NJ Life Insurance Exam Study Set 1 Correct answers latest update

NJ Life Insurance Exam Study Set 1 Correct answers latest update What organization protects persons against failure of life and health insurance policies and annuity contracts because of the impairment or insolvency of the insurer? Select one: a. PPACA b. New Jersey Insurance Board c. New Jersey Insolvency Protection Board d. New Jersey Life and Health Guaranty Association d. New Jersey Life and Health Guaranty Association The United States v. South-Eastern Underwriters Association decision ruled that insurance transactions crossing state lines are: Select one: a. Considered intrastate commerce b. Not interstate commerce c. Interstate commerce d. Unenforceable c. Interstate Commerce What is the monetary penalty for multiple knowing violations of the information privacy rules? Select one: a. $2,500 b. $5,000 c. $7,500 d. $10,000 d. $10,000 Which of the following would NOT be considered unfair discrimination? Select one: a. Discrimination abased on genetics b. Discrimination abased on DNA c. Discrimination abased on blindness d. Discrimination abased on occupation d. Discrimination based on occupation An insurance producer who places insurance in an insurance company that he does not represent as an agent is an: Select one: a. Insurance counselor b. Insurance solicitor c. Insurance consultant d. Insurance broker d. Insurance Broker Which of the following is NOT true of an employment contract between a company and a producer? Select one: a. The employment contract must be in writing. b. The employment contract must include all license authorities of the parties. c. An employer must notify the Department. d. The employer must examine the credentials of the employee. b. The employment contract must include all license authorities of the parties. Inducing a policyholder to switch insurance companies without regard to bad consequences is: Select one: a. Boycott b. Churning c. Twisting d. Defamation c. Twisting If the Department determines that an applicant is unqualified, the Department must transmit it for a hearing to the: Select one: a. Office of the Attorney General b. Office of Administrative Law c. State Insurance Committee of the legislature d. Licensing Review Board b. Office of Administrative Law If the Commissioner determines that someone has engaged in an unfair method of competition, he will issue: Select one: a. A cease and desist order b. A contempt of court order c. A revocation of license decree d. An arrest warrant a. A cease and desist order Existence of a business relationship between two licensed producers by which each acts as an independent contractor: Select one: a. May require the filing of any notice b. May not require the filing of any notice c. May create responsibility for the acts of the other in the absence of knowledge d. May create responsibility for the acts of the other in the absence of concerted action b. May not require the filing of any notice In the Paul v. Virginia case of 1869 the U.S. Supreme Court ruled that insurance transactions crossing state lines are: Select one: a. Considered intrastate commerce b. Not interstate commerce c. Interstate commerce d. Unenforceable b. Not interstate commerce If an individual requests access to recorded personal information, they must receive it within: Select one: a. 15 days b. 20 days c. 30 days d. 31 days .c. 30 days The term of credit life insurance may not extend more than: Select one: a. The maturity date of the debt b. 10 days after the maturity date of the debt c. 15 days after the maturity date of the debt d. 30 days after the maturity date of the debt c. 15 days after the maturity date of the debt What U.S. Supreme Court case ruled that insurance transactions crossing state lines are not interstate commerce? Select one: a. Paul v. Virginia b. Plessy v. Ferguson c. United States v. South-Eastern Underwriters Association d. McCarran-Ferguson a. Paul v. Virginia The total amount of credit life insurance may be a maximum of what percentage of the total debt obligation? Select one: a. 50% b. 75% c. 100% d. 110% c. 100% All funds received by a producer for life policies must be remitted to the insurer within: Select one: a. 3 business days b. 5 business days c. 7 business days d. 9 business days b. 5 business days How does the Commissioner get his position? Select one: a. Elected in the same general election as the governor b. Elected in the same general election as the president c. Appointed by the governor d. Appointed by the insurers c. Appointed by the governor A surplus lines producer may charge an originating broker in connection with the procurement of any contract of surplus lines insurance a maximum fee of expenses plus: Select one: a. $50 b. $100 c. $125 d. $162 a. $50 When must an agent provide a notice of information practices to an applicant? Select one: a. Before the presentation b. When the first premium is accepted c. Within 5 days of accepting the first premium d. At the time of policy delivery d. At the time of policy delivery What authority is granted to an agent by the principal as written in the agency contract? Select one: a. Express authority b. Implied authority c. Apparent authority d. Assumed authority a. Express authority What is the maximum amount that the New Jersey Life and Health Guaranty Association will pay to a person for a life insurance cash surrender from an insolvent insurer? Select one: a. $100,000 b. $200,000 c. $300,000 d. $500,000 a. $100,000 If an insurance producer is indicted for a crime, the Commissioner must be informed within: Select one: a. 15 days b. 30 days c. 31 days d. 45 days b. 30 days If a person presents any statement as part of a claim for payment knowing that the statement contains any false or misleading information, that person has committed: Select one: a. Larceny b. Perjury c. Fraud d. Embezzlement c. Fraud What type of insurer is formed under the laws of anyplace outside the United States or anyplace under U.S. jurisdiction? Select one: a. Domestic b. Alien c. Foreign d. Mutual b. Alien All funds received by a producer for accident and health policies must be remitted to the insurer within: Select one: a. 3 business days b. 5 business days c. 7 business days d. 9 business days c. 7 business days A temporary producer license is valid for a maximum of: Select one: a. 60 days b. 90 days c. 180 days d. 270 days c. 180 days Who of the following can have a temporary insurance producer's license without passing the state licensing exam? Select one: a. Someone who was an intern at an insurer's office b. Someone with a college degree c. The husband of a deceased licensed producer d. A licensed producer in another state c. The husband of a deceased licensed producer Giving a client's child a stuffed animal with a company's logo that is valued at less than $25 would be considered: Select one: a. Rebating b. Advertising c. False advertising d. Coercion b. Advertising What authority gives the customer reasonable belief that an agent has the power and authority to bind the principal, even in cases where the agent does not have such authority? Select one: a. Express authority b. Implied authority c. Apparent authority d. Assumed authority c. Apparent authority What is the maximum amount that the New Jersey Life and Health Guaranty Association will pay to a person for a health insurance benefit from an insolvent insurer? Select one: a. $100,000 b. $200,000 c. $300,000 d. $500,000 a. $100,000 Individual producer licenses expire every: Select one: a. Year b. 2 years c. 3 years d. 4 years b. 2 years What is the only time a pretext interview is allowed? Select one: a. When someone doesn't have insurance b. When someone has insurance with another insurer c. When someone hasn't paid their premium d. When criminal activity is suspected d. When criminal activity is suspected Upon request by any person, the Department must issue a certification of the license status of any producer licensed within the preceding: Select one: a. Year b. 2 years c. 3 years d. 4 years d. 4 years What authority is the agent presumed to have as part of his ability to transact insurance? Select one: a. Express authority b. Implied authority c. Apparent authority d. Assumed authority Implied authority The purpose of the Life and Health Guaranty Association is to protect: Select one: a. Insureds b. Insurers c. The state of New Jersey d. The Commissioner a. Insureds Who of the following can be paid a commission? Select one: a. A client b. A person working in an insurance office that brings in a lead c. An unlicensed person who was licensed when the sale was made