Law Quiz 1

All of the following would be listed on a producer status EXCEPT:

petitions or discharges in bankruptcy

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

takes factual information relative to a claim

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 education 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, is known as,

twisting

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

$5,000

Any person violating the provisions of the insurance law may be fined, for the first offense, 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, $10,000 for each subsequent violation

The insurer must give the department of insurance how many days notice of the termination of an agent appointment:

15

The standard term for a New Jersey insurance producer license is:

2 years

A licensee shall notify the department of insurance of the closing of a branch within how many days?

30 calendar days

a license producer is required to file notice of any change of address in writing within:

30 days

The waiting period after revocation of a producer's license before reapplying for this license is:

5 years from the effective date of revocation

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%

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 of mutual insurance company organized under the law of this state

An insurer which is informed under the laws of any country other than the United States is known as which type of insurer:

Alien

An insurance broker is someone who represents:

An insured or prospective insured

Which of the following may the Commissioner issue evidencing the authority of an insurer to transact insurance in this state:

Certificate of Authority

An insurance company has requested a Certificate of License Status on a licensed producer. Which of the may not be disclosed?

Criminal history reports

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

Defamation

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

Domestic Stock

any person failing to comply with a subpoena issued by the commissioner of insurance:

May be punished by the superior court of contempt

Unless specifically addressed under New Jersey insurance law, rebating is

Prohibited

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

Prohibited under 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 with respect to part or all of an insurance risk is called:

Reinsurance

a producer is suspected of violating insurance rules. A 10-day notice of hearing is issued and after the hearing is conducted, the producer is found guilty. The commissioner may do which of the following, in addition to imposing monetary penalties?

Revoke the license of the licensee

Which of the following is true about an insurance consultant?:

The Consultant must be licensed as a producer.

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

The Policyholders

Under New Jersey law, preference in the insurance, withholding, extension or renewal of any policy or contact of insurance sole because of age, is considered:

Unfair discrimination

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:

adopt, issue and promulgate rules and regulations authorized by laws

a person whose producer license is revoked shall not be entitled to apply for another insurance license for at least:

five years

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

misrepresentation

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

non-resident license issued by Pennsylvania

A producer who has a license revoked by the commissioner of insurance may:

not receive commissions on the renewal of policies

All of the following would be lawful withdrawals from a trust account

1. commissions due to the producer 2. premium remittances due other producers 3. premiums due insureds

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

1. creed 2. ancestry 3. genetic information 4 all of the above (CORRECT)

The commissioner may demand that an insurance company pay a former agent commission on renewal business written while under contract:

in accordance with the previous agency contract

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

an insurer is required to maintain records of all complaints received:

since it was last examined by the department

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 4. all of the above (CORRECT)

New Jersey insurance law prohibits trade practices that are:

1. unfair methods of competition 2. unfair acts 3. deceptive practices 4. all of the above (CORRECT)

Which of the following is true regarding Branch Offices:

1.at 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 4. all the above (CORRECT)

A producer's 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, for insurance accounting purposes, may not include premiums owed to the licensee for more than what period of time after the last day of the month in which the insurance was ineffective:

120 days

no individual may be licensed as a producer unless they are at least:

18 years old

Should the commissioner determine that a license has willfully violated any provisions of the insurance laws of this state, the commissioner may suspend the license:

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