NJ Laws, Rules and Regulations Common to All Lines
If a producer dies or is rendered severely disabled, an unlicensed person can contract with another insurance producer to continue this person's insurance transactions for
180 days
Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT A. An agent misrepresents policy benefits to convince a policyowner to replace policies B. An agent offers the use of his lake house to person as an inducement to buy. C. An agent offers to share his commission with a policyholder D. An agent offers tickets to a baseball game as an inducement to buy insurance.
A
Which of the following would NOT be considered a misrepresentation on the part of the insurer? A. Backdating policies to secure a lower premium for the insured B. Implying that term insurance has cash value C. Embellishing the benefits provided in the policy D. Overstating returns on policy dividends
A
In choosing an insurance business name, which of the following would be allowed?
A proper name which does not belong to any officers, stockholders, or executives
Presenting any written or oral statement in support of or in opposition to a claim payment, while knowing that the statement contains false or misleading information material to the claim, would be best considered
A violation of the New Jersey Insurance Fraud Prevention Act
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be
Authorized
A license insurance producer may request a waiver of license renewal procedures under any of the following circumstances EXCEPT A. He was injured in a car accident B. He has been called into active duty C. His renreal forms were lost in the mail D. He has recently been confined to a wheelchair due to MS
C
A producer's license was revoked as a result of the Insurance Code violation. Which of the following true? A. The producer's license can be returned after 1 year B. The producer cannot apply for a license reinstatement once the license has been revoked C. The producer will have to wait 5 years before applying for license reinstatement D. The producer can apply for a new license
C
It is the job of what authority to appoint and remove officers and other personnel employed within the department?
Commissioner
Which of the following is true regarding license cancellation and reinstatement? A. The producer must allow it to lapse. After that point, it can be reinstated any time within the next 2 years, provided that the continuing education requirements have been met B. The license needs to be returned to the Insurance Department. Once this occurs, it cannot be reinstated C. The producer must complete a brief interview with the Commissioner's Office. The license may then be reinstate within 1 year. D. The license needs to be returned to the Insurance Department. It can be reinstated by filling out an application and paying a fee.
D
When doing business in this state, an insurance company that is former under the laws of another state is known as which type of insurer?
Foreign
Producer's and insurer's action related to insurance transaction, from selling insurance to processing claims are referred to as
Insurance-related conduct
US vs South-Eastern Underwriters was decided in 1944. To what extent does the Supreme Court's decision still apply to insurance today?
It still stands in full. Insurance is considered to be instate commerce and is therefore subject to regulation be the federal government
Which individual would most likely be issued a nonresident producer's license?
a Massachusetts resident who sells insurance full-time in Boston but wants to expand his customer base by becoming licensed in New Jersey
A contract between a producer and an insurance company
must be in writing and signed by both parties
