New Jersey Laws, Rules, and Regulations Common to All Lines
When is controlled business legal?
When the commissions from controlled business do not exceed the aggregate commissions on all the other business (specific limits may vary from state to state)
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?
misrepresentation
who can usually be granted a temporary license?
producer's spouse or designee in case the licensed producer dies or becomes disabled
Who owns stock companies?
stockholders
What type of licensee represents the insurance company?
the agent
Who is responsible for the costs associated with the examination of insurers?
the insurer who is being examined
What is the purpose of insurance guaranty associations?
to protect policyowners, insureds and beneficiaries from financial losses caused by insolvent insurers
What type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
twisting
when can the commissioner or director examine insurers?
whenever deemed necessary, but at least once every few years
Insurers are classified according to their domicile. What are three types of insurers?
Domestic, foreign, and alien
who must be a member of insurance guaranty associations?
all insurers authorized to write insurance within a state
What type of licensee represents the insured?
broker
Who is considered a nonresident agent?
An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state
If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?
Cease and desist order
What is controlled business?
Insurance on the producer's own life or property, or the lives or property of the producer's family or business associates
Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies?
No, advertising of the existence of the guaranty association for purposes of solicitation and sale of insurance policies by insurers is an illegal business practice
who must be notified of a producer's change of address?
The Department of Insurance (Commissioner/Director/Superintendent)