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Life and Health Insurance Producer Exam

Conduct (NJ): practice questions

Our Life & Health Insurance bank has 8 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · New Jersey

May a New Jersey producer charge a client a service fee for selling a life or health insurance policy?

  1. No, service fees are not allowed in the sale or service of life or health insurance
  2. Yes, if the fee is disclosed in the policy illustration
  3. Yes, but only on policies with an annual premium over $1,000
  4. Yes, up to $20 per policy, with a signed fee agreement
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A. No, service fees are not allowed in the sale or service of life or health insurance — N.J.A.C. 11:17B-3.2(c).

Question 2 · New Jersey

A New Jersey producer receives a policy from the insurer for delivery to the insured. Unless the insured agrees in writing to a longer time, when must it be delivered or mailed?

  1. Before the first renewal premium is due
  2. Within 10 calendar days of receipt
  3. Within 30 calendar days of receipt
  4. Within 5 business days of receipt
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B. Within 10 calendar days of receipt — N.J.A.C. 11:17A-4.6.

Question 3 · New Jersey

Under New Jersey rules, which of these is a prohibited rebate or inducement?

  1. Offering free claims filing assistance to all clients
  2. Giving a new client concert tickets worth $150
  3. Giving all clients a free review of their current policies
  4. Providing a discount on a wellness program tied to a life policy
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B. Giving a new client concert tickets worth $150 — N.J.A.C. 11:17A-2.3(g), (h)2; 11:17A-1.2 ("Inducement").

Question 4 · New Jersey

Unless a contract, statute or rule says otherwise, when must a New Jersey producer remit premium funds to the insurer?

  1. Within 30 days after the end of the month
  2. Within five business days after receiving them
  3. Whenever the insurer sends its monthly account statement
  4. Within 15 calendar days after the policy is issued
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B. Within five business days after receiving them — N.J.A.C. 11:17C-2.2(a).

Question 5 · New Jersey

A New Jersey producer makes an incomplete comparison of two annuities to get a client to surrender one and buy a new one. What is this practice called?

  1. Defamation
  2. Rebating
  3. Sliding
  4. Twisting
Show the answer

D. Twisting — N.J.A.C. 11:17A-2.8.

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