NJ HEALTH AND ACCIDENT EXAM 2024|BRAND NEW EXAM QUESTIONS AND CORRECT ANSWERS ALL GRADED A+|GUARANTEED SUCCESS|LATEST UPDATE
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NJ HEALTH AND ACCIDENT
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NJ HEALTH AND ACCIDENT
NJ HEALTH AND ACCIDENT EXAM 2024|BRAND NEW EXAM QUESTIONS AND CORRECT ANSWERS ALL GRADED A+|GUARANTEED SUCCESS|LATEST UPDATE
Which of these may NOT be used in a health insurance advertisement - ANSWER-An insurance company's trademark instead of the company's actual name
XYZ ...
NJ HEALTH AND ACCIDENT EXAM
2024|BRAND NEW EXAM QUESTIONS
AND CORRECT ANSWERS ALL GRADED
A+|GUARANTEED SUCCESS|LATEST
UPDATE 2024-2025
Which of these may NOT be used in a health insurance advertisement - ANSWER-
✔An insurance company's trademark instead of the company's actual name
XYZ Company is looking to replace their existing group health coverage with another
plan The replacing insurer is REQUIRED to - ANSWER-✔accept all individuals eligible
under the previous plan
Q: What is the role of the Department of Banking and Insurance (DOBI) - ANSWER-
✔A: It regulates the banking and insurance industries in New Jersey
Q: Who appoints the Commissioner of the Department of Banking and Insurance -
ANSWER-✔A: The Governor, with advice and consent of the Senate
Q: What is the role of the Commissioner of Insurance - ANSWER-✔A: The
Commissioner has the power to investigate, administer oaths, regulate insurers for
insolvency, suspend/revoke licenses, and impose penalties for violations
Q: What is the maximum penalty for the first violation of insurance regulations -
ANSWER-✔A: $5,000
Q: What is the maximum penalty for each subsequent violation of insurance
regulations - ANSWER-✔A: $10,000
Q: How long before a hearing must the notice be delivered to the person/entity
under investigation - ANSWER-✔A: At least 10 days after the notice is delivered
,Q: What happens if an insurance company becomes insolvent - ANSWER-✔A: The
Commissioner will suspend its Certificate of Authority
Q: What is an insurance producer - ANSWER-✔A: A person who produces business
for the insurer, such as an agent, broker, or general agent
Q: What must an insurance consultant do before receiving fees from an insurance
prospect - ANSWER-✔A: Obtain a signed written memorandum stating the amount
of compensation
Q: What is the requirement for a business entity acting as an insurance producer -
ANSWER-✔A: The business entity must be licensed in New Jersey
Q: How many hours of pre-licensing education are required for life insurance in New
Jersey - ANSWER-✔A: 20 hours
Q: How many hours of pre-licensing education are required for accident and health
insurance - ANSWER-✔A: 20 hours
Q: What are the continuing education requirements for resident producers -
ANSWER-✔A: 24 hours every 2 years, with 3 hours in ethics
Q: How long is a temporary license valid in New Jersey - ANSWER-✔A: 180 days
Q: What are the reinstatement requirements for a lapsed license - ANSWER-✔A:
Submission of a reinstatement application, late renewal fee, and proof of continuing
education completion
Q: What is a certificate of authority - ANSWER-✔A: A certificate allowing an insurer
to transact business in New Jersey
Q: Define "Reinsurance" - ANSWER-✔A: Reinsurance is when an insurer buys
insurance for itself from another insurer
Q: What is a retrocession - ANSWER-✔A: When a reinsurer transfers part of its risk
to another reinsurance company
Q: What is controlled business - ANSWER-✔A: Insurance policies written on
individuals or companies that the producer has direct influence over, such as family
members or employers
Q: What is the maximum percentage of a producer's commission that can come
from controlled business - ANSWER-✔A: 50% in a 12-month period
Q: What is a domestic insurance company - ANSWER-✔A: A company incorporated
under the laws of the state in which its home office is located
, Q: What is an alien insurance company - ANSWER-✔A: A company chartered in a
country other than the US
Q: What is the difference between a stock and a mutual insurance company -
ANSWER-✔A: A stock company is owned by shareholders, while a mutual company
is owned by policyholders
Q: What is twisting in insurance - ANSWER-✔A: Replacing an insurance policy based
on misrepresentation
Q: What is the penalty for violating a cease and desist order - ANSWER-✔A: A
penalty of up to $5,000
Q: Define "unfair discrimination" in insurance - ANSWER-✔A: Discriminating against
a person in any insurance-related matter unfairly, such as charging different rates for
people in the same actuarial class
Q: What is illegal rebating - ANSWER-✔A: Offering a premium rebate, gift, or special
advantage not specified in the contract to induce a person to purchase insurance
Q: What is the penalty for engaging in unfair claim settlement practices - ANSWER-
✔A: The Commissioner may issue cease and desist orders and impose fines
Q: What is the maximum penalty for making a false financial statement - ANSWER-
✔A: A fine of up to $1,000 for each violation or $5,000 if the violator knew the act
was illegal
Q: What is required in a Buyer's Guide for life insurance - ANSWER-✔A: Basic
information to help consumers compare different life insurance policies
Q: What is required in a Policy Summary - ANSWER-✔A: Specific information on the
provisions, benefits, and coverage of the policy
Q: What is the maximum term of coverage for credit life insurance - ANSWER-✔A:
The length of the loan or five years, whichever is shorter
Q: What must be provided to an applicant regarding replacement of life insurance -
ANSWER-✔A: A written comparison and summary statement of the policies being
replaced
Q: What is the free-look period for life insurance policies - ANSWER-✔A: A
minimum of 10 days
Q: What is the grace period for life insurance policies in New Jersey - ANSWER-✔A:
30 days
Q: What is the free-look period for Medicare Supplements - ANSWER-✔A: 30 days
, Q: What is the maximum period for preexisting condition exclusion in a Medicare
Supplement policy - ANSWER-✔A: 6 months
Q: What must all insurance advertisements include - ANSWER-✔A: Truthful
information and no misleading or deceptive content
Q: Can producers advertise the New Jersey Life and Health Insurance Guaranty
Association to sell insurance - ANSWER-✔A: No, producers are prohibited from using
its existence to sell or induce purchases of insurance
Q: What is the penalty for misleading advertising - ANSWER-✔A: Fines and possible
revocation of licenses
Q: How long must insurers keep records of their advertisements - ANSWER-✔A: At
least 5 years after their first use
Q: What is suitability in annuity transactions - ANSWER-✔A: Ensuring that
recommendations made for annuity products align with the customer's financial
needs and objectives
Q: What factors must be considered when recommending an annuity - ANSWER-✔A:
Age, income, financial situation, risk tolerance, liquidity needs, etc
Q: What is required to sell variable annuities in New Jersey - ANSWER-✔A:
Compliance with FINRA rules regarding consumer suitability
Q: What is the minimum free-look period for health insurance policies - ANSWER-
✔A: 10 days
Q: What is the grace period for health insurance policies in New Jersey - ANSWER-
✔A: 7 days for weekly premiums, 10 days for monthly premiums, and 31 days for all
other policies
Q: What is the notice of claim period for health insurance policies - ANSWER-✔A: 20
days after a covered loss occurs
Q: How long does a claimant have to submit proof of loss - ANSWER-✔A: 90 days
Q: What happens if an insurer fails to pay a legitimate claim on time - ANSWER-✔A:
The payment will bear simple interest after 60 days of receipt of proof of loss
Q: What is the maximum length of time to defer payment of a cash surrender value
- ANSWER-✔A: 6 months
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