NEW JERSEY ACCIDENT AND HEALTH INSURANCE ALL 350 QUESTIONS AND CORRECT ANSWERS LATEST UPDATE THIS YEAR

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NEW JERSEY ACCIDENT AND HEALTH INSURANCE
ALL 350 QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
QUESTION: Karen is a producer who has obtained personal information about a client without

having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum

penalty for this? - ANSWER-10,000




QUESTION: what kind of life insurance policy issued by a mutual insurer provides a return of

divisible surplus ? - ANSWER-participating life insurance policy




QUESTION: a(n) _____ company is owned by its shareholders. - ANSWER-stock




QUESTION: a type of insurer that is owned by its poly owners is called - ANSWER-mutual




QUESTION: what is the primary purpose of a rating service company such as A.M Best? -

ANSWER-determine financial strength of an insurance company




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QUESTION: which of the following is NOT considered adverting? - ANSWER-a rating from a

rating service company, such as A.M Best




QUESTION: the fair credit and reporting acts main purpose is to - ANSWER-protect consumers

with guidelines regarding credit reporting and distribution




QUESTION: a life insurance company has transferred some of its risk to another insurer. The

insure assuming the risk is called the - ANSWER-reinsurer




QUESTION: the DO NOT CALL registry offers exemptions for calls placed from all of the

following EXCEPT - ANSWER-insurance sales calls




Q; what is considered to be the primary reason for buying life insurance? - ANSWER-provide

death benefits




QUESTION: ABC insurance company transfers part of their risk to XYZ insurance company. this

situation is called - ANSWER-reinsurance




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QUESTION: a nonparticipating policy will - ANSWER-not pay dividends




QUESTION: a plan in which an employer pays insurance benefits from a fund derived from the

employers current revenues is called - ANSWER-a self-funded plan




QUESTION: 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? - ANSWER-5,000




QUESTION: Why are dividends from a mutual insurer not subject to taxation? - ANSWER-

because dividends are considered to be a return of premium




QUESTION: a nonparticipating company is sometimes called a(n) - ANSWER-stock insurer




QUESTION: Fraternal Benefit Society has each of the following characteristics EXCEPT -

ANSWER-exist for profit




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QUESTION: An insurer's ability to make unpredictable payouts to policyowners is called -

ANSWER-liquidity




QUESTION: An insurer's claim settlement practices are regulated by the - ANSWER-state

insurance departments




QUESTION: In an insurance contract, the insurer is the only party who makes a legally

enforceable promise. What kind of contract is this? - ANSWER-unilateral




QUESTION: insurable interest does NOT occur in which of the following relationships? -

ANSWER-business owner and business client




QUESTION: what makes an insurance policy a unilateral contract? - ANSWER-only the insurer is

legally bound




QUESTION: the deeds and actions of a producer indicate what kind of authority? - ANSWER-

apparent


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