The commissioner receives information that a licensed producer failed to report a criminal prosecution brought against the producer, as New Jersey's producer reporting provisions require. Under N.J.S.A. Sec. 17:22A-47.1(a), what may the commissioner do on the strength of that information?

Notify the producer that its authority to act as a producer here is temporarily suspended

Under New Jersey's law protecting victims of domestic violence from discriminatory insurance practices, who adopts the rules and regulations needed to carry out that law, and under what procedure?

The Commissioner of Banking and Insurance, under the Administrative Procedure Act

For medical malpractice liability insurance, the commissioner prescribes by regulation a designated range of annual rate change. What limits does the act place on that range?

An increase or decrease of at least 5% and at most 15%

An insurer that issues participating auto policies in New Jersey proposes two changes for customers whose cars were bought on dealer credit: a higher premium rate than for cars bought outright, and a lower dividend rate. Which statement about the proposal is accurate under New Jersey law?

Both changes are prohibited, because neither premium rates nor dividend rates may differ for financed cars.

A New Jersey resident holds an insurance producer license issued by the commissioner for the property line of authority. Under the state's definition of a license, what authority does the license itself give the holder to represent or commit an insurer?

No authority, actual, apparent or inherent, to represent or commit any insurer

The commissioner determines that a director of a New Jersey bank willfully violated one of the prohibitions that apply to covered institutions and their personnel. What is the highest civil penalty the commissioner may impose for each such willful violation?

$50,000 for each willful violation

An insurance company was organized under New Jersey law, but its executive offices are in Pennsylvania and most of its policyholders live in New York. How does New Jersey's insurance code classify this company?

As a domestic insurer, because it was formed under the laws of New Jersey

Raj lives in Pennsylvania, his home state, and applies for a New Jersey nonresident insurance producer license. Which status in Pennsylvania does New Jersey law make a condition of issuing him that license?

He currently holds a resident producer license there in good standing

Jordan is required to be licensed as a producer in New Jersey but holds no license. Jordan solicits several clients, and the licensed producer who places the business wants to give Jordan part of each commission. Under New Jersey law, which statement is correct?

Payment is barred, because Jordan solicited insurance without a required license

A homeowner phones her insurer to ask whether her policy would cover water damage in her basement, then decides against reporting a loss. Under New Jersey law, how may the insurer treat the phone call?

It may not count the call as a claim when it evaluates her adverse claims experience

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1.The commissioner receives information that a licensed producer failed to report a criminal prosecution brought against the producer, as New Jersey's producer reporting provisions require. Under N.J.S.A. Sec. 17:22A-47.1(a), what may the commissioner do on the strength of that information?
Answer: D. Notify the producer that its authority to act as a producer here is temporarily suspended
When the commissioner learns that a producer failed to make a required report of an administrative action, criminal prosecution or disciplinary action, this section lets the commissioner notify the producer that its authority to sell, solicit or negotiate insurance in New Jersey, or to be affiliated with those activities, is temporarily suspended. The section does not direct insurers to cancel agency contracts and does not call for re-examination. A temporary producer license is a different tool, which the commissioner may issue when needed to keep an insurance business serviced, for example after a producer's death or disability.
Source
N.J.S.A. Sec. 17:22A-47.1(a)
Choose an answer to see the explanation.
2.Under New Jersey's law protecting victims of domestic violence from discriminatory insurance practices, who adopts the rules and regulations needed to carry out that law, and under what procedure?
Answer: B. The Commissioner of Banking and Insurance, under the Administrative Procedure Act
The domestic violence insurance protections direct the Commissioner of Banking and Insurance to adopt the rules and regulations necessary to carry out the law's purposes, and to do so under the Administrative Procedure Act. The section assigns that rulemaking duty to the commissioner, not to the Legislature, the Attorney General or the Superior Court, so each of those choices names the wrong body.
Source
N.J.S.A. Sec. 17:29B-19
Choose an answer to see the explanation.
3.For medical malpractice liability insurance, the commissioner prescribes by regulation a designated range of annual rate change. What limits does the act place on that range?
Answer: D. An increase or decrease of at least 5% and at most 15%
The act directs the commissioner to set the designated range as an increase or decrease of not less than 5% and not more than 15%, and a filing within that range takes effect not less than 30 days after it is filed. The 3% to 10% and 10% to 25% bands misstate the limits, and the range expressly runs in both directions, so an increase-only band is wrong.
Source
N.J.S.A. Sec. 17:29AA-5.1(a)
Choose an answer to see the explanation.
4.An insurer that issues participating auto policies in New Jersey proposes two changes for customers whose cars were bought on dealer credit: a higher premium rate than for cars bought outright, and a lower dividend rate. Which statement about the proposal is accurate under New Jersey law?
Answer: B. Both changes are prohibited, because neither premium rates nor dividend rates may differ for financed cars.
New Jersey's financed automobile law forbids any distinction in premium rates or in rates of dividends between policies on financed automobiles and policies on other automobiles. Because the rule reaches both the premium rate and the dividend rate, neither change may be made, and letting only one of the two go forward does not cure the proposal. The section contains no exception based on the seller's credit interest in the vehicle.
Source
N.J.S.A. Sec. 17:28-6
Choose an answer to see the explanation.
5.A New Jersey resident holds an insurance producer license issued by the commissioner for the property line of authority. Under the state's definition of a license, what authority does the license itself give the holder to represent or commit an insurer?
Answer: B. No authority, actual, apparent or inherent, to represent or commit any insurer
New Jersey defines a license as a document the commissioner issues that permits a person to act as a producer for the lines of authority it names. The same definition states that the license itself creates no actual, apparent or inherent authority in the holder to represent or commit an insurer. The choices describing apparent authority to bind property insurers, actual authority to represent insurers whose policies the holder has sold, and inherent authority up to limits on the license each give the license a power the definition expressly denies it.
Source
N.J.S.A. Sec. 17:22A-28 (definition of "License")
Choose an answer to see the explanation.
6.The commissioner determines that a director of a New Jersey bank willfully violated one of the prohibitions that apply to covered institutions and their personnel. What is the highest civil penalty the commissioner may impose for each such willful violation?
Answer: D. $50,000 for each willful violation
Among the sanctions available for these violations, the commissioner may impose a civil penalty of up to $10,000 for each violation, rising to up to $50,000 for each violation that is willful. The $10,000 figure is the ceiling for a violation that is not willful. Neither $25,000 nor $100,000 appears in this penalty provision.
Source
N.J.S.A. Sec. 17:1-28(a)(1)
Choose an answer to see the explanation.
7.An insurance company was organized under New Jersey law, but its executive offices are in Pennsylvania and most of its policyholders live in New York. How does New Jersey's insurance code classify this company?
Answer: B. As a domestic insurer, because it was formed under the laws of New Jersey
New Jersey classifies an insurer by the jurisdiction under whose laws it was formed. N.J.S.A. Sec. 17B:17-7(a) makes an insurer formed under the laws of this State a domestic insurer, so this company is domestic wherever its offices or customers are. The definition does not look to where executive offices sit or where policyholders live, which is why both foreign-insurer choices fail; under the same section, a foreign insurer is one formed under the laws of another United States jurisdiction. An alien insurer is one formed under the laws of a country other than the United States, and out-of-state business volume plays no part in that test.
Source
N.J.S.A. Sec. 17B:17-7(a)
Choose an answer to see the explanation.
8.Raj lives in Pennsylvania, his home state, and applies for a New Jersey nonresident insurance producer license. Which status in Pennsylvania does New Jersey law make a condition of issuing him that license?
Answer: B. He currently holds a resident producer license there in good standing
One condition for a New Jersey nonresident producer license is that the applicant currently holds a resident producer license in good standing in his home state. A license held at some earlier time fails the requirement that it be current, and a pending application is not a license at all. Passing New Jersey's producer examination is not among the conditions listed in that subsection.
Source
N.J.S.A. Sec. 17:22A-34(a)(1)
Choose an answer to see the explanation.
9.Jordan is required to be licensed as a producer in New Jersey but holds no license. Jordan solicits several clients, and the licensed producer who places the business wants to give Jordan part of each commission. Under New Jersey law, which statement is correct?
Answer: D. Payment is barred, because Jordan solicited insurance without a required license
An insurer or a producer may not pay a commission, service fee, brokerage or other valuable consideration to someone for selling, soliciting or negotiating insurance in New Jersey if that person must be licensed and is not. Jordan solicited insurance without a required license, so the producer may not share the commission. The prohibition reaches producers as well as insurers, covers any valuable consideration rather than only payments labeled commissions, and sets no percentage below which a share is allowed.
Source
N.J.S.A. Sec. 17:22A-41(a)
Choose an answer to see the explanation.
10.A homeowner phones her insurer to ask whether her policy would cover water damage in her basement, then decides against reporting a loss. Under New Jersey law, how may the insurer treat the phone call?
Answer: C. It may not count the call as a claim when it evaluates her adverse claims experience
New Jersey law says an insured's request for information about her homeowners' policy, or about whether that policy covers a particular loss, is not to be treated as a claim for purposes of determining adverse claims experience. Her call asking about the basement water damage is exactly that kind of inquiry. The rule expressly includes questions about a particular loss, so neither the specific-loss reasoning nor the general-terms distinction holds. The statute sets no number of inquiries after which counting becomes allowed.
Source
N.J.S.A. Sec. 17:29B-4.1(a)
Choose an answer to see the explanation.

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1.The commissioner receives information that a licensed producer failed to report a criminal prosecution brought against the producer, as New Jersey's producer reporting provisions require. Under N.J.S.A. Sec. 17:22A-47.1(a), what may the commissioner do on the strength of that information?

2.Under New Jersey's law protecting victims of domestic violence from discriminatory insurance practices, who adopts the rules and regulations needed to carry out that law, and under what procedure?

3.For medical malpractice liability insurance, the commissioner prescribes by regulation a designated range of annual rate change. What limits does the act place on that range?

4.An insurer that issues participating auto policies in New Jersey proposes two changes for customers whose cars were bought on dealer credit: a higher premium rate than for cars bought outright, and a lower dividend rate. Which statement about the proposal is accurate under New Jersey law?

5.A New Jersey resident holds an insurance producer license issued by the commissioner for the property line of authority. Under the state's definition of a license, what authority does the license itself give the holder to represent or commit an insurer?

6.The commissioner determines that a director of a New Jersey bank willfully violated one of the prohibitions that apply to covered institutions and their personnel. What is the highest civil penalty the commissioner may impose for each such willful violation?

7.An insurance company was organized under New Jersey law, but its executive offices are in Pennsylvania and most of its policyholders live in New York. How does New Jersey's insurance code classify this company?

8.Raj lives in Pennsylvania, his home state, and applies for a New Jersey nonresident insurance producer license. Which status in Pennsylvania does New Jersey law make a condition of issuing him that license?

9.Jordan is required to be licensed as a producer in New Jersey but holds no license. Jordan solicits several clients, and the licensed producer who places the business wants to give Jordan part of each commission. Under New Jersey law, which statement is correct?

10.A homeowner phones her insurer to ask whether her policy would cover water damage in her basement, then decides against reporting a loss. Under New Jersey law, how may the insurer treat the phone call?

The other 255 questions are $29.