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1. Which of the following statements is correct about penalties imposed by the New Jersey Banking and Insurance Commissioner for violations of insurance regulations?
A) Only a court of law can impose penalties.
B) The Commissioner must provide written notice and an opportunity for a hearing before imposing a penalty.
C) The Commissioner may not impose further penalties on a producer who already has been penalized by a criminal court.
D) The Commissioner may impose penalties on producers but not on insurance companies.
2. The 1944 U.S. v. South-Eastern Underwriters Association case determined that
A) Individuals who transact insurance business are subject to the same regulations as investment brokers.
B) Insurance is commerce and should be subject to federal regulation.
C) Insurance is commerce and should be subject to state regulation.
D) Insurance companies that transact insurance business are subject to the same regulations as banks and savings and loan associations.
3. Which rider assures the premiums will be paid on a juvenile policy until the insured child reaches a specific age?
A) Payor rider.
B) Waiver of premium rider.
C) Guaranteed insurability rider.
D) Automatic premium loan rider.
4. Which of the following information maintained by the Banking and Insurance Department on a producer is available to the public?
A) The names of the insurance companies represented by the producer.
B) Medical disability information.
C) Revocation of professional certifications held by the producer.
D) Criminal complaints against the producer.
5. Which of the following is most likely used for underwriting purposes and includes information on an applicant's character and personal habits?
A) Agent report.
B) Medical Information Bureau report.
C) Buyer's Guide.
D) Investigative consumer report.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: D |
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