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Life and Health Insurance Producer Exam

Penalties (NJ): practice questions

Our Life & Health Insurance bank has 5 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · New Jersey

A New Jersey producer is convicted of a crime. Within what time must the producer notify the Commissioner to avoid a separate ground for discipline?

  1. At the next license renewal
  2. Within 90 days
  3. Within a week
  4. Within 30 days
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D. Within 30 days — N.J.S.A. 17:22A-40a(18).

Question 2 · New Jersey

Which of the following is a listed cause for the New Jersey Commissioner to suspend or revoke a producer's license?

  1. Declining to join a professional producers' association
  2. Writing policies for more than five different insurers
  3. Failing to comply with a court order imposing a child support obligation
  4. Charging a lawful service fee on a commercial lines policy
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C. Failing to comply with a court order imposing a child support obligation — N.J.S.A. 17:22A-40a(13).

Question 3 · New Jersey

How soon after the effective date of a revocation order may a former New Jersey producer apply for reinstatement of the license?

  1. Never; revocation is permanent
  2. After one year
  3. After five years
  4. After three years
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C. After five years — N.J.A.C. 11:17D-2.7(a).

Question 4 · New Jersey

What happens to a New Jersey producer's agency appointments when the producer's license is suspended?

  1. They continue, unless the insurer chooses to cancel them
  2. They are severed, and must be refiled if the license is later reinstated
  3. They are transferred to the producer's employer for the suspension period
  4. They stay in force, but no new business may be written
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B. They are severed, and must be refiled if the license is later reinstated — N.J.A.C. 11:17D-2.5(b).

Question 5 · New Jersey

What is the maximum penalty for violating the New Jersey Insurance Producer Licensing Act?

  1. $5,000 for the first offense and $10,000 for each later offense
  2. $25,000 per offense, or double any commission earned
  3. $2,500 for the first offense and $7,500 for each later offense
  4. $1,000 for each offense, plus loss of license
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A. $5,000 for the first offense and $10,000 for each later offense — N.J.S.A. 17:22A-45c; DOBI Order E26-48 recites the same limits.

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