NJ Life Insurance Test Correct answers latest
update
The McCarran-Ferguson Act was passed by Congress to
Redefine the authority of the state and federal government to regulate the
insurance industry
The principle that insurance is not a transaction of commerce and so should be
regulated by the state was established in:
Paul v. Virginia
In New Jersey, a producer who violates a New Jersey insurance law for the first time
may be fined up to
$5,000
The New Jersey Banking and Insurance Commissioner has the authority to do all of
the following actions EXCEPT
Establish insurance rates and schedules
Which of the following statements is correct about an employment agreement
between two producers?
It must be in writing
The New Jersey Banking and Insurance Commissioner may issue which of the
following documents to an insurance producer as evidence of authority?
A license
A producer who employs another producer must take which of the following actions?
Enter into a written employment agreement with the employee producer
For a New Jersey insurance producer to charge a prospective insured for analyzing
coverages, there must be a reasonable relationship between the fee and
the nature of the services performed
A person failing to comply with a subpoena from the Commissioner, may be charged
with
Contempt
To be eligible for a resident producers license an individual must meet which of the
following requirements?
Complete a course of education approved by the Banking and Insurance
Commissioner unless a waiver is obtained from the department
What is issued to an insurer, by the Commissioner, demonstrating it's authority to
transact insurance business in the state?
Certificate of authority
, When an insurer procures insurance for itself from another insurer it is called
reinsurance
In order to receive fees other than commissions, a life insurance producer acting as a
consultant must first
obtain a written memorandum from the prospect stating the amount of
compensation
A producer acting as an agent may take all of the following action EXCEPT:
Place insurance with a company the producer does not represent
A producer wishing to appeal the final order of the Commissioner would appeal to
The Superior Court
Which of the following producers does not need to satisfy CE credits?
Nonresident
Continuing education credit may be earned for completing which of the following
courses?
CLU designation courses
A New Jersey producer who resides in Pennsylvania but maintains a principal place
of business in New Jersey and who has selected New Jersey as their home state is
referred to as which of the following?
resident
What is the MINIMUM age requirement for licensure as a nonresident producer?
18
When applying for a producer's license, an applicant must have passed the state
licensing exam within how long from the date of their application for license?
12 months
When applying for a producer's license, an applicant must have completed a pre-
licensing course of education within how long from the date of their license application?
24 months
After an applicant successfully passes the state exam in the line of authority they are
applying for, they can be issued a temporary certificate that expires no more than HOW
MANY days after issuance?
60 days
Upon cancellation of an agency contract with a producer, the insurer must give
written notice to the Commissioner within how many days?
15
update
The McCarran-Ferguson Act was passed by Congress to
Redefine the authority of the state and federal government to regulate the
insurance industry
The principle that insurance is not a transaction of commerce and so should be
regulated by the state was established in:
Paul v. Virginia
In New Jersey, a producer who violates a New Jersey insurance law for the first time
may be fined up to
$5,000
The New Jersey Banking and Insurance Commissioner has the authority to do all of
the following actions EXCEPT
Establish insurance rates and schedules
Which of the following statements is correct about an employment agreement
between two producers?
It must be in writing
The New Jersey Banking and Insurance Commissioner may issue which of the
following documents to an insurance producer as evidence of authority?
A license
A producer who employs another producer must take which of the following actions?
Enter into a written employment agreement with the employee producer
For a New Jersey insurance producer to charge a prospective insured for analyzing
coverages, there must be a reasonable relationship between the fee and
the nature of the services performed
A person failing to comply with a subpoena from the Commissioner, may be charged
with
Contempt
To be eligible for a resident producers license an individual must meet which of the
following requirements?
Complete a course of education approved by the Banking and Insurance
Commissioner unless a waiver is obtained from the department
What is issued to an insurer, by the Commissioner, demonstrating it's authority to
transact insurance business in the state?
Certificate of authority
, When an insurer procures insurance for itself from another insurer it is called
reinsurance
In order to receive fees other than commissions, a life insurance producer acting as a
consultant must first
obtain a written memorandum from the prospect stating the amount of
compensation
A producer acting as an agent may take all of the following action EXCEPT:
Place insurance with a company the producer does not represent
A producer wishing to appeal the final order of the Commissioner would appeal to
The Superior Court
Which of the following producers does not need to satisfy CE credits?
Nonresident
Continuing education credit may be earned for completing which of the following
courses?
CLU designation courses
A New Jersey producer who resides in Pennsylvania but maintains a principal place
of business in New Jersey and who has selected New Jersey as their home state is
referred to as which of the following?
resident
What is the MINIMUM age requirement for licensure as a nonresident producer?
18
When applying for a producer's license, an applicant must have passed the state
licensing exam within how long from the date of their application for license?
12 months
When applying for a producer's license, an applicant must have completed a pre-
licensing course of education within how long from the date of their license application?
24 months
After an applicant successfully passes the state exam in the line of authority they are
applying for, they can be issued a temporary certificate that expires no more than HOW
MANY days after issuance?
60 days
Upon cancellation of an agency contract with a producer, the insurer must give
written notice to the Commissioner within how many days?
15
