Property Chapter 4: Licensing

Question 1

Types of Licenses: An insurance producer (3)

Answer 1

a person required to be licensed under the laws of this state in order to
sell,
solicit
negotiate insurance.

Question 2

Types of Licenses: An insurance producer INCLUDE (4)

Answer 2

The term includes
insurance brokers,
agents,
consultants
general agents.

Question 3

Types of Licenses: Applicants for an individual resident producer’s license must be at least

Answer 3

least 18 years of age

Question 4

Types of Licenses: An individual who lives across the state line, but operates an insurance agency in this state,

Answer 4

must have a New Jersey resident producer’s license.

Question 5

Types of Licenses: A producer’s license must contain (6)

Answer 5

the licensee’s name,
address,
personal ID number,
date of issuance,
lines of authority
expiration date, but not their date of birth.

Question 6

Types of Licenses: Applicants must apply for their insurance license within

Answer 6

1 year of passing their state examination.

Question 7

Types of Licenses: Obtaining a limited license does not affect

Answer 7

a producer’s other insurance licenses.

Question 7

Types of Licenses: An insurance agent represents

Answer 7

the insurance company, NOT the insured.

Question 8

Types of Licenses: To obtain a business entity producer’s license, the entity must

Answer 8

designate at least ONE individually LICENSED producer to be responsible for compliance with the insurance laws of this state.

Question 9

Types of Licenses: Nonresident producers may be licensed in this state without

Answer 9

exam if they are currently licensed and in good standing in their home state.

Question 9

Types of Licenses: Nonresident licenses are based upon

Answer 9

reciprocal agreements between states,
which allow states to recognize each other’s licenses.

Question 10

Types of Licenses: Nonresident producers who satisfy the CE requirements of their home state

Answer 10

will be considered to have satisfied the New Jersey CE requirements.

Question 11

Pre-licensing Requirements: Except for limited lines applicants

Answer 11

applicants for a resident producer license must complete the required prelicensing education requirements prior to taking the state exam.

Question 12

Pre-licensing Requirements: Who are exempt from New Jersey prelicensing education and examination?

Answer 12

Individuals who currently hold a resident producer license in another state or who have held such a license actively during the preceding 90 days

Question 12

Pre-licensing Requirements: Although prelicensing education will be waived for license applicants who

Answer 12

have a professional designation, such as CLU or CPCU, licensing examinations are not.

Question 13

Surplus Lines: Applicants for a Surplus Lines producer license must

Answer 13

hold or will hold a property and casualty producer’s license.

Question 14

Other Producer Regulations: Insurers contracting with a licensed producer must file a

Answer 14

notice of agency contract (appointment) with the Commissioner within 15 days after entering into the contract or within 15 days after the first application is submitted by the producer.

Question 14

Surplus Lines license must pass a Surplus Lines exam, but

Answer 14

no surety bond is required as a condition to licensing.

Question 15

Other Producer Regulations: The Commissioner may issue a temporary work authority

Answer 15

valid for up to 60 days, allowing a qualifying individual to transact insurance business while under the supervision of a currently licensed producer

Question 16

Other Producer Regulations: The Commissioner may issue a temporary producer’s license without exam, for

Answer 16

a period not to exceed 180 days, to the surviving spouse or personal representative of a producer who died, became disabled, or joined the U.S. Armed Forces.

Question 17

Maintenance and Duration of License: Failure to renew a license will result

Answer 17

an expired license.

Question 18

Maintenance and Duration of License: Newly issued individual producer licenses will expire

Answer 18

on the last day of the birth month of the producer in the year that will result in the term of license being at least 18 months.

Question 18

Maintenance and Duration of License: If a license has been expired for a period of less than one year,

Answer 18

the applicant may apply for late renewal by paying late fees, completing required CE hours and certifying that they have not transacted any insurance business during the unlicensed period.

Question 19

Maintenance and Duration of License: When do the licenses expire?

Answer 19

Thereafter, all such licenses expire every other year on the last day of the birth month

Question 20

Maintenance and Duration of License: Except for limited lines producers, who must complete what?

Answer 20

resident individual producers must complete 24 hours of continuing education (CE) during the previous license term, 3 of which must be related to professional ethics.

Question 21

Maintenance and Duration of License: CE Courses must deal with(9)

Answer 21

CE courses must deal with insurance products, insurance practices, ethics, insurance fraud, insurance taxation, relevant state national laws, claims or underwriting practices, other topics directly related to the business of insurance,

Question 21

Maintenance and Duration of License: Who is also required to take the CE courses

Answer 21

including professional designation courses for CLU & CPCU

Question 22

Maintenance and Duration of License: Courses dealing with sales training, motivation or computer or business skills not specifically related to insurance WILL NOT BE

Answer 22

will not be approved for continuing education credits.

Question 23

Maintenance and Duration of License: Property/casualty producers who write flood insurance must also

Answer 23

complete 3 credit hours of CE related to the National Flood Insurance Program as part of their total CE obligation.

Question 24

License Refusal and Termination: When cancelling an agent's contract the insurer MUST

Answer 24

must file a notice of cancellation with the Commissioner within 15 days.

Question 25

Submitting a license for cancellation does not (3)

Answer 25

terminate any disciplinary action against the licensee nor prevent disposition of any penalty ordered restitution costs.

Question 26

If a producer's license is voluntarily terminated,

Answer 26

they may reinstate it during the same renewal cycle by filing a new licensing application.

Question 27

A resident individual producer's license must remain in effect unless

Answer 27

revoked or suspended as long as renewal fees are paid and continuing education requirements are satisfied.

Question 28

The Commissioner may suspend or revoke a producer's license for (3)

Answer 28

failing to comply with a court order imposing child support, the failure to pay income taxes writing personal and controlled business.

Question 29

A producer's license is considered

Answer 29

property of the state, and must be returned immediately to the Commissioner upon suspension or revocation.

Question 30

If a producer's license has been revoked, the former licensee may? What will the Commissioner Respond?

Answer 30

after 5 years, apply for a license by submitting a new application, completing a prelicensing education course, passing the state examination and showing cause why reinstatement is warranted. The Commissioner may or may not grant reinstatement.

Question 31

If a producer's license has been suspended

Answer 31

the suspended licensee may reapply for a license by submitting a new application after the period of suspension has been completed