1 |Page
NJ HEALTH AND ACCIDENT
PRODUCER 2026 EXAM QUESTIONS
AND CORRECT ANSWERS
Which of these may NOT be used in a health insurance advertisement -
correct 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 - correct answer-
accept all individuals eligible under the previous plan
Q: What is the role of the Department of Banking and Insurance (DOBI) -
correct answer-A: It regulates the banking and insurance industries in New
Jersey
Q: Who appoints the Commissioner of the Department of Banking and
Insurance - correct answer-A: The Governor, with advice and consent of
the Senate
Q: What is the role of the Commissioner of Insurance - correct 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 - correct answer-A: $5,000
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Q: What is the maximum penalty for each subsequent violation of
insurance regulations - correct answer-A: $10,000
Q: How long before a hearing must the notice be delivered to the
person/entity under investigation - correct answer-A: At least 10 days after
the notice is delivered
Q: What happens if an insurance company becomes insolvent - correct
answer-A: The Commissioner will suspend its Certificate of Authority
Q: What is an insurance producer - correct 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 - correct 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 - correct 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 - correct answer-A: 20 hours
Q: How many hours of pre-licensing education are required for accident
and health insurance - correct answer-A: 20 hours
Q: What are the continuing education requirements for resident producers -
correct answer-A: 24 hours every 2 years, with 3 hours in ethics
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Q: How long is a temporary license valid in New Jersey - correct answer-A:
180 days
Q: What are the reinstatement requirements for a lapsed license - correct
answer-A: Submission of a reinstatement application, late renewal fee, and
proof of continuing education completion
Q: What is a certificate of authority - correct answer-A: A certificate allowing
an insurer to transact business in New Jersey
Q: Define "Reinsurance" - correct answer-A: Reinsurance is when an
insurer buys insurance for itself from another insurer
Q: What is a retrocession - correct answer-A: When a reinsurer transfers
part of its risk to another reinsurance company
Q: What is controlled business - correct 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 - correct answer-A: 50% in a 12-month
period
Q: What is a domestic insurance company - correct answer-A: A company
incorporated under the laws of the state in which its home office is located
NJ HEALTH AND ACCIDENT
PRODUCER 2026 EXAM QUESTIONS
AND CORRECT ANSWERS
Which of these may NOT be used in a health insurance advertisement -
correct 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 - correct answer-
accept all individuals eligible under the previous plan
Q: What is the role of the Department of Banking and Insurance (DOBI) -
correct answer-A: It regulates the banking and insurance industries in New
Jersey
Q: Who appoints the Commissioner of the Department of Banking and
Insurance - correct answer-A: The Governor, with advice and consent of
the Senate
Q: What is the role of the Commissioner of Insurance - correct 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 - correct answer-A: $5,000
,2 |Page
Q: What is the maximum penalty for each subsequent violation of
insurance regulations - correct answer-A: $10,000
Q: How long before a hearing must the notice be delivered to the
person/entity under investigation - correct answer-A: At least 10 days after
the notice is delivered
Q: What happens if an insurance company becomes insolvent - correct
answer-A: The Commissioner will suspend its Certificate of Authority
Q: What is an insurance producer - correct 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 - correct 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 - correct 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 - correct answer-A: 20 hours
Q: How many hours of pre-licensing education are required for accident
and health insurance - correct answer-A: 20 hours
Q: What are the continuing education requirements for resident producers -
correct answer-A: 24 hours every 2 years, with 3 hours in ethics
, 3 |Page
Q: How long is a temporary license valid in New Jersey - correct answer-A:
180 days
Q: What are the reinstatement requirements for a lapsed license - correct
answer-A: Submission of a reinstatement application, late renewal fee, and
proof of continuing education completion
Q: What is a certificate of authority - correct answer-A: A certificate allowing
an insurer to transact business in New Jersey
Q: Define "Reinsurance" - correct answer-A: Reinsurance is when an
insurer buys insurance for itself from another insurer
Q: What is a retrocession - correct answer-A: When a reinsurer transfers
part of its risk to another reinsurance company
Q: What is controlled business - correct 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 - correct answer-A: 50% in a 12-month
period
Q: What is a domestic insurance company - correct answer-A: A company
incorporated under the laws of the state in which its home office is located
