NJ Laws, Rules & Regulations Common to All Lines

a producer was found guilty of a 3rd violation of the Insurance Code. what would be the monetary penalty he will have to pay: -$25,000 -$5,000 -$10,000 -$15,000

$10,000

an insurer cancelled a contract with a producer on April 1. by what date must the insurer notify the Commissioner of this action: -april 11 -april 15 -april 30 -april 5

April 15

the Supreme Court stated that insurance is interstate commerce and is therefore subject to regulation by the federal government in the decision of what case: -Rosche-Wall vs Alabama -Paul vs Virginia -US vs the South Eastern Underwriters Asso. -McCarran-Ferguson vs New York

US vs the South Eastern Underwriters Association

in choosing an insurance business name, which of the following would be allowed: -a name with the same spelling as a competing company but a different pronunciation -a name which implies eligibility for individuals to whom coverage is not actually offered -a proper name which does not belong to any officers, stockholders or execs -a name with the same pronunciation as a competing company but different spelling

a proper name which does not belong to any officers, stockholders or execs

which of the following would indicate a contractual relationship between a producer and an insurance company: -a verbal agreement -producer's license -a signed contract -implied authority

a signed contract

what is a branch office: -licensee's principal office -insurer's principal office in this state -insurer's office in another state where nonresident producers conduct business -office in this state where the licensee conducts insurance business other than a principal office

an office in this state where the licensee conducts insurance business other than a principal office

if an insurer meets the state's financial requirements and is approved to transact business in this state, it is considered to be: -certified -qualified -approved -authorized

authorized

which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance: -slandering -defamation -undercutting -twisting

defamation

two individuals are in the same risk and age class; yet they are charged different rates for their insurance policies due to an insignificant factor. what is this called: -law of large numbers -misrepresentation -adverse selection -discrimination

discrimination

when twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had very similar lifestyles, one of the twins was in a much stronger financial position than the other. because of this, the company charged him a higher rate for his insurance. this practice is considered: -controlled business -adverse selection -discrimination -twisting

discrimination

what significance did Paul vs Virginia have on the insurance industry: -was decided that insurance licenses should not be issued by the federal government and should instead be issued by individual states -was decided that insurance was not interstate commerce and could not be regulated by the federal government -was decided that insurance was interstate commerce and should therefore be regulated by the federal government -was decided that insurance required a separate federal regulatory agency from securities products

it was decided that insurance was not interstate commerce and could not be regulated by the federal government

what is the major difference between a stock company and a mutual company: -types of whole life policies -ownership -amount of death benefit -number of producers

ownership

which of the following licenses is required for a surplus lines producer: -credit insurance -life and health -adjusters -property and casualty

property and casualty

all of the following are unfair claims settlement practices except: -failing to adopt and implement reasonable standards for settling claims -failing to acknowledge pertinent communication pertaining to a claim -suggesting negotiations in settling the claim -refusing to pay claims without conducting a reasonable investigation

suggesting negotiations in settling the claim

the Paul vs Virginia case was decided in 1869. to what extent does the Supreme Court's decision still apply to insurance today: -still stands in full. insurance and securities are still regulated by two distinct agencies -the decision has changed. insurance is considered to be interstate commerce and is subject to regulation by the federal government -decision has changed. insurance and securities are now regulated by the same federal agency -still stands in full. insurance is not considered to be interstate commerce and is not subject to regulation by the federal government

the decision has changed. insurance is considered to be interstate commerce and is subject to regulation by the federal government