NJ Health and Accident
1. In what form do disability income policies typically pay benefits: Periodic income
2. The Mandatory health policy provision states that the policy, including endorsements and attached papers,
constitutes: The entire insurance contract between the parties
3. The entire contract includes the actual policy and the: application
4. employer sponsored group health insurance provides coverage for which of the following: Alcoholism
5. The term which describes the fact that both parties of a contract may not receive the same value is referred
to as: Aleatory
6. Tom has a home health care benefit and is confined to his home. Which of these is NOT typically covered:
Full-time nursing care
7. A Medicare Supplement policy can be cancelled by the insurer for: Nonpay- ment
8. Credit Accident and Health plans are designed to: help pay off existing loans during periods of disability
9. A payment system for health care in which the provider is paid for each service given is called: fee-for-
service
10.An insurance company ONLY pay a sales commission to: individuals li- censed by the state
11.Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair
Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?: $5000 and 1 year imprisonment
12.A closed network plan offers a primary physician copay of $25. If a subscriber chooses a primary care
physician outside of the network, the subscriber will likely pay: 100% of the billed amount
13.What is the maximum fine for a producer violating an NJ insurance law for the first time?: $5000
14.A licensed producer is required to file notice to any changes of address within how many days: 30 days
15.Jonas has disability insurance through his employer. The employer pays 75% of the premium, and Jonas
pays the other 25%. What is Jonas's tax liability for any benefits paid from the disability plan?: Taxes must be
paid on 75% of the benefits received
16.After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?: File
written proof of loss
17.Which of the following is an example of the insured's consideration?: A paid premium
1/
8
, NJ Health and Accident
18.A(n) insurance company is one that was formed under the laws of a state other than NJ:
Foreign
19.Kathy pays a monthly premium on her health insurance policy. How long is her grace period?: 10 days
20. Insurance licenses are intended to be issued for the purpose of authorizing the transaction of business
with members of the general public and not primarily allowing someone to benefit from commissions on business
that insurers their personal interest. The description of which of the following?: - Controlled business
21.A master contract and certified coverage can be found in which type of policy?: Group
22.Medicaid is a government-funded program designed to provide health care to: poor people
23.Which type of long-term care benefit would be most appropriate for a stroke victim who requires speech
therapy administered at her home?: Home Health Care
24.What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do?:
In the event of employment termination, group health insurance can be kept if the employee pays the premiums
25.Replacement regulation is designed to protect the interests of: Policy own- ers
26.Continued coverage under COBRA would be provided to all of the follow- ing except?: a covered employee is
terminated for gross misconduct
27.A health insurer must be provided with written proof of loss days
after the date of loss: 90 days
28.All of the following are factors would affect a health insurance policies premium rate Except: Residential
address of the insured
29.Which of the following is NOT a required provision in an accident and health insurance policy?: Change of
occupation (considered optional provision)
30.Within how many days must a producer notify the Department of Banking and Insurance of a change in
address?: 30 days
31.When comparing an HMO, to a PPO, the PPO: provides a greater choice of providers
32.Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits
must: be the same and the premium cannot exceed 102%
33.An agent is required to keep replacement forms on file for at LEAST
years.: 5 years
2/
8
1. In what form do disability income policies typically pay benefits: Periodic income
2. The Mandatory health policy provision states that the policy, including endorsements and attached papers,
constitutes: The entire insurance contract between the parties
3. The entire contract includes the actual policy and the: application
4. employer sponsored group health insurance provides coverage for which of the following: Alcoholism
5. The term which describes the fact that both parties of a contract may not receive the same value is referred
to as: Aleatory
6. Tom has a home health care benefit and is confined to his home. Which of these is NOT typically covered:
Full-time nursing care
7. A Medicare Supplement policy can be cancelled by the insurer for: Nonpay- ment
8. Credit Accident and Health plans are designed to: help pay off existing loans during periods of disability
9. A payment system for health care in which the provider is paid for each service given is called: fee-for-
service
10.An insurance company ONLY pay a sales commission to: individuals li- censed by the state
11.Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair
Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?: $5000 and 1 year imprisonment
12.A closed network plan offers a primary physician copay of $25. If a subscriber chooses a primary care
physician outside of the network, the subscriber will likely pay: 100% of the billed amount
13.What is the maximum fine for a producer violating an NJ insurance law for the first time?: $5000
14.A licensed producer is required to file notice to any changes of address within how many days: 30 days
15.Jonas has disability insurance through his employer. The employer pays 75% of the premium, and Jonas
pays the other 25%. What is Jonas's tax liability for any benefits paid from the disability plan?: Taxes must be
paid on 75% of the benefits received
16.After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?: File
written proof of loss
17.Which of the following is an example of the insured's consideration?: A paid premium
1/
8
, NJ Health and Accident
18.A(n) insurance company is one that was formed under the laws of a state other than NJ:
Foreign
19.Kathy pays a monthly premium on her health insurance policy. How long is her grace period?: 10 days
20. Insurance licenses are intended to be issued for the purpose of authorizing the transaction of business
with members of the general public and not primarily allowing someone to benefit from commissions on business
that insurers their personal interest. The description of which of the following?: - Controlled business
21.A master contract and certified coverage can be found in which type of policy?: Group
22.Medicaid is a government-funded program designed to provide health care to: poor people
23.Which type of long-term care benefit would be most appropriate for a stroke victim who requires speech
therapy administered at her home?: Home Health Care
24.What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an employee to do?:
In the event of employment termination, group health insurance can be kept if the employee pays the premiums
25.Replacement regulation is designed to protect the interests of: Policy own- ers
26.Continued coverage under COBRA would be provided to all of the follow- ing except?: a covered employee is
terminated for gross misconduct
27.A health insurer must be provided with written proof of loss days
after the date of loss: 90 days
28.All of the following are factors would affect a health insurance policies premium rate Except: Residential
address of the insured
29.Which of the following is NOT a required provision in an accident and health insurance policy?: Change of
occupation (considered optional provision)
30.Within how many days must a producer notify the Department of Banking and Insurance of a change in
address?: 30 days
31.When comparing an HMO, to a PPO, the PPO: provides a greater choice of providers
32.Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits
must: be the same and the premium cannot exceed 102%
33.An agent is required to keep replacement forms on file for at LEAST
years.: 5 years
2/
8
