New Jersey Laws, Rules, and Regulations Common to All Lines
As a result of this case, Paul vs. Virginia was overturned and it was stated that insurance is interstate commerce, subject to regulation by the federal government.
What is the importance of the US vs. South-Eastern Underwriters Association case?
18 years old
What is the minimum age to apply for a producer's license in this state?
Responsibility of the insurer
Who is responsible for the content of advertisement of insurance products?
The creditor is the owner
Who is the owner of credit life policy?
They write business for insurance companies that do not possess a certificate of authority if no authorized insurers in the area offer the specific type of insurance.
What is the function of a surplus lines agent?
2 years
How long is a licensing period?
The creditor is the beneficiary
Who is the beneficiary of a credit life policy?
Cannot exceed the amount owed to the creditor
What is the limit on the amount of credit life insurance on a debtor?
24 hours, including 3 hours of ethics education, every licensing period.
How many continuing education hours must producers complete within a licensing period?
It includes premiums payable on the policy, special favors or services, advantages in dividends or benefits, stocks, bonds, securities, and their profits
What constitutes rebating?
15 years old
In New Jersey, the minumun age at which a person can purchase a life insurance policy on his or her own is?
This is term life insurance policy
Which of the following statements about a life insurance policy would be allowed in a insurance advertisement?
Member insurers
Who provides funding for the New Jersey Life and Health Guaranty Association?
Defamation
An agent who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called?
The insured's age, income, financial situation and financial experience, risk tolerance and tax status, as well as financial needs and objective.
What information about the consumer must a producer evaluate to determine an annuity product availability?
The insurer will be liable for valid claims of covered losses incurred before the end of the grace period.
If a group policy provides for automatic discontinuance of the policy for nonpayment of premium, what happens if a claim arises during a grace period?
An agent who resides in another state, but is licensed to write insurance in this state.
What is a nonresident agent?
It may be issued for 180 days for the continuation of business to the surviving spouse or personal representative of an agent who dies, or becomes disabled; an employee of a business entity upon death, disability, or termination of a designed individual.
For how long, and under what circumstances can a temporary license be issued?
1. Give applicant a Notice Regarding Replacement; 2. Obtain a list of all existing life insurance policies to be replaced; 3. Give the applicant the original or a copy of written or printed communications used for presentation to the applicant; and 4. Submit to the replacing insurance company, with the application, a copy of the replacement notice.
What are the four steps a producer must follow when replacing an existing policy?
This, along with comparative information form, policy summary, and all sales materials must be kept for at least 5 years or until the next regular examination by the Department of Banking and Insurance.
How ling must insurers jeep a copy of a notice regarding replacement?