Partial preview of the text
Download NJ Title Insurance Exam | Questions With Verified Solutions Latest Update 2025 and more Exams Civil Law in PDF only on Docsity!
In 1869 in Paul vs Virginia case the the US Supreme Court ruled that insurance? - Correct Answer Was not interstate Commerce. In 1944, in the South-Eastern Underwritters Association (SEUA) case, the U.S. Supreme Court ruled that insurance? - Correct Answer Was interstate commerce and was subject to Federal regulation. The McCarran-Ferguson Act of 1945 states that individual states are subject to the authority of the? - Correct Answer Federal Government Activities performed to have a Producer's License - Correct Answer Advising a prospect or insured to buy a particular policy or use a particular insurer First violation of the Insurance code - Correct Answer $5,000 a domestic insurer is? - Correct Answer a insurance company organized under the laws of the state A domestic Mutual insurer is Incorporated in accordance with the laws of this state? - Correct Answer Without permanent Capital stock (shares) an insurer which is formed under the laws of any other country - Correct Answer alien Insurer evidencing their authority to transact insurance in New Jersey - Correct Answer certificate of authority Insurer (ceding) procures insurance with another insurer (assuming) and takes all or part of risk - Correct Answer Renaissance An Insurance Consultant can act on behalf of (Advise ,Council, Serve)? - Correct Answer Insured, Licensee, Any other person a branch office cannot be open or operated unless? - Correct Answer one broker is present during business hours except when engaged in Branch activities elsewhere No individual may be licensed as a producer unless they are at least? - Correct Answer 18 years of age The Commissioner can - Correct Answer Promulgate, alter, amend or repeal rules & regulations The Commissioner is appointed by the - Correct Answer The Governor, with advice & consent of the Senate A licensee shall notify the Department of Insurance how many days before a closing of a office - Correct Answer 30 days If a license request is denied a license, & a Licensee requests a hearing, The Department must - Correct Answer within 30 days undertake a thorough review Any person failing to comply with a subpoena issued by the Commissioner? - Correct Answer May be found guilty of contempt by the Superior Court Nj insurance Law prohibits trade practices that are? - Correct Answer Unfair Acts, Unfair methods of competition, Deceptive practices A Broker can charge a fee to Insured ,contingent that this compensation? - Correct Answer Bears reasonable relationship to the services to be performed, & put in writing Under Nj insurance Law rebating is? - Correct Answer Prohibited Statements that distorts the terms of any policy is prohibited & defined as - Correct Answer Misrepresentation Derogatory statements ect. towards a insurer is prohibited & is defined as? - Correct Answer Defamation Denying insurance or a contract because of age is? - Correct Answer unfair discrimination a broker or consultant can charge a fee therefore the agreement must? - Correct Answer be signed by both the producer and the insured/ Prospect a producer Whose license has been revoked May? - Correct Answer not receive any commissions on renewals. Deceptive or misleading, untrue statements in advertisement are? - Correct Answer prohibited under New Jersey Law fines for intentional unfair act or practices - Correct Answer $5,000 license will not be issued to any organization if revoked in any state within - Correct Answer 10 years a foreign insurer in NJ is a company organized in? - Correct Answer any other state in the United States and insurance agency agreement can be terminated by? - Correct Answer either the agent or the company certificate of Authority or issue to? - Correct Answer insurers in contract law, failure to disclose a material fact is called? - Correct Answer concealment requirements for making a legal contract is? - Correct Answer they must be an offer by one party which is accepted by the other party annual reports with the Department of Insurance must contain - Correct Answer a detailed statement of the company's operation during the past year. educational requirements for a producers license can be waived if? - Correct Answer had license before military, approved by commissioner, license in another state. insurance company authorized to do business in a particular state is called in that state? - Correct Answer An admitted company The commissioner, prior to any required hearing, shall give advance notice of days? - Correct Answer 10 Inducements mean? - Correct Answer Money or favour, value over $25, advantage object initial license shall be deemed effective as of? - Correct Answer the date of issue of the temporary license certificate the following is not true about a producer - Correct Answer a producer can act as agent with any ensure they choose a producer acting as a agent is considered to be the representative of? - Correct Answer insurer A person holding a NJ resident producers license must have? - Correct Answer Either a NJ residence or business address Anon public record of a producer is? - Correct Answer Petitions or discharges in bankruptcy The case Paul vs. Virginia was a important precedent concerning - Correct Answer the regulation of insurance Samuel Paul was a native of Virginia who represented - Correct Answer New York insurance companies Samuel Paul challenged the right of the state to regulate insurance by - Correct Answer refusing to obtain a license from the State Paul Samuel continued to sell insurance without a license therefore - Correct Answer he was arrested & charged a $50 fine Paul vs Virginia was carried all the way to Supreme Court, & decided in - Correct Answer 1869, rendering insurance was not interstate commerce/not regulated by federal gov. Paul vs Virginia law stood for - Correct Answer 75 years In 1944 the Supreme Court reversed Paul vs Virginia - Correct Answer /subject to regulations of Fed. Gov./law stands today Public Law 15 or McCarran-Ferguson Act/ Mar. 09 1945 - Correct Answer Stated that the Fed. Gov. would not regulate insurance as long as states did a adequate job Public Law 15 provided that the Sherman Act would - Correct Answer continue to boycott, coercion, or intimidation. Today, insurance is regulated by each state through the - Correct Answer 3 basic branches of Gov. legislative, judicial, & Executive branches It is a Misdemeanor for any person to transact any insurance business in this state - Correct Answer as a producer without having the required license The term "insurance-related conduct" means - Correct Answer Selling, soliciting, negotiating & binding insurance policies A insurance Broker is considered - Correct Answer to be the representative of the insured/Customer A insurance agent is considered - Correct Answer they representative insurer/Broker A insurance Consultant is a person who for a fee, - Correct Answer offers advice, counsel promises under policy of insurance in nj Service Fee means - Correct Answer a fee charged to the insured or prospective insured by a broker or consultant No service fee for any policy shall exceed - Correct Answer $20 Clerical activities exempt from licensure include: - Correct Answer receiving premiums for existing policies at the place of business A Individual Must be licensed to: - Correct Answer collect premiums During any 12 month period, commission earned on controlled business Must not - Correct Answer exceed 50% of total commission (17:22A-17.6) "MAJOR LINES " - Correct Answer life health property casualty personal lines property surplus lines title insurance "MINOR LINES " - Correct Answer bail bonds credit ticket group mort. cancel. mortgage guaranty legal insurance self-storage All licensed partners officers and owners of 10% or more will be - Correct Answer held responsible for the conduct of the organization No producer license will be issued to a business entity operated by a person who has - Correct Answer had his license revoked within 10 years In cases where a producer's license has been revoked the producer must - Correct Answer wait 5yrs before applying for reinstatement a title company is required to keep records for - Correct Answer 15 years Freehold interest are best described as - Correct Answer interest for in the terminal time a producers license is revoked for - Correct Answer 5 Years From the date of revocation ascribing survey values the creation of a plat plan will be called - Correct Answer metes and Bounds a second mortgage obtained by the purchaser from a third-party would be - Correct Answer credit to the buyer the following item must be noted in the disclosure - Correct Answer any lenders attorneys fees for mortgage preparation a restrictive covenant could be described as which of the following - Correct Answer constructional limitations on ownership property tax rates could be said to be calculated by - Correct Answer dividing the net budget by the total ratables adverse possession is a form of - Correct Answer involuntary alienation the planning board responsibilities include - Correct Answer | pulled in subdivision applications the difference between real property and personal property - Correct Answer it's manner of attachment small Parcels such as building lots are usually described in indeed using - Correct Answer metes and Bounds description which of the following is most likely to have a encumbered title? - Correct Answer a mortgage or with a adjustable rate mortgage a licensed producer change of address must be filed within - Correct Answer 30 days represent in all matters of a business - Correct Answer General agent RESPA requires - Correct Answer lender must give a good Faith estimate of closing costs 3 days of application under a contract for deed the buyer - Correct Answer May occupy the property on contract circulating information ,malicious and nature about a insurer May well constitute - Correct Answer defamation coinsurance organization may be owned operated or control by - Correct Answer a person whose license has been revoked within the last 10 years a rating organization must have its rules approved by - Correct Answer the commissioner of baking of insurance the highest form of tenancy - Correct Answer Pur autre vie/ for the life of another a mortgage that includes trade fixtures as part of the security - Correct Answer package mortgage the following will require a surprise lines license - Correct Answer a producer who provides a client insurance from a company not authorized in the state which of the following is a hazard - Correct Answer defective electrical wiring an ALTA 5 endorsement to a title policy would indicate - Correct Answer a planned unit development project a contract of sale considered to be voidable would - Correct Answer contain condition that would cancel the agreement a deed of trust is most likely to be held by - Correct Answer a mortgagee in a trust producer record not available as public records include - Correct Answer previous bankruptcies the truth in lending law used to inform customers as to true cost financing - Correct Answer Regulation Z regulated under the FTC first violation in addition to any other penalties commissioner May charge for subsequent violation up to - Correct Answer up to $10,000 
