NJ Laws, Rules, and Regulations Study Guide Exam With Solved Solutions 2024.

An insurer cancelled a contract with a producer on April 1st. By what date must the insurer notify the Commissioner of this action? A. April 30th B. April 5th C. April 11th D. April 15th - Answer D. April 15th An insurer goes bankrupt and is unable to pay on any of its insureds' claims. Which of the following will happen? A. The insureds will not be paid. B. The claims will be paid by a nationally-based program. C. The claims will be paid by the state Life and Health Guaranty Association. D. The claims will be paid by the state Department of Insurance. - Answer C. The claims will be paid by the state Life and Health Guaranty Association. Producer's and insurer's actions related to insurance transactions, from selling insurance to processing claims are referred to as A. Agent's authority. B. Insurance-related conduct. C. Producer actions. D. Licensee's responsibilities. - Answer B. Insurance-related conduct. On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are A. Guaranteed. B. Not taxable since the IRS treats them as a return of a portion of the premium paid. C. Paid at a fixed rate every year.