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A comprehensive set of questions and answers related to new jersey's general, life, and health insurance laws. It covers various aspects of insurance regulations, including producer licensing, continuing education requirements, insurance fraud, and consumer protection. Designed to help individuals preparing for insurance exams in new jersey.
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How long MUST an insurance company keep records on life insurance replacement activity? A. At least 4 yrs B. At least 5 yrs C. At least 6 yrs D. At least 7 yrs Correct Answer: B) at least 5 yrs A Medicare supplement policy CANNOT deny or limit coverage for a claim for losses incurred MORE than how many months from the effective date of coverage? A. 24 B. 6
Correct Answer: B) 6 Individual health insurance policies MUST provide all of the following benefits for the treatment of alcoholism EXCEPT: A. Treatment at a detoxification facility. B. Confinement as an inpatient at a licensed residential treatment facility. C. Limited hospital policy benefits. D. Inpatient care in a hospital for alcoholism. Correct Answer: C. Limited hospital policy benefits How long is the free-look period with a Medicare supplement policy? A. 10 days B. 15 days C. 20 days D. 30 days Correct Answer: D. 30 days A producer or insurer who violates the solicitation regulations can be ordered to pay a fine for each violation of up to:
Correct Answer: 30 Who is Medicare for? Correct Answer: Must be 65 What MUST you have when submitting a Medicare case? Correct Answer: An outline of coverage What is the NJ TEMPORARY DISABILITY LAW? Correct Answer: A mandatory disability program designed to protect employees covered under the NJ unemployment compensation law When REPLACING a GROUP plan... Correct Answer: You MUST provide coverage to ALL eligible insureds covered by the EXISTING plan. The Commissioner MUST give notice at LEAST ____ days BEFORE a hearing for UNFAIR TRADE PRACTICES. Correct Answer: 10 days What is the MAXIMUM fine for each VIOLATIONS committed UNKNOWINGLY? (PENALTIES for UNFAIR COMPLETION, ACT or PRACTICE) Correct Answer: $1000
What is the MAXIMUM fine for VIOLATIONS committed KNOWINGLY? (PENALTIES for UNFAIR COMPLETION, ACT or PRACTICE) Correct Answer: $5000 What is the MIN/MAXIMUM fine for VIOLATING a "Cease & Desist" order? (PENALTIES for UNFAIR COMPLETION, ACT or PRACTICE) Correct Answer: $5000 (MAXIMUM CIVIL PENALTIES for VIOLATING INSURANCE PRODUCER LICENSING ACT) What are the fines for first violation Correct Answer: $5000 (Maximum civil penalties for violating Insurance Producer Licensing Act) each subsequent violation Correct Answer: $10, Minimum age to obtain a producer's license Correct Answer: age 18 time frame for a nonresident insurance producer to file a change of address Correct Answer: 30 days
Expiration date of license is every ____years on the last day of birth month Correct Answer: 2 years A producer who allows his license to expire may reinstate the license within ____year(s) of expiration Correct Answer: 1 year (Continuing education (CE)) total CE hours required every two years Correct Answer: 24 hours (Continuing education (CE)) includes ___hours of ethics CE Correct Answer: 3 hours criminal acts must be reported to the Commissioner within ____days of conviction Correct Answer: 30 days (Branch offices notifications) department of Banking and Insurance must be notified ___days before opening or closing branch office Correct Answer: 30 days
numbers of days to report change of mailing, residence, and email address to business name Correct Answer: 30 days records must be retained for at least ____years Correct Answer: 5 years (Insurance Fraud) A person found guilty of insurance fraud is subject to the following civil penalties: Correct Answer: - $5,000 for the first offense
Correct Answer: B. Insurance-related conduct. On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are? A. Guaranteed. B. Not taxable since the IRS treats them as a return of a portion of the premium paid. C. Paid at a fixed rate every year. D. Taxable as ordinary income. Correct Answer: B. Not taxable since the IRS treats them as a return of a portion of the premium paid. If a producer has been convicted of a crime, he or she must notify the Commissioner within? A. 15 days. B. 20 days. C. 30 days. D. 10 days. Correct Answer: C. 30 days. If an applicant's license has lapsed within the past year, the applicant may apply for late renewal of the license within the maximum of how many months of expiration? A. 3 months B. 6 months
C. 9 months D. 12 months Correct Answer: D. 12 months A producer's license was revoked as a result of the Insurance Code violation. Which of the following is true? A. The producer can apply for a new license. B. The producer's license can be returned after 1 year. C. The producer cannot apply for a license reinstatement once the license has been revoked. D. The producer will have to wait 5 years before applying for license reinstatement. Correct Answer: D. The producer will have to wait 5 years before applying for license reinstatement. All of the following are among the Commissioner's broad powers EXCEPT? A. Formulate and adopt rules and regulations of companies and licensees. B. Have interest in insurance companies regulated by the Department. C. Appoint and remove officers employed within the Department. D. Report to the Governor about the Department's operations. Correct Answer: B. Have interest in insurance companies regulated by the Department.
Circulating deceptive sales material to the public is what type of Unfair Trade Practice? A. Coercion B. Misrepresentation C. False advertising D. Defamation Correct Answer: C. False advertising An insurance producer refused to comply with a subpoena. What would be the producer's penalty for this violation? A. A fine up to $5, B. A fine and an imprisonment C. A fine up to $10, D. Imprisonment up to 6 months Correct Answer: A. A fine up to $5, Which of the following would be required to be licensed as an insurance producer? A. An insurance company director who performs executive, administrative and managerial duties B. A salaried employee who advertises and solicits insurance C. A person whose activities are limited to producing insurance advertisements D. A salaried full-time employee who furnishes information for group insurance Correct Answer: B. A salaried employee who advertises and solicits insurance
A producer received a group master policy and certificates for delivery to the insured. Within how many days must the policy and certificates be delivered? A. 10 business days B. 10 calendar days C. 5 business days D. 5 calendar days Correct Answer: B. 10 calendar days If a producer has been convicted of a crime, he or she must notify the Commissioner within? A. 30 days. B. 10 days. C. 15 days. D. 20 days. Correct Answer: A. 30 days. A producer's appointment lasts for how long? A. 2 years B. 3 years C. 5 years D. Until it is terminated Correct Answer: D. Until it is terminated
D. 5 calendar days Correct Answer: A. 5 business days A producer was found guilty of a 3rd violation of the Insurance Code. What would be the monetary penalty he will have to pay? A. $10, B. $15, C. $25, D. $5, Correct Answer: A. $10, If an insurer cancels an agency contract, it must notify the Commissioner in writing within how many days? A. 10 B. 15 C. 20 D. 30 Correct Answer: B. 15 A licensee violates an insurance regulation. A hearing is held, and the person is found guilty. If this is the person's first offense, the penalty is no more than? A. $1,500. B. $3,000.
Correct Answer: C. $5,000. A "certification of license status" report can be run on any currently licensed New Jersey producer, but can only contain information on formal disciplinary actions taken within the past? A. 6 months. B. 4 years. C. 7 years. D. 10 years. Correct Answer: B. 4 years. What is reinsurance? A. An agreement between a ceding insurer an assuming insurer B. An agreement between an originating insurer and a ceding insurer C. An agreement between a domestic insurer and a foreign insurer D. An agreement between an insurer and an insured Correct Answer: A. An agreement between a ceding insurer an assuming insurer The company owes premium money to the insured. The insurer gave the funds to the producer to return to the insured. Within how many days must the producer pay the insured?
B) Producer who introduces a policy owner to a 3rd party for a potential sale of a life insurance policy C) Consultant who gives motivation seminars to an insurers sales team D) Individual who underwrites insurance policies Correct Answer: A) Producer who charges fees for advice The NJ 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 Correct Answer: B) 60 The law that established insurance transactions should be regulated by the states is called the? A) McCarran-Ferguson Act B) McCain-Feingold Act C) Fair credit reporting act D) Paul vs Virginia Correct Answer: A) McCarran-Ferguson Act
The NJ Life and Health Guaranty Association protect life insurance death benefit claims up to: a. $300,000 or the amount of the loss, whichever is greater b. $300,000 or the amount of the loss, whichever is less c. $500,000 or the amount of the loss, whichever is greater d. $500,000 or the amount of the loss, whichever is less Correct Answer: A) $500,000 or the amount of the loss, whichever is less How long can an insurer exclude coverage for a preexisting condition on a Medicare supplement policy? 6 months 12 months 18 months 24 months Correct Answer: A) 6 months 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
