NJ Laws, Rules, and Regulations Common to Life, Accident, and Health Property and Casualty

All of the following are considered limited lines of authority EXCEPT A. Surplus lines. B. Credit insurance. C. Travel insurance. D. Bail bonds.

A. Surplus lines.

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 business days B. 10 calendar days C. 5 business days D. 5 calendar days

B. 10 calendar days

A producer's appointment lasts for how long? A. 2 years B. 3 years C. 5 years D. Until it is terminated

D. Until it is terminated

A "certification of license status" report can be run on any currently licensed New Jersey producer, but can only contain information on formal disciplinary actions taken within the past A. 6 months. B. 4 years. C. 7 years. D. 10 years.

B. 4 years.

A licensee violates an insurance regulation. A hearing is held, and the person is found guilty. If this is the person's first offense, the penalty is no more than A. $1,500. B. $3,000. C. $5,000. D. $1,000.

C. $5,000.

What is reinsurance? A. An agreement between a ceding insurer an assuming insurer B. An agreement between an originating insurer and a ceding insurer C. An agreement between a domestic insurer and a foreign insurer D. An agreement between an insurer and an insured

A. An agreement between a ceding insurer an assuming insurer

Circulating deceptive sales material to the public is what type of Unfair Trade Practice? A. Coercion B. Misrepresentation C. False advertising D. Defamation

C. False advertising

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes A. Twisting. B. Coercion. C. Misrepresentation. D. Defamation.

C. Misrepresentation.

If an applicant's license has lapsed within the past year, the applicant may apply for late renewal of the license within the maximum of how many months of expiration? A. 3 months B. 6 months C. 9 months D. 12 months

D. 12 months

The company owes premium money to the insured. The insurer gave the funds to the producer to return to the insured. Within how many days must the producer pay the insured? A. 5 B. 10 C. 14 D. 30

A. 5

Within how many days must a producer report claims to the insurer? A. 5 business days B. 3 calendar days C. 3 business days D. 5 calendar days

A. 5 business days

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. A fine up to $5,000

Which of the following is an insurance professional who offers advice regarding benefits or advantages of an insurance policy to clients for a fee? A. Counselor B. Consultant C. Producer D. Broker

B. Consultant

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. Consumer Protection Agency B. Court system C. Commissioner D. Federal Insurance Regulation Board

B. Court system

All of the following are among the Commissioner's broad powers EXCEPT A. Formulate and adopt rules and regulations of companies and licensees. B. Have interest in insurance companies regulated by the Department. C. Appoint and remove officers employed within the Department. D. Report to the Governor about the Department's operations.

B. Have interest in insurance companies regulated by the Department.

An insurer goes bankrupt and is unable to pay on any of its insureds' claims. Which of the following will happen? A. The insureds will not be paid. B. The claims will be paid by a nationally-based program. C. The claims will be paid by the state Life and Health Guaranty Association. D. The claims will be paid by the state Department of Insurance.

C. The claims will be paid by the state Life and Health Guaranty Association.

An insurer cancelled a contract with a producer on April 1st. By what date must the insurer notify the Commissioner of this action? A. April 30th B. April 5th C. April 11th D. April 15th

D. April 15th

If a producer has been convicted of a crime, he or she must notify the Commissioner within A. 30 days. B. 10 days. C. 15 days. D. 20 days.

A. 30 days.

A producer was found guilty of a 3rd violation of the Insurance Code. What would be the monetary penalty he will have to pay? A. $10,000 B. $15,000 C. $25,000 D. $5,000

A. $10,000

Which of the following would be required to be licensed as an insurance producer? A. An insurance company director who performs executive, administrative and managerial duties B. A salaried employee who advertises and solicits insurance C. A person whose activities are limited to producing insurance advertisements D. A salaried full-time employee who furnishes information for group insurance

B. A salaried employee who advertises and solicits insurance

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are A. Guaranteed. B. Not taxable since the IRS treats them as a return of a portion of the premium paid. C. Paid at a fixed rate every year. D. Taxable as ordinary income.

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

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

B. Transmitting funds between producers and the insurance company

Applicants for surplus lines authority must fulfill all of the following requirements EXCEPT A. Be a New Jersey resident. B. Hold a property and casualty license. C. Pass an insurance licensing exam. D. Hold a bond as a condition for licensure.

D. Hold a bond as a condition for licensure.

Which of the following is 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? A. Unauthorized broker B. Fiduciary agent C. Surplus lines agent D. Insurance intermediary

C. Surplus lines agent

If an insurer cancels an agency contract, it must notify the Commissioner in writing within how many days? A. 10 B. 15 C. 20 D. 30

B. 15

A producer was found guilty of a 3rd violation of the Insurance Code. What would be the monetary penalty he will have to pay? A. $25,000 B. $5,000 C. $10,000 D. $15,000

C. $10,000

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? A. Twisting B. Defamation C. False advertising D. Unfair claims

C. False advertising

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. Insurance-related conduct.

A producer's license was revoked as a result of the Insurance Code violation. Which of the following is true? A. The producer can apply for a new license. B. The producer's license can be returned after 1 year. C. The producer cannot apply for a license reinstatement once the license has been revoked. D. The producer will have to wait 5 years before applying for license reinstatement.

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

If a producer has been convicted of a crime, he or she must notify the Commissioner within A. 15 days. B. 20 days. C. 30 days. D. 10 days.

C. 30 days.