NJ EXAM SURPLUS LINES INSURANCE QUESTIONS
WITH COMPLETE SOLUTIONS
$250,000 Personal Injury Protection coverage is available for
medical expense benefits in the Basic Auto Insurance Policy for
all but which of the following? Correct Answers A-Permanent
injury at an acute care hospital
B-Cuts and bruises
C-Spinal cord injury
D-Disfigurement
B- This PIP medical expense benefit also covers a permanent or
significant brain injury or treatment of a significant injury at a
trauma center.
A bank or credit union will not give a loan unless the borrower
buys insurance from a specific company. This is known as
____________. Correct Answers A-Churning
B-Rebating
C-Coercion
D-Misrepresentation
C- It is an unfair trade practice to enter into any agreement to
commit, any act of boycott, coercion, or intimidation resulting in
an unreasonable restraint of, or monopoly in, the business of
insurance.
A commercial fleet is a risk with __________ vehicles. Correct
Answers A-5 or more
B-Commercial and semi-trailer
C-More than 2
,D-8 or more
A- A risk with 5 or more vehicles, except trailers and semi-
trailers, is considered a fleet.
A first-time applicant for bail bond authority must complete:
Correct Answers A-6 classroom hours on ethics
B-A total of 26 classroom hours on regulation of the insurance
industry
C-10 classroom hours on regulation of the insurance industry
D-6 classroom hours on regulation of the insurance industry
D- A first-time applicant for bail bond authority must complete
6 classroom hours on regulation of the insurance industry.
A nonresident producer or nonresident business entity will not
qualify for a nonresident license if the producer: Correct
Answers A-Provides a copy of the home state application for
licensing
B-Is currently licensed as a resident producer in good standing
in the home state
C-Lives in a non-reciprocity state
D-Pays a fee
,C- In order to be a nonresident producer or business entity in
New Jersey, the person's home state must award nonresident
insurance producer licenses to New Jersey residents on the same
basis.
A PAIP policy provides physical damage coverage up to
___________. Correct Answers A-$60,000
B-$35,000
C-$20,000
D-$50,000
A- The maximum coverage for physical damage in any loss is
ACV minus any deductible, up to $60,000, and additional
insurance may be obtained through surplus lines of insurance.
A policy may not be nonrenewed or cancelled unless written
notice has been delivered to the insured: Correct Answers A-
Not less than 120 days prior to expiration or cancellation
B- Not less than 120 days or more than 30 days prior to
expiration or cancellation
C- Not more than 30 days prior to expiration or cancellation
D-Not less than 30 days or more than 120 days prior to
expiration or cancellation
D- A policy may not be nonrenewed or cancelled unless written
notice has been delivered to the insured not less than 30 days or
more than 120 days prior to expiration or cancellation.
, A producer's license that has been suspended may be reinstated:
Correct Answers A-After one year
B-On what would have been the next renewal date
C-After 5 years
D-After submitting a completed application and required
affidavit
D- A producer's license that has been suspended may be
reinstated after submitting a completed application and required
affidavit. A license that has been revoked may be reinstated after
5 years
A surplus lines agent has the authority to place insurance
coverages on behalf of: Correct Answers A-Surplus lines
insurers
B-Commercial lines insurers
C-Authorized insurers
D-Any Foreign or Alien insurer
A- A surplus lines agent has the authority to place insurance
coverages on behalf of surplus lines insurers.
A temporary work authority is granted and valid up to ________
days after being issued. Correct Answers A-30
B-60
C-90
D-45
B- The Commissioner is authorized to issue a temporary work
authority, valid up to 60 days, allowing the applicant to begin
work the proper form has been submitted and there is no
WITH COMPLETE SOLUTIONS
$250,000 Personal Injury Protection coverage is available for
medical expense benefits in the Basic Auto Insurance Policy for
all but which of the following? Correct Answers A-Permanent
injury at an acute care hospital
B-Cuts and bruises
C-Spinal cord injury
D-Disfigurement
B- This PIP medical expense benefit also covers a permanent or
significant brain injury or treatment of a significant injury at a
trauma center.
A bank or credit union will not give a loan unless the borrower
buys insurance from a specific company. This is known as
____________. Correct Answers A-Churning
B-Rebating
C-Coercion
D-Misrepresentation
C- It is an unfair trade practice to enter into any agreement to
commit, any act of boycott, coercion, or intimidation resulting in
an unreasonable restraint of, or monopoly in, the business of
insurance.
A commercial fleet is a risk with __________ vehicles. Correct
Answers A-5 or more
B-Commercial and semi-trailer
C-More than 2
,D-8 or more
A- A risk with 5 or more vehicles, except trailers and semi-
trailers, is considered a fleet.
A first-time applicant for bail bond authority must complete:
Correct Answers A-6 classroom hours on ethics
B-A total of 26 classroom hours on regulation of the insurance
industry
C-10 classroom hours on regulation of the insurance industry
D-6 classroom hours on regulation of the insurance industry
D- A first-time applicant for bail bond authority must complete
6 classroom hours on regulation of the insurance industry.
A nonresident producer or nonresident business entity will not
qualify for a nonresident license if the producer: Correct
Answers A-Provides a copy of the home state application for
licensing
B-Is currently licensed as a resident producer in good standing
in the home state
C-Lives in a non-reciprocity state
D-Pays a fee
,C- In order to be a nonresident producer or business entity in
New Jersey, the person's home state must award nonresident
insurance producer licenses to New Jersey residents on the same
basis.
A PAIP policy provides physical damage coverage up to
___________. Correct Answers A-$60,000
B-$35,000
C-$20,000
D-$50,000
A- The maximum coverage for physical damage in any loss is
ACV minus any deductible, up to $60,000, and additional
insurance may be obtained through surplus lines of insurance.
A policy may not be nonrenewed or cancelled unless written
notice has been delivered to the insured: Correct Answers A-
Not less than 120 days prior to expiration or cancellation
B- Not less than 120 days or more than 30 days prior to
expiration or cancellation
C- Not more than 30 days prior to expiration or cancellation
D-Not less than 30 days or more than 120 days prior to
expiration or cancellation
D- A policy may not be nonrenewed or cancelled unless written
notice has been delivered to the insured not less than 30 days or
more than 120 days prior to expiration or cancellation.
, A producer's license that has been suspended may be reinstated:
Correct Answers A-After one year
B-On what would have been the next renewal date
C-After 5 years
D-After submitting a completed application and required
affidavit
D- A producer's license that has been suspended may be
reinstated after submitting a completed application and required
affidavit. A license that has been revoked may be reinstated after
5 years
A surplus lines agent has the authority to place insurance
coverages on behalf of: Correct Answers A-Surplus lines
insurers
B-Commercial lines insurers
C-Authorized insurers
D-Any Foreign or Alien insurer
A- A surplus lines agent has the authority to place insurance
coverages on behalf of surplus lines insurers.
A temporary work authority is granted and valid up to ________
days after being issued. Correct Answers A-30
B-60
C-90
D-45
B- The Commissioner is authorized to issue a temporary work
authority, valid up to 60 days, allowing the applicant to begin
work the proper form has been submitted and there is no
