New Jersey Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in New Jersey?
- a.New Jersey Department of Banking and Insurance (DOBI)✓
- b.New Jersey Motor Vehicle Commission
- c.New Jersey Division of Consumer Affairs
- d.New Jersey Secretary of State
New Jersey regulates insurers and licenses P&C producers through the New Jersey Department of Banking and Insurance (DOBI), verified at nj.gov/dobi. The Motor Vehicle Commission handles registration and insurance verification but does not license producers.
A New Jersey producer offers a prospect cash equal to part of the commission to induce them to buy a homeowners policy. Under New Jersey's unfair trade practices rules, this is:
- a.Permitted if disclosed to the insurer
- b.Permitted for renewals only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Rebating — giving any part of the premium or commission, or other valuable consideration, as an inducement to buy — is a prohibited unfair trade practice that can cause unfair discrimination among similar insureds. It is grounds for discipline by the New Jersey Department of Banking and Insurance.
Under New Jersey law, once a personal auto or homeowners policy has been in force beyond its initial period, mid-term cancellation by the insurer is generally allowed only:
- a.For any reason with no notice
- b.For specific statutory reasons such as nonpayment of premium, fraud, or a substantial increase in risk, with required advance written notice✓
- c.Only within 24 hours of issuance
- d.Never, because in-force policies can never be cancelled
New Jersey restricts mid-term cancellation of seasoned personal-lines policies to defined grounds (for example nonpayment, fraud, or a material increase in the hazard) and requires advance written notice so the insured can find replacement coverage. Specific notice day-counts are set by statute/regulation; verify current figures with DOBI.