Insurance Licensing New Jersey Life Producer - NJ-Life-Producer Exam Questions [2026]

QUESTION NO: 1
To renew an insurance producer license, a renewal applicant must earn 24 continuing education credits during the previous two years EXCEPT:

A. Insurance consultants. B. Insurance brokers. C. Nonresident producers. D. Resident producers.

Correct Answer: C

Explanation: Only visible for Pass4Test members. You can sign-up / login (it's free).

QUESTION NO: 2
Which type of insurance policy is characterized by premiums that are fully paid up within a stated period, after which no further premiums are required?

A. Limited payment life insurance. B. Basic installment insurance. C. Prepaid premium insurance. D. Lump sum insurance.

Correct Answer: A

Explanation: Only visible for Pass4Test members. You can sign-up / login (it's free).

QUESTION NO: 3
Which of the following statements is true about premium refunds resulting from the cancellation of a credit life policy?

A. They are considered unearned premiums and must be paid to the borrower. B. They are prohibited by law. C. They are permitted only if they will be used to purchase replacement coverage. D. They are considered earned premiums and may be retained by the creditor as loan security.

Correct Answer: A

Explanation: Only visible for Pass4Test members. You can sign-up / login (it's free).

QUESTION NO: 4
Which of the following statements is correct about an employment agreement between two producers?

A. It must be witnessed by two disinterested parties. B. It must be in writing. C. A copy must be filed with each producer's attorney. D. It is nonbinding.

Correct Answer: B

Explanation: Only visible for Pass4Test members. You can sign-up / login (it's free).

QUESTION NO: 5
A producer who is authorized by an insurance company to solicit, negotiate, or sell insurance contracts is acting as

A. An insurance consultant. B. An insurance broker. C. A financial consultant. D. An insurance agent.

Correct Answer: D

QUESTION NO: 6
What is the purpose of the Accelerated Death Benefit Rider?

A. To adjust the death benefit to keep up with inflation. B. To provide for the early payment of the death benefit for a terminally ill insured. C. To decrease the tax liability of the insured's estate. D. To increase the death benefit by a stated percentage.

Correct Answer: B

QUESTION NO: 7
An insurance company, owned by its stockholders who have contributed to its capital and surplus and to whom dividends are paid, is known as

A. A reciprocal company. B. A stock company. C. A mutual company. D. An assessable company.

Correct Answer: B

Explanation: Only visible for Pass4Test members. You can sign-up / login (it's free).

QUESTION NO: 8
Which of the following must an agent do when replacing a life insurance policy?

A. Obtain with the application the applicant's justification for why the replacement is suitable. B. Forward the signed and completed Disclosure Statement to the replacing insurer and not provide the applicant with a copy. C. Submit to the replacing insurer a list of all life insurance policies or annuity contracts proposed to be replaced. D. Notify the insurer whose policy is being replaced, but not the insurer replacing the policy.

Correct Answer: C

Explanation: Only visible for Pass4Test members. You can sign-up / login (it's free).

QUESTION NO: 9
The New Jersey Banking and Insurance Commissioner has the authority to take all of the following actions EXCEPT

A. Enforce insurance rules and regulations. B. Create regulations to achieve the purposes of insurance laws. C. Amend insurance rules and regulations. D. Establish insurance rate schedules.

Correct Answer: D

Explanation: Only visible for Pass4Test members. You can sign-up / login (it's free).

QUESTION NO: 10
A common purpose for purchasing a fixed annuity is to

A. Make tax-free investments. B. Allow for flexibility in terms of investment opportunities. C. Provide benefits to a next of kin if the annuity holder dies. D. Provide future economic security, as payments do not fluctuate.

Correct Answer: D

Explanation: Only visible for Pass4Test members. You can sign-up / login (it's free).