Chapter 11 Exam - New Jersey Laws and Rules
What is the maximum fine for a producer violating a NJ insurance law for the first time?
$5,000
After an annuity contract has been delivered by the producer, the free look period is a MINIMUM of
10 days, but no more than 30 days
Nina just passed her NJ insurance licensing examination. She is REQUIRED to apply for a producer's license within ___ months
12
Carmen's individual life insurance policy has relapsed. She may reinstate her policy within ___ year(s)
3
A branch office registration form is required to be filed at least ____ days before selling insurance out of that branch
30
A producer must notify the Commissioner within ____ days of a felony conviction
30
An insurance broker is someone who represents which of the following?
An insured or prospective insured
Who would make the final determination on whether or not an insurance advertisement is misleading?
Banking and Insurance Commissioner
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 document providing basic information about life insurance policies in general is called a
Buyer's guide
Which of these is NOT considered a form of life insurance advertisement? Buyer's guide Billboard announcing a new insurance product Sales presentation materials Brochures handed out at a promotional event
Buyer's guide
The Commissioner issues a subpoena to a producer. The producer decides not to respond. Which course of action must be taken by the Commissioner?
Commissioner may impose an administrative penalty
When the word "insurance" appears in a producer's business name, which of the following words cannot be approved?
Company
Which of the following may be used as continuation education credit?
Completing a CLU designation course
Insurance advertisements in a local newspaper are regulated by
Department of Banking and Insurance
One of the roles of the Banking and Insurance Commissioner is to
Establish continuing education requirements
A debtor may receive Credit Life insurance in which of the following forms? Universal life Endowment Group Whole life Group Term life
Group Term life
A Buyer's Guide MUST
Have its content approved by the Insurance Commissioner
Jerry voluntarily terminated his producer's license. If he changes his mind, his license may be reinstated during the same license period IF
He completes a new license application
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 Her home address The annuity's guaranteed interest rate Commissioner's name
Her name
An insurance company may ONLY pay a sales commission to
Individuals licensed by the state
An insurance producer is issued a(n) _____ as evidence of authority
License
An agent is a(n)
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 License authorities granted License expiration date License reference number
Licensee's place of birth
A Buyer's Guide and Policy Summary
Must be delivered with or prior to policy delivery
All of the following are typically included in a life insurance policy illustration EXCEPT Premium of the policy Names of beneficiaries Interest charged for policy loans Cash surrender value in 20 years
Names of beneficiaries
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
An example of an unfair method of competition is
Overstating the benefits of an insurance policy
Which of the following MUST contain a "Statement of Policy Cost and Benefit Information"? Policy Summary Insurer company's AM Best rating Buyer's guide Insurance company's advertisements related to this coverage
Policy Summary
Which of the following MUST contain a "Statement of Policy Cost and Benefit Information"? Policy summary Insurer company's AM Best rating Buyer's Guide Insurance company's advertisements related to this coverage
Policy summary
A producer who sells an individual life insurance policy in NJ MUST deliver to the policyowner a(n)
Policy summary and Buyer's guide
A written statement describing the elements of a policy is called a
Policy's summary
Replacement regulation is designed to protect the interest of
Policyowners
Before conducting an HIV related test, an insurer is REQUIRED to obtain written authorization from the
Proposed insured
Which of the following actions is REQUIRED by an agent who is replacing an existing life insurance policy? Keep replacement records on file for at least 10 years Notify the existing insurer of the proposed replacement Submit to the replacing insurer a list of the policies to be replaced Offer the insured a 60-day free-look period
Submit to the replacing insurer a list of the policies to be replaced
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
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
Twisting is best defined as
Using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy
Before a licensed agent is eligible to transact insurance sales, they must be
appointed by an insurance company