benefits for inflation, not adding a spouse.
Rationale: The Spouse Term Rider adds the spouse to the policy with term coverage. Choice A is correct. Choice B provides income to the family upon the insured's death, not spouse coverage. Choice C reduces the death benefit over time, typically for loans. Choice D adjusts benefits for inflation, not adding a spouse.
Question 3
Which of the following is NOT an option in an Adjustable Life Policy?
Correct Answer: A
Rationale: Adjustable Life Policies allow flexibility in face amount, premiums, and protection period, making B, C, and D correct features. Choice A is incorrect as nonforfeiture options are separate from adjusting the death benefit. Thus, A is the correct answer as it is NOT an option.
Rationale: Adjustable Life Policies allow flexibility in face amount, premiums, and protection period, making B, C, and D correct features. Choice A is incorrect as nonforfeiture options are separate from adjusting the death benefit. Thus, A is the correct answer as it is NOT an option.
Question 4
The McCarran-Ferguson Act was passed by Congress to
Correct Answer: A
Rationale: Repeat of question 1. Choice A is correct for the same reasons. Choices B, C, and D are incorrect as explained in question 1.
Rationale: Repeat of question 1. Choice A is correct for the same reasons. Choices B, C, and D are incorrect as explained in question 1.
Question 5
Which rider allows the wife of the insured to be added to the primary insured's coverage?
Correct Answer: A
Rationale: Repeat of question 2. Choice A is correct. Choices B, C, and D are incorrect for the same reasons as in question 2.
Rationale: Repeat of question 2. Choice A is correct. Choices B, C, and D are incorrect for the same reasons as in question 2.