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