NJ Life Insurance Test Correct answers latest update

NJ Life Insurance Test Correct answers latest update The McCarran-Ferguson Act was passed by Congress to Redefine the authority of the state and federal government to regulate the insurance industry The principle that insurance is not a transaction of commerce and so should be regulated by the state was established in: Paul v. Virginia In New Jersey, a producer who violates a New Jersey insurance law for the first time may be fined up to $5,000 The New Jersey Banking and Insurance Commissioner has the authority to do all of the following actions EXCEPT Establish insurance rates and schedules Which of the following statements is correct about an employment agreement between two producers? It must be in writing The New Jersey Banking and Insurance Commissioner may issue which of the following documents to an insurance producer as evidence of authority? A license A producer who employs another producer must take which of the following actions? Enter into a written employment agreement with the employee producer For a New Jersey insurance producer to charge a prospective insured for analyzing coverages, there must be a reasonable relationship between the fee and the nature of the services performed A person failing to comply with a subpoena from the Commissioner, may be charged with Contempt To be eligible for a resident producers license an individual must meet which of the following requirements? Complete a course of education approved by the Banking and Insurance Commissioner unless a waiver is obtained from the department What is issued to an insurer, by the Commissioner, demonstrating it's authority to transact insurance business in the state? Certificate of authority When an insurer procures insurance for itself from another insurer it is called reinsurance In order to receive fees other than commissions, a life insurance producer acting as a consultant must first obtain a written memorandum from the prospect stating the amount of compensation A producer acting as an agent may take all of the following action EXCEPT: Place insurance with a company the producer does not represent A producer wishing to appeal the final order of the Commissioner would appeal to The Superior Court Which of the following producers does not need to satisfy CE credits? Nonresident Continuing education credit may be earned for completing which of the following courses? CLU designation courses A New Jersey producer who resides in Pennsylvania but maintains a principal place of business in New Jersey and who has selected New Jersey as their home state is referred to as which of the following? resident What is the MINIMUM age requirement for licensure as a nonresident producer? 18 When applying for a producer's license, an applicant must have passed the state licensing exam within how long from the date of their application for license? 12 months When applying for a producer's license, an applicant must have completed a pre- licensing course of education within how long from the date of their license application? 24 months After an applicant successfully passes the state exam in the line of authority they are applying for, they can be issued a temporary certificate that expires no more than HOW MANY days after issuance? 60 days Upon cancellation of an agency contract with a producer, the insurer must give written notice to the Commissioner within how many days? 15 A temporary work authority to act as a producer is issued at which of the following times? When an applicant passes a licensing examination and responds negatively to all background questions If a producer allows his license to lapse, how long before he has to meet all standard pre-licensing requirements again? 12 months A producer's license is considered the property of The State of NJ A voluntarily terminated producer license may be reinstated during the same license period if the producer takes which of the following actions? Completes a new license application A producers certification of license status contains all of the following information except: Place of birth The Banking and Insurance Commissioner may revoke the license of a producer who Uses the license primarily to obtain insurance for his or her family If a producer's license is revoked, he must wait how long before applying for reinstatement? 5 years The New Jersey Life and Health Guaranty Association is derived from Assessment on member companies If a producer's license is suspended, he must wait how long before applying for reinstatement? Immediately after the period of suspension The act of using misrepresentations to induce an insured person to terminate an existing policy and purchase a new policy is referred as twisting A producer who shares commission with a client may be found guilty of: Rebating A producer who knowingly engages in a prohibited trade practice, can be issued a fine not to exceed $5,000 for the first offense; $10,000 for each subsequent offenses A producer who unknowingly engages in a prohibited trade practice, can be issued a fine not to exceed $1,000 If an insurer or producer violates a cease and desist order, the Commissioner could assess a penalty not to exceed $5,000 Making statements which are false and derogatory about the financial condition of the insurer is: defamation When the beneficiary of a life insurance policy is a minor, the insurer can pay the proceeds If a legal guardian has been appointed A branch office registration form must be filed with the Banking and Insurance Commissioner a MINIMUM of how many days before conducting business at the branch office? thirty If the Guaranty Association assumes management of an insolvent insurer, the maximum amount of death benefits for which they are liable is $500,000 per person If a producer changes their address, how many days do they have to notify the Department? 30 Which of the following activities does not require a license? Scheduling appointments for producers to sell insurance An insurer who is placed under an order of liquidation by a court of competent jurisdiction is defined under the terms of the New Jersey Life and Health Insurance Guaranty act as An insolvent insurer The first violation of the NJ Fraud Prevention Act can result in a fine of $5,000 A producer assists an insured in converting a life policy to reduced paid-up insurance in order to buy a new policy. This action is best known as replacing Which of the following MUST an agent do when replacing a life insurance policy?