ch 6

Question 1

If a producer is found guilty of a 3rd violation of the insurance code, what would the monetary penalty be?

Answer 1

$10,000. The first offence is no more than $5,000, and each subsequent offence is no more than $10,000

Question 2

Who were Paul vs. Virginia, and U.S vs Southeastern Underwriters, and what did each case ultimately decide?

Answer 2

Paul v. virginia decided that insurance was not interstate commerce, and U.S. vs Southeastern Underwriters decided it was

Question 3

What are the penalties for the first, second and any subsequent violations of the New Jersey Fraud Prevention Act, respectively?

Answer 3

One violation is no more than $5,000, the second is $10,000 and $15,000, for each subsequent violation

Question 4

Are dividends taxible as ordinary income?

Answer 4

No, because they are considered a return of excess premiums

Question 5

How long must a producer wait before applying for a new license after being revoked?

Answer 5

5 years

Question 6

How much money does a person pay if they violate a cease and desist order?

Answer 6

$5,000 dollars must be paid if a person violates a cease and desist order from the commissioner

Question 7

If an insurer cancels an agency contract, how many days do they have to notify the commissioner?

Answer 7

If an insurer cancels an agency contract, they have 15 (Fifteen) days to notify the commissioner in writing

Question 8

If a person violates a cease and desist order, the commissioner can turn the matter over to the New Jersey Superior Court. What fine can they assess for each violation for the cease and desist>

Answer 8

They can assess a fine of up to five thousand dollars ($5,000).