NJ Laws, Rules, and
Regulations Common to Life,
Accident, and Health Property
and Casualty Exam Questions
and Answers 100% PASS
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.
D. Taxable as ordinary income.—ANSWER-B. Not taxable since the IRS
treats them as a return of a portion of the premium paid.
If a producer has been convicted of a crime, he or she must notify the
Commissioner within
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
Regulations Common to Life,
Accident, and Health Property
and Casualty Exam Questions
and Answers 100% PASS
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.
D. Taxable as ordinary income.—ANSWER-B. Not taxable since the IRS
treats them as a return of a portion of the premium paid.
If a producer has been convicted of a crime, he or she must notify the
Commissioner within
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
