New Jersey Laws and rules

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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

In New Jersey, the penalty for a first time violation of the code is?

$5,000

The New Jersey Life and Health Guaranty Association Protects life insurance death benefit claims up to

$500,000

How long is the contestable period for health insurance policy sold in New Jersey?

2 years

Within how many days must a producer notify the department of banking and insurance of a change in address?

30

A branch office certificate must be filed at least how many days before conducting business at the specified branch?

30 days

Which of the following is mandatory coverage for our group health care service contracts?

Treatment for alcoholism

Which of the following is an example of defamation?

Using derogatory statements about an insurance company's financial condition

Twisting is best defined as

Using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy

A false written or oral statement made by a producer for the purpose of replacing an existing policy to the detriment of the insured is

twisting

All advertisements for health insurance shall make clear the identity of the

insurer

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

Twenty-four Continuing education credits are required to be completed by a producer every

2 years

What is the maximum fine for a producer violating a New Jersey insurance law for the first time?

$5,000

Which of the following is the financial penalty for violation of cease and desist order?

$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

In the state of New Jersey, they guarantee association provides which of the following coverage in the event that a member company becomes insolvent?

$500,000 or the amount of the loss, which ever is less

When the insured enters into an agency contract with a licensed producer, it must file a Notice of Agency Contract with the Department within how many days?

15 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

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

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

Which of the following is the number of days required in a notice of hearing?

10 days

After an annuity contract has been delivered by the producer, the free look period is a a minimum of

10 days, but not more than 30 days

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

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

All pre-licensing course completion certificates are valid for a period of

2 years

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

Individual life insurance policy has recently labs. She may reinstate her policy within ___ years

3

A branch office registration form is required to be filled at least ___ days before selling insurance out of that branch.

30

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

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

What is the free look period on an Medicare supplement policy?

30 days

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

In New Jersey, an insurer is required to maintain files of all Published and printed advertisements for

5 years from the date of last use

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 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

An example of rebating would be

A producer who shares commissions with a client

When a producer, domiciled In New York, with an office location in New Jersey, Alex New Jersey as a resident state, he is acting as

A resident licensee in New Jersey

In the state of New Jersey, advertisements of which of the following are prohibited?

A trademark in Lieu of the Company's name

XYZ Company is looking to replace their existing group health coverage with another plan. The replacing insurer is required to

Accept all the individual eligible under the previous plan

Health insurance advertisements that mention statistical information are required by New Jersey law to

Accurately convey all pertinent facts

In advertisements of life insurance and annuities, all of the following are true except

Advertisements must include training materials provided to the producer

Advertising material for a life insurance policy does not need to contain which of the following?

Agent's commission rate

Employer sponsored group health insurance provides coverage for which of the following?

Alcoholism

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

Which of these may not be used in a health insurance advertisement?

An insurance company's trademark instead of the company's actual name

Someone who sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer is called:

An insurance producer

Twisting is

An unfair trade practice

How long must an insurance company keep records on for life insurance replacement activity?

At least five years

Under New Jersey law, what may the insurer REQUIRE to determine the exact cause of death if death appears accidental?

Autopsy

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

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

In New Jersey, group health insurance may be offered to all of these groups except

College seminar participants

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

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

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

Publishing information which is false and maliciously critical to an insurer And is intended to cause injury is a prohibited practice known as

Defamation

Advertising regulations exist in order to

Demonstrate full and truthful disclosures to the public

Insurance advertisements in a local newspaper are regulated by?

Department of banking and insurance

Which of the following circumstances requires an individual to be a licensed producer?

Discussing premiums with a potential insured

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

One of the roles of the banking and insurance commissioner is to

Establish continuing education requirements

The commissioner may

Establish continuing education requirements

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

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

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

The New Jersey and Life and Health Insurance Guaranty Association is

Funded by assessments on member companies

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 names of the insurance companies represented by the producer

Is available to the public

The Guarantee Association Act provides that when a Court Order of Liquidation exists, the insurer

Is insolvent

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

Producers may be found guilty of deformation if they make a false statement that is intended to

Malign another insurance company

The law that established insurance transactions should be regulated by the states is called the

McCarran-Ferguson Act

The New Jersey individual health coverage program is designed to provide comprehensive health benefits for

Medically uninsurable New Jersey residents

A producer who intentionally makes an untrue or incomplete statement in the course of an insurance transaction may be guilty of

Misrepresentation

A Buyer's Guide and Policy Summary

Must be delivered with or prior to policy delivery

A producer's secretary who solicits prospects on the telephone

Must be licensed as a producer

Which entity is responsible for regulating insurance advertisements in New Jersey?

New Jersey Department of banking and insurance

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

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

In the state of New Jersey, consultants charging a fee for advice must be licensed as an

Producer

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 marketing of Medicare supplement is regulated to prevent all the following EXCEPT

Replacement of any existing coverage

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

A guardian, taking over a Producer's business, may do so with a

Temporary license

The National Do Not Call list is monitored by which of the following?

The Federal Government (Federal Trade Commission)

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

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 a Medicare supplement policy is purchased during the open enrollment.

The policy must be issued regardless of health status

In a group medical expense health insurance plan, coverage for alcoholism is treated as?

Treated as any other illness, sickness or disease

Which of the following is true concerning the proceeds of a life insurance policy?

There is protection of proceeds against the insured's and the beneficiary's creditors

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

When does the open enrollment period begin for Medicare supplements?

Three months before your 65th birthday

Insurers are required to keep copies of policy summaries and Buyers Guides on file for at least

Three years after the documents are used

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

Before a licensed agent is eligible to transact insurance sales, they must be

appointed by an insurance company

In the advertising of individual life insurance policies, an "introductory" or "special enrollment" may not be made available until any previous enrollment period for the same policy has been closed for at least how long?

three months

Which of the following may be used as continuation education credit?

Completing a CLU designation course

Which of the following is not a duty of the commissioner?

Establish insurance rates

Which of the following would be considered an unfair claim practice?

Misrepresenting insurance policy provisions affecting a loss

A newborn is required to be covered for ____ days From the moment of birth

30

The state of New Jersey considers Lloyds of London what kind of insurance company?

Alien

An insurance broker is someone who represents which of the following?

An insured or prospective insured

Continuing education credits may be approved for which of the following?

Ethics

A written statement describing the elements of a policy is called a

Policy summary

The producer charged a fee to a sales prospect for analyzing insurance coverages. According to New Jersey law, a reasonable relationship must exist between the fee and the

Substance of the services performed

The purpose of the New Jersey temporary disability benefits law is to

Supplement unemployment compensation benefits

Which of the following sells reinsurance?

The assuming insurer

A temporary producers license may be issued for up to

180 days

A producer must notify the commissioner within ______ days of a felony conviction.

30

The replacement of an existing insurance policy requires notice that the owner can return the policy within _____ days for a full refund. (Free look period)

30

Replacement forms must be kept on file by the agent for a minimum of how many years?

5

The commissioner must approve

Continuing education courses

The department of insurance may revoke a producers license for which of the following?

Felony conviction

In life insurance, replacing companies must keep records of all replacement materials on file for how long?

Five years or until the next regular examination by the commissioner

An insurance company may only pay A sales commissions to

Individuals who are registered with the NAIC

In New Jersey, health insurance advertisements are required to contain the

Insurance company's name

The commissioner of insurance may take which of the following actions when a producer has engaged in an Unfair trade practice?

Issue a Cease and Desist Order

All of the following are typically included in a life insurance policy illustration except

Names of the beneficiary

The solicitation of a non-authorize contract in New Jersey violates

New Jersey code

When replacing group insurance, the replacing policy must cover ongoing claims from the former policies, under which of the following?

No loss no gain law

Producers selling insurance in New Jersey, while having a residence and business address outside the state, are?

Non-resident producers

A Medicare supplement policy can be canceled by the insurer for

Nonpayment

Which of the following must contain a "Statement of Policy Cost and Benefit Information"?

Policy summary

A producer Has recently died and leaves behind a spouse. In order for the producers insurance business to continue, the Department of banking and insurance may issue to the producer spouse an

Temporary insurance license

The state of New Jersey requires completion of a total of how many continuing education credits upon renewal of a producers license?

24 credits 3 of which are ethics

After passing the state examination, the producer is issued a temporary certificate. How long is the temporary certificate valid?

60 days

the producer receives a premium for an individual health insurance policy. Pierre must remit the premium to his insurer within _____ business days of receipt.

7

An insured must submit a proof of loss on the health insurance claim within how many days after the date of loss?

90

In New Jersey a small group health plan requires a continuance of prior credible coverage provided that there has been no gap in coverage for a period not to exceed what period of time?

90 days

Maternity care must be provided to mother and newborn in a license for facility for at least how many hours following A cesarean section?

96 hours

When the word "insurance" Appears in a producers business name, which of the following words cannot be approved?

Company

After advertisements are last use, insurers are required to keep copies of the ad on file for how many years?

Five years

An insurance consultant is best defined as an

Producer who charges fees for advice

Before conducting an HIV related test, and ensure is required to obtain written authorization from the

Proposed insured

The New Jersey temporary disability benefits law

Provides non-occupational disability benefits

Offering to return a portion of the premium to the insured as an inducement to purchase insurance is an illegal act known as which of the following?

Rebating

What is the process for a producer voluntarily terminating his/her license?

Returning his/her License to the banking and insurance department

Under the New Jersey continuance of benefits law, notice to extend coverage is required within how many days of a qualifying event?

30 days

When credit life or health is written, evidence of coverage (a policy or certificate of insurance) must be delivered to the debtor when the debt is incurred or within how many days?

30 days

An agent is required to keep replacement forms on file for at least ____ years.

5

Advertising regulations exist to

Assure full and truthful disclosures to the public

Which of the following are retained at the expense of an insurance buyer to give advice on insurance needed by the buyer?

Brokers and consultants

A(n) ______ Insurance company is one that was formed under the laws of a state other than New Jersey.

Foreign

A buyers guide must

Have its content approved by the insurance commissioner

Maria the agent would like to advertise an annuity product on a highway billboard. which of the following must be included in the advertisement?

Her name

The agent would like to advertise in annuity product on a highway billboard. Which of the following must be included in the advertisement?

Her name

In order to be eligible for a nonresident producer license an individual must do which of the following?

Hold a comparable license in another state

An insurance company owned by its policyholders is known as which of the following?

Mutual company

Which of the following designations is regulated by the department of banking and insurance?

National Association of insurance commissioners (NAIC)

The producer is giving insurance advice regarding a prospect's existing coverage. If Jay were to receive a fee for this advice (in addition to his commission), he MUST

Obtain a signed memorandum from the prospect acknowledging the amount of compensation

Producer license denial or appeal that a hearing before

Office of administrative law

Replacement regulation is designed to protect the interests of

Policy owners

Replacement regulation is designed to protect

Policy owners from misrepresentations and loss of benefits

Producer who sells an individual life insurance policy in New Jersey must deliver to the policy owner an

Policy summary and buyers guide

All Medicare supplement policies must contain which provision

Pre-existing conditions May only be excluded from coverage for a maximum of 6 months

During the solicitation of a Life policy, when must an insurer must furnish a prospective buyer with a Buyer's Guide and a Policy Summary?

Prior to, or at the same time of policy delivery

An agent has committed an insurance crime that violates US code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime?

US attorney general

In the health insurance policy, when should the written notice of claim be given to the insurer?

Within 20 days after the occurrence or commencement of any loss covered by the policy

An insurance producer is issued an _____ as evidence of authority.

License


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