New Jersey Life Insurance Exam Practice Question
To encourage the sale of a Term Life policy, a producer may legally promise
Correct Answer: B
Rationale: Option B is valid as it reflects a standard practice in life insurance policies, allowing policyholders a Ten-Day Free Look period to review terms and conditions. This transparency builds trust and encourages sales.
Option A is misleading; producers cannot promise benefits beyond those outlined in the policy, as this could lead to misrepresentation.
Option C is incorrect; while some policies may have level premiums, not all Term Life policies guarantee that premiums won’t increase upon renewal.
Option D is also inappropriate; producers cannot promise to match premiums from other companies as this could violate ethical guidelines and regulations.
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