Casualty Producer NJ Exam Questions with Verified Answers

Powers and duties of Commissioner - ANSWER-Conduct research Make reasonable rules and regulations Issue orders and notices Issue insurance licenses and certificates of authority Impose penalties Approve insurance policy forms and rates Amount of days notice before hearing - ANSWER-10 Retrocession - ANSWER-When a reinsurer transfers risks it has accepted to another insurer Producers can be - ANSWER-Agents, brokers or both Insurance agent - ANSWER-a licensed insurance producer who is appointed by an insurer to sell insurance. An agent represents the insurer not the insured Insurance broker - ANSWER-a licensed insurance producer who negotiates insurance on behalf of insureds or policy owners, not on behalf of an insurer or agent. Brokers represent their clients, not the insurer or agent Insurance consultant - ANSWER-a person who, for a fee, acts or holds himself out to the public or any licensee as offering any advice, counsel, opinion, or service with respect to the benefits, advantages, or disadvantages under any policy issued in this state Insurance related conduct - ANSWER-Soliciting, negotiating or binding policies of insurance All communications with insureds concerning any term or condition of policy insurance Office management policies affecting insureds Processing claims Transmitting funds between insureds, produces, premium finance companies, and insurance companies Producer license requirements - ANSWER-18 years old Have no committed any act that is ground for denial, suspension or revocation of a license Complete the pre-licensing education requirement Complete the application and pay the fee Pass the licensing exams for the lines of authority for which the individual has applied Business entity producer application must include - ANSWER--Business entity legal name and addresses -Other business names if any -Names, License number, License lines of authorities for each licensed officer or partner and, if any, all persons owing 10% or more of the business entity -Responses to questions concerning the applicant's character, fitness and financial responsibility For the Commissioner to issue and insurance producers license to a qualified nonresident producers, the person must... - ANSWER--Be currently licensed and in good standing in her resident state -Submit the proper application and fees -the home state of the person must award insurance producer licenses to producers of this state on the same basis Who are exempt from state licensing examination - ANSWER--Nonresident producer applicants -Nonresident producers moving to this state from a reciprocal state who apply for resident license within 90 days How many days must a producer (res or nonresident) provide a certification from the new resident state the change of legal residence - ANSWER-30 Surplus lines producer must hold what - ANSWER-Property and casualty producer license How long does a temporary work authority last - ANSWER-60 days How long for an insurer to provide written notice to the commissioner that an agency contract has been cancelled - ANSWER-15 days and the notice must include the reason for cancellation How many days can the commissioner issue a temporary license and for what reasons - ANSWER-180 days -for the death or disability of a licensed producer and active military service of the licensed insurance producer -can be issued to the spouse, executive, employee or other designee How often does a producer license renew - ANSWER-every 24 months if continuing education is completed of long can a lapsed producer license bee reinstated - ANSWER-12 months without passing an exam. fee may apply How long does a producer have to tell the Commissioner of any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state or any criminal prosecution - ANSWER-30 days penalties for unfair trade practice - ANSWER-up to $1000 for each act. up to $5000 if the violator know or should have known the act was illegal how long does insurer have to reply to a receipt of inquiry - ANSWER-15 working days how long do you have to notify the commissioner a change of name, address or email address - ANSWER-30 days and reply it must be in writing Branch office - ANSWER-Office in NJ other than a principle office where a licensee conducts insurance business. Must file a branch office registration form and fee within 30 days of conducting business. One licensed producer must be present to conduct insurance related conduct Standard of conduct - ANSWER-Premium receipts must be kept for 5 years.Producers must maintain adequate records of transactions for 5 years. Must reply to department inquiry no longer than 15 calendar days insurance fraud - ANSWER-False claims made to an insurance company. $5000 first violation $10000 second violation $15000 each subsequent Where to file an insurance fraud complaint - ANSWER-Division of anti-fraud compliance information privacy - ANSWER-each licensee must implement a comprehensive written information security program the includes administrative, technical and physical safeguards for the protection of the customer information Commercial insurance deregulation - ANSWER-Purpose of act: -encourage independent action by price competition among insurers in the writing of commercial lines -prevent practices that tend to bring about monopoly or lesson or destroy competition -encourage the most efficient rating and marketing practices RULES: Policy mist be filed no later than 30 days after their effective date -Except medical malpractice insurance, rates must be filed no later than 30 days after their effectiveness -Medical malpractice rates are effective no less than 30 days after files (can only change 5% to 15%) Surplus lines - ANSWER-Only coverages not procurable from an authorized insurer may be places with a surplus lines insurer. -Risk must be declined by 3 authorized insurer for it to be placed in surplus lines (must be diligent effort by producer) -exportable list means a list of classes of insurance coverages or risks declared by the commissioner for which there is no reasonable or adequate market among authorized insurers in this state