Casualty Quiz 4

all policies, certificates or other evidence of insurance that are received by an insurance producer must be delivered within

10 calendar days

licensees must file with the department a branch office registration form within how many days before business is first conducted there?

30

an insurance producer refused to comply with a subpoena. what would be the producer's penalty for this violation?

a fine up to $5,000

which of the following persons is required to hold a producer license?

a person who negotiates insurance contracts

in order for an insurer to legally transact insurance, it must obtain which of the following?

certificate of authority

if a violation of the NJ insurance code were to occur, a cease and desist order and/or penalty may be issued. who may issue a cease and desist order?

commissioner

which of the following is not a duty of the commissioner?

developing insurance rates

domiciled in one state and transacts in another

foreign

what method do insurers use to protect themselves against catastrophic losses?

reinsurance

an organization licensed as a producer business entity based in NY would like to transact insurance in NJ. which of the following is true?

the organization will need to obtain a nonresident business entity license, and it's producer will need to obtain nonresident licenses.

the company has issued a policy and delivered it to the producer B on may 1st, Monday. by what date must the policy be delivered to the insured?

within 10 calendar days

An applicant for a producer's license has successfully license. the soon-to-be producer does not want to wait until he receives his license in order to begin working. which is possible?

the person can obtain a temporary work authority

which of the following is an example of a producer being involved in an unfair trade practice of rebating?

telling a client that his first premium will be waived if he purchased the insurance policy today

which of the following would be required to be licensed as an insurance producer?

a salaried employee who advertises and solicits insurance

which of the following is the closest term to an authorized insurer?

admitted

insurer domiciled in one country and transacts in another

alien

transacts insurance in the domicile state

domestic

in which of the following situations is it legal to limit coverage based on marital status?

it is never legal to limit coverage based on marital status

a contract between a producer and an insurance company

must be in writing and signed by both parties

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

mutual

which of the following is a person or organization that is allowed to write business in NJ for insurance companies that do not possess a certificate of authority in NJ, if no authorized insurers in NJ offer the specific type of insurance in question?

surplus lines agent

what is the maximum allowed value of a gift that an agent can give to an insured without violating the regulation or rebating?

$25 or less

an insurer is closing a branch office in this state. within how many days of the office coming must the insurer notify department?

30 days

if a producer has been convicted of a crime, he or she must notify the commissioner within

30 days

which of the following is a duty of the commissioner of insurance in this state?

amend rules and regulations

to be issued a business entity producer license by the commissioner, the business entity must have how many partners or officers licensed as producers?

at least 1

the requirements that agents must account for all insurance funds collected, and are not permitted to commingle these funds with their own is known as

fiduciary responsibility

under which of the following circumstances would a nonresident producer NOT required to complete CE hours in New Jersey?

if the producer's home state has the same CE requirements and the producer satisfies them

producer's and insurer's actions related to insurance transactions from selling insurance to processing claims are referred to as

insurance-related conduct

Who does an insurance agent represent?

insurer

the Supreme Court stated that the insurance is interstate commerce and is therefore subject to regulation by the federal government in the decision of what case?

the U.S vs. the south-eastern underwriters association

in choosing an insurance business name, which of the following would be allowed?

a proper name which does not belong to any officers, stockholders, or executives.

within how many days must a producer report claims to the insurer?

5 business days

what is the fine for violating the commissioner's cease and desist order?

5,000

which of the following would not be considered an unfair and deceptive practice?

controlled business

if an insurer and insured have a dispute about whether a particular loss is covered under a policy, which authority will settle the dispute?

court system

which of the following will NOT be considered unfair discrimination by insurers?

discriminating in benefits and coverages based on the insureds habits and lifestyle.

which of the following is NOT true regarding a certificate of authority?

it is issued to group insurance participants

through which branches of the government is insurance currently regulated?

legislative, judicial, executive

a nonresident licensed producer decides to conduct business under an assumed name. which of the following is true?

nonresident producers may not conduct business under any names besides legal names.

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

A participating insurance policy may do which of the following?

pay dividends to the policy owner

a participating insurance policy may do which of the following?

pay dividends to the policy owner

considered limited lines of authority except?

surplus lines

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. the company is guilty of

misrepresentation

insurance is regulated

mostly on state level

who might receive dividends from a mutual insurer?

policyholders

which of the following is not required information a producer must provide before soliciting insurance?

producer contact information

all of the following professional designations are recognized by the department as acceptable substitutes for education and examination requirements EXCEPT

professional insurance agent (PIA)

Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as

rebating

all of the following are unfair claims settlement practices EXCEPT

suggesting negotiations in settling the claim