NJ HEALTH AND ACCIDENT INSUARANCE EXAM LATEST
ACTUAL EXAM WITH REAL QUESTIONS AND CORRECT
VERIFIED ANSWERS (FULL REVISED EXAM) A NEW
UPDATED VERSION |GUARANTEED PASS A+
Which of these may NOT be used in a health insurance advertisement - ANSWER: An
insurance company's trademark instead of the company's actual name
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
ACTUAL EXAM WITH REAL QUESTIONS AND CORRECT
VERIFIED ANSWERS (FULL REVISED EXAM) A NEW
UPDATED VERSION |GUARANTEED PASS A+
Which of these may NOT be used in a health insurance advertisement - ANSWER: An
insurance company's trademark instead of the company's actual name
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
