NJ ExamFx - New Jersey Laws Rules, and Regulations Common to All Lines
The Commissioner believes that a licensee has violated an insurance regulation and decides to conduct a hearing. How long of a notice must the Commissioner provide the licensee? 1) 10 days 2) 14 days 3) 20 days 4) 31 days
10 days
The Commissioner believes that an insurance rule or regulation has been violated, and decides to call a disciplinary hearing. How many days before a hearing must the Commissioner issue a notice to the person charged with a violation 1) 7 days 2) 10 days 3) 20 days 4) 30 days
10 days
In cases where a producer;s license has been revoked, the producer must wait for how long before applying for reinstatement? 1) 3 years 2) 6 years 3) 10 years 4) Once a license has been revoked, it cannot be reinstated in this state
6 years
If a violation of the New Jersey insurance code were to occur, a cease and desist order and /or penalty may be issued. Who may issue a cease and desist order? 1) Commissioner 2) Department of Banking and Insurance 3) Insurance Company 3) Governor
Commissioner
Which of the following is NOT a duty of the Commissioner? 1) Enforcing the Insurance Code 2) Suspending or revoking licenses of Insurance Code 3) Developing insurance rates 4) Establishing a system of insurer and producer examinations
Developing insurance rates
All of the following are among the Commissioner's broad powers EXCEPT): 1) Have interest in Insurance companies regulated by the Department 2) Appoint and remove officers employed within the Department 3) Formulate and adopt rules and regulations of companies and licenses. 4) Formulate and adopt rules and regulations of companies and licensees.
Have interest in Insurance Companies regulated by the Department
Insurance is regulated 1) Evenly between the state and federal levels. 2) Only on the level of social medicine, which is on both state and federal levels. 3) Mostly on a federal level 4) Mostly on a state level
Mostly on a state level
The McCarran Act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry the industry was done by the 1) State 2) Counties 3) Federal Government 5) Insurer in a state
State
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? 1) Paul vs. Virginia 2) The US vs. the South Eastern Underwriters Association 3) McCarran - Ferguson vs. New York 4) Rosche - Wall vs. Alabama
The US vs. the South Eastern Underwriters Association
Which of the following is a duty of the Commissioner of insurance in this state? 1) Establish insurance rates 2) Appoint individual producers 3) Amend rules and regulations 4) Imprison Insurance Code violators
Amend rules and regulations
When an insurance producer negotiates for an insurance contract on behalf of a client, the producer is acting as a(n): 1) Solicitor 2) Consultant 3) Agent 4) Broker
Broker
Which of the following is the legal name of a corporation or partnership under which a licensee conducts insurance business? 1) Legal Name 2) Name of reference 3) Business Name 4) Assumed name
Business Name
In accordance with the Administrative Procedure Act, what entity has the authority to make and enforce rules and regulations to implement and carry out the purpose of the Insurance laws of NJ? 1) Commissioner 2) Governor 3) NAIC 4) Insurance Regulation Board
Commissioner
Which authority has the power to deny someone an insurance producer's license? 1) Guaranty Association 2) Federal Insurance Licensing Regulation Board 3) Commissioner 4) Insurance Company
Commissioner
Which of the following authorities is in charge of investigating claims held against licensees? 1) Commissioner 2) Governor 3) State law enforcement 4) Federal Bureau of Investigation
Commissioner
All of the following are among the Commissioner's broad powers EXCEPT? 1) Have interest in insurance companies regulated by the Department 2) Appoint and remove officers employed within the Department 3) Report to the Governor about the Department's operations 4) Formulate and adopt rules and regulations of companies and licensees
Have interest in insurance companies regulated by the Department
What significance did U.S. vs South - Eastern Underwriters have on the insurance industry? 1) It reversed the decision of Paul vs. Virginia determining that insurance is interstate commerce and should be regulated federally. 2) It reversed the decision of Paul vs. Virginia, determining that insurance is interstate commerce and should be regulated federally. 3) It determined that insurance licenses should no longer be issued by the federal government and should instead be issued by individual states. 4) It determined that insurance licenses should no longer be issued by the states and should instead be issued by the federal government.
It reversed the decision of Paul vs. Virginia determining that insurance is interstate commerce and should be regulated federally
US vs South- Eastern Underwriters was decided in 1944. To what extent does the supreme court's decision still apply to insurance today? 1) It has changed. Insurance is not considered to be interstate commerce and is therefore subject to regulation by the federal government. 2) It still stands in full. Insurance is considered to be interstate commerce and is therefore subject to regulation by the federal government. 3) It still stands in full. Insurance and Securities are still regulated by two distinct agencies. 4) The decision has changed. Insurance and Securities are now regulated by the different federal agencies.
It still stands in full. Insurance is considered to be interstate commerce and is therefore subject to regulation by the federal government
Which of the following best describes the unfair trade practivce of defamation? 1) Issuing false advertising material 2) Refusing to deal with other insurers 3) Marking derogatory oral statements about another insurer's financial condition 4) Assuming the name and identity of another person
Marking derogatory oral statements about another insurer's financial condition