NJ PSI PROPERTY AND CASUALTY EXAM 2
PRACTICE STUDY SHEET 2026 QUESTIONS
WITH FULL SOLUTION GRADED A+
◉ Which policies issued must follow the provisions of the
Commercial Insurance Deregulation Act? Answer: Commercial
policies
◉ When must rate amendments & policy forms be filed with the
commissioner? Answer: 30 days before
◉ What losses are excluded from flood insurance? Answer: -
Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
◉ Who administers the NFIP? Answer: Federal Insurance
Administration (FIA)
◉ What does the NFIP stand for? Answer: National Flood Insurance
Program
,◉ Why was the National Flood insurance Program constructed?
Answer: to fill in gaps of flood coverage by the private sector
◉ What are the 3 NFIP requirements for coverage? Answer: -
community land management & flood control programs must reduce
flood losses in the future
-Flood insurance required in specific flood prone areas as a
condition for receiving loans through/ backed by the federal
government
-Property owners that fail to purchase flood insurance within 1 year
after it is available will not be eligible for full disaster relief funding.
It will be reduced by an amount of insurance that could have been
purchased
◉ What is the NFIP max coverage for a single family? Answer:
Building $250K, Contents $100K
◉ What is the NFIP max coverage for other residential? Answer:
Building $250K, Contents $100K
◉ What is the NFIP max coverage for small business? Answer:
Building $500K, Contents $500K
,◉ What is the NFIP max coverage for Other Non-Residential?
Answer: Building $500k, Contents $500K
◉ What is the NFIP subsidized rate for a single family? Answer:
Building $35K, Contents $10K
◉ What is the NFIP subsidized rate for Other Residential? Answer:
Building $100K , Contents $100K
◉ What is the NFIP subsidized rate for small businesses? Answer:
Building $100K, Contents $100K
◉ What is the NFIP subsidized rate for other non-residential?
Answer: Building $100K, Contents $100K
◉ What is the wait period before flood insurance can be effective?
Answer: 30 days, no binders issued
◉ What are the exceptions to the 30 day NFIP wait period? Answer:
-1st 30 days after coverage, community enters standard or
emergency program, coverage will begin at 12:01 am the date after
application and premium were mailed
-When an existing policy was assigned to a property purchaser
, -At 12:01 am on the 5th day after an endorsement request &
premium has been mailed for existing policy
◉ What was the Supreme Court's decision regarding the Paul v.
Virginia case? Answer: insurance was NOT interstate commerce and
could not be regulated by the federal govt.
◉ Who heard the Paul v. Virginia case? Answer: Supreme Court
◉ Who heard the US v Southeastern Underwriting Association case?
Answer: Supreme Court
◉ What was the decision in the US v Southeastern Underwriting
Association Case? Answer: Insurance is interstate commerce and
should be subject to federal regulations (currently in effect today)
◉ What is the McCarran-Ferguson Act? Answer: The federal govt
won't regulate insurance business as long as states perform an
adequate job of managing their own insurance industries.
◉ When was the McCarran-Ferguson Act passed? Answer: March 9,
1945
PRACTICE STUDY SHEET 2026 QUESTIONS
WITH FULL SOLUTION GRADED A+
◉ Which policies issued must follow the provisions of the
Commercial Insurance Deregulation Act? Answer: Commercial
policies
◉ When must rate amendments & policy forms be filed with the
commissioner? Answer: 30 days before
◉ What losses are excluded from flood insurance? Answer: -
Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
◉ Who administers the NFIP? Answer: Federal Insurance
Administration (FIA)
◉ What does the NFIP stand for? Answer: National Flood Insurance
Program
,◉ Why was the National Flood insurance Program constructed?
Answer: to fill in gaps of flood coverage by the private sector
◉ What are the 3 NFIP requirements for coverage? Answer: -
community land management & flood control programs must reduce
flood losses in the future
-Flood insurance required in specific flood prone areas as a
condition for receiving loans through/ backed by the federal
government
-Property owners that fail to purchase flood insurance within 1 year
after it is available will not be eligible for full disaster relief funding.
It will be reduced by an amount of insurance that could have been
purchased
◉ What is the NFIP max coverage for a single family? Answer:
Building $250K, Contents $100K
◉ What is the NFIP max coverage for other residential? Answer:
Building $250K, Contents $100K
◉ What is the NFIP max coverage for small business? Answer:
Building $500K, Contents $500K
,◉ What is the NFIP max coverage for Other Non-Residential?
Answer: Building $500k, Contents $500K
◉ What is the NFIP subsidized rate for a single family? Answer:
Building $35K, Contents $10K
◉ What is the NFIP subsidized rate for Other Residential? Answer:
Building $100K , Contents $100K
◉ What is the NFIP subsidized rate for small businesses? Answer:
Building $100K, Contents $100K
◉ What is the NFIP subsidized rate for other non-residential?
Answer: Building $100K, Contents $100K
◉ What is the wait period before flood insurance can be effective?
Answer: 30 days, no binders issued
◉ What are the exceptions to the 30 day NFIP wait period? Answer:
-1st 30 days after coverage, community enters standard or
emergency program, coverage will begin at 12:01 am the date after
application and premium were mailed
-When an existing policy was assigned to a property purchaser
, -At 12:01 am on the 5th day after an endorsement request &
premium has been mailed for existing policy
◉ What was the Supreme Court's decision regarding the Paul v.
Virginia case? Answer: insurance was NOT interstate commerce and
could not be regulated by the federal govt.
◉ Who heard the Paul v. Virginia case? Answer: Supreme Court
◉ Who heard the US v Southeastern Underwriting Association case?
Answer: Supreme Court
◉ What was the decision in the US v Southeastern Underwriting
Association Case? Answer: Insurance is interstate commerce and
should be subject to federal regulations (currently in effect today)
◉ What is the McCarran-Ferguson Act? Answer: The federal govt
won't regulate insurance business as long as states perform an
adequate job of managing their own insurance industries.
◉ When was the McCarran-Ferguson Act passed? Answer: March 9,
1945
