New Jersey Life Insurance Exam Practice Question
To legally receive a sales commission from an insurance company, an individual MUST be
Correct Answer: C
Rationale: To legally receive a sales commission from an insurance company, an individual must be licensed by the state. This licensing ensures that the agent is knowledgeable about insurance products and complies with regulatory standards, protecting consumers.
Option A is incorrect; registration with the SEC is not required for insurance sales, as it pertains to securities. Option B is misleading; while employment can be a pathway, independent agents can also earn commissions without being direct employees. Option D, being bonded, is not a universal requirement for receiving commissions, although it may be necessary for certain roles or states.
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