Law Quiz #1

A producers license is not required for an office employee who?

takes factual information relative to a claim

A violation of a Cease & Desist order may result in a fine for each violation up to...

$5,000

In addition to the suspension or revocation of a license and any other penalties, if a producer violated any provision of the law, the Commissioner may impose a fine up to:

$5,000 for the first violation and $10,000 for each subsequent violation

Branch Offices

1. A least one licensed insurance producer assigned to that office 2. The office is accessible to the public during normal business hours 3. At least one licensed insurance producer is present during business hours except when engaged in branch activities elsewhere

It is unlawful to permit any discrimination against a person because of...

1. Creed 2. Ancestry 3. Genetic Information

A licensed producer acting as a broker may charge, an insured, a fee contingent upon the fact that the fee

1. Is based on a written memo signed by the insured 2. Bears a reasonable relationship to the nature of the services performed 3. Is not discriminatory

New Jersey Insurance Law prohibits trade practices that are..

1. Unfair methods of competition 2. Unfair acts 3. Deceptive practices

A producers license may be renewed online up to 60 days prior to the expiration of the license; however, the renewal application must be submitted within how many days before the expiration date?

10 days

Accounts receivable...

120 days

The insurer must give the Department of Insurance how many days notice of the termination of an agent appointment...

15 days IN, 15 days OUT

No individual may be licensed as a producer unless they are at least...

18 years old (do not need to be a citizen, can be a documented alien)

The standard term for New Jersey insurance producer license is:

2 years (expires the last day of the producers birth month)

A licensee shall notify the Department of Insurance of the closing of a branch office within how many days?

30 calendar days

A licensed producer is required to file notice of any change of address in writing within...

30 days

A person who producer license is revoked shall not be entitled to apply for another insurance license for at least...

5 years (Producer Revoked) 10 years (Organization Revoked)

The waiting period after revocation of a producer's license before reapplying for the license is...

5 years from the effective date of revocation

Any person violating the provisions of the insurance law may be fined, for the first offense, up to...

5,000

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

50%

When all qualifications have been satisfied, the Commissioner may issue a temporary certificate, which will permit an applicant to begin working as a producer, pending receipt of the license. A temporary certificate may be effective for a period up to...

60 days

A domestic insurer is...

A stock or mutual insurance company organized under the laws of this state

When an insured reports a claim to an insurance company, the company is required to:

Acknowledge or pay the claim (within 10 days)

The Insurance Commissioner may...

Adapt, issue & promulgate rules & regulations authorized by law

An insurer which formed under the laws of any country other than United State is known as...

Alien

What can the Commissioner issue evidencing the AUTHORITY OF AN INSURER to transact insurance in this state?

Certificate of Authority

An insurance company has requested a Certification of Licensed Status on a licensed producer. Which of the following may or not be closed?

Criminal History Reports/Bankruptcy Records

Making, publishing, disseminating or circulating, directly or indirectly, or aiding abetting or encouraging of any oral of written statement which is FALSE or DEROGATORY to the financial condition of an insurer is defined as...

Defamation

An insurer incorporated with the laws of the this state with capital divided into shares and owned by its stockholders is...

Domestic Mutual

Any person failing to comply with a subpoena issued by the Commissioner of Insurance...

May be punished by the Superior Court for contempt

Making, issuing, or circulating any estimate, illustration, circular or statement that distorts the terms of any policy is prohibited, and defined as:

Misrepresentation

An insurance producer lives in the state of PA and maintains a business office in NJ for insurance purposes. The producer elects NJ to the be the home state for licensing purposes. What type of license is required for the producer to sell insurance in PA?

Non-Resident License issued by PA

A producer who has a license revoked by the Commissioner of Insurance may...

Not receive any commissions on the renewal of policies.

Unless specifically addressed under New Jersey insurance law, rebutting is:

PROHIBITED

NOT listed on the producer status

Petitions or discharges in bankruptcy/criminal history

Statements contained in advertisements with respect to the business of insurance which are untrue, deceptive, or misleading are:

Prohibited by New Jersey state law

In order to sell Workers Compensation Insurance, a producers license must designate the following authority:

Property/Casualty

A contract in which the originating insurer procures insurance for itself in another insurer in respect to part or all of an insurance risk?

Reinsurance

A nonresident licensee in New Jersey has a...

Resident and Business address in a state other than New Jersey

A licensee may terminate a current producer license by...

Returning the license to the Department for cancellation any time before the expiration date

If the licensee has paid all or part of commissions on insurance premiums to a person not licensed in this state, the Commissioner may...

Revoke the license

A producer is suspected of violating insurance laws. A 10-day notice of hearing is issued and after the hearing is conducted the producer is found guilty. In addition to imposing monetary penalties, what can the Commissioner do?

Revoke the license of the licensee

An insurer is required to maintain records of all COMPLAINTS received

Since the last examination by the department

What is true about an insurance consultant?

The Consultant must be licensed as a producer

A domestic mutual insurer is incorporated in accordance with the laws of this state without permanent capital stock. Who is responsible for the election of the Board of Directors?

The Policyholders

A producer licensed by another state moves to NJ, and wishes to be licensed as a Resident Producer in NJ, which of the following is true?

The educational requirement may be waived.

The inducement of an insured to lapse, forfeit or surrender an insurance policy by misrepresentation or misleading comparisons, in order to write a new policy

Twisting

Under New Jersey law, preference in the issuance, withholding, extension or renewal of any policy or contract of insurance solely because of age, is considered...

Unfair discrimination

Should the Commissioner determine that a license has willfully violated any provisions of the insurance laws of this state, the Commission may suspend the license...

after conducting a hearing in accordance with a written "Show of Cause Order"

An insurance broker is someone who represents...

an insured or prospective insured

The Commissioner may demand that an insurance company pay a former agent commissions on renewal business while under contract...

in accordance with the previous agency contract