NJ Laws, Rules & Regulations Common to All Lines

the maximum the Insurance Guaranty Association will pay to an individual for life insurance death benefits is: -$1,000,000 -$100,000 -$250,000 -$500,000

$500,000

all of the following candidates for a resident producer license may be exempted from the examination requirement except: -a RP licensed for property and casualty insurance applying for a life insurance license -professional who holds a Certified Financial Planner designation -person in public employment in the insurance field whose license was terminated 10 months ago -NR producer in good standing who is moving to this state

a RP licensed for property and casualty insurance applying for a life insurance license

an insurance producer refused to comply with a subpoena. what would the producer's penalty be for this violation: -a fine up to $5,000 -a fine & imprisonment -a fine up to $10,000 -imprisonment for up to 6 months

a fine up to $5,000

when an insurance producer negotiates for an insurance contract on behalf of a client, the producer is acting as a: -solicitor -consultant -broker -agent

broker

an insurance producer is acting as a broker when they negotiate for an insurance contract on behalf of: -another insurance producer -client -financial institution -insurer

client

which of the following types of insurance would be written by a limited lines agent: -credit insurance -variable life insurance -surplus lines insurance -term life insurance

credit insurance

US vs South-Eastern Underwriters was decided in 1944. to what extent does the Supreme Court's decision still apply to insurance today: -still stands in full; insurance is considered to be interstate commerce and is therefore subject to regulation by the federal government -still stands in full; insurance & securities are still regulated by two distinct agencies -decision has changed; insurance & securities are now regulated by the different federal agencies -decision has changed; insurance is not considered to be interstate commerce and is therefore not subject to regulation by the federal government

still stands in full; insurance is considered to be interstate commerce and is therefore subject to regulation by the federal government

all of the following are considered limited lines of authority except: -surplus lines -credit insurance -travel insurance -bail bonds

surplus lines

circulating deceptive sales material to the public is what type of Unfair Trade Practice: -false advertising -defamation -coercion -misrepresentation

false advertising

which of the following would not be considered rebating: -giving a client a $50 pen with the insurer's logo during the application process -sending a $150 gift card to the insured's employee after the insurance has been effected as a thank you for the referral -sharing commission with the insured -collecting a lower premium than whats specified in a policy as a token of client appreciation

giving a client a $50 pen with the insurer's logo during the application process

which of the following best describes the unfair trade practice of defamation: -assuming the name & identity of another person -issuing false advertising material -refusing to deal with other insurers -making derogatory oral statements about another insurer's financial condition

making derogatory oral statements about another insurer's financial condition

all of the following would be considered an insurance transaction except: -negotiating coverage -obtaining an insurance license -soliciting a policy -advising a policyholder regarding a claim

obtaining an insurance license

all of the following are requirements for a nonresident license except: -paying required fees -passing the NJ licensing exam -holding an active license in the same line of authority in another state -submitting a licensing application from the home state

passing the NJ licensing examination

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

property and casualty

the McCarran Act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the: -Federal Government -insurers in a state -states -counties

states