E. NJ Insurance Regulation Exam Questions
and Answers with Verified Solutions | Latest
Updated 2026
What is a domestic insurer? A domestic insurer is one formed under
the
laws of this state.
What is a domestic mutual A domestic mutual insurer is owned by its
insurer? policy holders, who elect the insurer's
governing body or board of directors.
Does a domestic mutual insurer A domestic mutual insurer has no capital
have capital stock? stock.
What is a foreign insurer? A foreign insurer is one formed under the
laws
of another state.
What is an alien insurer? An alien insurer is one formed under the
laws
of any other country other than the United
States.
What is a stock insurer? A stock insurer is owned by its stock
holders
and issues nonparticipating policies.
, What is a mutual insurer? A mutual insurer is owned by its policy
holders
and issues participating policies.
Can producers act as either Producers may act as either brokers or
brokers or consultants? consultants without needing a separate
license.
What is an insurance broker? An insurance broker is a producer who
represents the insured or places insurance
with
an insurer they do not represent as an
agent.
What is an insurance consultant? An insurance consultant is a producer who
offers advice for a fee regarding insurance
policies.
Does a producer need a separate No, a producer does not need a separate
consultant's license to charge consultant's license to charge fees.
fees?
Do insurance consultants include No, insurance consultants do not include
bank trust officers, lawyers or bank
CPAs? trust officers, lawyers or CPAs.
What must fees charged by Fees charged by insurance consultants
insurance consultants be? must be
reasonable in view of the services
performed.
and Answers with Verified Solutions | Latest
Updated 2026
What is a domestic insurer? A domestic insurer is one formed under
the
laws of this state.
What is a domestic mutual A domestic mutual insurer is owned by its
insurer? policy holders, who elect the insurer's
governing body or board of directors.
Does a domestic mutual insurer A domestic mutual insurer has no capital
have capital stock? stock.
What is a foreign insurer? A foreign insurer is one formed under the
laws
of another state.
What is an alien insurer? An alien insurer is one formed under the
laws
of any other country other than the United
States.
What is a stock insurer? A stock insurer is owned by its stock
holders
and issues nonparticipating policies.
, What is a mutual insurer? A mutual insurer is owned by its policy
holders
and issues participating policies.
Can producers act as either Producers may act as either brokers or
brokers or consultants? consultants without needing a separate
license.
What is an insurance broker? An insurance broker is a producer who
represents the insured or places insurance
with
an insurer they do not represent as an
agent.
What is an insurance consultant? An insurance consultant is a producer who
offers advice for a fee regarding insurance
policies.
Does a producer need a separate No, a producer does not need a separate
consultant's license to charge consultant's license to charge fees.
fees?
Do insurance consultants include No, insurance consultants do not include
bank trust officers, lawyers or bank
CPAs? trust officers, lawyers or CPAs.
What must fees charged by Fees charged by insurance consultants
insurance consultants be? must be
reasonable in view of the services
performed.
