NJ Laws
5 years
Keep records of financial transactions after termination of coverage
certification of license status
Licensee's name, date of birth, license reference number; Statement whether the license is in force or expired; Kinds of insurance for which the person is authorized; and Whether he or she has qualified for licensing by examination or the equivalent, and whether any formal disciplinary act was taken during the last 4 years.
$15,000
Maximum fine for violation of the New Jersey Insurance Fraud Prevention Act
21 days
Most insurance companies strive to complete the underwriting process
The Commissioner may also levy a fine of up to
$1,000 for each charge of violations of fair methods of competition laws or engaging in an unfair trade practice.
Any person who violates an insurance law or regulation is liable to a penalty of up to ______ for a first offense and _______ for each subsequent offense
$5,000 for a first offense, and up to $10,000 for each subsequent offense
Any person who violates a cease and desist order after it has become final will be required to pay to the State of New Jersey a fine up to
$5,000 for each violation.
The penalty for violation the New Jersey Insurance Fraud Prevention Act is up to ________ for the first violation, _______ for the second violation, and ________ for each subsequent violation.
$5,000 for the first violation, $10,000 for the second violation, and $15,000 for each subsequent violation.
If the Commissioner determines that the person has willfully and knowingly violated the law, the fine can be increased to
$5,000 per charge
the maximum liability of the Association for any one insured individual will not exceed
$500,000 in life insurance death benefits or present value annuity benefits, $100,000 in cash surrender or withdrawal values under life insurance or annuity contracts, or the aggregate amount of $500,000 for all benefits under any contract.
If an applicant's license has lapsed within the past year, the applicant may apply for late renewal of the license within
1 year of expiration
all policies, certificates or other evidence of insurance that are received by an insurance producer must be delivered or mailed to the insured within
10 calendar days of the receipt by the producer.
When must you submit renewal application by?
10 days prior to the expiration
Commissioner has the right to call a disciplinary hearing, and will provide the person charged with
10 days' written notice of the date, time, and place for the hearing.
Replies to inquiries by the Commissioner:
15 calendar days to reply in writing to any inquiry of the Department related to the business insurance.
The appointing insurance company must submit notice of agent appointment to the Department within
15 days after execution of the contract or within 15 days after the first insurance application is submitted by the producer.
Producer licenses are valid for
2 years
Prior to being admitted to the state licensing examination, an applicant must complete
20 hours of prelicensing education
To get a renewed license, the producer must have completed
24 hours of continuing education (in last 2 years); three of which are ethics related
The licensee must advise the Department in writing of the closing of any branch office within
30 calendar days
If moving the residence or primary place of business to New Jersey, a nonresident producer must notify the Department of the change of address and contact information within
30 days
The Department must be notified of any changes of address within
30 days
Licensees must file with the Department a branch office registration form within
30 days before business is first conducted there.
claims must be reported to the insurer no later than
5 business days after the receipt of notice of claim by the producer
Producers must maintain proof of notification for change of address on file for
5 years
If a producer's license has been revoked, the producer must wait
5 years before applying for reinstatement
Within __________ of change in resident status in the prior state, the producer must notify the Department of the request to qualify as a resident insurance producer in New Jersey, and submit completed fingerprint form, including electronic fingerprints.
90 days
$2,000
A producer or insurer who violates the solicitation regulations can be ordered to pay a fine of up this for each violation
Annual Open Enrollment for HMO
After HMO has been in operation for 24 months and the period must last at least 1 month during which it accepts enrolled up to the limit of its capacity
18
Age to apply for license
To qualify for a producer license, candidates must meet the following requirements:
Be 18 years of age or older; Submit application and pay the required fees; Complete an approved prelicensing education course within 2 years before submitting the licensing application (unless exempt); Pass a licensing examination within 1 year before submitting a licensing application; If applying as a resident, be a resident of New Jersey or plan to engage in business at an office in this state; Plan to engage in insurance business with the public and not principally for one's own accounts or accounts of the producer's family or business associates (controlled business); and Be deemed of good reputation and character, and have no prior convictions of a crime or moral turpitude.
Applicants for surplus lines authority must:
Be New Jersey residents; and Hold a property and casualty license
10 days
Before license expiration, producer must submit renewal application
5 years
Before producer with revoked license can reapply for a new license 5 years
24 hours
CE hours required every 2 yeras
3 hours
CE hours required in professional ethics
$5,000
Fine for each violation of cease and desist orders
$5,000
Fine for first violation of an insurance law
$10,000
Fine for subsequent violations of an insurance law
$1,000
Fine per violation for unintentional violations of fair methods of competition or fair trade practice law
$5,000
Fine per violation for willful violations of fair methods of competition or fair trade practice laws
15 days
For insurers to notify Commissioner of canceled agency contract
90 days
For nonresident licensee to notify Department of intent to qualify as resident
5 business days
For premiums to be remitted to the insurer or to the insured
10 calendar
Producer must deliver policies to the insured after receiving them
15 calendar days
Producer must reply in writing to inquiries from the Commissioner
5 business days
Producer must report claims to the insurer after receipt of notice of claim
60 days
Temporary work authority valid
2 years
To apply for license after completing prelicensing education
1 year
To apply for license after passing licensing examination
1 year
To renew lapsed license without taking written exam
30 days
To report change of mailing address or of business address or name
30 days
To report the opening or closing of a branch office
surplus lines agent
a person or organization that is allowed to write business in New Jersey for insurance companies that do not possess a certificate of authority in New Jersey if no authorized insurers in New Jersey offer the specific type of insurance in question
Multiple indemnity
a provision or rider found in some life insurance policies or accidental death policies under which certain benefits are doubled or tripled when death of the insured was due to certain specified circumstances
New Jersey Life and Health Guaranty Association
created to protect policyowners, insureds, and beneficiaries under life insurance policies, health insurance policies, annuity contracts, and supplemental contracts when insurers fail to perform contractual obligations due to financial impairment
A surviving spouse, next-of-kin, or administrator of the estate (in the event of the death of the producer), or legal guardian (in the case of disability) may maintain and continue the producer's insurance business only by
entering into a written agreement with another licensed producer who has authority in the appropriate lines of insurance Cannot exceed 180 days
temporary work authority
expires no more than 60 days after it is issued and becomes ineffective when the actual license is issued
usual/reasonable /customary
he insurance company will pay an amount for a given procedure based upon the average charge for that procedure in that specific geographic area.
If violation has occurred the Commissioner may
issue a cease and desist order
Licenses will expire on the
last day of the producer's month of birth
Impairment/Exclusion Rider
may be attached to a contract for the purpose of eliminating coverage for a specifically defined pre-existing condition, such as back injuries
Resident licensed producer can conduct business with a name
other than his/her legal name as long as not already registered with the commissioner
20 hours
prelicensing education required for each line of authority
2 years
producer licensing period
Home Health Care
refers to nursing and other health care services rendered to a person in his or her residence on a part-time or intermittent basis when continuing hospitalization would otherwise have been required if home health care were not provided
guaranteed renewable provision
similar to the noncancellable provision, with the exception that the insurer can increase the policy premium on the policy anniversary date
benefit schedule
states exactly what is covered in the plan and for how much
180 days
temporary license valid
A producer license will not be issued to a business entity operated by a person who has had his or her license revoked within
the past 10 years.
Nonresident producer must conduct business with
their legal name
It is not considered valuable consideration if it is
valued at less than $25
Guaranteed Insurability Rider
will allow the insured to purchase additional amounts of disability income coverage without evidence of insurability