NJ Property Insurance Law Exam With
100% Correct Answers 2023.
In New Jersey, and insurer must provide at least______ advance notice for
cancellation of property coverages for nonpayment of premium
10 days
The employment of another producer by a producer is subject to all of the
following requirements, except
a. the employer shall examine the credentials of the kinds of business described
in the contract.
b. the employer shall be responsible for the insurance related conduct of the
employee
c. the employee producer will conduct business under the supervision of the
employer producer
d. The Department of Insurance approves the contract.
d. The Department of Insurance approves the contract.
In order to cancel a Property insurance policy, an insurer must give the insured a
______ advance notice
30 days
An authorized agency of the insurer may release consumer information in which
of the following situations?
a. When requested by a related third part of the insured
b. When requested in a fraud investigation
c. More than 3 claims in the past 3 years
d. When requested by a credit agency
b. When requested in a fraud investigation
If an agent is charged with a misdemeanor involving theft, any felony, or crimes
of moral turpitude, he or she must report the charge to the department of
insurance within:
30 days of being charged
All of the following are true regarding the hurricane deductible, except:
a. the hurricane deductible is a percentage of the claim amount
b. An optional deductible of 10% is available
c. Coverage D loss of use is the standard deductible for all other perils
d. The mandatory deductible minimum is 5%
a. the hurricane deductible is a percentage of the claim amount
(it is a percentage of the policy limit not claim amount)
All of the following are true regarding commercial property coverage under the
New Jersey FAIR plan, except:
a. Maximum coverage of 750,000 for joisted masonry buildings
b. Maximum coverage of 500,000 for frame buildings
c. Maximum coverage of 600,000 for frame buildings
d. Maximum coverage of $1 million for fire resistive buildings
c. Maximum coverage of 600,000 for frame buildings
, A person found guilty of the unfair act of misrepresentation may be fined up to
______per violation
a. $2500
b. $500
c. $1000
d. $5000
d. $5000
If an agent cancels or allows the license to non renew, which of the following are
true?
a. Any disciplinary actions, fine, penalties or restitution orders
b. Fines and penalties are forgiven if the license is surrendered for cause
c. The agent may complete whatever transactions were in the process when the
license authority ended
d. The agent may continue to act in that capacity for up to 30 days after the
license authority ended
a. Any disciplinary actions, fine, penalties or restitution orders
In order to apply for a surplus lines license, the candidate must:
a. be appointed by a minimum of 5 surplus lines carriers operating in the state
b. Have at least five years experience in the property and casualty insurance
business
c. Must also have an active property and casualty insurance license
d. Show a nonresident surplus lines license for another state
c. Must also have an active property and casualty insurance license
An agent acts in a fiduciary capacity when receiving and remitting funds to an
insurer. Because of this fiduciary responsibility, which of the following
statements are true?
a. funds must be deposited in a bank directed by the insurer
b. funds must be converted to a money order and sent to the insurer
c. Funds can co-mingle with the agency operating account
d. Funds cannot co-mingle with the agency operating account
d. Funds cannot co-mingle with the agency operating account
The maximum payable by the New Jersey Property and Casualty Guaranty Fund
is:
$300,000
A civil fine of not more than ______ per violation may be levied against the agent
if the commissioner finds that a person has unknowingly violated the insurance
laws of New Jersey.
$1000
The purpose of the Commercial Insurance Deregulation Act includes all of the
following, Except:
a. To encourage price competition among insurers writing commercial lines
insurance
b. To encourage more control over the commercial insurance industry by the NJ
dept of insurance
c. To encourage the most efficient and economic rating and marketing prices
d. To prevent monopolies that lessen or destroy competition
100% Correct Answers 2023.
In New Jersey, and insurer must provide at least______ advance notice for
cancellation of property coverages for nonpayment of premium
10 days
The employment of another producer by a producer is subject to all of the
following requirements, except
a. the employer shall examine the credentials of the kinds of business described
in the contract.
b. the employer shall be responsible for the insurance related conduct of the
employee
c. the employee producer will conduct business under the supervision of the
employer producer
d. The Department of Insurance approves the contract.
d. The Department of Insurance approves the contract.
In order to cancel a Property insurance policy, an insurer must give the insured a
______ advance notice
30 days
An authorized agency of the insurer may release consumer information in which
of the following situations?
a. When requested by a related third part of the insured
b. When requested in a fraud investigation
c. More than 3 claims in the past 3 years
d. When requested by a credit agency
b. When requested in a fraud investigation
If an agent is charged with a misdemeanor involving theft, any felony, or crimes
of moral turpitude, he or she must report the charge to the department of
insurance within:
30 days of being charged
All of the following are true regarding the hurricane deductible, except:
a. the hurricane deductible is a percentage of the claim amount
b. An optional deductible of 10% is available
c. Coverage D loss of use is the standard deductible for all other perils
d. The mandatory deductible minimum is 5%
a. the hurricane deductible is a percentage of the claim amount
(it is a percentage of the policy limit not claim amount)
All of the following are true regarding commercial property coverage under the
New Jersey FAIR plan, except:
a. Maximum coverage of 750,000 for joisted masonry buildings
b. Maximum coverage of 500,000 for frame buildings
c. Maximum coverage of 600,000 for frame buildings
d. Maximum coverage of $1 million for fire resistive buildings
c. Maximum coverage of 600,000 for frame buildings
, A person found guilty of the unfair act of misrepresentation may be fined up to
______per violation
a. $2500
b. $500
c. $1000
d. $5000
d. $5000
If an agent cancels or allows the license to non renew, which of the following are
true?
a. Any disciplinary actions, fine, penalties or restitution orders
b. Fines and penalties are forgiven if the license is surrendered for cause
c. The agent may complete whatever transactions were in the process when the
license authority ended
d. The agent may continue to act in that capacity for up to 30 days after the
license authority ended
a. Any disciplinary actions, fine, penalties or restitution orders
In order to apply for a surplus lines license, the candidate must:
a. be appointed by a minimum of 5 surplus lines carriers operating in the state
b. Have at least five years experience in the property and casualty insurance
business
c. Must also have an active property and casualty insurance license
d. Show a nonresident surplus lines license for another state
c. Must also have an active property and casualty insurance license
An agent acts in a fiduciary capacity when receiving and remitting funds to an
insurer. Because of this fiduciary responsibility, which of the following
statements are true?
a. funds must be deposited in a bank directed by the insurer
b. funds must be converted to a money order and sent to the insurer
c. Funds can co-mingle with the agency operating account
d. Funds cannot co-mingle with the agency operating account
d. Funds cannot co-mingle with the agency operating account
The maximum payable by the New Jersey Property and Casualty Guaranty Fund
is:
$300,000
A civil fine of not more than ______ per violation may be levied against the agent
if the commissioner finds that a person has unknowingly violated the insurance
laws of New Jersey.
$1000
The purpose of the Commercial Insurance Deregulation Act includes all of the
following, Except:
a. To encourage price competition among insurers writing commercial lines
insurance
b. To encourage more control over the commercial insurance industry by the NJ
dept of insurance
c. To encourage the most efficient and economic rating and marketing prices
d. To prevent monopolies that lessen or destroy competition
