New Jersey Life Producer Law Practice Test

Which of the following activities does not require a license?

1. Explaining policies to policyholders in response to their questions

2. Soliciting clients for new insurance

3. Filing claims on behalf of clients

4. Advising clients on policy options

The correct answer is: Explaining policies to policyholders in response to their questions

Explaining policies to policyholders in response to their questions is an activity that does not require a license because it falls under the category of customer service or support. In this role, an individual is simply providing information that is already contained within the policy documentation or clarifying details about coverage. This does not involve selling a policy or providing advice that would require in-depth knowledge of insurance products, which licensing aims to ensure. On the other hand, soliciting clients for new insurance, filing claims on behalf of clients, and advising clients on policy options involve activities that require a licensed individual. These activities often require a more comprehensive understanding of insurance law, regulations, and policies which licensed producers possess, thus ensuring the consumer receives accurate and compliant assistance.