Free New Jersey Property practice questions

Answer: B. Within 30 days after March 3

New Jersey requires a producer to tell the commissioner about any administrative action taken against the producer in another jurisdiction, and the deadline runs 30 days from the final disposition of the matter. Here the report is due within 30 days after March 3. The report must include a copy of the order, consent order or other relevant legal documents. Ten days and 60 days are not periods this provision uses, and the duty is triggered by the disposition of the matter, not by the producer's next license renewal.

Answer: C. Every person engaged in the business of insurance in New Jersey

The trade practices law gives the commissioner power to examine and investigate the affairs of anyone engaged in the business of insurance in New Jersey, to find out whether that person has used an unfair method of competition or an unfair or deceptive act or practice that the law prohibits. The power is not limited to producers, to insurers formed under New Jersey law, or to persons who are the subject of a complaint; it reaches everyone engaged in the business of insurance in the state.

Answer: D. Within 90 days

N.J.S.A. Sec. 17:37A-7(a) required the directors of the association to deliver a proposed plan of operation to the commissioner, for review and approval, within 90 days after the act took effect. The statute sets 90 days for that initial submission, so 30, 60 and 180 days are each wrong.

Answer: A. The rest of the act, and that provision's application to others, stays in effect

The act's separability section provides that if a court holds any provision, or its application to a person or circumstance, invalid, neither the remainder of the act nor the provision's application to other persons or circumstances is affected. So the act is not suspended, the provision does not become void as to everyone, and the remainder is not limited to the parties to the case.

Answer: A. $1,500,000, because the statute caps insurable value there regardless of the plan

N.J.S.A. Sec. 17:37A-2(e) limits insurable property to property whose insurable value does not exceed the limits in the plan of operation and, in no event, $1,500,000. A plan limit above that figure cannot lift the statutory ceiling, so $2,000,000 is wrong, and nothing in the definition adds the two figures together to reach $3,500,000. The figure the statute names as its ceiling is $1,500,000, not $1,000,000.

Answer: D. Within 90 days of establishing legal residence in New Jersey

A producer licensed in another state who moves to New Jersey must apply to become a resident licensee within 90 days of establishing legal residence, under N.J.S.A. Sec. 17:22A-35(b). The period runs from the move, not from any date tied to the other state's license. Thirty days and 12 months are not the period this subsection sets. The subsection also provides that lines already held in the prior state require no prelicensing education or examination unless the commissioner determines otherwise by regulation.

Answer: A. It fails one of the conditions the statute sets for that license

N.J.S.A. Sec. 17:22A-34(a) lists the conditions for issuing a nonresident producer license, and paragraph (4) requires that the applicant's home state award nonresident licenses to New Jersey residents on the same basis. Home-state good standing is a separate condition in paragraph (1); it does not stand in for reciprocity. The section offers no examination route around the reciprocity condition and no limited grant in place of it.

Answer: C. It is unenforceable, because she signed within 30 days of the accident without first getting the disclosure

New Jersey makes a release or waiver of a personal injury or wrongful death claim signed within 30 days after the accident unenforceable unless, before signing, the claimant receives a written disclosure telling her she may seek legal representation and explaining her rights under the law. Dana signed 13 days after her fall and got no disclosure, so the release cannot be enforced. The rule applies to releases signed inside the 30-day window, not after it. It is a condition of enforceability, not a recommendation, and the disclosure must come before the release is signed.

Answer: D. A commissioner finding that it meets Title 17B formation rules for its type

N.J.S.A. Sec. 17B:17-12.1(a) lets a foreign insurer admitted in New Jersey become a domestic insurer once the commissioner determines it has complied with all applicable Title 17B requirements for forming a domestic insurer of the same type. Moving an office is not that determination, and the statute sets no minimum period of holding a certificate of authority. Dissolution is also wrong: the domesticated insurer amends its articles to show it continues the original corporation's existence, and its original date of incorporation in its original domiciliary state carries over.

Answer: A. It is not one, because the definition turns on intent or marketing when the policy was issued

New Jersey defines a funeral insurance policy as an insurance policy or annuity contract that, when issued, was intended to provide funds to a funeral provider at the insured's death in connection with a prepaid funeral agreement, or was explicitly marketed for that purpose. The test looks at intent or marketing at the time of issue, so a policy that had neither does not become a funeral insurance policy because its proceeds later reached a mortuary or paid for a burial. Whether the beneficiary bought funeral goods is not part of the definition.