LAWS & RULES EXAM
How old must an individual be to obtain a producer's license:
18 years old
The state of New Jersey requires completion of a total of how many Continuing Education credits upon renewal of a Producers license: -15 credits 3 of which are ethics -24 credits 4 of which are ethics -15 credits 4 of which are ethics -24 credits 3 of which are ethics
24 credits 3 of which are ethics
Carmen's individual life insurance policy has recently lapsed. She may reinstate her policy within __ year(s): -1 -3 -5 -7
3 years
In New Jersey, an insurer is required to maintain files of all published and printed advertisements for: -5 years from the date of first use -3 years from the date of first use -5 years from the date of last use -3 years from the date of last use
5 years from the date of last use
In life insurance, replacing companies must keep records on file of all replacement materials for how long: -3 years -5 years or until the next regular exam by the Commissioner -3 years or until the next regular exam -5 years
5 years or until the next regular examination by the Commissioner
How long can an insurer exclude coverage for a pre-existing condition on a Medicare Supplement Policy:
6 months
After passing the state exam, the producer is issued a Temporary Certificate. How long is this valid: -10 days -30 days -60 days -180 days
60 days
A producer who sells an individual life insurance policy in New Jersey must deliver to the policyowner:
A Policy Summary & Buyer's Guide
In the state of New Jersey, advertisements of which of the following are prohibited: -testimonials -celebrity paid endorsements -a Trademark in lieu of the Company's name -insurer's ranking
A Trademark in lieu of the Company's name
Employe sponsored group health insurance provides coverage for which of the following: -self inflicted injuries -cosmetic surgery -custodial care -alcoholism
Alcoholism
An insurance company that is organized or chartered in a country other than the United States is defined as: -foreign -domestic -alien -external
Alien Insurer
The DOBI can make information pertaining to a Producer's license available through: -disclosure of non-public information -temporary license -temporary Work Authority -Certificate of License Status Report
Certificate of License Status Report
Which of the following circumstances requires an individual to be a licensed producer: -setting up sales appointments -following up with a policyowner about a change in address -discussing premiums with a potential insured -conduct an agency sales meeting
Discussing premiums with a potential insured
If an insurer receives a Notice of Claim under an individual health policy, and fails to provide proof of loss forms within 15 days, the insured must: -request an extension of time to file proof of loss -wait 60 days to bring legal action -file a written complaint with the DOBI -file a written proof of loss, detailing the occurrence, character and extent of the loss
File a written proof of loss detailing the -occurrence -character -extent of the loss
A producer is meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics needs to be discussed with the client: -financial objectives -primary physician -power of attorney -level of education completed
Financial objectives
After advertisements are last used, insurers are required to keep copies of the ad on file for how many years: -two years -three years -four years -five years
Five years
An insurance company may only pay a sales commission to: -individuals who are residents of this state for at least 5 years -individuals who are registered with the NAIC -individuals licensed by the state -individuals who are gainfully employed by that insurance company
Individuals licensed by the state
In New Jersey, health insurance advertisements are required to contain the:
Insurance company's name
All advertisements for health insurance shall make clear the identity of the: -Insurance Commissioner -beneficiary -insurer -insured
Insurer
An insurance producer is issued a _________ as evidence of authority:
License
An agent is a(n):
Licensed producer who has a written contract to represent an insurer
What is not contained in a certification of license status:
Licensee's place of birth
A producer who intentionally makes an untrue or incomplete statement in the course of an insurance transaction may be guilty of: -twisting -rebating -misrepresentation -coercion
Misrepresentation
Which of the following would be considered an unfair claim practice: -implementing standards for proper investigation -denying a claim after reasonable investigation of the facts -misrepresenting insurance policy provisions affecting a loss -acting promptly on claims communicaiton
Misrepresenting insurance policy provisions affecting a loss
A Buyer's Guide & Policy Summary:
Must be delivered with or prior to policy delivery
A producer's secretary who solicits prospects on the phone:
Must be licensed as a producer
An insurance company owned by its policyholders is known as which of the following: -reinsurance company -stock company -mutual company -domestic company
Mutual company
All of the following are typically included in a life insurance policy illustration except: -premium of the policy -names of the beneficiaries -interest charged for policy loans -cash surrender value in 20 years
Names of the beneficiaries
Producers selling insurance in New Jersey while having a residence and business address outside the state are: -Brokers -Consultants -Surplus lines brokers -Non-Resident producers
Non-Resident producers
Jay the producer is giving insurance advice regarding a prospect's existing coverage. If Jay were to receive a fee for this advice, he must:
Obtain a signed memorandum from the prospect acknowledging the amount of compensation
Reinstatement of an individual health insurance plan requires: -45 day elimination period -payment of premium without proof of insurability -payment of premium and evidence of insurability required -coverage for sickness begins immediately upon reinstatement
Payment of premium and evidence of insurability required
A written statement describing the elements of a policy is called a:
Policy Summary
A written statement describing the elements of a policy is called:
Policy Summary
What must contain a "Statement of Policy Cost and Benefit Information"
Policy Summary
What must contain a "Statement of Policy Cost and Benefit Information":
Policy Summary
All Medicare Supplement policies must contain which provision: -unemployment benefits must be provided -short-term disability must be covered -pre-existing conditions may only be excluded from coverage for a maximum of 6 months -substance abuse treatment must be covered
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 furnish a prospective buyer with a Buyer's Guide and Policy Summary:
Prior to or at the time of policy delivery
Before conducting an HIV related test, an insurer is required to obtain written authorization from the: -proposed insured -beneficiary -proposed insured's primary physician -Department of Health
Proposed insured
The purpose of the New Jersey Temporary Disability Benefits law is to: -supplement Unemployment Compensation benefits -supplement Workers Compensation benefits -provide Medical Expense benefits -provide non occupational Disability benefits
Provide non-occupational Disability benefits
First year commissions may be legally paid to someone holding a: -Certificate of Authority -Temporary license -Consultant license -State license and appointment with the paying insurer
State license and an appointment with the paying insurer
Johan the producer charged a fee to a sales prospect for analyzing insurance coverages. According to NJ Law, a reasonable relationship must exist between the fee and:
Substance of the services performed
A guardian, taking over a Producer's business, may do so with a: -Certificate of Authority -Branch office Certificate -Temporary License -Temporary Work Authority
Temporary License
A producer has recently died and leaves behind a spouse. In order for the producer's insurance business to continue, the Department of Banking & Insurance may issue to the producer's spouse a: -permanent insurance license -temporary insurance license -interim insurance license -supplementary insurance license
Temporary insurance license
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: -five -ten -twenty -thirty
Thirty Days
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: -one month -two months -three months -five months
Three months
Insurers are required to keep copies of Policy Summaries and Buyer's Guides on file for at least: -two years after documents are used -three years after documents are used -five years after documents are used -seven years after documents are used
Three years after the document has been used
Twisting is: -replacement -a violation of MEC rules -an Unfair Trade Practice -permitted only with an Internal Replacement
an Unfair Trade Practice
In New Jersey, the penalty for a first time violation of the Code is: -$1,000 -$5,000 -$10,000 -$250
$5,000
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 a violation of a Cease and Desist Order: -$2,000 -$5,000 -$10,000 -$25,000
$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 -$10,000 for each violation -$15,000 for each violation -$20,000 for each violation
$5,000 for each violation
The New Jersey Life and Health Guaranty Association protects life insurance benefit claims up to:
$500,000
In the state of New Jersey, the Guaranty Association provides which of the following coverage in the event that a member company becomes insolvent: -$300,000 or the amount of the loss, whichever is greater -$300,000 or the amount of the loss, whichever is less -$500,000 or the amount of the loss, whichever is greater -$500,000 or the amount of the loss, whichever is less
$500,000 or the amount of the loss, whichever is less
Which of the following is the number of days required in a notice of hearing: -10 days -15 days -30 days -90 days
10 days
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
Health insurance advertisements that mention statistical information are required by New Jersey law to:
Accurately convey all pertinent facts
Publishing information which is false and maliciously critical to an insurer and is intended to cause injury is a prohibited practice known as: -coercion -defamation -boycott -unfair discrimination
Defamation
Who are retained at the expense of an insurance buyer to give advice on insurance needed by the buyer:
Brokers & Consultants
A document providing basic information about life insurance policies in general is called a: -Policy Summary -Notice of Coverage Form -Buyer's Guide -Comparison Form
Buyer's Guide
Knowingly making misleading statements that would cause an insured to lapse, assign or terminate an insurance policy in order to switch companies is an example of: -rebating -defamation -intimidation -twisting
Twisting
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
Which of the following is an example of defamation: -using intimidation in order to restrain or monopolize the business of insurance -using derogatory statements about an insurance company's financial condition -returning a portion of a premium as inducement to purchase insurance -offering a client something of value non stated in the contract in exchange for their business
Using derogatory statements about an insurance company's financial condition
A temporary producer's license may be issued for up to: -30 days -60 days -180 days -12 months
180 days
24 Continuing Education credits are required to be completed by the producer every: -4 years -every year -18 months -2 years
2 years
All pre-licensing course completion certificates are valid for a period of: -1 year -2 years -18 months -Lifetime
2 years
Except for fraud, the time after issuance of a policy during which an insurance company may contest a health claim due to the statements on an application is:
2 years
The licensee shall advise the Department of Banking and Insurance of the closing of a branch office within how many days: -20 days in writing -20 days -30 days in writing -30 days
30 days in writing
An agent is required to keep replacement forms on file for at least __ years: -3 -4 -5 -6
5 years
Replacement forms must be kept on file by the agent for a minimum of how many years: -1 -3 -5 -7
5 years
The Commissioner may revoke a producer's license if it is found that the commissions earned on "controlled business" during any 12 months period exceeded what percentage of the producer's aggregate commissions on all business written: -25% -30% -50% -65%
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: -30 -60 -90 -120
60 days
In accordance with New Jersey law, a producer must remit health insurance premiums to the insurer within what period: -5 days -5 business days -7 business days -10 days
7 business days
The amount of Credit Life insurance may at no time:
Be greater than the amount of debt
The Commissioner must approve:
Continuing Education courses
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 insures their personal interest. This is a description of: -compared business -organization business -negotiated business -controlled business
Controlled business
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 -20 days -30 days -60 days
10 days
After passing the state Producer licensing exam, application for the license must be made within: -6 months -12 months -2 years -no time limit
12 months
Nina just passed her NJ insurance licensing examination. She is required to apply for a producer's license within __ months: -6 -9 -12 -15
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: -6 months after completing the pre-licensing course -12 months after passing the state exam -18 months after completing the pre-licensing course -12 months after completing the course
12 months after passing the state exam
When the insurer enters into an agency contract with a licensed producer, it must be file a Notice of Agency Contract with the Department within how many days: -10 -15 -20 -30
15 days
How long is the Contestable Period for health insurance policies sold in New Jersey:
2 years
Once an accident and health insurance policy has been in force for __ year(s), the policy may not be contested by the insurer: -1 -2 -3 -4
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: -10% of the policy's loan value -25% of the policy's loan value -50% of the policy's loan value -75% of the policy's loan value
25% of the policy's loan value
When does the open enrollment period begin for Medicare supplements: -3 months before your 62nd birthday -3 months before your 65th birthday -6 months after your 62nd birthday -6 months after your 65th birthday
3 months before your 65th birthday
**When credit life or health is written, evidence of coverage (policy or certificate of insurance) must be delivered to the debtor when the debt is incurred or within how many days: -10 days -20 days -30 days -60 days
30 days
A Branch Office Certificate must be filed at least how many days before conducting business at the specified Branch: -10 days -20 days -30 days -45 days
30 days
A Producer must file a Branch Office registration form with the DOBI at least how many days before beginning operations: -15 days -20 days -30 days -45 days
30 days
A branch office registration form is required to be filed at least __ days before selling insurance out of that branch: -7 -10 -15 -30
30 days
A licensed producer is required to file notice of any change in address within how many days: -10 -20 -30 -60
30 days
A newborn is required to be covered __ days from the moment of birth: -30 -60 -90 -120
30 days
A producer must notify the Commissioner within __ days of a felony conviction: -15 -30 -45 -60
30 days
In New Jersey, a producer is required to notify the DOBI of any change in resident or business address within what period: -15 days -30 days -45 days -60 days
30 days
The replacement of an existing insurance policy requires notice that the owner can return the policy within __ days for a full refund: -15 -30 -45 -60
30 days
Under the New Jersey Continuance of Benefits Law, notice to extend coverage is required within how many days of a qualifying event:
30 days
Under the New Jersey Continuance of Benefits Law, notice to extend coverage is required within how many days of a qualifying event: -15 days -30 days -45 days -90 days
30 days
What is the free-look period for a Medicare Supplement policy:
30 days
Within how many days must a producer notify the Department of Banking and Insurance of a change in address: -10 days -20 days -30 days -40 days
30 days
Pierre the producer receives a premium for an individual health insurance policy. Pierre must remit the premium to his insurer within __ business days of receipt: -5 -6 -7 -8
7 business days
A health insurer must be provided with written proof of loss __ days after the date of loss: -30 -60 -90 -45
90 days
An insured must submit proof of loss on a health insurance claim within how many days after the date of loss: -30 -60 -90 -120
90 days
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: -15 days -30 days -90 days -180 days
90 days
Maternity care must be provided to mother and newborn in a licensed facility for at least how many hours following a C-Section -24 hours -36 hours -48 hours -96 hours
96 hours
An example of rebating would be: -a mutual insurance company paying dividends to its policyowners -reducing the premiums across the board for a specific risk class -a producer who shares commissions with a client -using intimidation in order to restrain or monopolize the business of insurance
A producer who shares commissions with a client
When a producer, domiciled in New York, with an office location in New Jersey, elects New Jersey as their resident state, he is acting as: -a resident licensee in New York -an unauthorized business in New Jersey -a foreign producer in New Jersey -a resident licensee in New Jersey
A resident licensee in New Jersey: producers who are residents of or have their offices in NJ fall within the jurisdiction of the Department of Banking and Insurance
XYZ Company is looking to replace their existing group health coverage with another plan. The replacing insurer is required to:
Accept all individuals eligible under the previous plan
In advertisements of life insurance and annuities, all of the following are true except: -company's name must be used in the ad -advertisement must be actually true in fact -advertisement cannot be misleading or deceptive -advertisements must include training materials provided to the producer
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 -the company's true corporate name -statements that dividends are not guaranteed -whether a spokesperson is paid
Agent's commission rate
The state of New Jersey considers Lloyd's of London what kind of insurance company: -domestic -surplus -foreign -alien
Alien insurance company
Claims may be contestable for material misrepresentation for what period: -always -never -always, if made in attempt to deceive (Fraud) -2 years
Always, if made in attempt to deceive (fraud)
Which of these may not be used in a health insurance advertisement: -celebrity endorsement -statement highlighting coverage amounts -paid testimonial -an insurance company's trademark rather than the insurance company's actual name
An insurance company's trademark rather than the insurance company's actual name
Someone who sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer is called:
An insurance producer
An insurance broker is someone who represents which of the following: -an insured or prospective insured -an insurance company -more than one insurance company -both the insured and the insurer
An insured or prospective insured
In a group medical expense health insurance plan, coverage for alcoholism is treated as:
Any other illness, sickness or disease
Before a licensed agent is eligible to transact insurance sales, they must be: -appointed by an insurance company -trained by an authorized insurance company -approved by the governor -assigned an insurance mentor
Appointed by an insurance company
The names of the insurance companies represented by the producer: -are available to the public -are not available to the public -are only available to insurance companies -are made available after paying a $50 fee
Are available to the public
Advertising regulations exist to:
Assure full and truthful disclosures to the public
How long must an insurance company keep records on life insurance replacement activity: -at least four years -at least five years -at least six years -at least seven years
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: -Better Business Bureau -public opinion -National Association of Insurance Commissioners (NAIC) -Banking and Insurance Commissioner
Banking and Insurance Commissioner
Which of these is not considered a form of life insurance advertisement: -billboard announcing a new insurance product -sales presentation materials -brochures handed out at a promotional event -Buyer's Guide
Buyer's Guide
Which of the following designations is regulated by the Department of Banking and Insurance: -National Association of Insurance Commissioners (NAIC) -Certified Insurance Counselor -Better Business Bureau -Certified Appointment Setter (CAS)
Certified Insurance Counselor
In New Jersey, group health insurance may be offered to all groups except: -private employer -city government -college seminar participants -small employer
College seminar participants
Advertisements of insurance in a local newspaper must be approved by: -Attorney General -Federal Trade Commission -Insurer compliance department -Commissioner of Insurance
Commissioner of Insurance aka the Department of Banking and Insurance (DOBI)
When the word "insurance" appears in a producer's business name, which of the following words cannot be approved: -corporation -agency -brokerage -company
Company
Which of the following may be used as continuation education credit: -exceeding sales quota -completing a CLU designation course -paying a fee of $10 per credit hour -successfully retaking the licensing exam
Completing a CLU designation course
An effort by an existing insurer to prevent replacement and continue existing life insurance policies in force is known as which of the following: -direct response -conservation -conversion -reinstatement
Conservation
Advertising regulations exist in order to:
Demonstrate full and truthful disclosures to the public
Insurance advertisements in a local newspaper are regulated by: -the insurer creating the ad -Federal Trade Commission -Attorney General -Department of Banking and Insurance
Department of Banking and Insurance
The Insurance Commissioner may revoke a Producer license for: -failing to meet required sales quota -unpaid charge-back of unearned commissions -failing to meet continuing education requirements -engaging primarily in Controlled Business sales
Engaging primarily in Controlled Business sales
The purpose of the Life and Health Guaranty Association is to: -ensure that claims filed against insolvent insurance companies will be paid -ensure that premium rates are uniform throughout the state -approve disability policy forms -protect the public from fraudulent insurance company marketing practices
Ensures 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
Which of the following is not a duty of the Commissioner: -establish insurer rates -conduct investigations -issue subpoenas -administer oaths
Establish insurer rates
Continuing Education credits may be approved for which of the following: -Pre-licensing education -Motivational education -Sales and marketing education -Ethics
Ethics
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 months -every two years on its anniversary -January 1, every two years -Producer's license never expires
Every two years on the last day of the producer's birth month
A(n) _________ insurance company is one that was formed under the laws of a state other than New Jersey: -alien -foreign -reciprocal -domestic
Foreign
ABC Life Insurance company's home office is located in MA and is incorporated in MA. In NJ, they are considered to be: -Assessment Mutual Company -Non-Admitted -Foreign -Domestic
Foreign
The New Jersey Life & Health Guaranty Association is: -an entity that assists in underwriting large insurance policies -funded by assessments on member companies -funded by the state government -administered by the Federal Government
Funded by assessments on member companies
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 AD: -her home address -her name -the annuity's guaranteed interest rate -the Commissioner's name
Her name
In order to be eligible for a non-resident producer license an individual must do which of the following: -pass an examination in NJ -hold a comparable license in another state -previously been a resident of NJ -have an office In NJ
Hold a comparable license in another state
The Guaranty Association Act provides that when a Court Order of Liquidation exists, the insurer: -is impaired -is insolvent -is in violation of state law -is authorized to continue to conduct its business
Is insolvent
The treasurer of XYZ Insurance Company discovers that the treasurer's company is being investigated by the Department of Banking and Insurance Commissioner. Because that company is in weak financial condition, the treasurer instructs the company claims manager to delay recording several large claims settlements. In this situation, the treasurer may be found guilty of: -making false financial statements -commingling funds -committing an unfair claim practice -practicing unfair discrimination
Making false financial statements
Replacement regulation is designed to protect the interests of: -insurers -policyowners -beneficiaries -producers
Policyowners
Replacement regulation is designed to protect: -beneficiaries -policyowners from misrepresentations and loss of benefits -existing producers -insurance companies
Policyowners from misrepresentation and loss of benefits
If credit life insurance is terminated before the scheduled maturity date of the debt, any unearned premium held by the insurer will be: -refunded to the debtor -added to the insurer's surplus fund -debited to an account for "bad debts" -refunded to the creditor
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: -twisting -transference -replacement -reinsurance
Replacement
What is the process for a producer voluntarily terminating his/her license:
Returning his/her license to the Banking and Insurance Department
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: -report to prison -stop engaging in those acts -appear before a jury of his/her peers -perform community service
Stop engaging in those acts
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 Commissioner issues a subpoena to a producer. The producer decides not to respond. Which course of action must be taken by the Commissioner: -must terminate the producer's appointment -must reissue another subpoena -may impose an administrative penalty -may incarcerate the producer
The Commissioner may impose an administrative penalty
The National Do Not Call List is monitored by which of the following: -State of New Jersey -Federal Government (Federal Trade Commission) -NAIC -telephone police agency
The Federal Government (Federal Trade Commission-FTC)
The Commissioner of Insurance is appointed by which of the following: -The Legislature -The Senate -The Secretary of State -The Governor
The Governor
When replacement of individual life insurance is involved, an agent must furnish a Notice Regarding Replacement of life insurance to which of the following: -applicant only -existing insurer only -replacing insurer only -applicant and replacing insurer
The applicant only
Which of the following sells reinsurance: -ceding insurer -assumptive insurer -assuming insurer -surplus lines insurer
The assuming insurer
The death benefit of Credit Life and Health insurance is paid to whom: -beneficiary of policyowner's choosing -the creditor -the policyowner -the insured
The creditor
Each of the following about Branch offices is true except: -at least one licensed producer is permanently assigned to that office -the assigned producer is present or accessible during business hours, except when engaged in branch activities elsewhere -the office is accessible to the general public during reasonable business hours -the office must be open 9-5, 5 days a week
The office must be open 9-5, 5 days a week
When a Medicare supplement policy is purchased during the open enrollment period: -the premium cost may be higher than usual -the benefits may be lower than usual -the exclusions may be more numerous than usual -the policy must be issued regardless of health status
The policy must be issued regardless of health status
The marketing of Medicare Supplements is regulated to prevent all of the following except: -sales of excessive insurance -replacement of any existing coverage -inaccurate policy provisions -failure to display notice of limitations to the buyer
The replacement of any existing coverage
Which of the following situations would be suitable for a temporary work authority: -when a producer's license is suspended and an appeal date is set -when an applicant completes an approved pre-licensing course -when an applicant passes a licensing exam and answers all background questions negatively -when an applicant fails the licensing exam and is waiting to take another test
When an applicant passes the licensing exam and answers all background questions negatively
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 -30-60 days after the occurrence or commencement of any loss covered -90-120 days after the occurrence or commencement of any loss covered -1 year after the occurrence or commencement of any loss covered
Within 20 days after the occurrence or commencement of any loss covered by the policy
A Buyer's Guide must:
Contain content approved by the Commissioner
The Department of Insurance may revoke a Producer's license for which of the following: -failing to meet sales quota -failure to maintain an insurer's appointment -acting as a Broker in a surplus lines transcation -felony conviction
Felony conviction
The Commissioner of Insurance may take which of the following actions when a producer has engaged in an unfair trade pracitce: -hold a public hearing -investigate the insurer involved -order the producer to pay a penalty of up to $25,000 -issue a Cease and Desist Order
issue a Cease and Desist Order
Producers may be found guilty of defamation if they make a false statement that is intended to: -malign another insurance company -benefit another insurance company -misrepresent the benefits payable under a policy -defraud an insured or a claimant
Malign another insurance company
The law that established insurance transactions should be regulated by the states is called the: -McCarran-Ferguson Act -McCain-Ferguson Act -Fair Credit Reporting Act -Paul vs Virginia
McCarran-Ferguson Act
The New Jersey Individual Health Coverage Program is designed to provide comprehensive benefits for: -low income residents of NJ -senior citizens residing in NJ -medically uninsurable NJ residents -children of low-income NJ residents
Medically uninsurable NJ residents
The solicitation of a non-authorized contract in New Jersey violates: -Federal Fair Credit Reporting Act -ERISA 1974 -New Jersey Code -McCarran-Ferguson Act
New Jersey Code
Which entity is responsible for regulating insurance advertising in New Jersey: -Better Business Bureau -Attorney General -Federal Communications Commission -New Jersey Department of Banking and Insurance
New Jersey Department of Banking and Insurance
When replacing group insurance, the replacing policy must cover ongoing claims from the former policies, under which of the following: -COBRA -HIPAA -No Loss No Gain -Conversion privilege
No Loss No Gain
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
A Medicare Supplement policy can be cancelled by the insurer for:
Nonpayment
Producer license denials are appealed at a hearing before: -The Commissioner of Insurance -Board of Arbitration -Committee formed by the Commissioner -Office of Administrative Law
Office of Administrated Law
An example of an unfair method of competition is: -overstating the benefits of an insurance policy -replacing an existing insurance policy with a new one -sharing commissions with another licensed producer -using paid testimonials from celebrity endorsements
Overstating the benefits of an insurance policy
In the state of New Jersey, consultants charging a fee for advice must be licensed as a:
Producer
An insurance consultant is best defined as a(n):
Producer who charges a fee for advice
The New Jersey Temporary Disability Benefits law: -only available to employees of state government entities -only available to employees of private NJ employers -provides occupational disability benefits -provides non-occupational disability benefits
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: -intimidation -defamation -rebating -unfair discrimination
Rebating
Which of the following is true concerning the proceeds of a life insurance policy: -there is protection of proceeds against the beneficiary's creditors -there is protection of proceeds against the insured's creditors -there is protection of proceeds against the insured's and the beneficiary's creditors -there is never protection of proceeds
There is protection of proceeds against the insured's and beneficiary's creditors
Which of the following is mandatory coverage for all group health care contracts: -treatment for alcoholism -short term disability -custodial care -dental care
Treatment for alcoholism
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 -illegal inducement -discrimination -defamation
Twisting
Twisting is best defined as: -using misrepresentation to induce an insured person to terminate an existing policy and purchase a new one -sharing commissions with another producer -inducing an insurance sale by offering something of value -forcing a loan application to use a specific insurer as a condition for the loan
Using misrepresentation to induce an insured person to terminate an existing policy and purchase a new one
