NJ Life Insurance Exam Study Set 1 Correct
answers latest update
What organization protects persons against failure of life and health insurance policies and annuity
contracts because of the impairment or insolvency of the insurer?
Select one:
a. PPACA
b. New Jersey Insurance Board
c. New Jersey Insolvency Protection Board
d. New Jersey Life and Health Guaranty Association
d. New Jersey Life and Health Guaranty Association
The United States v. South-Eastern Underwriters Association decision ruled that insurance
transactions crossing state lines are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable
c. Interstate Commerce
What is the monetary penalty for multiple knowing violations of the information privacy rules?
Select one:
a. $2,500
b. $5,000
c. $7,500
d. $10,000
d. $10,000
Which of the following would NOT be considered unfair discrimination?
Select one:
a. Discrimination abased on genetics
b. Discrimination abased on DNA
c. Discrimination abased on blindness
d. Discrimination abased on occupation
d. Discrimination based on occupation
An insurance producer who places insurance in an insurance company that he does not represent as
an agent is an:
Select one:
a. Insurance counselor
b. Insurance solicitor
c. Insurance consultant
d. Insurance broker
d. Insurance Broker
Which of the following is NOT true of an employment contract between a company and a producer?
Select one:
a. The employment contract must be in writing.
b. The employment contract must include all license authorities of the parties.
c. An employer must notify the Department.
d. The employer must examine the credentials of the employee.
,b. The employment contract must include all license authorities of the parties.
Inducing a policyholder to switch insurance companies without regard to bad consequences is:
Select one:
a. Boycott
b. Churning
c. Twisting
d. Defamation
c. Twisting
If the Department determines that an applicant is unqualified, the Department must transmit it for a
hearing to the:
Select one:
a. Office of the Attorney General
b. Office of Administrative Law
c. State Insurance Committee of the legislature
d. Licensing Review Board
b. Office of Administrative Law
If the Commissioner determines that someone has engaged in an unfair method of competition, he
will issue:
Select one:
a. A cease and desist order
b. A contempt of court order
c. A revocation of license decree
d. An arrest warrant
a. A cease and desist order
Existence of a business relationship between two licensed producers by which each acts as an
independent contractor:
Select one:
a. May require the filing of any notice
b. May not require the filing of any notice
c. May create responsibility for the acts of the other in the absence of knowledge
d. May create responsibility for the acts of the other in the absence of concerted action
b. May not require the filing of any notice
In the Paul v. Virginia case of 1869 the U.S. Supreme Court ruled that insurance transactions crossing
state lines are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable
b. Not interstate commerce
If an individual requests access to recorded personal information, they must receive it within:
Select one:
a. 15 days
b. 20 days
c. 30 days
,d. 31 days
.c. 30 days
The term of credit life insurance may not extend more than:
Select one:
a. The maturity date of the debt
b. 10 days after the maturity date of the debt
c. 15 days after the maturity date of the debt
d. 30 days after the maturity date of the debt
c. 15 days after the maturity date of the debt
What U.S. Supreme Court case ruled that insurance transactions crossing state lines are not interstate
commerce?
Select one:
a. Paul v. Virginia
b. Plessy v. Ferguson
c. United States v. South-Eastern Underwriters Association
d. McCarran-Ferguson
a. Paul v. Virginia
The total amount of credit life insurance may be a maximum of what percentage of the total debt
obligation?
Select one:
a. 50%
b. 75%
c. 100%
d. 110%
c. 100%
All funds received by a producer for life policies must be remitted to the insurer within:
Select one:
a. 3 business days
b. 5 business days
c. 7 business days
d. 9 business days
b. 5 business days
How does the Commissioner get his position?
Select one:
a. Elected in the same general election as the governor
b. Elected in the same general election as the president
c. Appointed by the governor
d. Appointed by the insurers
c. Appointed by the governor
A surplus lines producer may charge an originating broker in connection with the procurement of any
contract of surplus lines insurance a maximum fee of expenses plus:
Select one:
a. $50
b. $100
c. $125
, d. $162
a. $50
When must an agent provide a notice of information practices to an applicant?
Select one:
a. Before the presentation
b. When the first premium is accepted
c. Within 5 days of accepting the first premium
d. At the time of policy delivery
d. At the time of policy delivery
What authority is granted to an agent by the principal as written in the agency contract?
Select one:
a. Express authority
b. Implied authority
c. Apparent authority
d. Assumed authority
a. Express authority
What is the maximum amount that the New Jersey Life and Health Guaranty Association will pay to a
person for a life insurance cash surrender from an insolvent insurer?
Select one:
a. $100,000
b. $200,000
c. $300,000
d. $500,000
a. $100,000
If an insurance producer is indicted for a crime, the Commissioner must be informed within:
Select one:
a. 15 days
b. 30 days
c. 31 days
d. 45 days
b. 30 days
If a person presents any statement as part of a claim for payment knowing that the statement
contains any false or misleading information, that person has committed:
Select one:
a. Larceny
b. Perjury
c. Fraud
d. Embezzlement
c. Fraud
What type of insurer is formed under the laws of anyplace outside the United States or anyplace
under U.S. jurisdiction?
Select one:
a. Domestic
b. Alien
c. Foreign
answers latest update
What organization protects persons against failure of life and health insurance policies and annuity
contracts because of the impairment or insolvency of the insurer?
Select one:
a. PPACA
b. New Jersey Insurance Board
c. New Jersey Insolvency Protection Board
d. New Jersey Life and Health Guaranty Association
d. New Jersey Life and Health Guaranty Association
The United States v. South-Eastern Underwriters Association decision ruled that insurance
transactions crossing state lines are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable
c. Interstate Commerce
What is the monetary penalty for multiple knowing violations of the information privacy rules?
Select one:
a. $2,500
b. $5,000
c. $7,500
d. $10,000
d. $10,000
Which of the following would NOT be considered unfair discrimination?
Select one:
a. Discrimination abased on genetics
b. Discrimination abased on DNA
c. Discrimination abased on blindness
d. Discrimination abased on occupation
d. Discrimination based on occupation
An insurance producer who places insurance in an insurance company that he does not represent as
an agent is an:
Select one:
a. Insurance counselor
b. Insurance solicitor
c. Insurance consultant
d. Insurance broker
d. Insurance Broker
Which of the following is NOT true of an employment contract between a company and a producer?
Select one:
a. The employment contract must be in writing.
b. The employment contract must include all license authorities of the parties.
c. An employer must notify the Department.
d. The employer must examine the credentials of the employee.
,b. The employment contract must include all license authorities of the parties.
Inducing a policyholder to switch insurance companies without regard to bad consequences is:
Select one:
a. Boycott
b. Churning
c. Twisting
d. Defamation
c. Twisting
If the Department determines that an applicant is unqualified, the Department must transmit it for a
hearing to the:
Select one:
a. Office of the Attorney General
b. Office of Administrative Law
c. State Insurance Committee of the legislature
d. Licensing Review Board
b. Office of Administrative Law
If the Commissioner determines that someone has engaged in an unfair method of competition, he
will issue:
Select one:
a. A cease and desist order
b. A contempt of court order
c. A revocation of license decree
d. An arrest warrant
a. A cease and desist order
Existence of a business relationship between two licensed producers by which each acts as an
independent contractor:
Select one:
a. May require the filing of any notice
b. May not require the filing of any notice
c. May create responsibility for the acts of the other in the absence of knowledge
d. May create responsibility for the acts of the other in the absence of concerted action
b. May not require the filing of any notice
In the Paul v. Virginia case of 1869 the U.S. Supreme Court ruled that insurance transactions crossing
state lines are:
Select one:
a. Considered intrastate commerce
b. Not interstate commerce
c. Interstate commerce
d. Unenforceable
b. Not interstate commerce
If an individual requests access to recorded personal information, they must receive it within:
Select one:
a. 15 days
b. 20 days
c. 30 days
,d. 31 days
.c. 30 days
The term of credit life insurance may not extend more than:
Select one:
a. The maturity date of the debt
b. 10 days after the maturity date of the debt
c. 15 days after the maturity date of the debt
d. 30 days after the maturity date of the debt
c. 15 days after the maturity date of the debt
What U.S. Supreme Court case ruled that insurance transactions crossing state lines are not interstate
commerce?
Select one:
a. Paul v. Virginia
b. Plessy v. Ferguson
c. United States v. South-Eastern Underwriters Association
d. McCarran-Ferguson
a. Paul v. Virginia
The total amount of credit life insurance may be a maximum of what percentage of the total debt
obligation?
Select one:
a. 50%
b. 75%
c. 100%
d. 110%
c. 100%
All funds received by a producer for life policies must be remitted to the insurer within:
Select one:
a. 3 business days
b. 5 business days
c. 7 business days
d. 9 business days
b. 5 business days
How does the Commissioner get his position?
Select one:
a. Elected in the same general election as the governor
b. Elected in the same general election as the president
c. Appointed by the governor
d. Appointed by the insurers
c. Appointed by the governor
A surplus lines producer may charge an originating broker in connection with the procurement of any
contract of surplus lines insurance a maximum fee of expenses plus:
Select one:
a. $50
b. $100
c. $125
, d. $162
a. $50
When must an agent provide a notice of information practices to an applicant?
Select one:
a. Before the presentation
b. When the first premium is accepted
c. Within 5 days of accepting the first premium
d. At the time of policy delivery
d. At the time of policy delivery
What authority is granted to an agent by the principal as written in the agency contract?
Select one:
a. Express authority
b. Implied authority
c. Apparent authority
d. Assumed authority
a. Express authority
What is the maximum amount that the New Jersey Life and Health Guaranty Association will pay to a
person for a life insurance cash surrender from an insolvent insurer?
Select one:
a. $100,000
b. $200,000
c. $300,000
d. $500,000
a. $100,000
If an insurance producer is indicted for a crime, the Commissioner must be informed within:
Select one:
a. 15 days
b. 30 days
c. 31 days
d. 45 days
b. 30 days
If a person presents any statement as part of a claim for payment knowing that the statement
contains any false or misleading information, that person has committed:
Select one:
a. Larceny
b. Perjury
c. Fraud
d. Embezzlement
c. Fraud
What type of insurer is formed under the laws of anyplace outside the United States or anyplace
under U.S. jurisdiction?
Select one:
a. Domestic
b. Alien
c. Foreign
