NJ Property, Casualty, and
Auto Licensing Exam
Questions and Answers 100%
PASS
Insuring Agreement—ANSWER-company's obligation to pay, includes the
perils and coverage for specific or named peril policies
Exclusions—ANSWER-what the policy will not pay for
Definitions—ANSWER-names of the persons insured in addition to the
named insured are listed here, along with any other (blank) of terms in the
policy
Additional Coverage—ANSWER-coverages under a policy that are provided
by the insurer at no extra cost
Casualty Policies—ANSWER-defense costs over and above liability limits,
post-judgement interest, bail bonds and appeal bonds
Property Policies—ANSWER-debris removal, falls within the insured dwelling
limit and cannot exceed the limit
, Binder—ANSWER-temporary proof of coverage before policy is issued (oral is
good for 10 days, written for 60 days)
Bodily Injury and Property Damage Coverage Amounts—ANSWER-
Minimum: 15k per person/30k per accident/5k for property; Max is $500k
Auto - Personal Assigned Risk Policy—ANSWER-PAIP; standard risk 0
points, non-standard risk 1-8 points, assigned risk 9 points. (blank)
classification runs for 3 years
Auto - Commercial Assigned Risk Policy—ANSWER-CAIP; assigned risk
policy for commercial vehicles, including private vehicles owned by the
business
Personal Injury Protection—ANSWER-PIP or No-Fault, NJ Representations
Act; mandatory, encourage the insured to recover under his/her own policy,
tries to reduce premiums and hasten settlements through avoidance of
lengthy litigation that would normally be the case. The benefits of the
standard policy are statutory and therefor minimal
Fire—ANSWER-A named peril policy. (blank) policies must be filed with the
DOBI commissioner before use and must provide a fairly uniform look, and
provide ample space for coverage, limits, rates, policy inception, and
expiration dates
Friendly Fire—ANSWER-fire is within it's intended confines (not covered)
Hostile Fire—ANSWER-fire is outside it's intended confines
Covered Fire Perils—ANSWER-fire - hostile, lightening, debris removal, theft
within first 5 days
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
Auto Licensing Exam
Questions and Answers 100%
PASS
Insuring Agreement—ANSWER-company's obligation to pay, includes the
perils and coverage for specific or named peril policies
Exclusions—ANSWER-what the policy will not pay for
Definitions—ANSWER-names of the persons insured in addition to the
named insured are listed here, along with any other (blank) of terms in the
policy
Additional Coverage—ANSWER-coverages under a policy that are provided
by the insurer at no extra cost
Casualty Policies—ANSWER-defense costs over and above liability limits,
post-judgement interest, bail bonds and appeal bonds
Property Policies—ANSWER-debris removal, falls within the insured dwelling
limit and cannot exceed the limit
, Binder—ANSWER-temporary proof of coverage before policy is issued (oral is
good for 10 days, written for 60 days)
Bodily Injury and Property Damage Coverage Amounts—ANSWER-
Minimum: 15k per person/30k per accident/5k for property; Max is $500k
Auto - Personal Assigned Risk Policy—ANSWER-PAIP; standard risk 0
points, non-standard risk 1-8 points, assigned risk 9 points. (blank)
classification runs for 3 years
Auto - Commercial Assigned Risk Policy—ANSWER-CAIP; assigned risk
policy for commercial vehicles, including private vehicles owned by the
business
Personal Injury Protection—ANSWER-PIP or No-Fault, NJ Representations
Act; mandatory, encourage the insured to recover under his/her own policy,
tries to reduce premiums and hasten settlements through avoidance of
lengthy litigation that would normally be the case. The benefits of the
standard policy are statutory and therefor minimal
Fire—ANSWER-A named peril policy. (blank) policies must be filed with the
DOBI commissioner before use and must provide a fairly uniform look, and
provide ample space for coverage, limits, rates, policy inception, and
expiration dates
Friendly Fire—ANSWER-fire is within it's intended confines (not covered)
Hostile Fire—ANSWER-fire is outside it's intended confines
Covered Fire Perils—ANSWER-fire - hostile, lightening, debris removal, theft
within first 5 days
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
