Free New Jersey Accident & Health practice questions

Answer: A. Yes, instructions from any financial regulatory agency are covered

The prohibited-actions list bars a bank and its officers, directors, employees and major shareholders from failing to obey an order or other written instruction issued by the commissioner or by any other financial regulatory agency. A federal regulator's written instruction is therefore covered even though the commissioner issued nothing, and the provision places a written instruction alongside an order rather than excluding it. The prohibition binds an officer directly, whether or not that officer is also a major shareholder.

Answer: B. Both the property and the casualty lines of authority

New Jersey allows a license granting surplus lines authority to be issued or renewed only if the applicant holds or will hold property and casualty authorities. Life and accident and health authorities, variable life and variable annuity authority, and limited line credit authority do not satisfy that requirement.

Answer: C. The lines sought, producer duties and responsibilities, and New Jersey insurance law

A resident individual seeking a producer license must pass a written examination unless an exemption applies. The statute names three subjects the examination covers: the lines of authority being applied for, the duties and responsibilities of a producer, and New Jersey's insurance laws and regulations. An examination limited to line principles leaves out state law, and one limited to state law leaves out the lines applied for. The statute does not describe the examination as covering federal regulation or NAIC model laws in place of this State's law.

Answer: D. On the 180th day after enactment

N.J.S.A. 17B:27A-2.2 provides that sections 9 through 25 and 29 through 35 of the 2008 act take effect on the 180th day after enactment. Immediate effect applies to a different group: sections 1 through 8, 26 through 28, 36 and the effective date section itself. January 1 next following enactment is the start date only for the loss ratio minimum of 80 percent found in sections 16, 19 and 24. The section sets no 90-day date.

Answer: D. They are added to those other powers rather than displacing any of them

The act states that the powers it gives the commissioner are additional to any other powers to enforce penalties, fines or forfeitures that the law authorizes for the practices the act declares unfair or deceptive. Additional powers sit alongside the others, so they do not replace them when a proceeding opens, are not limited to cases where no other penalty exists, and are not suspended while another proceeding is pending.

Answer: B. A knee replacement the patient can book for next month with no risk to life or bodily function

New Jersey's second surgical opinion law defines an elective surgical procedure as one that is not an emergency and can be scheduled when convenient for the patient or the surgeon without putting the patient's life at risk or seriously impairing bodily functions. A knee replacement booked for next month with no such risk fits that definition. The appendix, bleeding and kidney scenarios each describe surgery that cannot safely wait, so none of them is elective under the definition.

Answer: C. Individuals, insurers, partnerships, trusts, corporations and every legal entity

The Code's definition of person is broad: it names individuals, insurers, companies, associations, partnerships, syndicates, trusts and corporations, and closes with every legal entity. Because entities are named alongside individuals, the term is not limited to natural persons. Partnerships, syndicates and trusts are named expressly, and nothing in the definition ties the term to holding a certificate of authority.

Answer: D. Its office in Canada from which its general affairs are directed or managed

Under N.J.S.A. Sec. 17B:17-10(a), a Canadian insurer's principal office is its office in Canada from which its general affairs are directed or managed. An office in the United States that manages U.S. business is the test the same section applies to other alien insurers authorized in one or more States, not to Canadian insurers. The definition does not point to an office in New Jersey or to an address named in a certificate of authority; for a Canadian insurer it looks only to the Canadian office that directs its general affairs.

Answer: D. Serve charges and a hearing notice, hold the hearing, then issue written findings

For a practice the law does not define, a commissioner who believes it is unfair or deceptive and that pursuing it serves the public may serve a statement of charges and a notice of hearing, with the hearing set at least ten days after service and conducted the same way as hearings on defined practices. After the hearing, the commissioner states the findings of fact in a written determination and serves a copy on the person charged. Nothing in the procedure waits on the Legislature to define the practice first. Court action through the Attorney General comes only after the written determination has been served, and the procedure calls for a hearing before any determination rather than an immediate penalty.

Answer: C. Yes, since owning 25 percent or more of any one voting class is enough

A savings bank is a covered institution, and the statute treats a person as having control when that person holds, or has the power to vote, at least 25 percent of the outstanding shares of any one class of the institution's voting securities. The test is applied class by class, so 30 percent of the Class B stock meets it even though her share of total voting power is far lower, and no majority of total voting power is required. Controlling the election of a majority of directors is listed as a separate, alternative way to have control, not an extra condition on the 25 percent test.