1. An insurance producer may not sell an insurance contract in New Jersey which:
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11. All title insurance settlement funds must be disbursed within how many business days after settlement unless otherwise negotiatedA. Five Calendar days B. Five business days. C. Ten calendar days D. Ten business days. Ans- B12. The receipt book must be maintained at the insured producer's business premises for a minimum of how many years from the date of completionA. 60 days B. 6 months C. 2 years D. 5 years. Ans- D13. All required books and records of account, including bank records, must be maintained for a period of ___________ after the termination of coverageA. 60 days. B. 6 months C. 24 months D. 5 years Ans- D14. Each insurance producer must maintain a file for each client or customer which must be continued to be maintained for a period of at least _________ after the termination of coverageA. 60 Days. B. 6 months C. 24 months D. 5 years Ans- D15. After a suspension, the producer suspended may reapply for a producer's license:A. Immediately B. After a 90-Day period from the date the suspension ends. C. After a five year period from the date the suspension ends. D. Never Ans- A16. After the revocation of his/her license, a producer may apply for reinstatement of the licenseA. Immediately B. After a 90 day period from the date the revocation ends. C. After five years from the effective date of the order revoking the producer's license D. Never Ans- C17. The McCarran Ferguson act public law 15 declared that the regulation of the insurance industry:A. Should remain with the individual states as long as they perform adequately. B. Should be transferred to the federal government. C. Should be monitored by the NAIC D. Is not within the purview of the federal government Ans-A18. The New Jersey insurance commissioner may do all of the following exceptA. Promulgate rules and regulations authorized by law. B. Create insurance laws. C. Implement motor vehicle and other insurance related laws. D. Audit insurance companies Ans- B19. The commissioner of insurance in New Jersey may be described as all of the following except:A. Appointed by the governor. B. Appointed with the advice and consent of the New Jersey senate C. Serves at the pleasure of the governor. D. The creator of all insurance law in the state Ans- D20. When the insurance commissioner decides to conduct a hearing to address an alleged unfair marketing practice, the individual charged must be given at least how many days written notice?A. 5 B. 10 C. 30 D. 60 Ans- B21. In the event of a cease and desist order is issued, the commissioner may levy a fine of up to for each charge levied as a first offenseA. $500 B. $1,000 C.$2,000 D. $2,500 Ans- B22. Something that increases the chance of a peril occurring is known asA. Indemnity B. Hazard C. Coinsurance D. Deductible Ans- B23. In the property insurance field actual cash value meansA. Replacement cost B. Depreciation C. Original cost D. Replacement cost less depreciation Ans- D.24. Policy records must be maintained forA. 3 years B. 5 years C. 10 years D. Forever Ans- B25. The commissioner cannot:A. Administer hearings B. Revoke Licenses C. Pass insurance laws D. Establish rules and regulations Ans- C26. While delivering a piano to a customer, an employee of mike's musicals accidently scrapes the customer's wall. Mike's liability exposure would be addressed by the following coverage:A. Premises and Operations Liability B. Products and Completed Operations Liability C. Contractual Liability D. Owners and contractors Protective Liability Ans- A27. While examining a saw at Elmer's hardware, a customer accidently cuts her hand. Elmer's liability exposure would be addressed by the following coverageA. Premises and operations liability B. Products and completed operations liability C. Contractual Liability D. Owners and contractors protective liability Ans- A28. Sue buys a microwave at quality department store, takes it home, plugs it in and is injured when it explodes. quality's liability exposure would be addressed by the following coverageA. Premises and operations liability B. Products and completed operations liability C. Medical Payments D. Owners and contractors protective liability Ans- B.29. The professional liability of a lawyer would be addressed by _________ insuranceA. Malpractice B. Errors and Omissions C. Commercial General Liability D. Contractual Liability Ans- B30. Uninsured Motorist coverage addresses the insured'sA. Medical Bills B. Lost Wages C. Pain and suffering D. All of the above Ans- D.31. The forcible entry into locked premises and the carrying away of the property of others is a definition of:A. Theft B. Burglary C. Robbery D. Mysterious Disappearance Ans- B32. Robbery Involves:A. Forcible Removal of property B. A messenger or custodian C. Threat of violence D. All of the above Ans- D33. The theft of money and securities is automatically covered under:A. Theft, disappearance and destruction coverage part B. Robbery and safe burglary C. Premises burglary D. All of the above Ans- B34. Mysterious Disappearance involves all of the following exceptA. Theft B. Uncertainty as to the cause C. Property D. A Loss Ans- A35. All of the following are excluded under the Theft, Disappearance and destruction coverage form except:A. Fire B. Vandalism C. Accounting Errors D. Dishonest Acts of customers Ans- D36. A contractor needing a bid bond to obtain a contract is an example of a:A. Principal B. Obligee C. Surety D. Fiduciary Ans- A37. The guarantee of an obligation is the subject of:A. Crime Insurance B. Fidelity Bonds C. Surety Bonds D. Contractual Liability Ans- C38. Premiums collected by an agent are deemed to be received by the insurer which the agent represents when they are received by:A. The agent B. The insurer C. The post office D. The appropriate department within the insurer's organizations. Ans- A39. The purpose of the declarations section of an insurance policy is to listA. Duties of the insurance company and the insured B. Persons or property covered C. Perils covered D. Perils not covered Ans- B40. Which of the following best describes the purpose of insuring agreementsA. To name the insured B. To describe the coverage C. To explain the duties of the insured D. To set forth conditions and exclusions Ans- B41. A deductible usually applies to which of the following automobile policy coverages?A. Bodily Injury Liability B. Property Damage Liability C. Physical Damage D. Medical Payments Ans- C42. Which of the following sections of an insurance policy states who may be insured in addition to the named insured?A. Declarations B. Definition of the insured C. Insuring Agreements D. Obligations of the insurance company Ans- B.43. The conditions section of an insurance contract sets forth theA. Limits of liability under the contract B. Coverages provided by the contract C. Rules of conduct for the insured and insurance company D. Exclusions of coverage under the contract Ans- C44. In insurance which of the following terms is defined as "Any act of stealing"?A. Mysterious Disappearance B. Burglary C. Robbery D. Theft Ans- D45. An insurer which is formed under the laws of any country other than the United States, its districts, territories, common-wealth's, possessions and the panama canal zone is:A. Alien B. Unlimited C. Foreign D. Domestic Ans- A46. A person whose producer license is revoked shall not be entitled to apply for another insurance license for at least?A. One Year B. Two Years C. Five Years D. Ten Years Ans- C47. The insurance commissioner must:A. Pass rules and regulation pertaining to insurance B. Redefine rules and regulations to benefit the insurance consumer C. Adopt, issue and promulgate rules and regulations authorized by law. D. All of the above Ans-C48. How many days is a temporary producer's license good for:A. 15 days B. 30 days C. 60 days D. 90 days Ans- C49. A mutual company is one whichA. Is operated through an attorney-in-fact B. Is owned and controlled by the policyholders C. Writes all kinds of insurance, including title D. All of the choices listed Ans- B50. The commissioner would issue which of the following licenses to a person who holds a license authority in Pennsylvania and works in New JerseyA. Non-resident producers license B. Resident producers license C. A limited lines license D. None of the choices listed Ans- A51. After a serious auto accident, the insurer paid the insured for a total loss and then obtained the damaged vehicle according to an aspect of the contract known as:A. Right of recovery B. Right of ownership C. Right of indemnity D. Right of Salvage Ans- D52. The policy period of a given insurance contract would be found in the:A. Declarations B. Insuring Agreement C. Conditions D. Exclusions Ans- A53. Contracts must be:A. Be based on Consideration B. Depend on chance C. Be drawn by both parties to the contract D. Be based on the principle of indemnity Ans- A54. A provision in a policy that pledges that a condition exists or will exist at some time in the future is known as a:A. Representation B. Statement of fact C. Warranty D. Consideration Ans- C55. A statement of fact in legal terms is known as a:A. Representation B. Statement of fact C. Warranty D. Consideration Ans- A56. Under the business income form, the period of restoration ends on the date when:A. The property should be repaired B. The property is repaired C. The policy ends D. The proof of loss has been received and approved by the insurer. Ans-A57. Replacement cost is the amount required to:A. Replace the property minus depreciation B. Replace the property as cheaply as possible C. Repair or replace the property with material of like kind and quality D. Replace the property with any other type the insured desires. Ans- C58. When the insured cancels the insurance contract, the portion of the premium to be returned by the company will be calculated on the ________ basisA. Pro-Rata B. Short-Rate C. Coinsurance D. Retrospective Ans- B59. The obligations of the insurance company can be found:A. By posing individual questions to the home office underwriting department B. On lines 90-122 of the standard fire policy C. In the coinsurance clause D. In the insuring agreement Ans- D60. An individual currently licensed in New Jersey may obtain additional authorities by:A. Passing the appropriate exam, paying an administrative fee and submitting the existing license license for addition of the authority sought. B. Passing the appropriate exam. C. Submitting a properly completed application D. Satisfying the appropriate classroom requirement, passing the appropriate exam and app on-line Ans- D61. A temporary certificate will expire no more than______ days after its issuance.A. 10 B. 15 C. 30 D. 60 Ans- D62. An insurer must notify the commissioner within ______ days of termination of an agent's contractA. 10 B. 15 C. 30 D. 60 Ans- B63. A written agreement for a substitute producer license cannot exceed a period of:A. 30 days B. 60 days C. 90 days D. 6 months or 180 days. Ans- D64. All licensees must provide the department with written notification of any change of business or residence address within _____ days of the changeA. 30 B. 50 C. 60 D. 90 Ans- A65. Personal injury includes all of the following except:A. Libel B. Slander C. Defamation of character D. Bodily Injury Ans- D66. Errors and omissions insurance is available to all of the following except:A. Doctors B. Lawyers C. Accountants D. Teachers Ans- A67. The comprehensive personal liability policy (Section II of the homeowners program) covers all of the following except:A. Insured Premises B. Personal activities off premises C. Nonbusiness contracts D. Business activities on premises Ans- D68. Advertising injury includes all of the following except:A. Malicious prosecution B. Infringement of copyright C. misappropriation of ideas D. libel through written publication Ans- A69. Medical bills, prescriptions, etc. are examples of _________ damagesA. Special B. General C. Punitive D. Compensatory Ans- A70. All of the following are elements of negligence except:A. Injury B. Duty C. Premises D. Proximate Cause Ans- C71. Products liability involves all of the following except:A. Improper product design B. Deceptive advertising C. Improper assembly of the product D. Advertising injuries connected with the sale of the product. Ans- D72. Workers compensation benefits include all of the following except:A. Medical B. Lost wages C. Property Damage D. Death Benefits Ans- C73. If an automobile policy is written with liability limits of 15/30/5 the most any one person can collect for a B.I. claims is:A. $15,000 B. $30,000 C. $45,000 D. $50,000 Ans- A74. If the insurance company cancels a policy, then the customer is entitled to a ____ refund of premiumA. Short Rate B. Pro Rata C. Pro Form D. Discounted Ans- B75. An "accident" under a boiler and machinery policy includes:A. Sudden breakdown of an object B. Gradual breakdown of an object. C. Leakage of a valve D. Malfunction of a safety valve Ans- A