Chapter 8 NJ General Regulations Part 1

For any person violating an insurance regulation on subsequent offenses after the first offense, the Commissioner may impose a penalty not exceeding:

$10,000

The Insurance Commissioner in New Jersey is required to provide a surety bond of what amount?

$25

For any person violating an insurance regulation as a first offense, the Commissioner may impose a penalty not exceeding:

$5,000

A person who is charged with engaging in unfair trade practices must be served with a statement of the charges and an advance hearing notice of at least:

10 days

Joe Smith has received a certified letter from the Insurance Department that he must appear at a hearing concerning his business practices. The hearing must be held in:

10 days

The duties of the Commissioner include which of the following?

Administer the work of the department, Determine all matters of policy within the Commissioner's jurisdiction, & Appoint and remove officers and other personnel employed within the department

The Insurance Commissioner is:

Appointed by the governor

In New Jersey, the government agency that regulates Insurance companies, company representatives, and administers insurance law and regulation is known as:

Department of Banking and Insurance

Which of the following is not one of the duties of the Commissioner?

Determine matters of policy for the State

For which of the following actions is an insurance producer NOT subject to a penalty as imposed by the Commissioner, which may include suspending, revoking or refusing to issue or renew his license?

Having been convicted of a misdemeanor traffic offense

What happens when there is ambiguity in an insurance contract?

It can be taken to court for interpretation & The courts usually rule in favor of the insured

If the Commissioner has reason to believe that a person has engaged in an unfair method of competition, or an unfair or deceptive act, he will issue and serve on that person a statement of the charges and notice of hearing which will not be:

Less than 10 days after date of service

Which of the following laws or court cases recognizes a state's right to regulate insurance matters instead of the federal government?

McCarran-Ferguson Act (Public Law 15)

The Commissioner of Insurance has the power to:

Subpoena witnesses

All of the following statements are true about the Commissioner, EXCEPT:

The Commissioner can have interest in a banking institution, but not an insurance company.

Which of the following is not true about the regulation and enforcement of insurance laws within a state?

The Department of Insurance is tasked with creating new insurance laws.

What is the purpose of state insurance regulations?

To protect the public from unfair acts of insurance companies or it representatives., To protect the public against the insolvency of insurers & To protect the public interest

What decision ruled that insurance business is considered interstate commerce?

US v South-Eastern Underwriters Association

If, after conducting a hearing, the Commissioner determines that an individual is guilty of an unfair act or practice, then for each act or violation he may order a payment not to exceed

$1,000

The Insurance Commissioner has the power to do any of the following, EXCEPT:

Make laws that regulate insurance matters