NJ Health and Accident Exam QUESTIONS &
ANSWERS | A+ GRADED 100% VERIFIED
• XYZ Company is looking to replace their existing group health
coverage with another plan The replacing insurer is REQUIRED to .
Answer: accept all individuals eligible under the previous plan
• Q: What is the role of the Department of Banking and Insurance
(DOBI) . Answer: A: It regulates the banking and insurance industries in
New Jersey
• Q: Who appoints the Commissioner of the Department of Banking and
Insurance . Answer: A: The Governor, with advice and consent of the
Senate
• Q: What is the role of the Commissioner of Insurance . Answer: A:
The Commissioner has the power to investigate, administer oaths,
regulate insurers for insolvency, suspend/revoke licenses, and impose
penalties for violations
• Q: What is the maximum penalty for the first violation of insurance
regulations . Answer: A: $5,000
• Q: What is the maximum penalty for each subsequent violation of
insurance regulations . Answer: A: $10,000
• Q: How long before a hearing must the notice be delivered to the
person/entity under investigation . Answer: A: At least 10 days after the
notice is delivered
• Q: What happens if an insurance company becomes insolvent .
Answer: A: The Commissioner will suspend its Certificate of Authority
,• Q: What is an insurance producer . Answer: A: A person who produces
business for the insurer, such as an agent, broker, or general agent
• Q: What must an insurance consultant do before receiving fees from an
insurance prospect . Answer: A: Obtain a signed written memorandum
stating the amount of compensation
• Q: What is the requirement for a business entity acting as an insurance
producer . Answer: A: The business entity must be licensed in New
Jersey
• Q: How many hours of pre-licensing education are required for life
insurance in New Jersey . Answer: A: 20 hours
• Q: How many hours of pre-licensing education are required for
accident and health insurance . Answer: A: 20 hours
• Q: What are the continuing education requirements for resident
producers . Answer: A: 24 hours every 2 years, with 3 hours in ethics
• Q: How long is a temporary license valid in New Jersey . Answer: A:
180 days
• Q: What are the reinstatement requirements for a lapsed license .
Answer: A: Submission of a reinstatement application, late renewal fee,
and proof of continuing education completion
• Q: What is a certificate of authority . Answer: A: A certificate allowing
an insurer to transact business in New Jersey
• Q: Define "Reinsurance" . Answer: A: Reinsurance is when an insurer
buys insurance for itself from another insurer
• Q: What is a retrocession . Answer: A: When a reinsurer transfers part
of its risk to another reinsurance company
, • Q: What is controlled business . Answer: A: Insurance policies written
on individuals or companies that the producer has direct influence over,
such as family members or employers
• Q: What is the maximum percentage of a producer's commission that
can come from controlled business . Answer: A: 50% in a 12-month
period
• Q: What is a domestic insurance company . Answer: A: A company
incorporated under the laws of the state in which its home office is
located
• Q: What is an alien insurance company . Answer: A: A company
chartered in a country other than the US
• Q: What is the difference between a stock and a mutual insurance
company . Answer: A: A stock company is owned by shareholders,
while a mutual company is owned by policyholders
• Q: What is twisting in insurance . Answer: A: Replacing an insurance
policy based on misrepresentation
• Q: What is the penalty for violating a cease and desist order . Answer:
A: A penalty of up to $5,000
• Q: Define "unfair discrimination" in insurance . Answer: A:
Discriminating against a person in any insurance-related matter unfairly,
such as charging different rates for people in the same actuarial class
• Q: What is illegal rebating . Answer: A: Offering a premium rebate,
gift, or special advantage not specified in the contract to induce a person
to purchase insurance
ANSWERS | A+ GRADED 100% VERIFIED
• XYZ Company is looking to replace their existing group health
coverage with another plan The replacing insurer is REQUIRED to .
Answer: accept all individuals eligible under the previous plan
• Q: What is the role of the Department of Banking and Insurance
(DOBI) . Answer: A: It regulates the banking and insurance industries in
New Jersey
• Q: Who appoints the Commissioner of the Department of Banking and
Insurance . Answer: A: The Governor, with advice and consent of the
Senate
• Q: What is the role of the Commissioner of Insurance . Answer: A:
The Commissioner has the power to investigate, administer oaths,
regulate insurers for insolvency, suspend/revoke licenses, and impose
penalties for violations
• Q: What is the maximum penalty for the first violation of insurance
regulations . Answer: A: $5,000
• Q: What is the maximum penalty for each subsequent violation of
insurance regulations . Answer: A: $10,000
• Q: How long before a hearing must the notice be delivered to the
person/entity under investigation . Answer: A: At least 10 days after the
notice is delivered
• Q: What happens if an insurance company becomes insolvent .
Answer: A: The Commissioner will suspend its Certificate of Authority
,• Q: What is an insurance producer . Answer: A: A person who produces
business for the insurer, such as an agent, broker, or general agent
• Q: What must an insurance consultant do before receiving fees from an
insurance prospect . Answer: A: Obtain a signed written memorandum
stating the amount of compensation
• Q: What is the requirement for a business entity acting as an insurance
producer . Answer: A: The business entity must be licensed in New
Jersey
• Q: How many hours of pre-licensing education are required for life
insurance in New Jersey . Answer: A: 20 hours
• Q: How many hours of pre-licensing education are required for
accident and health insurance . Answer: A: 20 hours
• Q: What are the continuing education requirements for resident
producers . Answer: A: 24 hours every 2 years, with 3 hours in ethics
• Q: How long is a temporary license valid in New Jersey . Answer: A:
180 days
• Q: What are the reinstatement requirements for a lapsed license .
Answer: A: Submission of a reinstatement application, late renewal fee,
and proof of continuing education completion
• Q: What is a certificate of authority . Answer: A: A certificate allowing
an insurer to transact business in New Jersey
• Q: Define "Reinsurance" . Answer: A: Reinsurance is when an insurer
buys insurance for itself from another insurer
• Q: What is a retrocession . Answer: A: When a reinsurer transfers part
of its risk to another reinsurance company
, • Q: What is controlled business . Answer: A: Insurance policies written
on individuals or companies that the producer has direct influence over,
such as family members or employers
• Q: What is the maximum percentage of a producer's commission that
can come from controlled business . Answer: A: 50% in a 12-month
period
• Q: What is a domestic insurance company . Answer: A: A company
incorporated under the laws of the state in which its home office is
located
• Q: What is an alien insurance company . Answer: A: A company
chartered in a country other than the US
• Q: What is the difference between a stock and a mutual insurance
company . Answer: A: A stock company is owned by shareholders,
while a mutual company is owned by policyholders
• Q: What is twisting in insurance . Answer: A: Replacing an insurance
policy based on misrepresentation
• Q: What is the penalty for violating a cease and desist order . Answer:
A: A penalty of up to $5,000
• Q: Define "unfair discrimination" in insurance . Answer: A:
Discriminating against a person in any insurance-related matter unfairly,
such as charging different rates for people in the same actuarial class
• Q: What is illegal rebating . Answer: A: Offering a premium rebate,
gift, or special advantage not specified in the contract to induce a person
to purchase insurance
