Laws and rules
When does the open enrollment period begin for Medicare supplements?
Three months before your 65th birthday
In the state of New Jersey, an applicant must apply for a Producer license within what period of time from the date of passing the state exam?
1 year
Which of the following is true regarding the New Jersey Insurance Guaranty Association? A producer may advertise that a policy is covered by the Association A producer may advertise the existence of the Association Only an insurance company can advertise the existence of the Association None of the choices
None of the choices
When the Commissioner suspects a producer is engaged in unfair trade practices, a hearing may be held after giving the person advance notice of at least how many days?
10 days
Once an accident and health insurance policy has been in force for ____ year(s), The policy may not be contested by the insurer.
2
Individual life insurance policy has recently labs. She may reinstate her policy within ___ years
3
After passing the state examination, the producer is issued a temporary certificate. How long is the temporary certificate valid?
60 days
Under New Jersey law, what may the insurer REQUIRE to determine the exact cause of death if death appears accidental?
Autopsy
Publishing information which is false and maliciously critical to an insurer And is intended to cause injury is a prohibited practice known as
Defamation
ABC Life Insurance company's home office is located in Massachusetts and is incorporated in Massachusetts. In New Jersey they are considered to be
Foreign
A debtor may receive Credit Life insurance in which of the following forms?
Group term life
Voluntarily terminated his producer's license. If he changes his mind, his license may be reinstated during the same license. If
He completes a new license application
The New Jersey Life and Health Guaranty Association Protects life insurance death benefit claims up to
$500,000
All pre-licensing course completion certificates are valid for a period of
2 years
The licensee shall advise the Department of banking and insurance of the closing of a branch office within how many days?
30 days in writing
How often must an insurance producer's license in New Jersey be renewed?
Every two years
As of January 1, 2007, a producer's license expires
Every two years on the last day of the producer's birth month
The names of the insurance companies represented by the producer
Is available to the public
A producer's secretary who solicits prospects on the telephone
Must be licensed as a producer
A guardian, taking over a Producer's business, may do so with a
Temporary license
The Guarantee Association Act provides that when a Court Order of Liquidation exists, the insurer
Is insolvent
Before conducting an HIV related test, and ensure is required to obtain written authorization from the
Proposed insured
If credit life insurance is terminated before the scheduled maturity date of the dead, any unearned premium held by the insurer will be?
Refunded to the debtor
Which of the following is the process by which one life insurance contract is terminated or changed substantially and another is written in its place?
Replacement
The National Do Not Call list is monitored by which of the following?
The Federal Government (Federal Trade Commission)
When a Medicare supplement policy is purchased during the open enrollment.
The policy must be issued regardless of health status
Which of the following situations would be suitable for a temporary work authority?
When an applicant passes a licensing examination and answers all background questions negatively
Before a licensed agent is eligible to transact insurance sales, they must be
appointed by an insurance company
A Buyer's Guide MUST
Contains content approved by the Commissioner
Insurance licenses are intended to be issued for the purpose of authorizing the transaction of business with members of the general public and not primarily allowing someone to benefit from commissions on business which ensures their personal interest. This is a description of which of the following?
Controlled business
Just passed her New Jersey insurance licensing examination. She was required to apply for a producers license within ____ months.
12
After passing the state Producer licensing exam, application for the license must be made within
12 months
A licensed producer is required to file notice of any change of address within how many days?
30 days
A producer must file a Branch Office registration form with the DOBI at least how many days before beginning operations?
30 days
What is the free look period on an Medicare supplement policy?
30 days
The Commissioner may revoke a producers license if it is found that the commissions and on "controlled business" doing any 12 month period exceeded what percentage of the producers aggregate commissions on all business written
50%
New Jersey insurance law requires eligible individuals to make an election to continue health insurance benefits within a MAXIMUM of ___ days after coverage termination.
60
In the state of New Jersey, advertisements of which of the following are prohibited?
A trademark in Lieu of the Company's name
Advertising material for a life insurance policy does not need to contain which of the following?
Agent's commission rate
An insurance company days organizer charted in a country other than the United States is best defined as
Alien
Claims may be contestable for material misrepresentation for what period?
Always
Twisting is
An unfair trade practice
How long must an insurance company keep records on for life insurance replacement activity?
At least five years
Which of these is not considered a form of life insurance advertisement?
Buyer's Guide
A document providing basic information about life insurance policies in general is called a
Buyer's guide
The Department of Banking and Insurance can make information pertaining to a Producer's license, available through?
Certificate of License Status Report
The Commissioner issues a subpoena to a producer. The producer designed not to respond. Which course of action must be taken by the commissioner?
Commissioner may impose an administrative penalty
Advertisements of insurance in a local newspaper, must be approved by
Commissioner of insurance
When the word "insurance" Appears in a producers business name, which of the following words cannot be approved?
Company
Advertising regulations exist in order to
Demonstrate full and truthful disclosures to the public
Which of the following circumstances requires an individual to be a licensed producer?
Discussing premiums with a potential insured
If an insured receives a Notice of Claim Under an individual health policy, and fails to provide proof of loss forms within 15 days, the insured must?
File a written proof of loss, detailing the occurrence, character and extent of the loss
A producers meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics need to be discussed with the client?
Financial objectives
The New Jersey and Life and Health Insurance Guaranty Association is
Funded by assessments on member companies
An agent is an
Licensed producer who has a written contract to represent an insurer
Which of the following is not contained in a certification of license status?
Licensee's place of birth
A Buyer's Guide and Policy Summary
Must be delivered with or prior to policy delivery
An example of an unfair method of competition is
Overstating the benefits of an insurance policy
Reinstatement of an individual health insurance plan requires?
Payment of premium and evidence of insurability required
A written statement describing the elements of a policy is called a
Policy Summary
Which of the following MUST contain a "Statement of Policy Cost and Benefit information"?
Policy summary
First year commissions may be legally pay to someone holding a
State license and appointment with the paying insurer
If the Commissioner determines that an individual has engaged in an act violating state insurance laws, the Commissioner may issue an order requiring the violator to
Stop engaging in those acts
Which of the following actions is required by an agent who is replacing an existing life insurance policy?
Submit to the replacing insure a list of the policies to be replaced
The commissioner of insurance is appointed by which of the following?
The governor
Each of the following about branch offices is true, except
The office must be open 9 to 5, 5 days a week
When new Life Insurance is to be purchased, the solicitation will be considered a replacement transaction if, in conjunction with the sale, existing Life Insurance will be subject to borrowing for amounts exceeding which of the following?
25% of the policy loan value
A branch office registration form is required to be filled at least ___ days before selling insurance out of that branch.
30
Within how many days must a producer notify the department of banking and insurance of a change in address?
30
In New Jersey, a Producer is required to notify the DOBI of any change in resident or business address, within what period?
30 days
Under the New Jersey Continuance it Benefits Law, notice to extend coverage is required within how many days of a qualifying event?
30 days
In accordance with New Jersey law, a Producer must remit health insurance premiums to the insurer within what period?
7 business days
A health insurer must be provided with written proof of loss ___ days after the date of loss.
90
All advertisements for health insurance shall make clear the identity of the
insurer
The insurance commissioner may revoke a producer License for
Engaging primarily in controlled business sales
The purpose of the life and health insurance guaranty Association is to
Ensure that claims filed against insolvent insurance companies will be paid
When replacement of individual life insurance is involved, an agent must furnish a Notice Regarding Replacement of life insurance to which of the following?
The applicant only
The death benefit of credit life and health insurance is paid to whom?
The creditor
What is the maximum fine for a producer violating a New Jersey insurance law for the first time?
$5,000
After a hearing, if the Commissioner determines that a person has willfully engaged in an unfair trade practice, the Commissioner may impose a fine of which of the following?
$5,000 for each violation
Twenty-four Continuing education credits are required to be completed by a producer every
2 years
Health insurance advertisements that mention statistical information are required by New Jersey law to
Accurately convey all pertinent facts
the treasurer of XYZ Insurance Company discovers that the treasurer's Company is being investigated by the banking and insurance commissioner. Because the company is in weak financial condition, the treasure instructs the company claims manager to delay recording several large claims settlement. In this situation, the treasure may be found guilty of which of the following actions?
Committing an unfair trade practice
An effort by an existing insured to prevent replacement and continue existing life insurance policies in force is known as which of the following?
Conservation
Producers may be found guilty of deformation if they make a false statement that is intended to
Malign another insurance company
In the state of New Jersey, consultants charging a fee for advice must be licensed as an
Producer
The marketing of Medicare supplement is regulated to prevent all the following EXCEPT
Replacement of any existing coverage
A branch office registration form must be filed with the Banking and Insurance Commissioner a MINIMUM Of how many days before conducting business in that office
Thirty
In a group medical expense health insurance plan, coverage for alcoholism is treated as?
Treated as any other illness, sickness or disease
In order to obtain a producer's license, The applicant's application must be received by the Department within what period of time listed below?
12 months after passing the state exam
EXCEPT for fraud, the time after issuance of a policy during which an insurance company may contest a health insurance claim due to the statements on an application is
2 years
Who would make the final determination on whether or not an insurance advertisement is misleading?
Banking and Insurance Commissioner
The amount of Credit Life insurance may at no time
Be greater than the amount of debt
Knowingly making misleading statements that would cause an insurer to labs, assign, or a terminate an insurance policy in order to switch companies is an example of
Twisting
Twisting is best defined as
Using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy