NJ LIFE PRODUCER EXAM QUESTIONS AND
CORRECT ANSWERS | GRADED A+ | VERIFIED
ANSWERS | LATEST VERSION (JUST
RELEASED)
For a New Jersey insurance producer to charge a prospective insured for
analyzing coverages, there must be a reasonable relationship between the
fee and.. ------CORRECT ANSWER---------------the nature of the services
performed
A person failing to comply with a subpoena from the Commissioner, may
be charged with.. ------CORRECT ANSWER---------------contempt
To be eligible for a resident producers license an individual must meet
which of the following requirements? ------CORRECT ANSWER---------------
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? ------CORRECT
ANSWER---------------certificate of authority
When an insurer procures insurance for itself from another insurer it is
called.. ------CORRECT ANSWER---------------reinsurance
In order to receive fees other than commissions, a life insurance producer
acting as a consultant must first ------CORRECT ANSWER---------------
,obtain a written memorandum from the prospect stating the amount of
compensation
A producer acting as an agent may take all the following actions EXCEPT: -
-----CORRECT ANSWER---------------Place insurance with a company the
producer does not represent
A voluntarily terminated producer license may be reinstated during the
same period if the producer takes which of the following actions? ------
CORRECT ANSWER---------------completes a new license application
A producers certification of license status contains all of the following
information EXCEPT: ------CORRECT ANSWER---------------place of birth
The Banking and Insurance Commissioner may revoke the license of a
producer who.. ------CORRECT ANSWER---------------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? ------CORRECT ANSWER---------------5 years
The New Jersey Life and Health Guaranty Association is derived from.. -----
-CORRECT ANSWER---------------Assessment on member companies
, If a producer's license is suspended, he must wait how long before
applying for reinstatement? ------CORRECT ANSWER---------------
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.. ------
CORRECT ANSWER---------------twisting
A producer who shares commission with a client may be found guilty of.. ---
---CORRECT ANSWER---------------rebating
A producer who knowingly engages in a prohibited trade practice, can be
issued a fine not to exceed.. ------CORRECT ANSWER---------------$5,000
for the first offense; $10,000 for each subsequent offenses
A producer who UN-knowingly engages in a prohibited trade practice, can
be issued a fine not to exceed.. ------CORRECT ANSWER---------------
$1,000
If an insurer or producer violates a cease and desist order, the
Commissioner could assess a penalty not to exceed.. ------CORRECT
ANSWER---------------$5,000
Making statements which are false and derogatory about the financial
condition of the insurer is: ------CORRECT ANSWER---------------defamation
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