Ch. 5: New Jersey Laws, Rules, and Regulations Common to All Lines

A licensed insurance producer must notify the Department of a change in mailing address within how many days and by what method? a. 6 months, only electronically b. 1 year, either orally or in writing c. 5 days, by certified mail d. 30 days, by mail or electronically

d.

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming? a. Alien b. Domestic c. Unauthorized d. Foreign

d.

If a person violates a cease and desist order, the Commissioner can turn the matter over to the New Jersey Superior Court for further legal action and can assess a fine for each violation of up to a. $10,00 b. $1,000 c. $3,000 d. $5,000

d.

If an insurer and insured have a dispute about whether a particular loss is covered under a policy, which authority will settle the dispute? a. Commissioner b. Federal Insurance Regulation Board c. Consumer Protection Agency d. Court system

d.

Which of the following is included in term "insurance-related conduct"? a. Insurer's acting with the scope the Insurance Code. b. Producer's ethical behavior. c. Producer licensing. d. Transmitting funds between producers and the insurance company.

d.

A group of 4 entrepreneurs decides to open an insurance company. Which of the following is true? a. At least 1 member must be licensed insurance producer. b. None of the members have to be licensed as insurance producers, expect for those who want to transact insurance business. c. At least 2 members must be licensed insurance producers. d. All 4 members must be licensed insurance producers, regardless of whether they are involved in insurance transactions.

a.

A producer received a group master policy and certificates for delivery to the insured. Within how many days must the policy and certificates be delivered? a. 10 calendar days b. 5 business days c. 5 calendar days d. 10 business days

a.

An insurance producer refused to comply with a subpoena. What would be the producer's penalty for this violation? a. A fine up to $5,000. b. A fine and an imprisonment. c. A fine up to $10,000. d. Imprisonment up to 6 months.

a.

Presenting any written or oral statement in support of or in opposition to a claim payment, while knowing that the statement contains false or misleading information material to the claim, would be best considered a. A violation of the New Jersey Insurance Fraud Prevention Act. b. A permissible act. c. Grounds for license revocation. d. A violation of the "Unsatisfied Claim and Judgment Fund Law".

a.

The Commissioner believes that an insurance rule or regulation has been violated, and decides to call a disciplinary hearing. How many days before a hearing must the Commissioner issue a notice to the person charged with a violation? a. 10 days b. 20 days c. 30 days d. 7 days

a.

The Supreme Court stated that insurance is interstate commerce and is therefore subject to regulation by the federal government in the decision of what case? a. The U.S. vs. the South-Eastern Underwriters Association b. McCarran-Ferguson vs. New York c. Rosche-Wall vs. Alabama d. Paul vs. Virginia

a.

When an insurance producer negotiates for an insurance contract on behalf of a client, the producer is acting as a(n) a. Broker b. Solicitor c. Consultant d. Agent

a.

Which of the following most likely would NOT be required to complete continuing education hours in this state? a. Nonresident producers b. Insurance brokers c. Resident producers d. Insurance consultants

a.

Which of the following will NOT be considered unfair discrimination by insurers? a. Discriminating in benefits and coverages based on the insured's habits and lifestyle. b. Charging applicants with similar health histories different premiums based on heir ethnicity. c. Cancelling individual coverage based on the insured's marital status . d. Assigning different risk classifications to applicants based on gender identity.

a.

A nonresident licensed producer decides to conduct business under an assumed name. Which of the following is true? a. The assumed name must be filed with the NAIC, the Commissioner of the domicile state, and the Commissioner of the state for which the nonresident producer is licensed. b. Nonresident producers may not conduct business under any name besides legal names. c. The assumed name must be submitted on the Uniform Assumed Title form, with the appropriate fee. d. Nonresident producers need to take no action before conducting business under an assumed name.

b.

How many days does a producer have a to remit the collected premiums to the insurer? a. 3 business days b. 5 business days c. 10 calendar days d. 30 calendar days

b.

Producer's and insurer's actions related to insurance transactions, from selling insurance to processing claims are referred to as a. Agent's authority. b. Insurance-related conduct. c. Producer actions. d. Licensee's responsibilities

b.

What are the penalties for the first, second, and subsequent violation of the New Jersey Fraud Prevention Act, respectively? a. $25,000; $50,000; $100,000 b. $5,000; $10,000; $15,000 c. $1,000; $5,000; $10,000 d. $10,000; $15,000; $20,000

b.

Which of the following authorities is in charge of investigating claims held against licensees? a. Federal Bureau of Investigation. b. Commissioner. c. Governor. d. State law enforcement

b.

Which of the following is the closest term to an authorized insurer? a. Legal b. Admitted c. Certified d. Licensed

b.

In choosing an insurance business name, which of the following would be allowed? a. A name with the same spelling as a competing company, but a different pronunciation. b. A name which implies eligibility for individuals to whom coverage is not actually offered. c. A proper name which does not belong to any officers, stockholders, or executives. d. A name with the same pronunciation as a competing company, but a different spelling.

c.

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices? a. Exaggerating the benefits provided in the policy. b. Stating that the competitors will arbitrarily increase their premiums each year. c. Making comparisons between different policies. d. Stating that the insurance policy is a share of stock.

c.

Who might receive dividends from a mutual insurer? a. Stockholders. b. Agents. c. Policyholders. d. Subscribers.

c.