New Jersey Life & Health Practice Test

Answer choices

1. A. Not later than the time the application is taken, with the notice signed and left with the applicant as required.
2. B. Only after the old policy has been surrendered and the new contestability period has begun.
3. C. Five years after issue, when the replacing insurer updates its replacement register.
4. D. Only if the applicant later files a death claim under the new policy.

Wrong-answer review

• B. Only after the old policy has been surrendered and the new contestability period has begun.: Incorrect. Delayed disclosure defeats the rule's consumer-protection purpose.
• C. Five years after issue, when the replacing insurer updates its replacement register.: Incorrect. Record retention is not the timing for applicant notice.
• D. Only if the applicant later files a death claim under the new policy.: Incorrect. A death claim is far too late for replacement disclosure.

Answer choices

1. A. Thirty days of benefits are payable because the elimination period is itself the benefit period.
2. B. Benefits are payable for ten days because the insurer subtracts 20 from 30.
3. C. A full year's benefits are payable because recovery before day 30 creates presumptive disability, after the policyowner's request is received and processed under the contract.
4. D. No disability income benefit is payable because the disability ended before the 30-day elimination period was satisfied.

Answer choices

1. A. Sell both because federal law requires every Medicare Advantage member to own Medigap.
2. B. Tell the client Medigap replaces the need for Part A and Part B entitlement.
3. C. Represent Medigap as a government plan administered directly by NJDOBI.
4. D. Explain that Medigap supplements Original Medicare and generally should not be sold to someone remaining in Medicare Advantage.

Answer choices

1. A. Retirement permanently eliminates every group-life conversion right in New Jersey.
2. B. Conversion is allowed only if the retiree proves insurability through full medical underwriting, with any applicable charges or limitations disclosed before processing the request, and the insurer would retain the supporting transaction documentation.
3. C. The group policy automatically becomes an annuity at retirement without any election.
4. D. N.J.A.C. 11:4-42.13 treats retirement as termination for the group-life conversion right and permits qualifying conversion without evidence of insurability.

Answer choices

1. A. A Medicare Advantage plan purchased to operate simultaneously as a Medigap supplement, with any applicable policy charge governed by the existing contract terms.
2. B. A Medicare supplement (Medigap) policy, which works with Original Medicare to cover specified gaps.
3. C. A hospital indemnity policy that becomes part of Original Medicare after enrollment.
4. D. A Medicaid eligibility determination that automatically replaces Parts A and B.

Answer choices

1. A. A presumptive death benefit, because any income reduction is treated as death under disability insurance, and the action would be recorded under the insurer's ordinary service procedures.
2. B. A hospital indemnity benefit, because reduced work hours are the same as hospital confinement.
3. C. A residual disability benefit, because the policy can pay a proportionate benefit when disability causes a measurable loss of earnings while the insured continues working.
4. D. A life-only annuity benefit, because residual disability converts lost income into retirement income.

Answer choices

1. A. Require a new medical exam solely because the employee retired.
2. B. Convert the group life coverage into Medicare supplement insurance.
3. C. Treat retirement as termination and allow qualifying conversion to an individual life policy without evidence of insurability.
4. D. Deny conversion because retirement is never treated as termination.

Answer choices

1. A. Sign as witness for a different applicant whose signature the producer did not see.
2. B. Witness only the signature actually observed and complete the attestation accurately before submission.
3. C. Leave the witness statement false because insurers never rely on producer attestations.
4. D. Ask the applicant to sign the producer's name on the witness line.

Answer choices

1. A. A life-only option on one spouse, because payments continue automatically to the second spouse for life.
2. B. A fixed-period option, because payments are guaranteed until both spouses die regardless of the stated period, and the insurer would reflect that treatment in the policy records.
3. C. A joint-and-survivor life income option, because payments are structured around two lives and continue according to the survivor terms.
4. D. A lump-sum surrender, because surrender guarantees lifetime income to both spouses.

Answer choices

1. A. No. NJDOBI explains that state mandated health benefits do not apply to self-funded employer plans in the same manner because the employer bears the claims risk.
2. B. Yes. Every self-funded employer plan is legally an NJDOBI-issued insurance policy.
3. C. Yes. Using any third-party administrator makes the plan fully insured for all state mandate purposes.
4. D. No, because self-funded employers are prohibited from offering health coverage in New Jersey.