NJ LIFE INSURANCE EXAM STUDY SET 1
Questions and Answers
1. What organization protects persons against failure of life and health
insurance policies and annuity contracts because of the impairment
or insolvency of the insurer?
Select one:
a. PPACA
b. New Jersey Insurance Board
c. New Jersey Insolvency Protection Board
d. New Jersey Life and Health Guaranty Association
ANS: d. New Jersey Life and Health Guaranty Association
2. The United States v. South-Eastern Underwriters Association
decision ruled that insurance transactions crossing state lines
are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable
ANS: c. Interstate Commerce
,3. What is the monetary penalty for multiple knowing violations of
the
information privacy rules?
Select one:
a. $2,500
b. $5,000
c. $7,500
d. $10,000
ANS: d. $10,000
4. Which of the following would NOT be considered unfair
discrimination? Select one:
a. Discrimination abased on genetics
b. Discrimination abased on DNA
c. Discrimination abased on blindness
d. Discrimination abased on occupation
ANS: d. Discrimination based on occupation
5. An insurance producer who places insurance in an insurance
company that he does not represent as an agent is an:
Select one:
a. Insurance counselor
b. Insurance solicitor
c. Insurance consultant
,d. Insurance broker
ANS: d. Insurance Broker
6. Which of the following is NOT true of an employment contract
between a company and a producer?
Select one:
a. The employment contract must be in writing.
b. The employment contract must include all license authorities of the
parties.
c. An employer must notify the Department.
d. The employer must examine the credentials of the employee.
ANS: b. The employment contract must include all license authorities of the parties.
7. Inducing a policyholder to switch insurance companies without
regard to bad consequences is:
Select one:
a. Boycott
b. Churning
c. Twisting
d. Defamation
ANS: c. Twisting
8. If the Department determines that an applicant is unqualified,
the Depart- ment must transmit it for a hearing to the:
, Select one:
a. Office of the Attorney General
b. Office of Administrative Law
c. State Insurance Committee of the legislature
d. Licensing Review Board
ANS: b. Office of Administrative Law
9. If the Commissioner determines that someone has engaged in
an unfair method of competition, he will issue:
Select one:
a. A cease and desist order
b. A contempt of court order
c. A revocation of license decree
d. An arrest warrant
ANS: a. A cease and desist order
10. Existence of a business relationship between two licensed
producers by which each acts as an independent contractor:
Select one:
a. May require the filing of any notice
b. May not require the filing of any notice
c. May create responsibility for the acts of the other in the absence
of knowl- edge
d. May create responsibility for the acts of the other in the absence of
Questions and Answers
1. What organization protects persons against failure of life and health
insurance policies and annuity contracts because of the impairment
or insolvency of the insurer?
Select one:
a. PPACA
b. New Jersey Insurance Board
c. New Jersey Insolvency Protection Board
d. New Jersey Life and Health Guaranty Association
ANS: d. New Jersey Life and Health Guaranty Association
2. The United States v. South-Eastern Underwriters Association
decision ruled that insurance transactions crossing state lines
are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable
ANS: c. Interstate Commerce
,3. What is the monetary penalty for multiple knowing violations of
the
information privacy rules?
Select one:
a. $2,500
b. $5,000
c. $7,500
d. $10,000
ANS: d. $10,000
4. Which of the following would NOT be considered unfair
discrimination? Select one:
a. Discrimination abased on genetics
b. Discrimination abased on DNA
c. Discrimination abased on blindness
d. Discrimination abased on occupation
ANS: d. Discrimination based on occupation
5. An insurance producer who places insurance in an insurance
company that he does not represent as an agent is an:
Select one:
a. Insurance counselor
b. Insurance solicitor
c. Insurance consultant
,d. Insurance broker
ANS: d. Insurance Broker
6. Which of the following is NOT true of an employment contract
between a company and a producer?
Select one:
a. The employment contract must be in writing.
b. The employment contract must include all license authorities of the
parties.
c. An employer must notify the Department.
d. The employer must examine the credentials of the employee.
ANS: b. The employment contract must include all license authorities of the parties.
7. Inducing a policyholder to switch insurance companies without
regard to bad consequences is:
Select one:
a. Boycott
b. Churning
c. Twisting
d. Defamation
ANS: c. Twisting
8. If the Department determines that an applicant is unqualified,
the Depart- ment must transmit it for a hearing to the:
, Select one:
a. Office of the Attorney General
b. Office of Administrative Law
c. State Insurance Committee of the legislature
d. Licensing Review Board
ANS: b. Office of Administrative Law
9. If the Commissioner determines that someone has engaged in
an unfair method of competition, he will issue:
Select one:
a. A cease and desist order
b. A contempt of court order
c. A revocation of license decree
d. An arrest warrant
ANS: a. A cease and desist order
10. Existence of a business relationship between two licensed
producers by which each acts as an independent contractor:
Select one:
a. May require the filing of any notice
b. May not require the filing of any notice
c. May create responsibility for the acts of the other in the absence
of knowl- edge
d. May create responsibility for the acts of the other in the absence of
