Chapter 8- NJ Licensing

In New Jersey, what is the maximum payments a minor of at least 15 can accept in a single calendar year?

$2,000

If an applicant's license has lapsed, the applicant may apply for late renewal within:

1 year

After a producer's license has been revoked, the person must wait before they can own any share of an insurance organization for:

10 years

A debtor group must have at least how many members to qualify for debtor insurance?

100

In order to apply for an insurance producer license, the applicant must be at least

18 years of age

The Insurance Commissioner may grant a temporary license not to exceed:

180 days

How much time does someone have to notify the Commissioner if they move to a different town in New Jersey?

30 days

In New Jersey, what is the maximum term for a credit life insurance policy?

5 years

The Commissioner may issue a temporary work authority to a producer applicant that may last no more than:

60 days

What is a stock company?

A company incorporated according to the laws of its state, Capital is divided into shares of stock & It is owned by its stock holders

Which of the following entities is not able to hold a producer's license in New Jersey?

A controlled business producer

An insurance company formed under the laws of another state is called a:

A foreign company

Which of the following can be considered an advertisement?

A prepared sales talk and other materials used to present an insurance produc, Testimonials given by individuals or third party endorsement & Statistical information relating to claims payments

Which of the following is not considered an advertisement?

Amortization tables

Susan is a licensed insurance producer in New York who wants to sell insurance in New Jersey. In order to legally sell in New Jersey, she must

Apply for a nonresident license and pay applicable fees

Any of the following designations or educational credentials will allow a waiver of the prelicensing education requirement, EXCEPT:

BBA (business degree)

An insurer that procures insurance for itself in another insurer under what is called a reinsurance contract is called a:

Ceding insurer

Any written communication expressing a grievance is a(n):

Complaint

Superior Mutual has received an application from one of its agent's indicating that this transaction involves replacing existing policies with another company. Superior is required to do all of the following, EXCEPT:

Contact applicant for a phone interview to advise him/her that replacement of policies is not wise.

Which of the following terms is allowable in solicitation used by insurance producers?

Current rate"

What type of insurer is formed under the laws of New Jersey?

Domestic

Mary had a suggestion from her insurance agent suggesting she leave the proceeds of her deceased husband's life insurance with the insurance company. The insurer may hold the proceeds if:

Either Mary or her husband has formally requested this type of arrangement

Which of the following is not a forbidden act under the Marketing Methods and Practices regulations?

False discrimination

Which of the following is not a type of agent authority?

Formal

Improperly withholding, misappropriating or converting any monies or properties received in the course of doing insurance business or Intentionally misrepresenting the terms of an actual or proposed insurance contract could result in all of the following, EXCEPT:

Granting a temporary license

Replacement is defined as any life insurance transaction in which existing life insurance:

Has lapsed, Is continued as extended term insurance & Is being reissued with a reduction in cash value

One of the requirements for an insurance policy to be issued for any type of insurance is:

Insurable interest

A replacement is a transaction in which a new policy is purchased, and it is known or should be known to the proposing producer, or insurer if there is no producer, that by reason of the transaction, an existing policy or contract has been or is to be:

Lapsed, forfeited, surrendered or partially surrendered, Converted to reduced paid-up insurance, continued as extended term insurance, or otherwise reduced in value by the use of nonforfeiture benefits or other policy value & Reissued with any reduction in cash value; or used in a financed purchase

If an agent is no longer under contract with an insurer, but still has sales brochures, applications and other materials, it is considered:

Lingering implied authority

Which of the following is considered a violation of life insurance replacement requirements?

Misleading sales material, Intentional incorrect recording of an answer & Advising an applicant to respond negatively to any question regarding replacement

John Green has sued his insurance company over a claim they did not pay. The policy does not specifically exclude the circumstances of the claim, but the insurance company states the denial is implied. Under the current law the court will probably rule:

Order the claim is paid, since the policy wording was ambiguous.

What must someone do to renew an insurance license that is lapsed by 10 months?

Pay a penalty for reinstatement and renewal fees

All of the following are considered unfair practices, EXCEPT:

Paying claims without conducting a reasonable investigation based upon all available information

"Sell, solicit and negotiate" are the duties of the:

Producer

Which of the following statements pertaining to maintenance of an insurance producer's license is true?

Renewals must be submitted within at least 10 days before a producer's license expires.

All of the following actions require an insurance license, EXCEPT:

Scheduling an appointment for an insurance review

Melinda was covered by her employer's group policy. The policy had an expiration date of July 31, 2012. She sustained an injury requiring hospitalization while doing yard work on August 22, 2012. She remained in the hospital until September 3rd, 2012. How will her benefits be handled?

She is covered because she incurred the injury during the policy grace period.

Joe and Ken formed a corporation to sell insurance products, which will operate as "Insurance Forever, Inc." To operate legally they must do all of the following, EXCEPT:

Take a test on behalf of the corporation

Whenever an insurance producer applicant has not demonstrated the qualifications required by law, the Department must:

Tell the applicant in writing that the license request is denied b. Explain why the license request has been denied c. Advise the applicant of the right to request a hearing

The Commissioner will approve the application for a business entity only if

The business entity has paid the required fees., The business entity has designated a licensed insurance producer to be responsible for the business entity's compliance with the insurance laws, rules and regulations of New Jersey. & The business entity has a program of instruction approved by the Commissioner.

Who does an insurance broker represent?

The customer

Failing to maintain records of complaints filed against an insurer since their last examination is an example of:

Unfair trade practice

Which of the following is not a reason that the Commissioner could refuse to renew a producer's license?

Unknowingly accepting insurance business from an unlicensed insurance producer