New Jersey Life Producer Practice Exam

In New Jersey, who represents the insured for a fee in obtaining a life insurance policy?

1. Insurance adjuster

2. Insurance broker

3. Insurance agent

4. Insurance underwriter

The correct answer is: Insurance broker

In New Jersey, an insurance broker represents the insured and acts on their behalf when obtaining a life insurance policy. Brokers have a fiduciary duty to the consumer, meaning they must prioritize the insured's interests over their own. They are typically compensated through fees or commissions and have the ability to offer products from multiple insurance companies, allowing them to provide a variety of options tailored to meet the unique needs of their clients. This is distinct from an insurance agent, who usually represents a specific insurance company and acts on behalf of that company to sell policies. An insurance adjuster typically handles claims and assesses damages after an event leading to a claim, and an insurance underwriter evaluates the risks of insuring applicants to determine policy acceptance and pricing. Therefore, the role of the insurance broker is specifically focused on representing the insured rather than the insurance company, making it the correct choice in this context.