NJ PROPERTY AND CASUALTY EXAM
PRACTICE EXAM REVIEW STUDY NOTES
◉ Who heard the Paul v. Virginia case?
Answer: Supreme Court
◉ Who heard the US v Southeastern Underwriting Association case?
Answer: Supreme Court
◉ What was the decision in the US v Southeastern Underwriting
Association Case?
Answer: Insurance is interstate commerce and should be subject to
federal regulations (currently in effect today)
◉ What is the McCarran-Ferguson Act?
Answer: The federal govt won't regulate insurance business as long
as states perform an adequate job of managing their own insurance
industries.
◉ When was the McCarran-Ferguson Act passed?
Answer: March 9, 1945
,◉ To whom does the insurance commissioner have to provide a
report?
Answer: Governor & Legislature
◉ How often must the insurance Commissioner provide a report?
Answer: Annually
◉ How long before a disciplinary hearing must the insurance
commissioner notify interested parties?
Answer: 10 days before
◉ What is the fine for failing to comply with a court-ordered
subpoena?
Answer: $5000
◉ If the commissioner decides one has violated the insurance code,
what is the fine for unintentional acts performed?
Answer: $1000
◉ If the commissioner decides one has violated the insurance code,
what is the max fine?
Answer: 1st offense: $5K, 2nd offense $10K, each additional $15K
,◉ If the insurance commissioner decides one has violated the
insurance code, what is the fine for violating a cease & desist?
Answer: $5k each violation
◉ If the insurance commissioner decides one has violated the
insurance code, what is the fine for unlawful acts with intentional &
material thought?
Answer: $5k
◉ What is the fine for not contacting the dept with an address or
name change within 30 days?
Answer: $250 max if over 60 days
◉ What is the fine for if a license fee check is returned for
insufficient funds?
Answer: $500
◉ What is the fine for if you do not contact the department
regarding a change in partners, owners, officers, or directors?
Answer: $250
◉ What is the fine for not returning a license to a producer?
Answer: $500
, ◉ What is the fine for not maintaining an office address or
employment contracts on file with the department?
Answer: $100 for each contract
◉ What document is required before an insurance company may
transact business in a state?
Answer: Certificate of Authority
◉ What is a domestic insurer?
Answer: An insurer that conducts business in the state in which it
was incorporated
◉ A producer who is appointed with more than one insurer is
considered to be...
Answer: A Licensed Solicitor
◉ Implied authority is defined as...
Answer: Ability to act outside the authority specifically granted in an
agency agreement & extends company's liability
◉ What kind of clause relates to this statement: E&N Company
issued a policy in consideration of the representations on an
application & the payment of the 1st premium?
PRACTICE EXAM REVIEW STUDY NOTES
◉ Who heard the Paul v. Virginia case?
Answer: Supreme Court
◉ Who heard the US v Southeastern Underwriting Association case?
Answer: Supreme Court
◉ What was the decision in the US v Southeastern Underwriting
Association Case?
Answer: Insurance is interstate commerce and should be subject to
federal regulations (currently in effect today)
◉ What is the McCarran-Ferguson Act?
Answer: The federal govt won't regulate insurance business as long
as states perform an adequate job of managing their own insurance
industries.
◉ When was the McCarran-Ferguson Act passed?
Answer: March 9, 1945
,◉ To whom does the insurance commissioner have to provide a
report?
Answer: Governor & Legislature
◉ How often must the insurance Commissioner provide a report?
Answer: Annually
◉ How long before a disciplinary hearing must the insurance
commissioner notify interested parties?
Answer: 10 days before
◉ What is the fine for failing to comply with a court-ordered
subpoena?
Answer: $5000
◉ If the commissioner decides one has violated the insurance code,
what is the fine for unintentional acts performed?
Answer: $1000
◉ If the commissioner decides one has violated the insurance code,
what is the max fine?
Answer: 1st offense: $5K, 2nd offense $10K, each additional $15K
,◉ If the insurance commissioner decides one has violated the
insurance code, what is the fine for violating a cease & desist?
Answer: $5k each violation
◉ If the insurance commissioner decides one has violated the
insurance code, what is the fine for unlawful acts with intentional &
material thought?
Answer: $5k
◉ What is the fine for not contacting the dept with an address or
name change within 30 days?
Answer: $250 max if over 60 days
◉ What is the fine for if a license fee check is returned for
insufficient funds?
Answer: $500
◉ What is the fine for if you do not contact the department
regarding a change in partners, owners, officers, or directors?
Answer: $250
◉ What is the fine for not returning a license to a producer?
Answer: $500
, ◉ What is the fine for not maintaining an office address or
employment contracts on file with the department?
Answer: $100 for each contract
◉ What document is required before an insurance company may
transact business in a state?
Answer: Certificate of Authority
◉ What is a domestic insurer?
Answer: An insurer that conducts business in the state in which it
was incorporated
◉ A producer who is appointed with more than one insurer is
considered to be...
Answer: A Licensed Solicitor
◉ Implied authority is defined as...
Answer: Ability to act outside the authority specifically granted in an
agency agreement & extends company's liability
◉ What kind of clause relates to this statement: E&N Company
issued a policy in consideration of the representations on an
application & the payment of the 1st premium?
