NJ EXAM Questions and Answers (Solved Papers) Which of the following is NOT an unfair claims practice? - Correct Answers ✅A- Refusing to pay a claim without investigating it B-Failing to affirm or deny coverage of claims within a reasonable time after proof of loss C-Promptly acknowledging communications pertinent to a claim D-Misrepresenting pertinent policy facts or provisions to claimants C- Promptly acknowledging communications pertinent to a claim is required with respect to claim practices. The other answers are unfair trade practices.What is the purpose of a Certificate of Authority? - Correct Answers ✅A- Authorizes a producer to sell insurance B-Authorizes a producer to sell surplus lines insurance C-Authorizes an insurer to transact insurance business D-Authorizes an insurer to pay claims C- Authorizes an insurer to transact insurance business C- A certificate issued by the Commissioner is evidence of the authority an insurer has to transact insurance in New Jersey. 1 / 4
NJ EXAM Questions and Answers (Solved Papers) A policy may not be nonrenewed or cancelled unless written
notice has been delivered to the insured: - Correct Answers
✅A-Not less than 120 days prior to expiration or cancellation B- Not less than 120 days or more than 30 days prior to expiration or cancellation C- Not more than 30 days prior to expiration or cancellation D-Not less than 30 days or more than 120 days prior to expiration or cancellation D- A policy may not be nonrenewed or cancelled unless written notice has been delivered to the insured not less than 30 days or more than 120 days prior to expiration or cancellation.How frequently is the Exportable List reviewed? - Correct Answers ✅A-Quarterly B-Semi-annually C-Biennially D-Annually D- The Commissioner holds an annual hearing to review and determine what will be included on the Exportable List. 2 / 4
NJ EXAM Questions and Answers (Solved Papers) A temporary work authority is granted and valid up to ________ days after being issued. - Correct Answers ✅A-30 B-60 C-90 D-45 B- The Commissioner is authorized to issue a temporary work authority, valid up to 60 days, allowing the applicant to begin work the proper form has been submitted and there is no information that may disqualify the applicant from being licensed.A transfer of risk from one reinsurer to another reinsurer is
known as: - Correct Answers ✅A-Retrocession
B-Certificate of Authority C-1035 Exchange D-Insurance-Related Conduct A- Retrocession is the transfer of risk from one reinsurer to another reinsurer.Workers' Compensation will provide financial compensation to an employee who incurs which of the following injuries? - 3 / 4
NJ EXAM Questions and Answers (Solved Papers) Correct Answers ✅A-An injury where the employer is not negligent B-An injury that arises from the employee's willful negligence C-An injury that occurs when the employee is intoxicated D-An injury that is self-inflicted A- Compensation will be made by the employer without regard to the negligence of the employer except when the injury is self-inflicted, the employee is intoxicated or under the influence of controlled substance, or if the employee is willfully negligent in purposely not following safety rules.Which of the following correctly sets forth the penalties that may be imposed on a person who violates the Fraud Act? - Correct Answers ✅A-1,000 for the first violation, $5,000 for the second violation and $10,000 for each subsequent violation B-$5,000 per violation C-$5,000 for the first violation, $10,000 for the second violation and $15,000 for each subsequent violation
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