NJ Life & Health study guide
NJ Life & Health · Work through your exam, one topic at a time.
The New Jersey Life and Health Insurance Producer license is a state credential that authorizes an individual to sell life insurance, accident and health insurance, and annuity products in New Jersey. Candidates pursue it to begin a career as an agent, broker, or benefits producer, or to add a line of authority to an existing insurance license. The NJ Life & Health study guide has 6 sections and about 2,493 words.
01Life Insurance Basics
Life insurance is a risk-transfer device: many policyowners pay premiums into a pool, and the insurer pays a death benefit to the few whose insureds die. Three forces drive the premium: mortality (how likely death is for the insured class), interest (what the insurer earns investing premiums in advance), and expense (commissions, overhead, taxes).
354 words, about 2 min02Life Insurance Policies
Term covers a set period and builds no cash value . Know the variants: level term, decreasing term (often mortgage protection), increasing term, annually renewable term (ART), and renewable/convertible features.
347 words, about 2 min03Annuities
Entire contract - the policy plus the application constitute the agreement; only an authorized officer may change it. Free look - typically 10 days after delivery to return for a full refund.
709 words, about 4 min04Health Insurance Basics
Health insurance addresses morbidity (the incidence and duration of illness or injury), just as life insurance addresses mortality. Individual coverage is medically underwritten; group coverage is underwritten as a group, without individual evidence of insurability, and typically requires minimum participation and employer contribution.
329 words, about 2 min05Health Insurance Policy Provisions, Options and Riders
The NAIC model and state law mandate a core set of provisions you must be able to identify: Entire contract / changes - only a company officer may alter the policy. Grace period - commonly 7 days for weekly premium, 10 days for monthly, and 31 days for other policies; coverage continues, but the insurer may deduct the unpaid premium from a claim.
380 words, about 2 min06New Jersey Insurance Laws, Rules and Regulations
The New Jersey Department of Banking and Insurance (DOBI) regulates insurance. A person must hold a valid producer license for the lines sold and be appointed by the insurer before soliciting business for it.
374 words, about 2 min