NJ PROPERTY AND CASUALTY EXAM QUESTIONS WITH 100% CORRECT ANSWERS 2024.
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Course
Nj Property And Casualty
Institution
Nj Property And Casualty
NJ PROPERTY AND CASUALTY EXAM QUESTIONS WITH 100% CORRECT ANSWERS 2024.
Which of the following is NOT an unfair claims practice? - Correct Answer-A- Refusing to pay a claim without investigating it
B-Failing to affirm or deny coverage of claims within a reasonable time after proof of loss
C-Pr...
NJ PROPERTY AND CASUALTY EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS 2024.
Which of the following is NOT an unfair claims practice? - Correct Answer-A- Refusing
to pay a claim without investigating it
B-Failing to affirm or deny coverage of claims within a reasonable time after proof of
loss
C-Promptly acknowledging communications pertinent to a claim
D-Misrepresenting pertinent policy facts or provisions to claimants
C- Promptly acknowledging communications pertinent to a claim is required with respect
to claim practices. The other answers are unfair trade practices.
What is the purpose of a Certificate of Authority? - Correct Answer-A- Authorizes a
producer to sell insurance
B-Authorizes a producer to sell surplus lines insurance
C-Authorizes an insurer to transact insurance business
D-Authorizes an insurer to pay claims
C- Authorizes an insurer to transact insurance business
C- A certificate issued by the Commissioner is evidence of the authority an insurer has
to transact insurance in New Jersey.
A policy may not be nonrenewed or cancelled unless written notice has been delivered
to the insured: - Correct Answer-A-Not less than 120 days prior to expiration or
cancellation
B- Not less than 120 days or more than 30 days prior to expiration or cancellation
C- Not more than 30 days prior to expiration or cancellation
D-Not less than 30 days or more than 120 days prior to expiration or cancellation
D- A policy may not be nonrenewed or cancelled unless written notice has been
delivered to the insured not less than 30 days or more than 120 days prior to expiration
or cancellation.
How frequently is the Exportable List reviewed? - Correct Answer-A-Quarterly
B-Semi-annually
C-Biennially
,D-Annually
D- The Commissioner holds an annual hearing to review and determine what will be
included on the Exportable List.
A temporary work authority is granted and valid up to ________ days after being issued.
- Correct Answer-A-30
B-60
C-90
D-45
B- The Commissioner is authorized to issue a temporary work authority, valid up to 60
days, allowing the applicant to begin work the proper form has been submitted and
there is no information that may disqualify the applicant from being licensed.
A transfer of risk from one reinsurer to another reinsurer is known as: - Correct Answer-
A-Retrocession
B-Certificate of Authority
C-1035 Exchange
D-Insurance-Related Conduct
A- Retrocession is the transfer of risk from one reinsurer to another reinsurer.
Workers' Compensation will provide financial compensation to an employee who incurs
which of the following injuries? - Correct Answer-A-An injury where the employer is not
negligent
B-An injury that arises from the employee's willful negligence
C-An injury that occurs when the employee is intoxicated
D-An injury that is self-inflicted
A- Compensation will be made by the employer without regard to the negligence of the
employer except when the injury is self-inflicted, the employee is intoxicated or under
the influence of controlled substance, or if the employee is willfully negligent in
purposely not following safety rules.
Which of the following correctly sets forth the penalties that may be imposed on a
person who violates the Fraud Act? - Correct Answer-A-1,000 for the first violation,
$5,000 for the second violation and $10,000 for each subsequent violation
B-$5,000 per violation
C-$5,000 for the first violation, $10,000 for the second violation and $15,000 for each
subsequent violation
, D-$10,000 for the first violation and $15,000 for each subsequent violation
C- The penalties that may be imposed on a person who violates the Fraud Act are
$5,000 for the first violation, $10,000 for the second violation, and $15,000 for each
subsequent violation.
A nonresident producer or nonresident business entity will not qualify for a nonresident
license if the producer: - Correct Answer-A-Provides a copy of the home state
application for licensing
B-Is currently licensed as a resident producer in good standing in the home state
C-Lives in a non-reciprocity state
D-Pays a fee
C- In order to be a nonresident producer or business entity in New Jersey, the person's
home state must award nonresident insurance producer licenses to New Jersey
residents on the same basis.
Which of the following is NOT a qualification required for a producer license? - Correct
Answer-A-Have not committed any act that is a ground for denial, suspension or
revocation
B-Pay the appropriate fee
C-Pass a licensing examination for each line of insurance to be transacted
D-Be at least 21 years of age
D- An individual must be at least 18 years of age.
Which of the following statements is NOT correct concerning penalties? - Correct
Answer-A- The penalty for failing to maintain copies of all employment contracts and
copies of all agency contracts is $100 per contract
B-The Commissioner may impose an administrative penalty without notice to the
violator
C-A time related violation is failing to respond to a department inquiry or failing to act or
cease actions
as established in the order within 15 calendar days
D-Each calendar day a producer is in violation of established statute is considered a
separate violation
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