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NJ Health and Accident Insurance Exam 2026/2027
Actual Exam | 300+ Questions and 100% Correct
Answers with Detailed Rationales | New Jersey Health
& Accident | Pass Guaranteed - A+ Graded
Section 1: New Jersey Insurance Regulations and Laws
Q1: According to New Jersey law, how many hours of prelicensing education are required before
taking the NJ Health and Accident Insurance examination?
A. 20 hours
B. 40 hours [CORRECT]
C. 60 hours
D. No prelicensing education required
Correct Answer: B
Rationale: New Jersey Department of Banking and Insurance (DOBI) requires 40 hours of
prelicensing education for the Health and Accident license line. 20 hours is insufficient, and 60
hours is not the standard requirement.
Q2: Which of the following is the correct continuing education requirement for a New Jersey
Health and Accident insurance producer to renew their license?
A. 12 hours every year
B. 24 hours every 2 years, including 3 hours of ethics [CORRECT]
C. 30 hours every 2 years, including 5 hours of ethics
D. 40 hours every 4 years
Correct Answer: B
Rationale: NJ producers must complete 24 hours of continuing education (CE) biennially, of
which 3 hours must be in ethics.
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Q3: The New Jersey Department of Banking and Insurance (DOBI) is headed by the:
A. Insurance Commissioner
B. Governor
C. Commissioner of Banking and Insurance [CORRECT]
D. State Treasurer
Correct Answer: C
Rationale: The department is administered by the Commissioner of Banking and Insurance, who
is appointed by the Governor with the advice and consent of the Senate.
Q4: An insurance producer's license in New Jersey is valid for how many years?
A. 1 year
B. 2 years [CORRECT]
C. 3 years
D. 4 years
Correct Answer: B
Rationale: A New Jersey producer's license expires biennially (every 2 years) on the last day of
the producer's birth month.
Q5: Which of the following acts is considered "twisting" under New Jersey insurance law?
A. Offering a client a discount on premiums
B. Inducing a policyholder to drop an existing policy to buy a new one through misrepresentation
[CORRECT]
C. Charging a service fee for policy processing
D. Selling multiple policies to the same client
Correct Answer: B
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Rationale: Twisting is a form of misrepresentation where an agent induces a policyholder to
replace existing coverage with a new policy to the detriment of the policyholder, often through
incomplete or misleading comparisons.
Q6: Under New Jersey law, "rebating" is considered an unfair trade practice. Which of the
following constitutes rebating?
A. Returning a portion of the premium to the insured as an inducement to purchase [CORRECT]
B. Giving a client a calendar worth $5
C. Reducing the premium based on the insured's health status
D. Offering a group discount to an employer
Correct Answer: A
Rationale: Rebating involves offering a special inducement (like a refund of premium) not
specified in the policy to induce a sale. It is illegal in New Jersey. Small promotional items (like
calendars) are typically permitted exceptions.
Q7: If an insurance producer changes their legal name or address, they must notify the New
Jersey Department of Banking and Insurance within:
A. 10 days
B. 30 days [CORRECT]
C. 60 days
D. 90 days
Correct Answer: B
Rationale: Producers must report any change in name or residence address to the Commissioner
within 30 days of the change.
Q8: Which of the following is NOT a duty of the Commissioner of Banking and Insurance?
A. Enforcing insurance laws
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B. Issuing insurance licenses
C. Setting insurance company stock prices [CORRECT]
D. Examining the financial condition of insurers
Correct Answer: C
Rationale: The Commissioner regulates the industry but does not set stock prices, which are
determined by the open market. The other options are primary regulatory duties.
Q9: What is the maximum penalty for willfully violating a cease and desist order issued by the
NJ Commissioner?
A. $1,000
B. $5,000
C. $10,000 [CORRECT]
D. $25,000
Correct Answer: C
Rationale: Under the New Jersey Insurance Fraud Prevention Act, violation of a cease and desist
order can result in penalties up to $10,000 per violation.
Q10: A New Jersey producer who commits a felony involving moral turpitude will likely face:
A. A fine only
B. License suspension or revocation [CORRECT]
C. A mandatory probation period
D. No penalty if the crime was unrelated to insurance
Correct Answer: B
Rationale: Crimes involving moral turpitude (dishonesty, fraud, etc.) are grounds for denial,
suspension, or revocation of a producer's license.
NJ Health and Accident Insurance Exam 2026/2027
Actual Exam | 300+ Questions and 100% Correct
Answers with Detailed Rationales | New Jersey Health
& Accident | Pass Guaranteed - A+ Graded
Section 1: New Jersey Insurance Regulations and Laws
Q1: According to New Jersey law, how many hours of prelicensing education are required before
taking the NJ Health and Accident Insurance examination?
A. 20 hours
B. 40 hours [CORRECT]
C. 60 hours
D. No prelicensing education required
Correct Answer: B
Rationale: New Jersey Department of Banking and Insurance (DOBI) requires 40 hours of
prelicensing education for the Health and Accident license line. 20 hours is insufficient, and 60
hours is not the standard requirement.
Q2: Which of the following is the correct continuing education requirement for a New Jersey
Health and Accident insurance producer to renew their license?
A. 12 hours every year
B. 24 hours every 2 years, including 3 hours of ethics [CORRECT]
C. 30 hours every 2 years, including 5 hours of ethics
D. 40 hours every 4 years
Correct Answer: B
Rationale: NJ producers must complete 24 hours of continuing education (CE) biennially, of
which 3 hours must be in ethics.
,2
Q3: The New Jersey Department of Banking and Insurance (DOBI) is headed by the:
A. Insurance Commissioner
B. Governor
C. Commissioner of Banking and Insurance [CORRECT]
D. State Treasurer
Correct Answer: C
Rationale: The department is administered by the Commissioner of Banking and Insurance, who
is appointed by the Governor with the advice and consent of the Senate.
Q4: An insurance producer's license in New Jersey is valid for how many years?
A. 1 year
B. 2 years [CORRECT]
C. 3 years
D. 4 years
Correct Answer: B
Rationale: A New Jersey producer's license expires biennially (every 2 years) on the last day of
the producer's birth month.
Q5: Which of the following acts is considered "twisting" under New Jersey insurance law?
A. Offering a client a discount on premiums
B. Inducing a policyholder to drop an existing policy to buy a new one through misrepresentation
[CORRECT]
C. Charging a service fee for policy processing
D. Selling multiple policies to the same client
Correct Answer: B
,3
Rationale: Twisting is a form of misrepresentation where an agent induces a policyholder to
replace existing coverage with a new policy to the detriment of the policyholder, often through
incomplete or misleading comparisons.
Q6: Under New Jersey law, "rebating" is considered an unfair trade practice. Which of the
following constitutes rebating?
A. Returning a portion of the premium to the insured as an inducement to purchase [CORRECT]
B. Giving a client a calendar worth $5
C. Reducing the premium based on the insured's health status
D. Offering a group discount to an employer
Correct Answer: A
Rationale: Rebating involves offering a special inducement (like a refund of premium) not
specified in the policy to induce a sale. It is illegal in New Jersey. Small promotional items (like
calendars) are typically permitted exceptions.
Q7: If an insurance producer changes their legal name or address, they must notify the New
Jersey Department of Banking and Insurance within:
A. 10 days
B. 30 days [CORRECT]
C. 60 days
D. 90 days
Correct Answer: B
Rationale: Producers must report any change in name or residence address to the Commissioner
within 30 days of the change.
Q8: Which of the following is NOT a duty of the Commissioner of Banking and Insurance?
A. Enforcing insurance laws
, 4
B. Issuing insurance licenses
C. Setting insurance company stock prices [CORRECT]
D. Examining the financial condition of insurers
Correct Answer: C
Rationale: The Commissioner regulates the industry but does not set stock prices, which are
determined by the open market. The other options are primary regulatory duties.
Q9: What is the maximum penalty for willfully violating a cease and desist order issued by the
NJ Commissioner?
A. $1,000
B. $5,000
C. $10,000 [CORRECT]
D. $25,000
Correct Answer: C
Rationale: Under the New Jersey Insurance Fraud Prevention Act, violation of a cease and desist
order can result in penalties up to $10,000 per violation.
Q10: A New Jersey producer who commits a felony involving moral turpitude will likely face:
A. A fine only
B. License suspension or revocation [CORRECT]
C. A mandatory probation period
D. No penalty if the crime was unrelated to insurance
Correct Answer: B
Rationale: Crimes involving moral turpitude (dishonesty, fraud, etc.) are grounds for denial,
suspension, or revocation of a producer's license.
