Free New Jersey Life Insurance Practice Exam Online

Correct answer: B. The New Jersey Department of Banking and Insurance (DOBI)

Correct. DOBI, headed by a Commissioner, is the agency created under Title 17B to license and regulate insurance producers and insurers in New Jersey.

• A: Incorrect. Consumer Affairs licenses many professions in New Jersey but not insurance producers.
• C: Incorrect. Taxation handles state tax collection, not insurance licensing or market conduct.
• D: Incorrect. The BPU regulates utilities such as gas, electric, and telecom, not insurance.

Correct answer: C. N.J.S.A. 17B:30-6

Correct. N.J.S.A. 17B:30-6 prohibits misleading, incomplete, or fraudulent comparisons made to induce a policyholder to lapse, surrender, or replace a policy or annuity contract.

• A: Incorrect. That section addresses rebates and special inducements, a separate unfair practice from twisting.
• B: Incorrect. That section is the incontestability provision, unrelated to twisting.
• D: Incorrect. That provision is part of the annuity best-interest rule's producer duties, not the twisting prohibition.

Correct answer: A. The New Jersey Insurance Producer Licensing Act, N.J.S.A. 17:22A-26 et seq.

Correct. N.J.S.A. 17:22A-26 et seq. is the New Jersey Insurance Producer Licensing Act, which governs producer licensure separately from any other professional licensing statute.

• B: Incorrect. The Real Estate License Act governs real estate salespersons and brokers, an entirely different licensing scheme under a different Title.
• C: Incorrect. The Consumer Fraud Act addresses deceptive commercial practices generally, not insurance producer licensing.
• D: Incorrect. That statute addresses how insurers must handle claims, not how producers become licensed.

Correct answer: C. 20 hours

Correct. New Jersey requires 20 hours of prelicensing education for the life line of authority, the same per-line figure applied to accident and health, property, and casualty.

• A: Incorrect. 40 hours is not New Jersey's per-line figure; it would only apply if two 20-hour lines were combined into one course package, which is not how the life line is set.
• B: Incorrect. 12 hours is below New Jersey's actual per-line prelicensing requirement.
• D: Incorrect. 8 hours is far short of New Jersey's actual prelicensing requirement for the life line.

Correct answer: A. PSI Services

Correct. PSI Services administers New Jersey's insurance producer licensing exams, including scheduling, delivery, and score reporting.

• B: Incorrect. Pearson VUE administers exams for many other states, but candidate materials specifically instruct New Jersey applicants not to follow Pearson VUE instructions.
• C: Incorrect. Prometric is a testing vendor used by other licensing boards, not New Jersey's insurance exam program.
• D: Incorrect. ExamFX is a prelicensing and continuing-education course provider, not the exam delivery vendor.