NJ Laws, Rules, and Regulations Common to
Life, Accident, and Health Property and
Casualty
Questions and Answers
1. An insurer cancelled a contract with a producer on April 1st. By
what date must the insurer notify the Commissioner of this action?
A. April 30th
B. April 5th
C. April 11th
D. April 15th
ANS D. April 15th
2. An insurer goes bankrupt and is unable to pay on any of its insureds'
claims. Which of the following will happen?
A. The insureds will not be paid.
B. The claims will be paid by a nationally-based program.
C. The claims will be paid by the state Life and Health Guaranty
Association.
D. The claims will be paid by the state Department of Insurance.
ANS C. The claims will be paid by the state Life and Health Guaranty Association.
1/
13
, 3. Producer's and insurer's actions related to insurance transactions, from
sell- ing insurance to processing claims are referred to as
A. Agent's authority.
B. Insurance-related conduct.
C. Producer actions.
D. Licensee's responsibilities.
ANS B. Insurance-related conduct.
4. 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.
ANS B. Not taxable since the IRS treats them as a return of a portion of the premium paid.
5. 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.
ANS C. 30 days.
2/
13
Life, Accident, and Health Property and
Casualty
Questions and Answers
1. An insurer cancelled a contract with a producer on April 1st. By
what date must the insurer notify the Commissioner of this action?
A. April 30th
B. April 5th
C. April 11th
D. April 15th
ANS D. April 15th
2. An insurer goes bankrupt and is unable to pay on any of its insureds'
claims. Which of the following will happen?
A. The insureds will not be paid.
B. The claims will be paid by a nationally-based program.
C. The claims will be paid by the state Life and Health Guaranty
Association.
D. The claims will be paid by the state Department of Insurance.
ANS C. The claims will be paid by the state Life and Health Guaranty Association.
1/
13
, 3. Producer's and insurer's actions related to insurance transactions, from
sell- ing insurance to processing claims are referred to as
A. Agent's authority.
B. Insurance-related conduct.
C. Producer actions.
D. Licensee's responsibilities.
ANS B. Insurance-related conduct.
4. 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.
ANS B. Not taxable since the IRS treats them as a return of a portion of the premium paid.
5. 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.
ANS C. 30 days.
2/
13
