Law Flashcards
(111 cards)
Basic Automobile Insurance Policy Coverage Selection
A prospective insured is electing a Basic Auto policy.
If an auto insurer issues a temporary identification card for an insured, when does the temporary card expire?
After 20 days
A temporary work authority is granted and valid up to ________ days after being issued.
60
A producer’s license that has been suspended may be reinstated:
Once the suspension period is complete
What is the purpose of a certificate of authority?
Authorizes an insurer to transact insurance business
For a first-time violation of a cease and desist order, the Commissioner may impose a penalty of up to:
If the person violated a cease and desist order, the Commissioner may impose a fine of up to $5,000 for the first violation.
A diamond ring that is insured on a Personal Articles Floater receives what type of coverage?
Open
Which of the following lines is subject to the Commercial Insurance Deregulation Act of 1982?
Commercial Liability
With respect to a producer’s fiduciary capacity, which of the following is true?
A producer is required to issue receipts for premiums paid and keep copies of receipts. A producer may not commingle the insurer’s funds with their personal funds. A producer must remit premiums to the insurer entitled to them within 5 business days of receipt.
Fraud Prevention and Detection Plans are established and maintained by:
Every Insurer
An applicant who cannot obtain automobile insurance in the voluntary market is qualified for the Commercial Automobile Insurance Plan if their automobile:
A qualified applicant for CAIP is the owner or registrant of a motor vehicle registered in New Jersey or to be registered within 60 days, who is unable to obtain automobile insurance in New Jersey in the voluntary market in the previous 60 days.
In New Jersey, what is the minimum term for a producer’s initial license?
18 months
If an insured has their license suspended for refusing to take a chemical test, the auto insurer must mail a notice of cancellation within how many days before the effective date?
An auto insurer must provide a notice of cancellation at least 20 days before the effective date of the cancellation. The only exception is cancellation due to nonpayment of premium, which requires a 15-day notice
A producer has received a policy from the insurer. According to New Jersey’s Standards of Conduct, when must the producer deliver the policy to the insured?
Within 10 days
Which of the following is correct about choosing a tort exemption?
With the No Limitation on Lawsuit Option, a person is liable for non-economic loss, and liability may extend to persons who are not required to keep PIP coverage and may apply whether or not the person has optional liability coverage.
Insurers must maintain nonrenewal records for at least how many years?
5
Which of the following statements correctly describes requirements for record keeping by producers?
Books and records must be maintained for a period of 5 years after the termination of coverage. Entries to books and records must be made at least once every 30 days. Books and records may be maintained electronically if they can be reproduced by hard copy.
In 1944, which case did the Supreme Court reverse Paul vs. Virginia by ruling that insurance was subject to federal regulations?
In 1944, the U.S. vs. South-Eastern Underwriters Association the Supreme Court reversed Paul vs. Virginia and ruled that insurance was interstate commerce and when conducted across state lines, subject to federal regulations.
What is the specific name of the process a producer must follow by attempting to place the risk with authorized insurers before a surplus lines agent?
Diligent effort is a process by which a producer places coverage with a surplus lines insurer after the risk has been declined by 3 authorized insurers whom the producer believes, in good faith, might insure the risk.
To which insurance would the Commercial Insurance Deregulation Act of 1982 apply?
The Commercial Insurance Deregulation Act excludes coverage for Ocean Marine, Title, Mortgage Guaranty, Workers’ Compensation, Medical Malpractice, Reinsurance, NJIUA risks, insurance issued by health service corporations, and insurance issued for personal or household purposes.
Authorized Business Entity
One officer or partner must be licensed
A completed application signed by all licensed partners and officers is required
There must be a designated producer who takes responsibility for the entity’s compliance
Nonresident business entities may conduct insurance business in New Jersey as long as the Commissioner has given them a certificate of authority.
A producer becomes permanently disabled and the Commissioner issued a temporary producer license to their spouse for a period up to ______ days to assist the producer’s insurance business.
The Commissioner may issue a temporary insurance producer license for a period not to exceed 180 days without requiring an examination if it is determined the temporary license is necessary to sell the insurance business, train and license new personnel, or the producer recovers or returns to the business.
A temporary work authority has been granted to an indivdiual for 90 days in New Jersey. The individual is most likely:
A nonresident producer who has moved into New Jersey will be granted a 90-day temporary work authority, and the producer must change their address within that time. For applicants who want to begin work before receiving their initial license, only a 60-day temporary work authority will be granted. For individuals that are substituting for a disabled or deceased producer, a temporary license will be granted up to 180 days.
A temporary work authority is granted and valid up to ________ days after being issued.
60
