New Jersey Laws and rules
Which of the following situations would be suitable for a temporary work authority?
When an applicant passes a licensing examination and answers all background questions negatively
In New Jersey, the penalty for a first time violation of the code is?
$5,000
The New Jersey Life and Health Guaranty Association Protects life insurance death benefit claims up to
$500,000
How long is the contestable period for health insurance policy sold in New Jersey?
2 years
Within how many days must a producer notify the department of banking and insurance of a change in address?
30
A branch office certificate must be filed at least how many days before conducting business at the specified branch?
30 days
Which of the following is mandatory coverage for our group health care service contracts?
Treatment for alcoholism
Which of the following is an example of defamation?
Using derogatory statements about an insurance company's financial condition
Twisting is best defined as
Using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy
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
twisting
All advertisements for health insurance shall make clear the identity of the
insurer
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
2 years
Twenty-four Continuing education credits are required to be completed by a producer every
2 years
What is the maximum fine for a producer violating a New Jersey insurance law for the first time?
$5,000
Which of the following is the financial penalty for violation of cease and desist order?
$5,000
After a hearing, if the Commissioner determines that a person has willfully engaged in an unfair trade practice, the Commissioner may impose a fine of which of the following?
$5,000 for each violation
In the state of New Jersey, they guarantee association provides which of the following coverage in the event that a member company becomes insolvent?
$500,000 or the amount of the loss, which ever is less
When the insured enters into an agency contract with a licensed producer, it must file a Notice of Agency Contract with the Department within how many days?
15 days
Once an accident and health insurance policy has been in force for ____ year(s), The policy may not be contested by the insurer.
2
In the state of New Jersey, an applicant must apply for a Producer license within what period of time from the date of passing the state exam?
1 year
When the Commissioner suspects a producer is engaged in unfair trade practices, a hearing may be held after giving the person advance notice of at least how many days?
10 days
Which of the following is the number of days required in a notice of hearing?
10 days
After an annuity contract has been delivered by the producer, the free look period is a a minimum of
10 days, but not more than 30 days
Just passed her New Jersey insurance licensing examination. She was required to apply for a producers license within ____ months.
12
After passing the state Producer licensing exam, application for the license must be made within
12 months
In order to obtain a producer's license, The applicant's application must be received by the Department within what period of time listed below?
12 months after passing the state exam
All pre-licensing course completion certificates are valid for a period of
2 years
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?
25% of the policy loan value
Individual life insurance policy has recently labs. She may reinstate her policy within ___ years
3
A branch office registration form is required to be filled at least ___ days before selling insurance out of that branch.
30
A licensed producer is required to file notice of any change of address within how many days?
30 days
A producer must file a Branch Office registration form with the DOBI at least how many days before beginning operations?
30 days
In New Jersey, a Producer is required to notify the DOBI of any change in resident or business address, within what period?
30 days
Under the New Jersey Continuance it Benefits Law, notice to extend coverage is required within how many days of a qualifying event?
30 days
What is the free look period on an Medicare supplement policy?
30 days
The licensee shall advise the Department of banking and insurance of the closing of a branch office within how many days?
30 days in writing
In New Jersey, an insurer is required to maintain files of all Published and printed advertisements for
5 years from the date of last use
The Commissioner may revoke a producers license if it is found that the commissions and on "controlled business" doing any 12 month period exceeded what percentage of the producers aggregate commissions on all business written
50%
New Jersey insurance law requires eligible individuals to make an election to continue health insurance benefits within a MAXIMUM of ___ days after coverage termination.
60
In accordance with New Jersey law, a Producer must remit health insurance premiums to the insurer within what period?
7 business days
A health insurer must be provided with written proof of loss ___ days after the date of loss.
90
An example of rebating would be
A producer who shares commissions with a client
When a producer, domiciled In New York, with an office location in New Jersey, Alex New Jersey as a resident state, he is acting as
A resident licensee in New Jersey
In the state of New Jersey, advertisements of which of the following are prohibited?
A trademark in Lieu of the Company's name
XYZ Company is looking to replace their existing group health coverage with another plan. The replacing insurer is required to
Accept all the individual eligible under the previous plan
Health insurance advertisements that mention statistical information are required by New Jersey law to
Accurately convey all pertinent facts
In advertisements of life insurance and annuities, all of the following are true except
Advertisements must include training materials provided to the producer
Advertising material for a life insurance policy does not need to contain which of the following?
Agent's commission rate
Employer sponsored group health insurance provides coverage for which of the following?
Alcoholism
An insurance company days organizer charted in a country other than the United States is best defined as
Alien
Claims may be contestable for material misrepresentation for what period?
Always
Which of these may not be used in a health insurance advertisement?
An insurance company's trademark instead of the company's actual name
Someone who sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer is called:
An insurance producer
Twisting is
An unfair trade practice
How long must an insurance company keep records on for life insurance replacement activity?
At least five years
Under New Jersey law, what may the insurer REQUIRE to determine the exact cause of death if death appears accidental?
Autopsy
Who would make the final determination on whether or not an insurance advertisement is misleading?
Banking and Insurance Commissioner
The amount of Credit Life insurance may at no time
Be greater than the amount of debt
Which of these is not considered a form of life insurance advertisement?
Buyer's Guide
A document providing basic information about life insurance policies in general is called a
Buyer's guide
The Department of Banking and Insurance can make information pertaining to a Producer's license, available through?
Certificate of License Status Report
In New Jersey, group health insurance may be offered to all of these groups except
College seminar participants
The Commissioner issues a subpoena to a producer. The producer designed not to respond. Which course of action must be taken by the commissioner?
Commissioner may impose an administrative penalty
Advertisements of insurance in a local newspaper, must be approved by
Commissioner of insurance
the treasurer of XYZ Insurance Company discovers that the treasurer's Company is being investigated by the banking and insurance commissioner. Because the company is in weak financial condition, the treasure instructs the company claims manager to delay recording several large claims settlement. In this situation, the treasure may be found guilty of which of the following actions?
Committing an unfair trade practice
An effort by an existing insured to prevent replacement and continue existing life insurance policies in force is known as which of the following?
Conservation
A Buyer's Guide MUST
Contains content approved by the Commissioner
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 ensures their personal interest. This is a description of which of the following?
Controlled business
Publishing information which is false and maliciously critical to an insurer And is intended to cause injury is a prohibited practice known as
Defamation
Advertising regulations exist in order to
Demonstrate full and truthful disclosures to the public
Insurance advertisements in a local newspaper are regulated by?
Department of banking and insurance
Which of the following circumstances requires an individual to be a licensed producer?
Discussing premiums with a potential insured
The insurance commissioner may revoke a producer License for
Engaging primarily in controlled business sales
The purpose of the life and health insurance guaranty Association is to
Ensure that claims filed against insolvent insurance companies will be paid
One of the roles of the banking and insurance commissioner is to
Establish continuing education requirements
The commissioner may
Establish continuing education requirements
How often must an insurance producer's license in New Jersey be renewed?
Every two years
As of January 1, 2007, a producer's license expires
Every two years on the last day of the producer's birth month
If an insured receives a Notice of Claim Under an individual health policy, and fails to provide proof of loss forms within 15 days, the insured must?
File a written proof of loss, detailing the occurrence, character and extent of the loss
A producers meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics need to be discussed with the client?
Financial objectives
ABC Life Insurance company's home office is located in Massachusetts and is incorporated in Massachusetts. In New Jersey they are considered to be
Foreign
The New Jersey and Life and Health Insurance Guaranty Association is
Funded by assessments on member companies
A debtor may receive Credit Life insurance in which of the following forms?
Group term life
Voluntarily terminated his producer's license. If he changes his mind, his license may be reinstated during the same license. If
He completes a new license application
The names of the insurance companies represented by the producer
Is available to the public
The Guarantee Association Act provides that when a Court Order of Liquidation exists, the insurer
Is insolvent
An agent is an
Licensed producer who has a written contract to represent an insurer
Which of the following is not contained in a certification of license status?
Licensee's place of birth
Producers may be found guilty of deformation if they make a false statement that is intended to
Malign another insurance company
The law that established insurance transactions should be regulated by the states is called the
McCarran-Ferguson Act
The New Jersey individual health coverage program is designed to provide comprehensive health benefits for
Medically uninsurable New Jersey residents
A producer who intentionally makes an untrue or incomplete statement in the course of an insurance transaction may be guilty of
Misrepresentation
A Buyer's Guide and Policy Summary
Must be delivered with or prior to policy delivery
A producer's secretary who solicits prospects on the telephone
Must be licensed as a producer
Which entity is responsible for regulating insurance advertisements in New Jersey?
New Jersey Department of banking and insurance
Which of the following is true regarding the New Jersey Insurance Guaranty Association? A producer may advertise that a policy is covered by the Association A producer may advertise the existence of the Association Only an insurance company can advertise the existence of the Association None of the choices
None of the choices
An example of an unfair method of competition is
Overstating the benefits of an insurance policy
Reinstatement of an individual health insurance plan requires?
Payment of premium and evidence of insurability required
A written statement describing the elements of a policy is called a
Policy Summary
Which of the following MUST contain a "Statement of Policy Cost and Benefit information"?
Policy summary
In the state of New Jersey, consultants charging a fee for advice must be licensed as an
Producer
If credit life insurance is terminated before the scheduled maturity date of the dead, any unearned premium held by the insurer will be?
Refunded to the debtor
Which of the following is the process by which one life insurance contract is terminated or changed substantially and another is written in its place?
Replacement
The marketing of Medicare supplement is regulated to prevent all the following EXCEPT
Replacement of any existing coverage
First year commissions may be legally pay to someone holding a
State license and appointment with the paying insurer
If the Commissioner determines that an individual has engaged in an act violating state insurance laws, the Commissioner may issue an order requiring the violator to
Stop engaging in those acts
Which of the following actions is required by an agent who is replacing an existing life insurance policy?
Submit to the replacing insure a list of the policies to be replaced
A guardian, taking over a Producer's business, may do so with a
Temporary license
The National Do Not Call list is monitored by which of the following?
The Federal Government (Federal Trade Commission)
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 death benefit of credit life and health insurance is paid to whom?
The creditor
The commissioner of insurance is appointed by which of the following?
The governor
Each of the following about branch offices is true, except
The office must be open 9 to 5, 5 days a week
When a Medicare supplement policy is purchased during the open enrollment.
The policy must be issued regardless of health status
In a group medical expense health insurance plan, coverage for alcoholism is treated as?
Treated as any other illness, sickness or disease
Which of the following is true concerning the proceeds of a life insurance policy?
There is protection of proceeds against the insured's and the beneficiary's creditors
A branch office registration form must be filed with the Banking and Insurance Commissioner a MINIMUM Of how many days before conducting business in that office
Thirty
When does the open enrollment period begin for Medicare supplements?
Three months before your 65th birthday
Insurers are required to keep copies of policy summaries and Buyers Guides on file for at least
Three years after the documents are used
Knowingly making misleading statements that would cause an insurer to labs, assign, or a terminate an insurance policy in order to switch companies is an example of
Twisting
Before a licensed agent is eligible to transact insurance sales, they must be
appointed by an insurance company
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?
three months
Which of the following may be used as continuation education credit?
Completing a CLU designation course
Which of the following is not a duty of the commissioner?
Establish insurance rates
Which of the following would be considered an unfair claim practice?
Misrepresenting insurance policy provisions affecting a loss
A newborn is required to be covered for ____ days From the moment of birth
30
The state of New Jersey considers Lloyds of London what kind of insurance company?
Alien
An insurance broker is someone who represents which of the following?
An insured or prospective insured
Continuing education credits may be approved for which of the following?
Ethics
A written statement describing the elements of a policy is called a
Policy summary
The producer charged a fee to a sales prospect for analyzing insurance coverages. According to New Jersey law, a reasonable relationship must exist between the fee and the
Substance of the services performed
The purpose of the New Jersey temporary disability benefits law is to
Supplement unemployment compensation benefits
Which of the following sells reinsurance?
The assuming insurer
A temporary producers license may be issued for up to
180 days
A producer must notify the commissioner within ______ days of a felony conviction.
30
The replacement of an existing insurance policy requires notice that the owner can return the policy within _____ days for a full refund. (Free look period)
30
Replacement forms must be kept on file by the agent for a minimum of how many years?
5
The commissioner must approve
Continuing education courses
The department of insurance may revoke a producers license for which of the following?
Felony conviction
In life insurance, replacing companies must keep records of all replacement materials on file for how long?
Five years or until the next regular examination by the commissioner
An insurance company may only pay A sales commissions to
Individuals who are registered with the NAIC
In New Jersey, health insurance advertisements are required to contain the
Insurance company's name
The commissioner of insurance may take which of the following actions when a producer has engaged in an Unfair trade practice?
Issue a Cease and Desist Order
All of the following are typically included in a life insurance policy illustration except
Names of the beneficiary
The solicitation of a non-authorize contract in New Jersey violates
New Jersey code
When replacing group insurance, the replacing policy must cover ongoing claims from the former policies, under which of the following?
No loss no gain law
Producers selling insurance in New Jersey, while having a residence and business address outside the state, are?
Non-resident producers
A Medicare supplement policy can be canceled by the insurer for
Nonpayment
Which of the following must contain a "Statement of Policy Cost and Benefit Information"?
Policy summary
A producer Has recently died and leaves behind a spouse. In order for the producers insurance business to continue, the Department of banking and insurance may issue to the producer spouse an
Temporary insurance license
The state of New Jersey requires completion of a total of how many continuing education credits upon renewal of a producers license?
24 credits 3 of which are ethics
After passing the state examination, the producer is issued a temporary certificate. How long is the temporary certificate valid?
60 days
the producer receives a premium for an individual health insurance policy. Pierre must remit the premium to his insurer within _____ business days of receipt.
7
An insured must submit a proof of loss on the health insurance claim within how many days after the date of loss?
90
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?
90 days
Maternity care must be provided to mother and newborn in a license for facility for at least how many hours following A cesarean section?
96 hours
When the word "insurance" Appears in a producers business name, which of the following words cannot be approved?
Company
After advertisements are last use, insurers are required to keep copies of the ad on file for how many years?
Five years
An insurance consultant is best defined as an
Producer who charges fees for advice
Before conducting an HIV related test, and ensure is required to obtain written authorization from the
Proposed insured
The New Jersey temporary disability benefits law
Provides non-occupational disability benefits
Offering to return a portion of the premium to the insured as an inducement to purchase insurance is an illegal act known as which of the following?
Rebating
What is the process for a producer voluntarily terminating his/her license?
Returning his/her License to the banking and insurance department
Under the New Jersey continuance of benefits law, notice to extend coverage is required within how many days of a qualifying event?
30 days
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?
30 days
An agent is required to keep replacement forms on file for at least ____ years.
5
Advertising regulations exist to
Assure full and truthful disclosures to the public
Which of the following are retained at the expense of an insurance buyer to give advice on insurance needed by the buyer?
Brokers and consultants
A(n) ______ Insurance company is one that was formed under the laws of a state other than New Jersey.
Foreign
A buyers guide must
Have its content approved by the insurance commissioner
Maria the agent would like to advertise an annuity product on a highway billboard. which of the following must be included in the advertisement?
Her name
The agent would like to advertise in annuity product on a highway billboard. Which of the following must be included in the advertisement?
Her name
In order to be eligible for a nonresident producer license an individual must do which of the following?
Hold a comparable license in another state
An insurance company owned by its policyholders is known as which of the following?
Mutual company
Which of the following designations is regulated by the department of banking and insurance?
National Association of insurance commissioners (NAIC)
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
Producer license denial or appeal that a hearing before
Office of administrative law
Replacement regulation is designed to protect the interests of
Policy owners
Replacement regulation is designed to protect
Policy owners from misrepresentations and loss of benefits
Producer who sells an individual life insurance policy in New Jersey must deliver to the policy owner an
Policy summary and buyers guide
All Medicare supplement policies must contain which provision
Pre-existing conditions May only be excluded from coverage for a maximum of 6 months
During the solicitation of a Life policy, when must an insurer must furnish a prospective buyer with a Buyer's Guide and a Policy Summary?
Prior to, or at the same time of policy delivery
An agent has committed an insurance crime that violates US code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime?
US attorney general
In the health insurance policy, when should the written notice of claim be given to the insurer?
Within 20 days after the occurrence or commencement of any loss covered by the policy
An insurance producer is issued an _____ as evidence of authority.
License
