EXAM - New Jersey: General, Life, and Health Laws

Under the NJ Continuous of Benefits Law, notice to extend coverage is REQUIRED within HOW MANY days of a qualifying event? A. 15 days B. 30 days C. 45 days D. 90 days

B. 30 days

How soon can the benefit payments begin with a deferred annuity?

A minimum of 12 months after date of purchase

Which of these statements concerning Traditional IRAs is CORRECT?

Earnings are taxable when withdrawn

When are group disability benefits considered to be tax-free to the insured? When the recipient pays the premiums When the employer pays the premiums When both the employer and recipient pay the premiums When benefits paid are equal to or lower than the recipient's salary

When the recipient pays the premiums

An insurance consultant is BEST defined as?

a producer who charges fees for advice

AN effort by an existing insurer to prevent replacement and continue existing life insurance in force is known as:

conservation

A buyers guide MUST:

contain content approved by the commissioner

After advertisements are last used, insurers are REQUIRED to keep copies of the ad of file for how many years? a. two years b. three years c. four years d. five years

d. five years

Underwriters can acquire information from all of the following sources EXCEPT? a. Medical Information Bureau (MIB) b. consumer reports c. attending physician's statements d. genetic testing

d. genetic testing

A debtor may receive Credit Life Insurance in which of the following forms? a. universal life b. endowment c. group whole life d. group term life

d. group term life

what is medicare part b also known as?

supplementary medical insurance

When credit life or health is written, evidence of coverage (a policy or certificate of insurance) must be delivered to the debtor when the debt is incurred or within how many days? A. 20 days B. 60 days C. 10 days D. 30 days

D. 30 days

What is created after policy proceeds are obtained in a lump sum and then immediately invested? Viatical Settlement Emergency Fund Lump Sum Fund Estate

Estate

*What MUST you have when submitting a Medicare case?*

*An outline of coverage*

If an employee contributes 50% toward the disability plan premium provided by an employer, what would be considered the taxable income of a $1,000 monthly disability benefit? - $100 - $250 - $500 - $1,000

- $500

Medicare Part A does not pay for medical benefits provided for treatment in a skilled nursing facility beyond? 30 days 60 days 100 days 120 days

100 days

Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year. What are the tax ramifications of his health insurance premiums paid for the year?

100% of his health insurance costs can be deducted from his gross income

(Cancellation of agency contract) The Commissioner must be notified of cancellation within ____days, including reason for cancellation.

15 days

The national DO NOT CALL list is monitored by which of the following? B. the federal government/ the federal trade commission

B. the federal government/ the federal trade commission

Why are dividends from a mutual insurer not subject to taxation?

Because dividends are considered to be a return of premium

Before a licensed producer is eligible to transact insurance sales, they must be?

appointed by an insurance company

Which of the following terms defines the authority given to an producer to transact business on behalf of the insurer?

appointment

Producer license denials are appealed at a hearing before? a. Commissioner of Insurance b. Board of Arbitration c. Committee formed by the Commissioner d. Office of Administrative Law

d. Office of Administrative Law

Which of the following is the process by which one life insurance policy/contract is terminated or charged substantially and another is written in its place? A. twisting B. transference C. replacement D. reissuance

C. replacement

All of the following are examples of a Business Continuation Plan EXCEPT? A) Key person insurance B) Cross-purchase agreement C) Stock Redemption Plan D) Deferred Compensation

D) Deferred Compensation

An insured's status under Social Security can be described as _______.

Fully insured

Which of these factors is NOT taken into consideration when determining the cost of a long-term care policy? a. Health of applicant b. Amount of benefits provided c. Age of applicant d. Personal income

d. Personal income

a tax-free section 1035 exchange of a life insurance policy to a different policy is permitted if it occurs?

from insurer to insurer and no cash is received by the policyowner

Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit options would he choose?

guaranteed lifetime withdrawal benefit

Jerry voluntarily terminated his producers license. If he changes his mind his license may be reinstated during the same license period IF?

he completes a new license application

Which of the following is NOT part of an insurance contract?

Certificate of Authority

numbers of days to report change of mailing, residence, and email address to business name

30 days

time frame for a nonresident insurance producer to file a change of address

30 days

*What is the MIN/MAXIMUM fine for VIOLATING a "Cease & Desist" order?* *(PENALTIES for UNFAIR COMPLETION, ACT or PRACTICE)*

*$5000*

*The Commissioner MUST give notice at LEAST ____ days BEFORE a hearing for UNFAIR TRADE PRACTICES.*

*10 days*

*Notice of Claim MUST be given to the insured within how many days of the occurrence of ANY loss covered?*

*20 days*

When does the OPEN enrollment period begin for Medicare Supplements?

3 months before your 65th birthday

Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? $1,000 $3,000 $5,000 $7,000

$5,000

Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs $1,500 in covered health care services. How much will her group insurance carrier pay?

$900

The IRS states that a taxpayer's medical expenses that exceed 7.5% of their adjusted gross income is tax deductible. Which of the following may be considered a medical expense under this rule? - Long Term Care Insurance premiums - Dread Disease Insurance premiums - Travel Accidental Insurance premiums - Individual Disability Income Insurance premiums

- Long Term Care Insurance premiums

(Insurance Fraud) A person found guilty of insurance fraud is subject to the following civil penalties:

-$5,000 for the first offense -$10,000 for the second offense -$15,000 for the third offense

The commissioner may revoke a producer's license, if he finds that the commissions earned on "controlled business" during the 12 month period exceed the percentage of the producer's aggregate commissions on all business written?

50%

A Roth IRA owner must be at least what age in order to make tax-free withdrawals?

59 1/2 and owned an account for at least 5 years

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.

Which of these is a method of determining the level of funds required for ongoing support in the event of the breadwinner's death? A) Financial loss value B) Human life value C) Assessment value D) Replacement value

B) Human life value

An insurance company organized/chartered in a country other than the USA is defined as ___________. A. foreign B. alien C. domestic D. external

B. alien

Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? Adjustable life policy Modified life policy Endowment policy Universal life policy

Endowment policy

How are annuities given favorable tax treatment?

Gains are taxed at distribution

Which of the following statements is CORRECT about the Life and Health Insurance Guaranty Association?

It is funded by insurance companies through assessments

Which of the following is a reinstatement condition?

Proof of insurability

What is the elimination period of an individual disability policy?

Time period a disabled person must wait before benefits are paid

The least expensive option to pay off a 30-year mortgage balance would be? a. convertible term life b. decreasing term life c. adjustable term life d. increasing term life

b. decreasing term life

Which of the following is NOT included under a health benefit plan?a. Major medical policy b. Basic hospital policy c. Hospital indemnity plan d. Surgical expense policy

c. Hospital indemnity plan

The part of a health insurance policy that states the kind of benefits provided and the circumstances under which they will be paid is the?a. Definitions b. Conditions c. Insuring clause d. Face of the policy

c. Insuring clause

Benefits provided by a Medicare Supplement policy must NOT: be payable to the insured duplicate Medicare benefits be sold to individuals under 70 charge additional premiums

duplicate Medicare benefits

A professional liability for which producers can be sued for mistakes of putting a policy into effect is called?

errors and omissions

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

establish insurer rates

producer license denials are appealed at a hearing before:

office of admin law

states that have no loss no gain laws require a replacing policy to?

ongoing claims under the former policy must continue to be paid under the new policy

Which of the following is NOT an example of utilization review?monitoring length of hospital stay ongoing inspection of accident prone individuals monitoring the appropriateness of care setting a hospital release date for a patient

ongoing inspection of accident-prone individuals

which of the following does medicare part d cover?

prescription drugs

When comparing an HMO to a PPO, the PPO?

provides a greater choice of providers

An indemnity plan?

provides the insured a specific dollar amount for services

all of the following are considered to be nonforfeiture options available to a policyowner EXCEPT?

reduction of premium

What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as?

representations

Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?

taxable income (disability insurance benefits from a group policy paid for by an employer is considered taxable income.)

A guardian, taking over a Producer's business may do so with a:

temporary license

respite care is able to provide?

temporary relief to the patient's primary caregiver

This MANDATORY health policy provision states that the policy, including endorsements and attached papers, constitutes?

the entire insurance contract between the parties

under a contract of adhesion?

the terms must be accepted or rejected in full

which of the following is true regarding the proceeds of a life insurance policy?

there is protection of proceeds against insured's and beneficiary's creditors

A policyowner can receive an immediate payment before the insured dies by using a(n)?

viatical settlement contract

how is a health provider reimbursed if they do not have an agreement in place with insurance company?

with a usual, customary, and reasonable fee.

in a health insurance policy, when should the written notice of claim be given to the insurer?

within 20 days after occurence

Insurers are required to keep copies of policy summaries and buyers guides on file for at least?

3 years after the documents are used

Medical Expense Insurance would cover? A. an injury occurring at the insured's residence B. an injury occurring at work C. an injury caused by war D. elective surgeries

A. an injury occurring at the insured's residence

Buy-sell agreements are typically funded by which two insurance products? A) Decreasing term insurance and Workers' Compensation B) Life insurance and disability insurance C) Endowments and Medicare D) AD&D and Social Security

B) Life insurance and disability insurance

Which of the following is considered to be a point of service (POS) plan? A) Preferred provider organization B) Managed care plan C) Protected care provider D) Restricted provider organization

B) Managed care plan

When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach?A) The income earner's future projected income B) The family's financial objectives if the income earner were to die or become disabled C) The insurance company's financial rating D) The income earner's credit score

B) The family's financial objectives if the income earner were to die or become disabled

All of these are common personal uses of life insurance EXCEPT: A) Pay final expenses B) Fund a child's education C) Replace an insured's income D) Fund a Buy-Sell agreement

D) Fund a Buy-Sell agreement

Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents? A) Future value approach B) Earnings approach C) Needs approach D) Human life value approach

D) Human life value approach

Key person insurance is intended to? A) allow a key person to purchase the business B) help retain key employees by offering added benefits C) give premium-grade benefits to key employees D) cover business losses due to the death of a key employee

D) cover business losses due to the death of a key employee

The Penalty for failure to pay a claim in a timely manner is which of the following? a. 10% b. 60% c. 15% d. 50%

a. 10%

In NJ the violation for a first time violation of the Code is? a. $1000 b. $5000 c. $10000 d. $250

b. $5000

Under the New Jersey Continuance of Benefits Law, notice to extend coverage is required within how many days of a qualifying event? a. 15 days b. 30 days c. 45 days d. 90 days

b. 30 days

How many months can a life insurance policy normally be backdated from the date of application? a. 3 b. 6 c. 9 d. 12

b. 6

To cancel a health insurance policy, which one of the following must the insured do? a. Notify the insurer by telephone b. Notify the insurer in writing c. Replace the current policy with another d. Change at least two uniform mandatory provisions

b. Notify the insurer in writing

How do interest earnings accumulate in a deferred annuity? a. On a tax credit basis b. On a tax-deferred basis c. On a tax-free basis d. On a taxable basis

b. On a tax-deferred basis

An insurer's ability to make unpredictable payouts to policyowners is called? a. investment values b. liquidity c. assets d. capital

b. liquidity

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this? a. $0 b. $5000 c. $10000 d. $15000

c. $10000

How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability? a. 3 months b. 6 months c. 12 months d. 18 months

c. 12 months

EXCEPT for fraud, the time after issuance of a policy during which an insurance company may contest a health insurance claim due to the statements on an application is a. 10 days b. 90 days c. 2 years d. 5 years

c. 2 years

Replacement forms MUST be kept on file by the agent for a MINIMUM of how many years? a. 1 b. 3 c. 5 d. 7

c. 5

In NJ a small group health plan REQUIRES a continuance of prior credible coverage provided that there has been no gap in coverage for a period not to exceed what period of time? a. 15 days b. 30 days c. 90 days d. 180 days

c. 90 days

In New Jersey a small group health plan requires a continuance of prior credible coverage provided that there has been no gap in coverage for a period not to exceed what period of time? a. 15 days b. 30 days c. 90 days d. 180 days

c. 90 days

An example of a presumptive disability would be? A. a stroke B. deafness C. diabetes D. cancer

B. deafness

Replacement regulation is designed to protect the interests of? a. insurers b. policyowners c. beneficiaries d. producers

b. policyowners

*NO legal action will be brought upon AFTER the expiration of how MANY years after the time the written proof of loss is required:*

*3 years*

*What is the MINIMUM number of home health care visits per year?*

*60*

In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST: -remit all past-due premiums within the grace period -provide evidence of insurability to the insurer -resubmit a new life insurance application -provide a valid reason for the lapse

-provide evidence of insurability to the insurer

(prelicensing education requirement) ____hours for accident and health insurance

20 hours

(Branch offices notifications) department of Banking and Insurance must be notified ___days before opening or closing branch office

30 days

Temporary work authority for resident producer applicants is valid for ____ days

60 days

What percentage of a participant's income are group long-term disability benefit amounts typically limited to?

60%

Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called? A) Estate conservation B) Liquidity maintenance C) Survivor fund D) Human value protection

A) Estate conservation

An applicant's character and personal habits can be obtained for underwriting purposes from which source? A. Investigative consumer report B. Attending physician's statement C. Medical Information Bureau (MIB) D. Credit report

A. Investigative consumer report

The time limit for filing claim disputes is addressed in which provision of an accident and health policy? A. Legal actions B. Entire contract C. Time of payment of claims D. Payment of claims

A. Legal actions

Dana is an employee who deposits a percentage of her income into her individual annuity. Her company also contributes a percentage into a separate company pension plan. What kind of annuity is this considered? A. Qualified retirement annuity B. Key employee retirement annuity C. Executive compensation plan D. Keogh annuity plan

A. Qualified retirement annuity

What's the process for a producer to voluntarily terminate his license? A. Returning his license to the Banking and Insurance Department

A. Returning his license to the Banking and Insurance Department

What will the beneficiary receive if an annuitant dies during the accumulation period? A. The greater of the accumulated cash value or the total premium paid B. The lesser of the accumulated cash value or the total premium paid C. The interest earned on the accumulated cash value D. Nothing

A. The greater of the accumulated cash value or the total premium paid

Which is MANDATORY coverage for all group health care service contracts? A. Treatment for alcoholism

A. Treatment for alcoholism

Loss of income insurance provides? A. an individual the means to replace wages B. an individual the ability to collect workers' compensation C. an individual the ability to continue with medical coverage after a disability D. unlimited income replacement to a disabled person

A. an individual the means to replace wages

Before a licensed agent is eligible to transact insurance sales, they must be? A. appointed by an insurance company

A. appointed by an insurance company

A Renewable Term Life insurance policy can be renewed? A. at a predetermined date or age, regardless of the insured's health B. only if the insured provides evidence of insurability C. anytime at the policyowner's request D. typically with no change in premium

A. at a predetermined date or age, regardless of the insured's health

The amount of Credit Life insurance may at NO TIME: A. be greater than the amount of debt

A. be greater than the amount of debt

Advertising regulations exist in order to? A. demonstrate full & truthful disclosures to the public.

A. demonstrate full & truthful disclosures to the public.

One of the roles of the Banking and Insurance Commissioner is to (MUST APPROVE): A. establish CE requirements/CE courses B. regulate sales quotas for each insurer C. create insurance laws D. set advertising budgets for each insurer

A. establish CE requirements/CE courses

An insurance company organized/chartered in a country under another state is defined as ___________. A. foreign B. alien C. domestic D. external

A. foreign

Producers may be found guilty of defamation if they make a false statement that is intended to: A. malign another insurance company

A. malign another insurance company

An example of unfair discrimination would be: A. overstating the benefits of an insurance policy

A. overstating the benefits of an insurance policy

The Federal Employees Benefit Program consists of two types of health plans for federal civilian employees. The two plans are fee-for-service and? A. prepaid B. ambulatory C. facility D. blanket

A. prepaid

Before conducting an HIV related test, an insurer is REQUIRED to obtain written authorization from the: A. proposed insured B. beneficiary C. proposed insured's primary physician D. department of health

A. proposed insured

A Medicare Supplement basic benefit is? A. the first 3 pints of blood per year B. respite care C. disability income D. term life insurance

A. the first 3 pints of blood per year

A false written or oral statement made by a producer for the purpose of replacing an existing policy to the detriment of the insured is? A. twisting B. illegal inducement C. discrimination D. defamation

A. twisting

XYZ company is looking to replace their existing group health coverage plan. The insurer is REQUIRED to?

Accept all the individual eligible under the previous plan

Which of the following designations is regulated by the (DOBI) Department of Banking and Insurance? A. (NAIC) National Association of Insurance Commissioners B. (CIC) Certified Insurance Counselor C. (BBB) Better Business Bureau D. (CAS) Certified Appointed Setter

B. (CIC) Certified Insurance Counselor

After passing the State Producer licensing exam, application for the license must be made within? A. 6 months B. 12 months C. 2 years D. No time limit

B. 12 months

If an individual's life insurance policy has recently lapsed. They may reinstate their policy within _____ years(). A. 1 B. 3 C. 5 D. 7

B. 3

The replacement of an existing insurance policy requires notice that the owner can return the policy within _____ days for a full refund. A. 15 B. 30 C. 45 D. 60

B. 30 (aka the free-look period)

Under the New Jersey Continuance of Benefits Law, notice to extend coverage is REQUIRED within how many days of a qualifying event? A. 15 days B. 30 days C. 45 days D. 90 days

B. 30 days

A Roth IRA owner must be at least what age in order to make tax-free withdrawals? A. 59 1/2 and owned account for a minimum of 10 years B. 59 1/2 and owned account for a minimum of 5 years C. 70 1/2 and owned account for a minimum of 10 years D. 70 1/2 and owned account for a minimum of 5 years

B. 59 1/2 and owned account for a minimum of 5 years

NJ insurance law requires eligible individuals to make an election to continue health insurance benefits within a MAXIMUM of ____ days after coverage termination. A. 30 B. 60 C. 90 D. 120

B. 60

within how many days must a rollover be completed in order to avoid being taxed as current income? A. 30 B. 60 C. 90 D. 120

B. 60

The death benefits of Credit Life and Health Insurance is paid to WHOM? A. beneficiary of policyowners choosing B. the creditor C. the policyowner D. the insured

B. the creditor

The deeds and actions of a producer indicate what kind of authority?a. Express B. Apparent C. Implied D. Conditional

B. Apparent

Which of the following designations is regulated by the DOBI? B. Certified Insurance Counselor

B. Certified Insurance Counselor

Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place? A. Coordination of benefits B. Conversion C. Extension of benefits D. Rollover

B. Conversion

One of the most important considerations when replacing health insurance would be the? A. Age of the insured B. Exclusions on a new policy C. Occupation of the insured D. Cost

B. Exclusions on a new policy

If an individual health contract is issued on a conditionally renewable basis, the insurer has a right to refuse renewal? A. For any reason stated or unstated B. For specific reasons stated in the contract only C. Because of changes in the covered individual's health status D. When losses for the policy period exceed premiums

B. For specific reasons stated in the contract only

The marketing of Medicare Supplements is regulated to prevent all of the following EXCEPT? A. Sale of excessive insurance B. Replacement of any existing coverage C. Inaccurate policy provisions D. Failure to display notice of limitations to buyer

B. Replacement of any existing coverage

Someone who sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer is called? A. an insurance broker B. an insurance producer C. an insurance advisor D. an insurance solicitor

B. an insurance producer

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must? A. be less extensive and premium cannot exceed 102% B. be the same and the premium cannot exceed 102% C. be more extensive and the premium cannot exceed 102% D. be the same as well as the premium

B. be the same and the premium cannot exceed 102%

The Guaranteed Association Act provides that when a court order of liquidation EXISTS, the insurer is: A. is impaired B. is insolvent C. is in violation of state law D. is authorized to continue to conduct its business

B. is insolvent

An insurance producer is issued a(n) ___________ as evidence of authority. A. authorization B. license C. warrant D. bond

B. license

An employer is issued a group medical insurance policy. This single contract is known as a(n)? A. entire contract B. master policy C. certificate of coverage D. employer contract

B. master policy

What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? A. nonparticipating life insurance policy B. participating life insurance policy C. divisible surplus life insurance policy D. straight life insurance policy

B. participating life insurance policy

The automatic premium loan provision authorizes an insurer to withdraw from a policy's cash value the amount of? A. any interest payable from an outstanding policy loan balance B. past due premiums that have not been paid by the end of the grace period C. the outstanding policy loan balance D. any surrender charges owed by the policyowner

B. past due premiums that have not been paid by the end of the grace period

A Replacement Regulation is designed to protect? A. beneficiaries B. policyowners misrepresentations and loss of benefits C. existing producers D. insurance companies

B. policyowners misrepresentations and loss of benefits

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has what?

Better than average mortality or morbidity experience.

A beneficiary has just received a claim payment for a life insurance policy. Which of the following is TRUE regarding the federal income tax liability owed? A) A flat tax of 10% is owed on all proceeds B) Federal income tax is owed if proceeds exceed $250,000 C) No federal income tax is owed on life insurance proceeds D) Tax liability owed depends on the type of life insurance policy

C) No federal income tax is owed on life insurance proceeds

The Human Life Value concept is based on A) education level B) age C) income D) occupation

C) income

An accident and health policy that provides reimbursement benefits makes them payable to the? a. provider b. facility providing service c. insured d. insured's spouse

C) insured

"Life insurance creates an immediate estate". This phrase means: A) cash value has accumulated in the policy B) the insured's estate receives the death benefit C) when the insured dies, a death benefit is paid D) premiums are payable by the insured's estate

C) when the insured dies, a death benefit is paid

Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of? A. costs that exceed 7 1/2 % of AGI B. costs that exceed 10% of AGI C. 100% of costs D. no deduction permitted

C. 100% of costs

After passing a licensing exam in NJ. The person is REQUIRED to apply for a producer license within _____ months. A. 6 B. 9 C. 12 D. 15

C. 12

When new Life Insurance is to be purchased, the solicitation will be considered a replacement transaction if, in conjunction with the sale, existing Life Insurance will be subject to borrowing for amounts exceeding which of the following? A. 10% of the policy's loan value B. 75% of the policy's loan value C. 25% of the policy's loan value D. 50% of the policy's loan value

C. 25% of the policy's loan value

Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application? A. A waiver of premium B. A replacement form C. A good health statement D. An exclusion

C. A good health statement

Coverage under a cancelable health insurance policy may be terminated by: A. The insurer only B. the insured only C. Either the insured or the insurer D. An arbitration committee

C. Either the insured or the insurer

What is the purpose for having an accelerated death benefit on a life insurance policy? A. It allows for a spouse to be added as a rider to a life insurance policy B. It allows for policy loans to be advanced to the insured in the event of unemployment C. It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill D. It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit

C. It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill

Someone needing custodial care at home would require which type of coverage? A. Major medical B. Disability C. Long-term care D. Medicaid

C. Long-term care

Which of the following typically does NOT provide a form of managed care? A. Preferred Provider Organization (PPO) B. Point-of-Service (POS) plan C. Major medical indemnity plan D. Health Maintenance Organization (HMO)

C. Major medical indemnity plan

A producer intentionally makes an untrue statement in an insurance transaction may be guilty of? A. Twisting B. Coercion C. Misrepresentation D. Defamation

C. Misrepresentation

When replacing group insurance, the replacing policy must cover ongoing claims from the former policies, under which of the following? A. COBRA B. HIPPA C. No loss no gain law D. Conversion Privilege

C. No loss no gain law

Joe is a Medicare participant who receives his benefits through a Managed Health Care Plan. Which Medicare plan does he have? A. Part A B. Part B C. Part C D. Part D

C. Part C

Which of the following would evidence ownership in a participating health insurance contract? A. Stock ownership B. Irrevocable beneficiary status C. Policy ownership D. Collateral assignment

C. Policy ownership

Which of the following provides Medicare supplement policies? A. Medicare B. Medicaid C. Private insurance companies D. Associations and employers

C. Private insurance companies

In New Jersey, consultants changing a fee for advice MUST be licensed as a(n)? A. Agent B. Broker C. Producer D. Consultant

C. Producer

What is the purpose of the Medical Information Bureau (MIB)? To accept or decline insurance applicants To set the premium rates for insurers To help underwriters evaluate risk To perform physical examinations on applicants

C. To help underwriters evaluate risk

Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? A. Payment of claims B. Legal actions C. Unpaid premium D. Time of payment of claims

C. Unpaid premium

Claims may be contestable for material representation for what period? A. always B. never C. always if made in an attempt to deceive (fraud) D. 2 years

C. always if made in an attempt to deceive (fraud)

Twisting is? a. Replacement b. A violation of MEC rules c. An Unfair Trade Practice d. Permitted only with an Internal Replacement

C. an unfair trade practice

All of the following are elements of an insurance policy EXCEPT? A. definitions B. other insurance C. claim forms D. conditions

C. claim forms

Which of the following circumstances requires an individual to be a licensed producer? A. setting up sales appointments B. following up about a policyowner about a change in address C. discussing premiums with a potential insured D. conduct an agency sales meeting

C. discussing premiums with a potential insured

An insurance company may ONLY pay a sales commission to: C. individuals licensed by the state

C. individuals licensed by the state

The focus of major medical insurance is providing coverage for? A. critical illnesses only B. preventative care C. medical and hospitalization expenses D. doctor's visits

C. medical and hospitalization expenses

The New Jersey Individual Health Coverage Program is designed to provide comprehensive health benefits for? A. low income residents of New Jersey B. senior citizens residing in New Jersey C. medically uninsurable New Jersey residents D. children of low-income New Jersey residents

C. medically uninsurable New Jersey residents

Which of the following would be considered an unfair claims practice? C. misrepresenting insurance policy provisions affecting a loss

C. misrepresenting insurance policy provisions affecting a loss

Which of the following sells reinsurance? A. the ceding insurer B. the assumptive insurer C. the assuming insurer D. the surplus lines insurer

C. the assuming insurer (assumes the risk of the ceding insurer)

A field underwriter's main task is? A. assign a risk classification to the insured B. report medical information to the Medical Information Bureau (MIB) C. to ensure an applicant's medical information is accurate and complete D. to approve or decline an applicant

C. to ensure an applicant's medical information is accurate and complete

Under a Traditional IRA, interest earned is taxed? A. only if withdrawn prior to age 59 1/2 B. according to the capital gains rate C. upon distribution D. during the accumulation phase

C. upon distribution

Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have?

Calendar-year deductible

Advertisement of insurance in a local newspaper, must be approved by?

Commissioner of insurance

More than 50% of a producer's commission earned during any 12 month period MUST come from other than?

Controlled business

What happens to the coverage under a children's term rider when that child reaches a certain specified age?

Coverage is eliminated.

The solicitation of non-authorized contract in New Jersey violates?

The NEW JERSEY CODE

A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the? A) estate of the insured only B) estate of the deceased beneficiaries only C) named contingent beneficiaries only D) named living primary beneficiaries

D) named living primary beneficiaries

An insurer has the right to recover payment made to the insured from the negligent party. These rights are called? A) contributory B) indemnity C) estoppel D) subrogation

D) subrogation

Which entity is responsible for regulating insurance advertising in NJ? D. (DOBI) NJ Department of Banking and Insurance

D. (DOBI) NJ Department of Banking and Insurance

Small employers who are sponsored by an insurer to provide group benefits to its employees are called? A. Fraternal Benefit Society B. Surplus lines brokers C. Lloyd of London D. (MEWA) Multiple Employer Welfare Arrangement

D. (MEWA) Multiple Employer Welfare Arrangement

24 CE requirements/credits are to be completed by a producer every ___ years. A. 4 years B. every year C. 18 months D. 2 years

D. 2 years

Maternity care must be provided to mother and newborn in a licensed facility for at least how many hours following a cesarean section? A. 24 hours B. 36 hours C. 48 hours D. 96 hours

D. 96 hours

In health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments? A. Whenever an insured is unable to work B. During the time an insured is confined in a hospital C. Following an accidental injury, but not during sickness D. After an insured has become totally disabled as defined in the policy

D. After an insured has become totally disabled as defined in the policy

How does life insurance create an immediate estate? A. Cash value may be borrowed upon at any time B. Nonforfeiture options are immediately available C. The insured's estate receives the death benefit D. After first premium is paid, the face amount may be available to the beneficiary

D. After first premium is paid, the face amount may be available to the beneficiary

An attending physician's statement would be appropriate for which life insurance purpose? A. Attending physician's statements are mandatory during the application process B. At the request of the applicant to assist in the underwriting decision C. At the request of the producer to assist in the underwriting decision D. At the request of the insurer to assist in the underwriting decision

D. At the request of the insurer to assist in the underwriting decision

Under NJ law, what may the insurer REQUIRE to determine the exact cause of death if death appears accidental? A. Interview with the medical examiner B. Hospital examination C. Medical records D. Autopsy

D. Autopsy

Because the design and wording of a policy are in the hands of the insurer, insurance policies are said to be? A. Unilateral contracts B. Contracts of indemnity C. Aleatory contracts D. Contracts of adhesion

D. Contracts of adhesion

Insurance licenses are intended for the purpose of authorizing the transaction of business with members of the general public and not primarily allowing someone to benefit from commissions on business which insures their personal interest. This describes which of the following? A. Compared business B. Organizational business C. Negotiated business D. Controlled business

D. Controlled business

Insurance licenses are intended to be issued for the purpose of authorizing the transaction of business with members of the general public and not primarily allowing someone to benefit from commissions on business which insures their personal interest. This is a description of which of the following? A. Compared business B. Organization business C. Negotiated business D. Controlled business

D. Controlled business

Insurance advertisements in a local newspaper are regulated by? D. Department of Banking and Insurance (DOBI)

D. Department of Banking and Insurance (DOBI)

Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance? A. MEWA B. Mutual C. Group D. Hospital Indemnity

D. Hospital Indemnity

A producers secretary who solicits prospects via telephone? A. is an example of illegal act (AKA) TWISTING B. MUST be bonded through the state C. MUST be licensed as a producer D. Isn't REQUIRED to be licensed as a PRODUCER

D. Isn't REQUIRED to be licensed as a PRODUCER

A commissioner of Insurance may take in which of the following actions when a producer engaged in Unfair Trade Practice? A. hold a public hearing B. Investigate insured involved C. Order producer to pay up to $25,000 penalty D. Issue a Cease & Desist Order

D. Issue a Cease & Desist Order

Generally speaking, which three levels of care are Long-Term Care policies provided with? A. Disability, acute care, and hospitalization B. Accident, medical care, and rehabilitation C. Psychological, acute care, and assisted living D. Skilled nursing, intermediate, and custodial care

D. Skilled nursing, intermediate, and custodial care

An insurer's claim settlement practices are regulated by the? A. Securities and Exchange Commission (SEC) B. National Association of Claims Adjusters (NACA) C. National Association of Insurance Commissioners (NAIC) D. State insurance departments

D. State insurance departments

first year commissions may be legally paid to someone holding a? A. Certificate of Authority B. Temporary license C. Consultant license D. State license and Appointment with the paying insurer

D. State license and Appointment with the paying insurer

All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT? A. Qualified college expenses B. First time home purchase C. Death of the participant D. Stock purchase

D. Stock purchase

Each of the following is TRUE about branch offices EXCEPT? D. The office MUST be open 9-5, 5 days a week

D. The office MUST be open 9-5, 5 days a week

People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called? A. risk retention B. preexisting conditions C. law of large numbers D. adverse selection

D. adverse selection

The state of New Jersey considers Lloyd's of London what kind of insurance company? A. domestic B. surplus C. foreign D. alien

D. alien

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has? A. a higher face amount than average B. a better ability to pay premiums over a long period of time C. worse than average mortality or morbidity experience D. better than average mortality or morbidity experience

D. better than average mortality or morbidity experience

Which of these is NOT considered a form of life insurance advertisement? A. billboard announcing a new insurance product B. sales presentations materials C. producers handed out at a promotional event D. buyer's guide

D. buyer's guide

The DOBI can make information pertaining to a Producer's license, available through? A. disclosure of non-public information B. temporary license C. temporary work authority D. certificate of license status report

D. certificate of license status report

When the word "insurance" appears in a producer's business name, which of the following works CANNOT be approved? A. corporation B. agency C. brokerage D. company

D. company

Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called? A. estate funding B. capital withholding C. capital gains D. estate conservation

D. estate conservation

The Department of Insurance MAY revoke a Producer's license for which of the following? A. failing to meet a sales quota B. failure to maintain an insurer's appointment C. acting as a Broker in a surplus lines transaction D. felony conviction

D. felony conviction

An agent is a(n): D. licensed producer who has a written contract to represent an insurer

D. licensed producer who has a written contract to represent an insurer

A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the? A. estate of the insured only B. estate of the deceased beneficiaries only C. named contingent beneficiaries only D. named living primary beneficiaries

D. named living primary beneficiaries

Producers selling insurance in NJ, while having a business and residence outside of the state, are? A. brokers B. consultants C. surplus lines brokers D. non-resident producers

D. non-resident producers

The difference between pre-certification and concurrent review is that pre-certification: A. costs more to the patient B. costs less to the patient C. is considered a cost containment measure D. occurs before the treatment is provided

D. occurs before the treatment is provided

States that have "no loss no gain" laws require a replacing policy to: A. keep the same type of coverage as the policy it replaces B. not charge a different premium from the policy it replaces C. pay for half of any ongoing claims under the policy it replaces D. pay for ongoing claims under the policy it replaces

D. pay for ongoing claims under the policy it replaces

Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? A. waiver of premium B. juvenile waiver C. guaranteed insurability D. payor benefit

D. payor benefit

A nonparticipating company is sometimes called a(n)? A. alien insurer B. mutual insurer C. reinsurer D. stock insurer

D. stock insurer

Respite care is able to provide? A. permanent relief to the patient's primary caregiver B. health care to the patient's primary caregiver C. weekly benefit payments to supplement the primary caregiver's income D. temporary relief to the patient's primary caregiver

D. temporary relief to the patient's primary caregiver

The elimination period under a hospital indemnity plan is? A. the period in which pre-existing conditions are not taken into consideration B. the period in which all deductibles are eliminated C. the specified number of days after an insurance policy's issue date during which coverage is not afforded for sickness D. the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization

D. the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization

In what part of an insurance policy are policy benefits found?Declarations Entire contract Waivers Conditions

Declarations

Lisa has recently bought a fixed annuity. What is considered to be a disadvantage of owning this type of annuity?

During periods of inflation, annuitants will experience a decrease in purchasing power of their payments.

Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?

Incontestable clause

What happens to interest earned if the annuitant dies before the payout start date? It is taxable It is taxable only if no beneficiary is named It is not taxable It is only taxable if contract has been in force under one year

It is taxable

Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA? A. It would be considered taxable income to the employee B. The employee would not be allowed to an HSA C. The employer would pay payroll tax and FICA on the contribution amount D. The employer would not be allowed to deduct the contribution from the employee's pay

It would be considered taxable income to the employee

Insurance companies determine risk exposure by which of the following?

Law of large numbers and risk pooling

Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?

Life annuity certain

Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies?

Life only (The life only annuity payout option has no additional payouts regardless of when the annuitant dies.)

How do interest earnings accumulate in a deferred annuity? On a tax credit basis On a tax-deferred basis On a tax-free basis On a taxable basis

On a tax-deferred basis

which market index is normally associated with an indexed annuity rate of return?

S & P 500

Which of these is NOT a characteristic of the Accelerated Death Benefit option? The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost

The benefit can be offered as a rider at a specific extra cost or may be at no cost

Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?

The policy may be paid up early by using policy dividends

All of these statements concerning whole life insurance are false EXCEPT

When a whole life policy is surrendered, income taxes may be owed

The typical long-term care insurance policy is designed to provide a minimum of __ year(s) of coverage. a. 1 b. 3 c. 5 d. 7

a. 1

Which of the following is the number of days required in a notice of hearing? a. 10 b. 15 c. 30 d. 90

a. 10

It is the company's responsibility to supply a claim form to an insured within how many days after receiving notice of claim? a. 15 b. 30 c. 60 d. 90

a. 15

How many employees must an employer have for a terminated employee to be eligible for COBRA? a. 20 b. 30 c. 40 d. 50

a. 20

A newborn is REQUIRED to be covered for _____ days from the moment of birth. a. 30 b. 60 c. 90 d. 120

a. 30

how long can an insurer exclude coverage for a pre-existing condition on a Medicare Supplemental Policy? a. 6 months b. 12 months c. 18 months d. 24 months

a. 6 months

Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? a. Accumulation at Interest Option b. Cash Dividend Option c. Paid-Up Additions Option d. One-Year Term Dividend Option

a. Accumulation at Interest Option

The waiver of premium does NOT include which provision?

a. All future premiums are waived if the insured recovers from the disability

Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider? a. Can be converted to permanent coverage without evidence of insurability b. Coverage can be different for each child c. Premiums on this rider are not required until the limiting age is reached d. Increases the policy's overall cash value

a. Can be converted to permanent coverage without evidence of insurability

How does one qualify as a fully-insured individual under Social Security disability coverage? a. Individual has been credited with the appropriate number of quarters of coverage b. Individual is currently covered under Medicaid c. Individual is expected to be disabled for 5 months d. Individual is currently employed

a. Individual has been credited with the appropriate number of quarters of coverage

Low frequency diseases can be exclusively covered by what kind of health insurance policies? a. Limited policies b. Blanket policies c. Employer policies d. Restricted policies

a. Limited policies

Shirley has a Medigap policy, which is designed to pay costs associated with? a. Medicare Parts A and B b. Medicare Advantage c. Medicare Part C d. Medicare Part D

a. Medicare Parts A and B

Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. She would like to borrow $15,000 against the cash value. Which of the following statements is TRUE? a. Net death benefit will be reduced if the loan is not repaid b. No interest will be charged on loan balance c. Term life policies are the only type of insurance that allows policy loans d. A loan can be taken out for up to the face amount of the policy

a. Net death benefit will be reduced if the loan is not repaid

When an insured has a major medical plan with first dollar coverage, how does this impact the benefits paid? a. No deductible payment is required b. Deductible specified in the contract is payable by the insured c. Insured must pay a percentage of covered losses d. An initial deductible plus a percentage of the remaining covered loss is owed by the insured

a. No deductible payment is required

A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? a. Reduction of premium dividend options b. extended term option c. paid-up option d. cash dividend option

a. Reduction of premium dividend options

If credit life insurance is terminated before the scheduled maturity date of the debt, any unearned premium held by the insurer will be? a. Refunded to the debtor b. debited to an account for "bad debts" c. Added to the insurer's surplus funds d. Refunded to the creditor

a. Refunded to the debtor

If credit life insurance is terminated before the scheduled maturity date of the debt, any unearned premium held by the insurer will be?a. Refunded to the debtor b. Added to the insurer's surplus funds c. Debited to an account for "bad debts" d. Refunded to the creditor

a. Refunded to the debtor

Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make? The amount contributed by the employer The amount contributed by the owner The underlying account investments used The medical expenses paid for by the HSA

a. The amount contributed by the employer

Which of the following does a life insurance policy summary normally include? a. The policy's cash value b. Agent's report c. Policyowner's MIB report d. Stated beneficiary

a. The policy's cash value

A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? a. Viatical settlement agreement b. Funding medium agreement c. Split dollar plan d. Buy-sell plan

a. Viatical settlement agreement

When are group disability benefits considered to be tax-free to the insured? a. When the recipient pays the premiums b. When the employer pays the premiums c. When both the employer and recipient pay the premiums d. When benefits paid are equal to or lower than the recipient's salary

a. When the recipient pays the premiums

An individual most likely will have an insurable interest in insuring a person's life if? a. an economic interest exists for the continuance of the insured's life b. a financial interest exists at the time of insured's death c. there is any blood relationship with the insured d. a business relationship exists

a. an economic interest exists for the continuance of the insured's life

The factor used most often when underwriting a disability income policy? a. annual earnings b. sex of the insured c. marital status d. occupation

a. annual earnings

Before a licensed agent is eligible to transact insurance sales, they must be? a. appointed by an insurance company b. trained by an authorized insurance company c. approved by the governor d. assigned an insurance mentor

a. appointed by an insurance company

Ownership of a life insurance policy may be temporarily transferred with a(n)? a. collateral assignment b. absolute assignment c. transferable assignment d. beneficiary assignment

a. collateral assignment

Level premium permanent insurance accumulates a reserve that will eventually? a. equal the face amount of the policy b. pay a dividend to the policyowner c. require the policyowner to make periodic withdrawals d. become larger than the face amount

a. equal the face amount of the policy

The names of the insurance companies represented by the producer? a. is available to the public b. is NOT available to the public c. is ONLY available to insurance companies d. is made available after paying a $50 fee

a. is available to the public

The reinstatement provision in a health insurance policy is? a. mandatory b. optional c. voluntary d. discretionary

a. mandatory

Which of the following MUST contain a "statement of policy cost and benefit information?" a. policy summary b. insurance company's AM BEST rating c. buyers guide d. insurance company's advertisements related to this coverage

a. policy summary

Under the subrogation clause, legal action can be taken by the insurer against the? a. responsible third party b. beneficiary c. policyowner d. State

a. responsible third party

Long-Term Care policies may provide coverage for claims arising from? a. senile dementia b. acute care in hospital c. alcoholism d. drug addiction

a. senile dementia

An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if? a. the insured outlived the beneficiary b. the beneficiary outlived the insured c. no beneficiary was ever named d. the insured and beneficiary died at the same time

a. the insured outlived the beneficiary

A whole life insurance policy accumulates cash value that becomes: a. the policy loan value which the insured may borrow against b. the death benefit c. the source of funding for administration fees d. a source of funding a term rider to the policy

a. the policy loan value which the insured may borrow against

Health insurance advertisements that mention statistical information are required by NJ law to?

accurately convey all pertinent facts

Loss of income insurance provides? an individual the means to replace wages an individual the ability to collect workers' compensation an individual the ability to continue with medical coverage after a disability unlimited income replacement to a disabled person

an individual the means to replace wages

The National Do Not Call List is monitored by which of the following?a. The State of New Jersey b. The Federal Government (Federal Trade Commission) c. The NAIC (National Association of Insurance Commissioners) d. The telephone police agency

b. The Federal Government (Federal Trade Commission)

In life insurance, replacing companies must keep records of all replacement materials on file for how long? a. 3 years b. 5 years or until the next regular examination by the Commissioner c. 3 years or until the next regular examination d. 5 years

b. 5 years or until the next regular examination by the Commissioner

Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in? a. Payout period b. Accumulation period c. Deferred period d. Growth period

b. Accumulation period

Which of the following would be considered an underwriting duty of an agent? a. Requesting medical information from the Medical Information Bureau (MIB) b. Completing all applications and collecting initial premiums c. Accepting or declining an application d. Assigning a risk classification

b. Completing all applications and collecting initial premiums

Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? a. Adjustable life insurance b. Decreasing term insurance c. Increasing term insurance d. Modified life insurance

b. Decreasing term insurance

Which of these riders will pay a death benefit if the insured's spouse dies? a. Guaranteed Insurability rider b. Family term insurance rider c. Family whole insurance d. payor benefit rider

b. Family term insurance rider

All of these are characteristics of a universal life insurance policy EXCEPT? a. Flexible death benefit b. Fixed surrender value c. Flexible premiums d. Builds cash value

b. Fixed surrender value

Tom has a home health care benefit and is confined to his home. Which of these benefits is NOT typically covered? a. Part-time nursing care b. Full-time nursing care c. Physical therapy d. Home health aides

b. Full-time nursing care

All of these statements concerning Medicare are true EXCEPT? a. Medicare is primarily funded by Federal payroll and self-employment taxes b. Long-term care is covered by Medicare Part C c. Hospice is covered by Medicare Part A d. Doctors' services are covered by Medicare Part B

b. Long-term care is covered by Medicare Part C

Which of the following is Medicare Part B also known as? a. Hospital insurance b. Medical insurance c. Long-term care insurance d. Medigap

b. Medical insurance

How do interest earnings accumulate in a deferred annuity? a. On a tax credit basis b. On a tax-deferred basis c. On a tax-free basis d. On a taxable basis

b. On a tax-deferred basis

Which of these is considered to be a document that describes the critical segments of a life insurance policy? a. Buyer's guide b. Policy summary c. Consumer report d. Buyer's summary

b. Policy summary

Insurers are required to keep copies of Policy Summaries and Buyer's Guides on file for at least: a. Two years after the documents are used b. Three years after the documents are used c. Five years after the documents are used d. Seven years after the documents are used

b. Three years after the documents are used

Which of these would be the best example of a limited pay life insurance policy? Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years

b. Whole life policy with premiums paid up after 20 years

Benefits provided by a Medicare Supplement policy must NOT: a. be payable to the insured b. duplicate Medicare benefits c. be sold to individuals under 70 d. charge additional premiums

b. duplicate Medicare benefits

The gatekeeper's role when used by an HMO is? a. establishing out-of-network providers b. obtaining referrals to specialists from primary care physicians c. taking applications for enrollment into an HMO d. processing the subscriber's payments

b. obtaining referrals to specialists from primary care physicians

which of these is not considered a form of life insurance advertisement?

buyers guide

Premium mode is a term used to describe the? a) Premium past due b) Method of payment c) Frequency of the premium payment d) Premium paid

c) Frequency of the premium payment

Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application? a. A waiver of premium b. A replacement form c. A good health statement d. An exclusion

c. A good health statement

Which of these is considered to be a Living Benefit option in a life insurance policy? a. Reinstatement b. Waiver of premium c. Accelerated death benefit d. Payor benefit

c. Accelerated death benefit

Naming a contingent beneficiary as "all surviving children" is described by which term? a. Contingent designation b. Primary designation c. Class designation d. Tertiary designation

c. Class designation

All of these are typically sources of underwriting information for life or health insurance EXCEPT * Consumer reports * Medical Information Bureau (MIB) reports * Disclosure authorization response * Attending physician's statement (APS)

c. Disclosure authorization response

Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity? a. Payments cease 5 years after the annuitant's death b. During periods of inflation, annuitants will experience an increase in purchasing power of their payments c. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments d. Payment amounts can be unpredictable from month to month

c. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments

Which of the following statements is TRUE about Medicaid? a. It is health insurance for the elderly b. It is administered by the Federal government c. It is funded by federal, state, and local taxes d. Coverage includes compulsory hospital and voluntary supplementary medical insurance

c. It is funded by federal, state, and local taxes

Insurance companies determine risk exposure by which of the following? a. Insurable interest b. Insurance exchanges c. Law of large numbers and risk pooling d. Population table data

c. Law of large numbers and risk pooling

Premiums paid that exceed 7 ½% of an insured's Adjusted Gross Income (AGI) are tax-deductible when paid for which of the following plans? - Accidental Death and Dismemberment - Personal Disability Income plan - Qualified Long-Term Care plan - Group disability income plan

c. Qualified Long-Term Care plan

Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?a. Partially taxable income b. Non-taxable income c. Taxable income d. Conditionally taxable income

c. Taxable income

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is?a. The shorter the payment period, the lower the premium b. The longer the payment period, the higher the premium c. The shorter the payment period, the higher the premium d. The payment period has no affect on the premium payment

c. The shorter the payment period, the higher the premium

A disability income policy can prevent an insured from earning a higher income than if he/she were working by utilizing: a. elimination periods b. probationary periods c. benefit limits d. deductibles

c. benefit limits

All of the following are included as part of a contract in the entire contract provision EXCEPT the: a. riders b. application c. changes made by the producer d. policy

c. changes made by the producer

In an insurance contract, the element that shows each party is giving something of value is called? a. offer b. acceptance c. consideration d. purpose

c. consideration

A Medicare Supplement Policy is government insurance designed? a. to provide healthcare to the elderly b. designed to provide prescription drug coverage to the elderly c. designed to fill in the gaps of Part A and Part B Medicare d. a supplement to Medicare Advantage Part C

c. designed to fill in the gaps of Part A and Part B Medicare

Medicare Part B covers? a. long-term care b. hospital room and board c. doctor's charges d. prescription drugs

c. doctor's charges

Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the? a. employee's benefits still owed can be claimed b. employee cannot be excluded from the new employer's health plan c. employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan d. new health insurance carrier will have a clear record of any chronic conditions that exist

c. employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan

An insurance company may ONLY pay a sales commission to: a. individuals who are residents of this state for a least 5 years b. individuals who are registered with the NAIC c. individuals licensed by the state d. individuals who are gainfully employed by that insurance company

c. individuals licensed by the state

The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception: a. the insurer will only be liable for a return of premiums paid b. minus indebtedness and with interest during the last 12 months c. minus indebtedness and without interest during the last 6 months

c. minus indebtedness and without interest during the last 6 months

The monthly benefit for an individual disability income policy is usually limited to a percentage of the insured's income in order to avoid? a. claims b. the elimination period c. over insurance d. adverse selection

c. over insurance

Term insurance is appropriate for someone who: a. seeks living benefits for themselves b. seeks a policy that builds cash value c. seeks temporary protection and lower premiums d. seeks permanent protection and higher premiums

c. seeks temporary protection and lower premiums

Legal purpose is a term used in contract law meaning? a. there must be an offer and acceptance b. the contract must be aleatory c. there must be legal reasons for entering into the contract d. the contract must be a contract of adhesion

c. there must be legal reasons for entering into the contract

When can a group health policy renewal be denied according to the Health Insurance Portability and Accountability Act (HIPAA)? a. when a change of management has occurred within the group b. when the annual number of claims has increased by 25% C. when contribution or participation rules have been violated D. when group participation has increased by 25%

c. when contribution or participation rules have been violated

Which of the following may be used as a CE credit?

completing a CLU designation course

Which of the following would be considered an underwriting duty of an agent?

completing all applications and collecting initial premiums

Intentional withholding of material facts that would affect an insurance policy's validity is called a(n)?

concealment

Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental? a. Presumptive disability provision b. Absolute accidental provision c. Accidental death benefit provision d. Accidental bodily injury provision

d. Accidental bodily injury provision

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? a. Certificate of Authority b. Consumer report c. Coverage document d. Certificate of coverage and benefits

d. Certificate of coverage and benefits

Insurance licenses are intended to be issued for the purpose of authorizing the transaction of business with members of the general public and not primarily allowing someone to benefit from commissions on business which insures their personal interest. This is a description of which of the following? a. Compared business b. Organization business c. Negotiated business d. Controlled business

d. Controlled business

How is Medicare Part B funded? a. Employer taxes b. Payroll taxes c. User premiums d. General tax revenue and user premiums

d. General tax revenue and user premiums

The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? a. An agent establishes insurable interest b. An individual does not have insurable interest on his or her own life c. Insurable interest only pertains to business arrangements d. Insurable interest can be based on the love and affection of individuals related by blood or law

d. Insurable interest can be based on the love and affection of individuals related by blood or law

Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? a. Fixed period b. Interest only c. Installment refund d. Life income

d. Life income

Which of these is likely to occur when life or health insurance is being applied for? a. The Medical Information Bureau (MIB) will determine the risk classification b. The agent is required to report all medical information to the Medical Information Bureau (MIB) c. Physical examinations are required d. Medical history from the insured may be reviewed and reported

d. Medical history from the insured may be reviewed and reported

All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT: a. Agent's report b. Medical Information Bureau (MIB) c. Inspection reports d. National Association of Insurance Underwriters

d. National Association of Insurance Underwriters

Producers selling insurance in New Jersey, while having a residence and business address outside the state, are? a. Brokers b. Consultants c. Surplus lines brokers d. Non-Resident producers

d. Non-Resident producers

Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance? a. Policyowner may increase or decrease the premium payments b. Policyowner may increase or decrease the face amount c. Policyowner can contribute large sums of money d. Policyowner has the right to select the investment which will provide the greatest return

d. Policyowner has the right to select the investment which will provide the greatest return

first year commissions may be legally paid to someone holding a? a. Certificate of Authority b. Temporary license c. Consultant license d. State license and Appointment with the paying insurer

d. State license and Appointment with the paying insurer

Jonas has disability insurance through his employer. The employer pays 75% of the premium, and Jonas pays the other 25%. What is Jonas's tax liability for any benefits paid from the disability plan? a. Taxes must be paid on all benefits received b. No taxes are payable on any benefits received c. Taxes must be paid on 25% of the benefits received d. Taxes must be paid on 75% of the benefits received

d. Taxes must be paid on 75% of the benefits received

Which of the following would be a valid reason why a policy premium would be higher than the standard premium? a. The insurer is not a member of the MIB b. The agent quoted the wrong price c. The insured does not have the necessary financial reserves d. The insured does not meet established underwriting requirements

d. The insured does not meet established underwriting requirements

Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this? a. Increasing Term Life policy b. Nonparticipating policy c. Modified Whole Life policy d. Universal Life policy

d. Universal Life policy

A fee for service health insurance plan will normally cover? a. vitamins and natural remedies b. cosmetic procedures c. gym membership d. a disease

d. a disease

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has? a. a higher face amount than average b. a better ability to pay premiums over a long period of time c. worse than average mortality or morbidity experience d. better than average mortality or morbidity experience

d. better than average mortality or morbidity experience

The insurance Commissioner make revoke a Producer license for? a. Failing to meet required sales quotas b. Unpaid charge-back of unearned commissions c. Failing to meet continuing education credit requirements d. Engaging primarily in Controlled Business sales

d. engaging primarily in Controlled Business sales

CE credits may be approved for which of the following? d. ethics

d. ethics

Under a non-qualified annuity, interest is taxed after the? a. deposits have been made b. death of the annuitant c. distribution of payments d. exclusion ratio has been calculated

d. exclusion ratio has been calculated

Level premium term life insurance policies? a. build cash value in a separate account b. automatically convert to permanent insurance at a predetermined date c. automatically renew at predetermined dates d. have premiums that are averaged over the policy period

d. have premiums that are averaged over the policy period

Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's? a. surrender charge b. death benefit c. cash refund d. income period

d. income period

Which of the following is true regarding the New Jersey Guaranty Association? a. a producer may advertise that a policy is covered by an association b. a producer may advertise the existence of the association c. only an insurance company can advertise the existence of the association d. none of the above

d. none of the choices

Producer license denials are appealed at a hearing before? a. commissioner of insurance b. board of arbitration c. committee formed by the commissioner d. office of administrative law

d. office of administrative law

The elimination period under a hospital indemnity plan is? a. the period in which pre-existing conditions are not taken into consideration b. the period in which all deductibles are eliminated c. the specified number of days after an insurance policy's issue date during which coverage is not afforded for sickness d. the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization

d. the specified number of days an insured must wait before becoming eligible to receive benefits for each hospitalization

Funding for Medicare Part B is partially provided by? a. Municipal bonds b. State bonds c. private insurers d. user premiums

d. user premiums

Who is the individual paid on a fee-for-service basis? a. Subscriber b. Administrator c. Insured d. Provider

d.Provider

An insurance company can usually contest the information contained in an accident and health application for two years from the date that the?

insurance company dates the policy

Ambiguities in an insurance policy are always resolved in favor of the?

insured

Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because?

the MEC tends to be an investment vehicle

When replacement of individual life insurance is involved, an agent must furnish a notice regarding replacement of life insurance to which of the following?

the applicant only

*How long MUST an insurance company keep records on life insurance replacement activity?* A. At least 4 yrs B. At least 5 yrs C. At least 6 yrs D. At least 7 yrs

*B) at least 5 yrs*

*Individual health insurance policies MUST provide all of the following benefits for the treatment of alcoholism EXCEPT:* A. Treatment at a detoxification facility. B. Confinement as an inpatient at a licensed residential treatment facility. C. Limited hospital policy benefits. D. Inpatient care in a hospital for alcoholism.

*C. Limited hospital policy benefits*

*How long is the free-look period with a Medicare supplement policy?* A. 10 days B. 15 days C. 20 days D. 30 days

*D. 30 days*

*Who is responsible for advertisements?*

*Insurer*

*Who is Medicare for?*

*Must be 65*

*When REPLACING a GROUP plan...*

*You MUST provide coverage to ALL eligible insureds covered by the EXISTING plan.*

(New Jersey Commercial Insurance Deregulation Act) rates must be filed no later than ____ days after the effective date, expect medical malpractice insurance

30 days

criminal acts must be reported to the Commissioner within ____days of conviction

30 days

(Cancellation and Nonrenewal) nonrenewable notice for medical malpractice must be delivered at least ____days before the expiration of the policy

60 days

After an annuity contract has been delivered by the producer, the free-look period is a MINIMUM of? A. 10 days, not more than 30 days B. 20 days, not more than 30 days C. 7 days D. 15 days

A) 10 days, not more than 30 days

How long is the contestable period for health insurance policies sold in NJ? 2 yrs 3 yrs 4 yrs 5 yrs

A) 2yrs

How long can an insurer exclude coverage for a preexisting condition on a Medicare supplement policy? 6 months 12 months 18 months 24 months

A) 6 months

Which of the following are retained at the expense of an insurance buyer to give advice on insurance needed by the buyer? A. Brokers and consultants B. Insurance prospectors C. Third party admins D. Agents

A) Brokers and consultants

The law that established insurance transactions should be regulated by the states is called the? A) McCarran-Ferguson Act B) McCain-Feingold Act C) Fair credit reporting act D) Paul vs Virginia

A) McCarran-Ferguson Act

A Buyer's Guide and Policy Summary? A. Must be delivered with or prior to policy delivery B. Is not required in the state of NJ C. Must be delivered within 30 days of policy delivery D. Is only required when a binding receipt is issued

A) Must be delivered with or prior to policy delivery

When replacement of individual life insurance is involved, an agent must furnish a Notice Regarding Replacement of life insurance to which of the following? The applicant only The existing insurer only The replacing insurer only The applicant and replacing insurer

A) the applicant only

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

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.

XYZ company is looking to replace their existing group health coverage with another plan. The replacing insurer is REQUIRED to: A. Accept all the individual eligible under the previous plan B. Conduct a health examination on each insured C. Exclude coverage for pre-existing conditions D. Charge the same premium as the previous insurer

A. Accept all the individual eligible under the previous plan

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

The Commissioner may: A. Establish (CE) continuing education requirements B. Set sales quotas C. Arbitrate claims D. Establish new insurance laws

A. Establish (CE) continuing education requirements

Once an accident and health insurance policy has been in force for ______ year(s), the policy may NOT be contested by the insurer. A. 1 B. 2 C. 3 D. 4

B) 2

Which of the following is an example of defamation? A. Using intimidation to monopolize the insurance business B. Using derogatory statements about an insurance company's financial condition C. Returning a portion of a premium to índice one to buy insurance D. Offering a client something of value not in contract in exchange for business

B) Using derogatory statements about an insurance company's financial condition

An effort by an existing insurer to prevent replacement and continue existing life insurance policies in force is known as which of the following? A. Direct-response B. Conservation C. Conversion D. Reinstatement

B) conservation

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

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 "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.

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

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.

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

Which of the following circumstances requires an individual to be a licensed producer? a. Setting up sales appointments b. Following up with a policy holder about address change c. Discussing premiums with a potential insured d. Conducting an agency sales meeting

C) Discussing premiums with a potential insured

An insurance company may ONLY pay a sales commission to: A. Individuals who are residents of this state for at least 5 years B. Individuals who are registered with the NAIC C. Individuals licensed by the state D. Individuals who are gainfully employed by that insurance company

C) Individuals licensed by the state

Reinstatement of an individual health insurance plan REQUIRES? A. 45 day elimination period B. Payment of premium without proof of insurability C. Payment of premium and evidence of insurability required D. Coverage for sickness begins immediately upon reinstatement

C) Payment of premium and evidence of insurability required

In the advertising of individual life insurance policies, an "introductory" or "special enrollment" may not be made available until any previous enrollment period for the same policy has been closed for at least how long? One month Two months Three months Five months

C) three months

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.

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.

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

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.

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

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.

Which action is REQUIRED by an agent who is replacing an existing life insurance policy? A. keep applicants records on file at least 10 years B. notify the existing insurer of the proposed replacement C. submit the replacing insurer a list of policies to be replaced (insurance/annuity) D. offer insured a 60 day free-look period

C. submit the replacing insurer a list of policies to be replaced (insurance/annuity)

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

Which of the following is NOT a duty of the Commissioner?

Establish insurance rates

Jay the producer is giving insurance advice regarding a prospect's existing coverage. If Jay were to receive a fee for this advice (in addition to his commission), he MUST:

Obtain a signed memorandum from the prospect acknowledging the amount of compensation.

Minimum age to obtain a producer's license

age 18

(Maximum civil penalties for violating Insurance Producer Licensing Act) each subsequent violation

$10,000

*What is the MAXIMUM fine for each VIOLATIONS committed UNKNOWINGLY?* (PENALTIES for UNFAIR COMPLETION, ACT or PRACTICE)

*$1000*

*You MUST remit the payment for every insured claim submitted by a covered person NO later than how many days?*

*30*

*What is the NJ TEMPORARY DISABILITY LAW?*

*A mandatory disability program designed to protect employees covered under the NJ unemployment compensation law*

*A producer or insurer who violates the solicitation regulations can be ordered to pay a fine for each violation of up to:* A. $2,000. B. $3,000. C. $5,000. D. $1,000.

*A. $2,000*

The Commissioner may issue a temporary producer license for a maximum of ____days to a surviving spouse, business partner, or employee if a producer dies, becomes disabled, or id called to active military service.

180 days

(Maintenance and duration of license) Expiration date of license is every ____years on the last day of birth month

2 years

(prelicensing education requirement) ____hours for life insurance

20 hours

records must be retained for at least ____years

5 years

The NJ Life and Health Guaranty Association protect life insurance death benefit claims up to: a. $300,000 or the amount of the loss, whichever is greater b. $300,000 or the amount of the loss, whichever is less c. $500,000 or the amount of the loss, whichever is greater d. $500,000 or the amount of the loss, whichever is less

A) $500,000 or the amount of the loss, whichever is less

An insurance consultant is BEST defined as a(n)? A) Producer who charges fees for advice B) Producer who introduces a policy owner to a 3rd party for a potential sale of a life insurance policy C) Consultant who gives motivation seminars to an insurers sales team D) Individual who underwrites insurance policies

A) Producer who charges fees for advice

Which of the following MUST contain a "Statement of policy cost and benefit information"? Policy Summary Insurer company's AM best rating Buyers Guide Insurance Company advertisements related to this coverage

A) policy summary

The NJ insurance law requires eligible individuals to make an election to continue health insurance benefits within a MAXIMUM of ___ days after coverage termination. 30 60 90 120

B) 60

A Buyer's Guide MUST: A. Include a copy of the sales presentation B. Contain content approved by the commissioner C. Contain a copy of the producer's license D. Explain specific policy values

B) Contain content approved by the commissioner

A branch office certificate MUST be filed at least how many days before conducting business at the specified branch? A. 10 B. 20 C. 30 D. 45

C) 30

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

A health insurer MUST be provided with written proof of loss ____ days after the date of loss. A. 30 B. 45 C. 60 D. 90

D) 90 (insured is required to give proof to insurer within 90 days after date of loss)

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 NJ life and Health Insurance Guaranty Association is?

funded by assessments on member companies

(MAXIMUM CIVIL PENALTIES for VIOLATING INSURANCE PRODUCER LICENSING ACT) What are the fines for first violation

*$5000*

*What is the MAXIMUM fine for VIOLATIONS committed KNOWINGLY?* *(PENALTIES for UNFAIR COMPLETION, ACT or PRACTICE)*

*$5000*

*A Medicare supplement policy CANNOT deny or limit coverage for a claim for losses incurred MORE than how many months from the effective date of coverage?* A. 24 B. 6 C. 9 D. 12

*B) 6*

A producer who allows his license to expire may reinstate the license within ____year(s) of expiration

1 year

(Continuing education (CE)) total CE hours required every two years

24 hours

(Continuing education (CE)) includes ___hours of ethics CE

3 hours

The name of the insurance companies represented by the producer: A. Is available to the public B. Is NOT available to the public C. Is ONLY available to insurance companies D. Is made available after paying a $50 fee

A) is available to the public

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

The Commissioner MUST approve? A. Continuing Education courses B. Set sales quotas C. Arbitrate claims D. Establish new insurance laws

A. Continuing Education courses

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.

A licensed producer is required to file a notice of any change of address within how many days? A. 10 B. 20 C. 30 D. 60

C) 30

Pierre the producer receives a premium for an individual health insurance policy. Pierre MUST remit the premium to his insurer within ____ business days of receipt. A. 5 B. 6 C. 7 D. 8

C) 7

An example of Rebating would be? A. An insurer paying dividends to its client B. Reducing the premiums across the board for a specific risk class C. A producer who shares commissions with a client D. Using intimidation to monopolize the insurance business

C) A producer who shares commissions with a client

In NJ, group health insurance may be offered to all of these groups EXCEPT: A. Private employer B. City government C. College seminar participants D. Small employer

C) College seminar participants

An effort by an existing insurer to prevent replacement and continue existing Life Insurance in force is known as which of the following? a. Reinstatement b. Conversion c. Conservation d. Direct-response

C. Conservation

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

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.