NEW JERSEY STATE INSURANCE LAWS|WITH COMPLETE SOLUTIONS|ALREADY GRADED A|DOWNLOAD TO PASS

Paul vs. Virginia 1869 landmark decision establishing right of each state to regulate business of insurance US vs South Easter Underwriters Association 1944 ruled insurance was interstate commerce, when conducted across state lines, was subject to federal regulations McCarran-Ferguson Act 1945 ruled that states regulate and tax insurance business and federal antitrust laws apply only to extent that state law does not regulate insurance Commissioner of Dept of Banking and Insurance for NJ appointed by Governor ; performs duties and posers of the office Broad powers of Commissioner of insurance administering and organizing work, appointing removing employees and officers; performing duties and powers, formulating, adopting issuing rules and regulations, determining policy, instituting legal proceedings, report to Gov an annual operations report and apoints advisory committees Commissioner may order payment of penalty not to exceed $1000 for each and every act or violation of a method of competition or deceptive act or up to $5000 if the person knew or should have known they were in violation Commissioner may impose a fine in lieu of or in addition to other penalty up to $5000 for 1st violation and up to $10000 for subsequent violation for any NJ insurance law and may also order person to pay cost of investigation and prosecution as well as restitution. A prospective resident licensee must: be at least 18 yrs old, completed an application, 20 hr prelicensing course on each line of business applied for, paid fees, pass exam with 1 yr of application date, and not committed any act that is ground for denial, suspension or revocation Commissioner may authorized a temporary work authority allowing applicant to begin work when he has submitted proper form/ no info that may disqualifying the applicant from being licensed New producer licenses expire on last day of producer's birth month in the yr that will result in license term being at least 18 months; after initial term license expires on last day of birth month every 2 yrs Business entity producer licenses expire biennially on May 31 date that is 2 yrs subsequent to preceding expiration date Continuing education for life, health, P&c, personal and surplus line and title licensee must complete 24 credit hours of approved continuing ed including 3 related to profession ethics in order to renew license Applicant filing a late renewal request within 1 yr of license expiration will be granted a waiver from the prelicensing education and examination requirement Misrepresentation making an estimate, illustration, circular, statement, sales presentation, omission or comparison that misrepresents the conditions or terms of policy, misleads financial condition of insurer or legal reserve system on which life insurer operates, uses any name or title of a policy to misrepresent its true nature or misrepresents policy as being shares of stock False Information and Advertising producing an advertisement, announcement, or statement containing any assertion that is untrue, deceptive or misleading. Defamation circulating oral or written statement that is false, maliciously critical or derogatory of an insurer's financial conditions; calculated to injure any person engage in insurance business Boycott, Coercion or Intimidation entering into an agreement with the purpose of committing an act of boycott, coercion or intimidation that would result in restraint of trade or a monopoly in insurance business False statements and Entries involve making false material statements of fact about the financial condition of a person or insurer, or making false entries of material facts about the business of any person with intent to deceive Unfair discrimination charging different rates/premiums, using different forms, imposing different limitations, or paying different levels of benefits to individuals based on race, creed, color or national origin Rebating offering a prospective client any special favor, advantage or consideration not already specified in contract as inducement to buy insurance Dept must approve insurance business actual, fictitious or assumed name before it is used and filed with dept of Treasury, prior approvals expire 90 days after date of prior approval if no license application is received by dept Branch an office in NJ other than principal office where licensee conducts insurance business, must be submitted to dept for approval 30 days prior to office opening In order for Branch to conduct insurance business at least one licensee must be present Change of address for licensees must be reported to Commissioner within 30 days of change When application or policy is modified producer must notify the applicant or insured within 10 days after the modification is submitted procucers or organizations who no longer are licensed may receive commissions only for business produced by that person or organization while an insurance producer. Commissions by producer may not be returned or paid to policyholder in connection with the sale of insurance Producers will maintain accurate records reflecting insurance related transactions for a period of 5 years after the termination of coverage Dept fine for first offenders for failure to notify dept of opening or closing of a branch office or maintain sufficient funds to honor licensing ck, or open account or return a license to employee upon demand $500 Fine for first offenders for failure to maintain copies of all employment contracts and agency contracts $100