Nj Life Flashcards
A buyers guide and policy summary
Must be delivered with or prior to policy delivery; if policy does not contain a 10 day free look. A buyers guide and policy summary must be given to the applicant at least seven days before the initial premium is accepted.
Insurance advertisements and a local newspaper are regulated by which department in New Jersey
Dobi department of banking and insurance
Who is responsible for regulating insurance advertising and
New Jersey Department of banking and insurance DOBI
What can an insurance producer use to provide as evidence of authority?
License
The purpose of the New Jersey temporary disability benefits law is to
provide non-occupational disability benefits
All health plans that provide coverage to family members of the insured must provide coverage for the insured’s newborn from
moment of birth and for 31 days
Health insurance advertisements that mention the statistical information are required by New Jersey law to
Accurately, convey all pertinent facts
An advertisement shall not use a trade name, name of Insurance, parent company service, slogan, or other symbol without disclosing the name of the insurer
disclosing the name of the insurer (agent’s name)
Who would make the final determination on whether or not an insurance advertisement is misleading NJ
Banking and insurance commissioner
The replacement of an existing insurance policy requires notice that the owner can return the policy within how many days for a full
Life insurance policies and annuity contract must provide a minimum free period of 10 days upon policy delivery during which time policy owner can obtain a full refund. The maximum free look period is typically 30 days.
What is the purpose of advertising regulations?
To ensure full and truthful disclosures to the public
How long is the contestable period for health insurance policy sold in New Jersey
Two years; only fraudulent miss statements in the application may be used to avoid the policy or deny any claim at this point 
During a replacement of individual life insurance and agent must furnish notice regarding replacement of Life Insurance to
The applicant aka hey written comparison and summary statement at the request of the policyholder to follow instructions regarding replacement as obtained from the appointing insure
Hey buyers guide must
Be approved by the insurance commissioner and normally provides information on deciding on how much life insurance to buy comparing life insurance policy rates as well as a comparison of life insurance policy requirements
- Continuing education credit are required to be completed by a producer every
two years to keep their license active; three of those credit must be in ethics; non-resident producers are exam so long as they complete their home state requirements
What should the policy summary contain?
A statement of policy cost and benefit information which provides specific information about the provisions, benefits, and coverage of policy applied for
When is a temporary insurance license provided?
These can be issued in cases where a producer has become disabled or dies, which requires a replacement to service the producers business. It can also be provided to producers that are actively serving in the military. These licenses are valid for 180 days
How long is a producer required to maintain transaction records for business completed
For a period of five years full incorrect transaction records mess be kept for any business done by them
How can I produce Survey voluntarily terminate their insurance license?
They returning their license to the banking and insurance department at any time before expiration to obtain or reinstate their license during the same license. They need a new license application.
What is the maximum fine for a producer violating New Jersey insurance law?
$5000 for the first violation and 10,000 for each subsequent violation
Advertising material for a life insurance policy does not need to contain, which of the following? Agents, commission rate, the parent company’s name, statements that dividends are not guaranteed, whether spokesperson is paid.
Agents, commission rate. The parent company’s name needs to be disclosed, statements that dividends are not guaranteed if applicable is required, whether spokesperson is paid must be indicated
A Medicare supplement policy can be canceled by the insurance for
Nonpayment
How often must an insurance producer’s license in New Jersey be renewed?
Every two years and the last day of the producers birthday month, requiring a fee renewal, application and proof of completion of continuing education, exceptions exist for military service, active or other extenuating circumstances via waiver only via Internet
Group health insurance may be offered to all these groups in Jersey except private employer, city, government, college seminar, participants, small employer
College seminar participant because unmarried children under the age of 19 are considered dependents unless they’re full-time students which are then considered dependent up until age 23
When a new life insurance is to be purchased, the solicitation will be considered a replacement transaction if borrowing amounts exceed
25% of the policies loan value and it comes from an existing policy as cash value in order to use that money for a new policy
With the exception of fraud, the time after a policy has been issued during which, in ensure may contest a health insurance claim due to statements on the application is
Two years
Health insurance advertisements are required to contain, which of the following? Insurance companies trademark, insurance companies name, AM best rating, current standing with the BBB 
Insurance company’s name
What does an insurance producer need to obtain from a prospect to receive anything other than a commission before providing information as a consultant?
Written memorandum stating the amount of compensation
Knowingly making misleading statements that would cause an insured to lapse assign or terminate an insurance policy in order to switch companies is an example of
Twisting; which is an unfair trade practice of replacing an insurance policy from one insured to another based on misrepresentation
Under the New Jersey continuation of benefits, law not to extend coverage is required within how many days of a qualifying event?
Under the New Jersey continuation of benefits, law noticed to extend coverage is required within 30 days of qualifying event and no later than 60 days after the end of coverage
Define agent
A licensed producer who has a written contract to represent an insurer
Which of the following actions is required by an agent who is replacing an existing Life Insurance policy?
Submit to the replacing insurer a list of the policies to be replaced
A written statement describing the elements of a policy is called a buyers guide, policy summary, policy guide, buyers summary
Policy summary, which is designed to summarize the coverage of a specific contract 
All Medicare supplement policies is contain, which provision
Pre-existing conditions must be covered after six months from the effective date of coverage
Under New Jersey law, what may the insurer required to determine the exact cost of death if death appears accidental
Autopsy
Which of these may not be used in health insurance advertising a celebrity endorsement, a statement that highlights coverage amount, a paid testimonial, and insurance companies trademark instead of the companies actual name
An insurance companies trademark instead of the companies actual name
New Jersey insurance law requires eligible individuals to make an election to continue health insurance benefits within X amount of days after coverage termination
60 days no later than
Which type of beneficiary should be named of the insured wants to give explicit directions and how the policy proceeds should be paid? In individual group class Estate.
Individual
Health insurance will typically cover, which of the following perils? Death due to illness, injury due to accident, death due to accident, dismemberment.
Injury due to accident; the two perils covered by health insurance or accident and sickness
Group health plans made in eye participation based upon
Members part-time employment status; full-time employees are typically eligible
The deeds and actions of a producer indicate what kind of authority? Express apparent, implied, conditional.
Apparent authority is the appearance or assumption of authority based on the actions works or deeds of the producer
A provision that allows a policy owner to temporarily give up ownership rights to secure a loan is called
Collateral assignment
Which of the following areas do errors commonly occur on applications and for which the incontestable causes not apply marital status, age, address, income
Age and gender can be contested anytime
