NJ Laws

Credit life policy Claims

All claims must be reported promptly to the insurer and the insurer must maintain adequate claim files.

Producer records

All producers shall maintain full and correct transaction records of the business done by them for a period of 5 years.

Illustrations

An illustration is a presentation, graph, or chart that includes non-guaranteed elements of a policy of life insurance over a period of years. Non-guaranteed elements are the premiums, benefits, values, credits or charges under a policy of life insurance that are not guaranteed or not determined at issue.

Credit life term of coverage

Coverage begins when the borrower becomes obligated to the creditor. The maximum term is 5 years

Credit life policy Refund

In the event of early termination, any refund due of unearned premium shall be paid to the insured debtor within a reasonable time.• If a creditor collects payment from a borrower for a Credit Life policy, but the policy is not issued, the creditor must return it directly to the borrower

Intimidation

Intimidation is the unfair trade practice of using threat or force to restrict fair trade in the transaction of insurance.

health legal action

No legal action can be initiated within 60 days after proof of loss has been submitted to the insurance company. In addition, no legal action can be initiated after 5 years from the initial time written proof of loss has been provided.

Remitting Premiums

Premiums collected by a producer shall be deemed to be received by the insurer the producer represents. A producer is also required to witness an applicant's signature. All funds must be remitted to the insurer within 7 business days for accident and health policies.

Do Not Call List

The National Do Not call List was adopted to allow anyone to list their phone number and stop getting telephone solicitations. Users of The National Do Not call list must review and update their list every 31 days.

Buyer's guide

The buyer's guide enables applicants to compare different life insurance policies and help them choose which policy is best for their needs

health insurance grace period

The grace period for health and accident insurance is required to be no less than 7 days for weekly premium policies, 10 days for monthly premium policies and, 31 days for all other policies. If premium is paid within the grace period, coverage shall remain in effect.

Grace Period

The required grace period for life insurance policies in New Jersey is 30 days. The grace period is a time which a policy remains in force after the premium is due, but not paid. If the insured dies during the grace period, the death proceeds will still be paid, minus the premium due.

The Commissioner may revoke a producer's license if

it is found that the commissions earned on controlled business during any 12 month period exceeds 50% of the producer's aggregate commissions on all business written, Obtaining a license for the primary purpose of writing controlled business is prohibited.

A lapsed license may be reinstated within

one year of the suspension date

When a group plan is replaced with another, the replacing insurer cannot deny services for preexisting conditions if

there is no gap between carriers and prior treatment had been covered under the prior carrier.

Notice of Replacement

under New Jersey law the replacement of life insurance contracts with a new contract requires the producer to give the applicant a written comparison and summary statement at the request of the policyholder and to follow instructions regarding replacement as obtained from the appointing insurer.

health notice of claim

written notice of a claim must be given within 20 days after a covered loss starts or as soon as reasonably possible.

A life insurance advertisement made by an individual's paid endorsement testimony must:

• Represent their honest opinion• State that the individual is a paid spokesperson• Be their current opinion

The Commissioner may place on probation, suspend, or refuse to issue or renew an insurance producer's license or may levy a penalty of up to $----- for the first violation and $------ for all subsequent violations

$5k for first and $10k for subsequent

The Commissioner may place on probation, suspend, revoke, refuse to renew, or deny a license to any person who has:

1. Provided incorrect, misleading, incomplete or untrue information in the license application 2. Violating any insurance laws, regulations, subpoena, or orders from the Insurance Commissioner 3. Obtaining to obtain a license through fraud or misrepresentation, 4. Intentionally misrepresent the terms of an insurance contract• Been convicted of a felony 5. Committed any insurance unfair trade practice 6. Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in this or any other state.7. Having an insurance license denied, suspended, or revoked by another state 8. Forging a name to an insurance document or application

A health or disability policy is incontestable after it has been in force for a period of

2 years. Only fraudulent misstatements in the application may be used to void the policy or deny any claim at this point.

Producers must report any bankruptcy, felony conviction, or any other administrative action that occurs in New Jersey or another jurisdiction to the Commissioner within

30 days

The replacing insurer must allow the owner of the life insurance policy to return the policy within how long to receive a refund?

30 days after delivery for a full refund

Producers must report a change in address, email address, or name to the Commissioner within

30 days of the change

All health plans that provide coverage to family members of the insured must provide coverage for the insured's newborn child from the moment of birth, and for a period of

31 days

Maternity care must be provided to mother and newborn in a licensed health facility for at leas

48 hours of inpatient care following vaginal delivery• 96 hours of inpatient care following cesarean section

• Replacing companies must keep records of all replacement materials on file for how long?

5 years or until the next regular examination by the Commissioner

health Accidental death and dismemberment benefits shall be payable if the loss occurs within

90 days from the date of the accident.

Business entity

A business entity that acts as an insurance producer in any manner (sells, solicits, negotiates, advertises, collects commission) must be licensed in New Jersey.

Alien insurance company

A company that is chartered and organized in any country other than the United States. It is considered an alien company in all states.A company chartered in Canada would be an alien company in New Jersey

Domestic insurance company

A company that resides and is incorporated under the laws of the state in which its home office is located. A company chartered in New Jersey would be a domestic company in New Jersey

Foreign insurance company:

A company whose home office is located in another state. It is considered to be a foreign company in all states except for its home office.A company chartered in Texas would be a foreign company in New Jersey

Credit life Choice of insurer

A debtor does not have to purchase credit life insurance through the lender. A new policy may be purchased that is controlled or owned by the debtor. In this circumstance, the debtor may be required to provide proof of insurance when the debt is incurred.

health timely payment of claims

A health insurer must pay all legitimate claims within 30 calendar days if filed electronically and within 40 days of having received a claim filed non-electronically.

Reinstatement

A lapsed policy may be reinstated within 3 years from the due date upon evidence of insurability and all back premiums are paid with interest. The insurer must comply with the request within 30 days of receipt

Minors

A minor who is at least 15 years old may contract for an insurance or annuity policy in which the minor has insurable interest.

Shared Commissions

A producer may share a commission with another producer when the other producer is licensed in the same line of business.

Nonresident producers

A producer who holds a resident license in a different state may apply for a nonresident license in New Jersey, as long as both states have a reciprocal agreement. To apply, nonresidents must submit an application form, proof of resident license in good standing, and fees. Nonresident producer applicants do not have to take the New Jersey state licensing exam, but must not have committed any act for which the license could be denied, suspended, or revoked.

Entire contract

A provision that the policy and the application shall constitute the entire contract between the parties. All statements made by the policyholder are considered representations.

entire contract

A provision that the policy, application, and all attachments shall constitute the entire contract between the parties.

Duplicate coverage

A transaction where health insurance is purchased and the insured already has existing coverage. This can cause total claim payments to be greater than the amount of loss.

Prohibited terms in ads

Advertisements are prohibited from using terms such as investment, investment plan, founders plan, charter plan, savings, savings plan, or similar terms that misleads the buyer into believing that a benefit exists which does not.

The following list is information that should be taken into consideration when making suitable recommendations concerning the purchase, exchange, or replacement of an annuity:

Age• Annual income• Financial situation and needs• Financial experience• Financial objectives• Intended use of the annuity• Financial time horizon• Existing assets • Liquidity needs• Liquid net worth• Risk tolerance

Credit life Policy provisions

All insurance coverage shall be evidenced by an individual policy or certificate (in the case of group coverage).

Disclosure requirements in ads

All pertinent information must be disclosed to the purchaser. Advertisement for policies containing graded or modified benefits must be prominently display any limitations of benefits.

Written Election of State Continuation and Payment of Premium(health)

An employee must make a written election for continued coverage within 30 days of a qualifying event. The same period of election, 30 days, applies for a spouse or dependent child electing State continuation. There is no standard form developed by the SEH Board or any other state agency to elect State continuation. The first premium must be paid within 30 days of making a continuation election. An employer cannot require the first premium to be paid when the election is made.

Insurance agent

An insurance agent is an insurance producer authorized by an insurance company to act as its agent to solicit, negotiate, or sell insurance contracts on its behalf or to collect insurance premiums and countersign insurance policies on its behalf.

Insurance broker

An insurance broker is an insurance producer who represents the insured (for a fee) and places insurance with an insurance company that he does not represent as an agent.

Mutual life insurance companies

An insurance company owned and controlled by its policyowners. These policyholders elect a board of trustees or Commissioners to manage the firm. The profits of a mutual insurance company are returned to the policyowners in the form of dividends or retained as surplus to meet future obligations.

Unauthorized insurer:

An insurance company that has been denied or not yet applied for a Certificate of Authority from the Insurance Department and may not sell insurance in this state.• Also called a non-admitted company

Authorized insurer:

An insurance company that has qualified and received a Certificate of Authority from the Insurance Department to sell insurance in this state. aka admitted co

Stock Insurance Company

An insurance company that is owned and controlled by stockholders. The stockholders provide the capital and share in profits or losses, nonparticipating because the policyowners do not share in the profits of the company, The objective is to produce profits for the owners, the stockholders

health claims forms

An insurance company will send forms for filing proof of loss to a claimant within 15 days after company receives notice of a claim.

Insurance consultant

An insurance consultant is any person who, for a fee, offers to examine any policy for the purpose of giving advice or recommendations with respect to the benefits provided by the contract. A consultant must be licensed in the State of New Jersey.

Assumed names

An insurance producer doing business under any name other than the producer's legal name shall notify the commissioner prior to using the assumed name

Maintenance and duration of license

As of January 1, 2007, producer licenses are renewable every two years (on the last day of the producer's birth month) with fee, renewal application, and proof of completing continuing education (CE). Exceptions are made for producers who are in active military service or other extenuating circumstances by requesting a waiver.

An applicant for a resident producer license in New Jersey must

Be at least 18 years of age, Has not committed any act that is ground for denial, suspension, or revocation, Meet the prelicensing education requirements required by New Jersey law (course must be completed no more than 2 years before application is filed), Have passed the state exam for the lines of authority in which licensure is sought (must apply for license within 12 months of passing state exam), Submit the application with fees

Health insurance policies that provide dependent coverage cannot deny coverage for a child due to:

Born out of wedlock• Not claimed on a dependent on policyholder's federal tax return• Does not live with the policyholder or in the insurer's service area

Complaint records

Complaint records will be kept on a calendar-year basis and the number of complaints shall be compiled at least annually. Records must be kept for at least 5 years.

The Commissioner of Insurance has the power to:

Conduct investigations, Administer oaths, Interrogate licensees, Issue subpoenas, Regulate insurers for insolvency, Suspend and revoke licenses for just cause• Issue cease and desist orders, Regulate most insurance rates, Make a report each year concerning the department's operations and submit to the Governor

Controlled business

Controlled business can be defined as policies written on people that the licensed producer has direct influence over: including family, employers, and/or any company to which the producer has stock control,

A life insurance buyer's guide normally includes basic information such as:

Deciding on how much life insurance to buy• Comparing life insurance policy rates• Comparing life insurance policy requirements

Deferred commissions

Deferred commissions may be paid to a person who sold an insurance policy when the person was a licensed producer at the time of the sale.

cease and desist

Fine of up to $1,000 can be administered for each violation, $5,000 if the violator knew the act was illegal• Violation of a cease and desist order will result in a penalty of up to $5,000

health free look

Health insurance policies must provide a minimum free-look period of 10 days upon policy delivery. This allows the policyowner time to decide whether or not to keep it. If the policyowner decides not to keep the policy within the 10 days allowed, a full refund will be given.• A person who is eligible for Medicare has a free-look period of 30 days

health insurance Reinstatement

If a health policy is reinstated after it had lapsed for nonpayment, there is a waiting period of 10 days before a claim covering sickness will be covered. Injuries sustained from an accident, however, will be covered immediately. Payment of premium and evidence of insurability is always required for reinstatement

health Payment of claims

If benefits are not paid on a timely basis the benefits paid shall bear simple interest from a date 60 days after satisfactory proof of loss was received by the insurer.br />

Group Life Insurance

In the event of employment termination, a person covered by a group policy has the right to convert such coverage to an individual policy within the conversion period (31 days) without proving insurability. If this right is exercised, the employee is responsible for the payment of premium.

Advertisement

In the state of New Jersey, advertisements using a trademark in lieu of the company's name are prohibited. An insurer is required to maintain files of all published and printed advertisements for 5 years from the date of last use.

Genetic testing

Individual or group health plans shall not exclude any person or eligible dependent based on actual or expected health conditions on the basis of genetic testing

The following are forms of credit life that are typically issued

Individual policies of life insurance issued to debtors on a term plan• Group policies of life insurance issued to creditors providing insurance upon the lives of debtors on the term plan• Group policies of accident and health insurance issued to debtors on a term plan, or disability provisions in individual policies of credit life insurance• Individual policies of accident and health insurance issued to debtors on a term plan, or & disability provisions in individual policies of credit life insurance

Insurable interest

Insurable interest means the person acquiring the contract (the applicant) must be subject to loss upon the death, disability, or illness of the insured. Insurable interest must occur at the time the application is taken, but not required afterwards.

Insurance producer

Insurance producer is a term commonly applied to an agent, broker, personal producing agent, or general agent that produces business for the insurer., Producers who are residents of or have their offices in New Jersey fall within the jurisdiction of the Department of Banking and Insurance

Boycott, coercion, and intimidation

It is an illegal practice to commit or coordinate any act or boycott, coercion, or intimidation in order to restrain or monopolize the business of insurance

Defamation

It is an illegal practice to make any public statement or advertisement that contains false or malicious information or unsubstantiated criticisms about an insurance company.

Misrepresentation

It is an illegal practice to misrepresent any fact about an insurance policy, such as policy terms, benefits, value, cost, effective date, or existence of a contract of insurance.

Unfair discrimination

It is an illegal practice to unfairly discriminate against a person in any way on an insurance-related matter. An example would be charging a different rate for someone in the same actuarial class. Fair discrimination is necessary for the issuance of life insurance policies, which is based on mortality. Also, no insurer or producer may cancel or refuse to underwrite or renew a particular insurance risk based on race, color, creed, sex, or blindness of an applicant or policyholder.

Commissions

It is illegal for an unlicensed person to receive commissions from the sale, solicitation, or negotiation of insurance. However, renewal or deferred commissions are payable to retired producers

Insurance fraud

It is illegal to commit an act of insurance fraud, which is defined as any intentional act occurring in the course of insurance business that attempts to deceive or misrepresent a material fact. Any person who, in the absence of fraud or bad faith, reports information regarding an act of insurance fraud will be given immunity

Rebating

It is illegal to offer a premium rebate, gift, or a special advantage of any kind not specified in the contract to consumers as an inducement to purchase an insurance policy.• Any item or consideration given under these circumstances will be considered a rebate if its value exceeds $25

Illegal inducement

It is illegal to promise employment, profits, stock, or returns as an inducement to insurance.

False financial statements

It is illegal to publish any false financial statement regarding a person or entity.

replacement results in policies being

Lapsed, forfeited, surrendered, or otherwise terminated• Reissued with any reduction in cash value• Converted to reduced paid-up insurance, continued as extended term insurance or otherwise reduced in value by the use of nonforfeiture benefits or other policy values• Amended so as to affect either a reduction in benefits or in the term for which coverage would otherwise remain in force or for which benefits would be paid• Reissued with a reduction in cash value• Used in a financed purchase• If a policyowner borrows more than 25% of the existing policy's cash value in order to use that money for a new policy

Right to examine (free-look)

Life insurance policies and annuity contracts must provide a minimum free-look period of 10 days upon policy delivery. This allows the policyowner time to decide whether or not to keep it. If the policyowner decides not to keep the policy within the 10 days allowed, a full refund will be given.

Prelicensing requirements

Life insurance: 20 hours, Accident and health insurance: 20 hours

Unfair trade practices

Misrepresentation, false advertising, defamation, boycott/intimidation, intimidation, false financial statements, unfair discrimination, twisting, Insurance fraud, Illegal inducements, Rebating

acts, omissions, or practices are defined as unfair and deceptive claim settlement practices when knowingly committed or performed with such frequency as to indicate a general business practice, and are prohibited:

Misrepresenting to insured's pertinent facts or policy provisions relating to coverage at issue• Failing to acknowledge and act reasonably promptly upon communications with respect to an insurance claim, Failing to adopt and implement reasonable standards for prompt investigation and processing of insured's claims• Failing to affirm or deny coverage of claims within a reasonable time after proof of loss statements are completed and submitted by insured's• Not attempting in good faith to effect prompt, fair and equitable settlements of claims on which liability has become reasonably clear; Refusing or delaying a settlement solely because there is other insurance available to partially or entirely satisfy the claim loss; the claimant who has a right to recover from more than one insurer has the right to choose the coverage from which to recover and the order in which payment is to be made• Compelling insured's to initiate suits to recover amounts due under an insurance policy by offering substantially less than the amount ultimately recovered in those suits• Failing to provide a reasonable basis for the denial of a claim upon request

When the insurer enters into an agency contract with a licensed producer, it must file a

Notice of Agency Contract with the Department within 15 days

Participating and nonparticipating policies

Policies must clearly state whether they are participating or nonparticipating. An insurer may not pay commissions for the sale of participating policies that are higher than those paid for the sale of comparable nonparticipating policies.

Duties of the producer

Present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the producer. A copy must be left with the applicant• Obtain a list of all existing life insurance and/or annuity policies to be replaced including policy numbers and the names of all companies being replaced• Leave the applicant with the original or a copy of written or printed communications used for presentation to the applicant• Submit to the replacing insurance company a copy of the Replacement Notice with the application

Records maintenance

Producers and insurers must keep full and accurate records of all insurance business in which they are involved. Records must be kept for at least five years.

Representing an unauthorized insurer

Producers are personally liable for the business they transact on behalf of insurers that are not licensed or unauthorized to do business in New Jersey.

Solicitation and sales presentations

Producers must provide applicants and prospects with a Buyer's Guide and Policy Summary prior to, or at the time of delivery, If the policy does not contain a 10 day free-look period, the Buyer's Guide and Policy Summary must be given to the applicant at least 7 days before the initial premium is accepted, Insurers are required to keep copies of Policy Summaries and Buyer's Guides on file for at least 3 years after the documents are used

Reinsurance

Reinsurance is a contract under which an originating insurer, called the ceding insurer, buys insurance for itself from another insurer called the assuming insurer, with respect to part or all of the insurance of the originating (ceding) insurer, An assuming insurer that sells reinsurance in New Jersey must have a specific license to do so

Duties of the replacing insurance company

Require from the producer a list of the applicant's life insurance or annuity contracts to be replaced and a copy of the replacement notice provided to the applicant• Send each existing insurance company a written communication advising of the proposed replacement within a specified period of time of the date that the application is received in the replacing insurance company's home or regional office. A policy summary or ledger statement containing policy data on the proposed life insurance or annuity must be included.

Continuing education

Resident producers must complete 24 hours of continuing education every 2 years to keep their license active. Of those 24 hours required, 3 hours must be in ethics. Nonresident producers are not required to complete New Jersey continuing education requirements as long as their home state requirements are met.

Retrocession

Retrocession (or retroceding) occurs when a reinsurer accepts too many risks and has to reinsure some of those with another reinsurance company.

Temporary Certificate

The Commissioner may issue a Temporary Certificate which allows the applicant to begin work when a proper application for a license has been submitted that does not disclose any information that would disqualify the individual., A Temporary Certificate expires after 60 days

Certificate of authority

The Commissioner will examine the financial affairs of all insurers before issuing a certificate of authority to transact business in New Jersey.

Solvency

The Commissioner will suspend the certificate of authority of any insurer that becomes insolvent, is threatened with insolvency, or is delinquent in claims payment.

Certificate of License Status

The Department of Banking and Insurance can make information pertaining to a producer's license available through a Certificate of License Status report.

DEPARTMENT OF BANKING AND INSURANCE (DOBI)

The Department of Banking and Insurance regulates the banking and insurance industries in New Jersey. The chief executive officer of the Department is the Commissioner, who is appointed by the Governor (with the advice and consent of the Senate) The Commissioner is appointed for the duration of the Governor's term in office until a successor is appointed and approved

License Denial

The Department shall advise the applicant in writing that the license requested is denied when it appears from an application, renewal form, attached documents or Department records that the qualifications are not demonstrated. Producer license denials are appealed at a hearing before the office of Administrative Law

Producer appointments

The agreement between an insurance producer and insurer under which the insurance producer, for compensation, may sell, solicit, or negotiate policies issued by the insurer is called an appointment. A producer cannot act as an agent for an insurer unless he or she is appointed to work for that insurer.

Protection of beneficiaries from creditors

The beneficiary of any life insurance policy or annuity contract is protected from the creditors of both the insured and the beneficiary.

Credit life

The creditor, not the insured, is the beneficiary of a credit insurance policy. The maximum term is the length of the loan or five years, whichever is shortest. Decreasing term is normally used for credit life.

Credit life policy delivery

The individual policy or group certificate shall be delivered to the insured at the time of the effective date or no later than 30 days from the date of indebtedness.

Sell, Solicit, and Negotiate

The insurance code defines solicitation of insurance as the attempt to sell insurance to a person from a particular insurer. The sale of insurance is the exchange of an insurance contract on behalf of an insurer for any valuable consideration. The negotiation of insurance involves any act that provides a prospective buyer with information about the benefits, terms, or conditions of a policy.

Identification of insurer in ads

The name of the insurer will be clearly identified in any advertisement. An advertisement shall not use a trade name, name of insurer's parent company, service mark, slogan, or other symbol without disclosing the name of the insurer. No advertisement may use colors, words, or physical materials which are similar to a government program or agency with the intention to deceive the public.• Advertisements must be documented and kept by insurers for at least 5 years following their first use• For annuities, the surrender period and maximum rate of guaranteed interest must be disclosed

Policy summary

The policy summary contains specific information on the provisions, benefits, and coverage of the policy applied for.

On or before the date the replacement policy is delivered, the following must be presented to the policyowner

The replacing insurer's financial statements• A policy summary• A copy of the most recent buyer's guide

Nonforfeiture law

The request for a paid-up nonforfeiture option must be made to an insurer within 60 days after the due date of a premium in default. Policies must provide that the specified paid-up nonforfeiture benefit is effective unless the policyowner elects another available option within 60 days after the due date of the premium in default

twisting

Twisting is the unfair trade practice of replacing an insurance policy from one insurer to another based on misrepresentation.

health Proof of loss

Written proof for any loss must be given to the insurance company within 90 days.

If the Commissioner has determined an unfair trade practice has been committed,

a cease and desist order will be issued.

Stock insurance companies that issues both participating and nonparticipating policies are referred to as

a company doing business on a mixed plan.

When replacement occurs in the sale of individual health insurance, the licensee must obtain

a signed statement from the applicant stating that he/she knows that a replacement is occurring.• A Notice to the Applicant Regarding Replacement must be provided by the licensee to theprospective insured when a replacement occurs No Loss No Gain Law

The Insurance Information and Privacy Protection Act is designed to limit or direct the information collection activities of

agents and limited representatives• insurance support organizations• insurance companies

Whenever an advertisement describes benefits and coverages provided by a policy, it must also disclose

any exceptions, reductions, or limitations affecting the basic provisions of the policy. Policy provisions relating to the policy's renewability, cancelability, and termination must be disclosed in any advertisements

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 3 months but may not last longer than 4 months.

Standards and procedures are in existence to ensure that

anyone looking to purchase, exchange, or replace an annuity is properly informed and the recommendations given to them are in their best interests. The intended goal of this regulation is a consumer who has had their insurance needs and financial objectives properly addressed.

Conservation

described as the effort made by an existing insurer to prevent replacement and continue existing life insurance policies in force.

Branch offices

extensions of an insurer's home office and conduct regional business in specific areas, Licensees shall file with the Department a branch office registration form within 30 days before business is first conducted there. A processing fee will also be charged. Failure to do so results in a $500 fine., At least one licensed producer must be permanently assigned to that office

• Upon cancellation of an agency contract, the insurer shall

file written notice with the Commissioner within 15 days

Cash Surrender

he maximum length of time an insurer can defer payment of a cash surrender value of a life insurance policy or annuity is 6 months.

alcohol treatment coverage shall include:

inpatient and outpatient care in a hospital, treatment at a licensed detoxification facility, confinement at a certified treatment facility

Alcohol treatment

is covered like any other sickness and must be offered with all health care plans in this state, subject to the same deductibles and coinsurance amounts. This coverage must be provided in all group policies issued or renewed in the state of New Jersey.

Health insurance policies cannot exclude coverage for a preexisting condition; however, an exclusion may apply to a

late enrollee or to any group of two to five persons if it does not exclude coverage for more than 180 days after the effective date of coverage and relates only to conditions appearing during the six months immediately preceding the enrollment date. However, if 10 or more late enrollees request enrollment during any 30-day enrollment period, then no preexisting condition exclusion will apply to them.

temporary license

may be issued in cases where a producer has become disabled or dies, requiring a replacement to service the producer's business. It also can be issued when the producer is actively serving in the military. A temporary license is valid for a maximum of 180 days.

Replacement:

means any transaction in which new life insurance or a new annuity is purchased

Illustrations must be clearly labeled, and contain the following:

name and address of the issuing insurer; name, age, and sex of the proposed insured; generic name of the policy; initial death benefit; and any non-guaranteed elements such as dividend options. Words, phrases or illustrations may not be used in a manner that misleads or deceives. If an illustration is used, a copy of it must be submitted with the application for insurance, and a copy must be provided to the applicant.

The purpose of the New Jersey Temporary Disability Benefits law is to provide

non occupational Disability benefits. To qualify, you must have a non-work related illness or injury that keeps you from working and be under medical care for treatment of the disabling condition.

Mutual insurance companies are considered

participating because the policyowners do share in the profits of the company• The objective is to provide insurance to its owners, the policyowners, at the lowest net cost

Fiduciary responsibility

producers have a fiduciary responsibility for all funds collected from clients. Producers must not mingle these funds with their own personal funds. However, producers are not required by law to open aseparate bank account for such funds. A producer's fiduciary responsibility includes recording the receipt and distribution of premiums due to an insurer

The New Jersey Life and Health Insurance Guaranty Association is used to

rehabilitate insolvent (financially incapacitated) insurers. When this occurs, the insolvent insurer's assets are liquidated and the balance is transferred to the Guaranty Fund.

in order to reinstate a lapsed license, you need

reinstatement application, a late renewal fee, proof of completion of continuation education requirements, certificate that the applicant has not transacted any insurance business during the

False advertising

t is an illegal practice to falsely advertise insurance products or services in any way. This includes circulating statements, letters, or statements in newspapers, magazines or other solicitation materials. Insurance advertisements in a local newspaper are regulated by the Department of Banking and Insurance (DOBI), The identity of the insurer shall be made clear in all of its advertisements

Any public hearing required shall be held by

the Commissioner. Whenever a hearing is required, the Commissioner shall give notice to the person or entity being investigated and it must be delivered by registered or certified mail., The hearing must be scheduled at least 10 days after the notice is delivered

The amount of credit life insurance issued in connection with a specific loan shall not exceed

the amount of indebtedness, Debtor groups must have at least 100 members to qualify for credit insurance

The New Jersey Life and Health Insurance Guaranty Association protects against

the failure in the contractual obligations of insurance policies and annuities (up to certain limitations), Any funds needed to pay claims are collected from assessments against other authorized insurers in New Jersey, The Guaranty Association provides $500,000 or the amount of the loss, whichever is less in the event that a member company becomes insolvent