Life Insurance CH.5 (New Jersey Laws, Rules, and Regulations Common to All Lines)

When transacting business in this state an insurer formed under the laws of another country is known as a/an

Alien insurer

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

Authorized

To legally transact insurance in this state, an insurer must obtain which of the following?

Certificate of Authority

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

Developing insurance rates

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

To become licensed as a nonresident producer in this state, a producer must do which of the following?

Hold a resident license in a good standing in the producers home state

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid.

To cancel an insurance producer license, the producer must

Send the license to the Insurance Department and request cancellation

A candidate for a producer license passed his licensing exam 6 months ago but has not applied for a license yet. Which of the following is true?

The candidate has 6 more months to apply for a license

The Paul vs Virginia case was decided in 1869. To what extent does the supreme courts decision still apply to insurance today?

The decision has changed. Insurance is considered to be interstate commerce, and is subject to regulation by the federal government

Which of the followoing authorities is in charge of investigating claim held against licenses?

Commissioner

If the issuance of a license is denied and a hearing is requested which entity will be making determination whether or not the license should be issued?

The department of Insurance

A producer's license was revoked as a result of the insurance code violation. Which of the following is true?

The producer will have to wait 5 years before applying for license reinstatement

A producers appointment last how long?

Until it is terminated