Page | 1
NJ HEALTH AND ACCIDENT
PRODUCER EXAM 2026 QUESTIONS
AND ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
Which of these may NOT be used in a health insurance
advertisement - correct 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 - correct answer -accept all individuals eligible under the
previous plan
Q: What is the role of the Department of Banking and Insurance
(DOBI) - correct answer -A: It regulates the banking and
insurance industries in New Jersey
Q: Who appoints the Commissioner of the Department of Banking
and Insurance - correct answer -A: The Governor, with advice and
consent of the Senate
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Q: What is the role of the Commissioner of Insurance - correct
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 - correct answer -A: $5,000
Q: What is the maximum penalty for each subsequent violation of
insurance regulations - correct answer -A: $10,000
Q: How long before a hearing must the notice be delivered to the
person/entity under investigation - correct answer -A: At least 10
days after the notice is delivered
Q: What happens if an insurance company becomes insolvent -
correct answer -A: The Commissioner will suspend its Certificate
of Authority
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Q: What is an insurance producer - correct 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 - correct 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 - correct 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 - correct answer -A: 20 hours
Q: How many hours of pre-licensing education are required for
accident and health insurance - correct answer -A: 20 hours
Q: What are the continuing education requirements for resident
producers - correct answer -A: 24 hours every 2 years, with 3
hours in ethics
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Q: How long is a temporary license valid in New Jersey - correct
answer -A: 180 days
Q: What are the reinstatement requirements for a lapsed license -
correct answer -A: Submission of a reinstatement application, late
renewal fee, and proof of continuing education completion
Q: What is a certificate of authority - correct answer -A: A
certificate allowing an insurer to transact business in New Jersey
Q: Define "Reinsurance" - correct answer -A: Reinsurance is
when an insurer buys insurance for itself from another insurer
Q: What is a retrocession - correct answer -A: When a reinsurer
transfers part of its risk to another reinsurance company
NJ HEALTH AND ACCIDENT
PRODUCER EXAM 2026 QUESTIONS
AND ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
Which of these may NOT be used in a health insurance
advertisement - correct 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 - correct answer -accept all individuals eligible under the
previous plan
Q: What is the role of the Department of Banking and Insurance
(DOBI) - correct answer -A: It regulates the banking and
insurance industries in New Jersey
Q: Who appoints the Commissioner of the Department of Banking
and Insurance - correct answer -A: The Governor, with advice and
consent of the Senate
, Page | 2
Q: What is the role of the Commissioner of Insurance - correct
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 - correct answer -A: $5,000
Q: What is the maximum penalty for each subsequent violation of
insurance regulations - correct answer -A: $10,000
Q: How long before a hearing must the notice be delivered to the
person/entity under investigation - correct answer -A: At least 10
days after the notice is delivered
Q: What happens if an insurance company becomes insolvent -
correct answer -A: The Commissioner will suspend its Certificate
of Authority
, Page | 3
Q: What is an insurance producer - correct 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 - correct 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 - correct 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 - correct answer -A: 20 hours
Q: How many hours of pre-licensing education are required for
accident and health insurance - correct answer -A: 20 hours
Q: What are the continuing education requirements for resident
producers - correct answer -A: 24 hours every 2 years, with 3
hours in ethics
, Page | 4
Q: How long is a temporary license valid in New Jersey - correct
answer -A: 180 days
Q: What are the reinstatement requirements for a lapsed license -
correct answer -A: Submission of a reinstatement application, late
renewal fee, and proof of continuing education completion
Q: What is a certificate of authority - correct answer -A: A
certificate allowing an insurer to transact business in New Jersey
Q: Define "Reinsurance" - correct answer -A: Reinsurance is
when an insurer buys insurance for itself from another insurer
Q: What is a retrocession - correct answer -A: When a reinsurer
transfers part of its risk to another reinsurance company
