NJ property insurance law Exam with complete solutions

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NJ property insurance law Exam with complete solutions In New Jersey, and insurer must provide at least______ advance notice for cancellation of property coverages for nonpayment of premium ✔✔... 10 days The employment of another producer by a producer is subject to all of the following requirements, except a. the employer shall examine the credentials of the kinds of business described in the contract. b. the employer shall be responsible for the insurance related conduct of the employee c. the employee producer will conduct business under the supervision of the employer producer d. The Department of Insurance approves the contract. ✔✔ d. The Department of Insurance approves the contract. In order to cancel a Property insurance policy, an insurer must give the insured a ______ advance notice ✔✔ 30 days An authorized agency of the insurer may release consumer information in which of the following situations? a. When requested by a related third part of the insured b. When requested in a fraud investigation c. More than 3 claims in the past 3 years d. When requested by a credit agency ✔✔ b. When requested in a fraud investigation If an agent is charged with a misdemeanor involving theft, any felony, or crimes of moral turpitude, he or she must report the charge to the department of insurance within: ✔✔ 30 days of being charged All of the following are true regarding the hurricane deductible, except: a. the hurricane deductible is a percentage of the claim amount b. An optional deductible of 10% is available c. Coverage D loss of use is the standard deductible for all other perils d. The mandatory deductible minimum is 5% ✔✔ a. the hurricane deductible is a percentage of the claim amount (it is a percentage of the policy limit not claim amount) All of the following are true regarding commercial property coverage under the New Jersey FAIR plan, except: a. Maximum coverage of 750,000 for joisted masonry buildings b. Maximum coverage of 500,000 for frame buildings c. Maximum coverage of 600,000 for frame buildings d. Maximum coverage of $1 million for fire resistive buildings ✔✔ c. Maximum coverage of 600,000 for frame buildings A person found guilty of the unfair act of misrepresentation may be fined up to ______per violation a. $2500 b. $500 c. $1000 d. $5000 ✔✔ d. $5000 If an agent cancels or allows the license to non renew, which of the following are true? a. Any disciplinary actions, fine, penalties or restitution orders b. Fines and penalties are forgiven if the license is surrendered for cause c. The agent may complete whatever transactions were in the process when the license authority ended d. The agent may continue to act in that capacity for up to 30 days after the license authority ended ✔✔ a. Any disciplinary actions, fine, penalties or restitution orders In order to apply for a surplus lines license, the candidate must: a. be appointed by a minimum of 5 surplus lines carriers operating in the state b. Have at least five years experience in the property and casualty insurance business c. Must also have an active property and casualty insurance license d. Show a nonresident surplus lines license for another state ✔✔ c. Must also have an active property and casualty insurance license An agent acts in a fiduciary capacity when receiving and remitting funds to an insurer. Because of this fiduciary responsibility, which of the following statements are true? a. funds must be deposited in a bank directed by the insurer b. funds must be converted to a money order and sent to the insurer c. Funds can co-mingle with the agency operating account d. Funds cannot co-mingle with the agency operating account ✔✔ d. Funds cannot co-mingle with the agency operating account The maximum payable by the New Jersey Property and Casualty Guaranty Fund is: ✔✔ $300,000 A civil fine of not more than ______ per violation may be levied against the agent if the commissioner finds that a person has unknowingly violated the insurance laws of New Jersey. ✔✔ $1000 The purpose of the Commercial Insurance Deregulation Act includes all of the following, Except: a. To encourage price competition among insurers writing commercial lines insurance b. To encourage more control over the commercial insurance industry by the NJ dept of insurance c. To encourage the most efficient and economic rating and marketing prices d. To prevent monopolies that lessen or destroy competition ✔✔ b. To encourage more control over the commercial insurance industry by the NJ dept of insurance Willful violations of New Jersey's unfair claim settlement practices will result in a monetary fine of _____per offense ✔✔ $5000 Before opening a branch office or closing a branch office, the Department of Insurance must be notified within: a. 90 days b. 60 days c. 30 days d. 120 days ✔✔ c. 30 days Under New Jersey Personal Injury Protection, the maximum payable for the performance of services is: a. Actual loss sustained b. $50 per day c. $10 per day d.$12 per day ✔✔ d.$12 per day All of the following are standards for safeguarding customer information in New Jersey, Except: a. Properly training staff on security measures b. Adjusting security programs every 5 years in light of any relevant changes in technology c. Complying with HIPAA rules & regulations d. Regularly checking and monitoring the security measures in place ✔✔ b. Adjusting security programs every 5 years in light of any relevant changes in technology John Goodwrite advertising himself as "Safety Mutual's most sought after plumbing contractor" is an example of: a. Unfair insurance trade practice b. Intimidation c. A waste of advertising dollars d. Breach of fiduciary duty ✔✔ a. Unfair insurance trade practice The second violation of New Jersey fraud laws will result in a fine of: ✔✔ $10000 In order to cancel a Casualty insurance policy other than for nonpayment, an insurer must give the insured a ______ advance notice: a. 15 days b. 45 days c. 20 days d. 30 days ✔✔ c. 20 days Which of the following would be considered an Unfair Insurance Trade Practice in New Jersey? a. Immediately providing requested coverage for which the agent has binding authority b. Promising to lend money to the client if they purchase insurance through a specific carrier c. Seeking to obtain coverage through a risk sharing plan permitted by state law d. Turning client money over in a timely manner ✔✔ b. Promising to lend money to the client if they purchase insurance through a specific carrier All of the following could be licensed as a business entity in New Jersey, except: a. An individual going by an assumed name b. A limited liability partnership c. A corporation d. A limited liability company ✔✔ a. An individual going by an assumed name All of the following are commercial risks on the exportable list that can be written by Surplus Lines insurers operating in New Jersey, Except: a. Amusement parks b. Armored cars c. Day Care Centers d. Taxi services ✔✔ d. Taxi services [Show More]

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