NJ PSI PROPERTY AND CASUALTY EXAM 2
FINAL PAPER 2026 QUESTIONS WITH FULL
SOLUTION GRADED A+
◉ state law:
funeral expense benefit
-2,000
-5,000
-2500
-1500. Answer: 2500
◉ a standard fire policy in pennsylvania may be cancelled by the
insurer. Answer: at any time with 5 days written notice
◉ conditioins that increase the probability of an insured loss.
Answer: hazard
◉ courts may rely on this legal doctrine to see if coverage applies.
Answer: reasonable expectations
,◉ a person decides not to get phyiscal damage coverage on their
snowmobile what form of risk management is this. Answer:
retention
◉ what is a component of a rate. Answer: loss reserves, loss
adjusting expenses, operating expenses, profits
◉ ambiguous wording on an insurance contract would be most
helpful towards. Answer: the insured
◉ Which HO form covers damage to the DWELLING that occurs as
the result of any event that is not specifically excluded in the polic.
Answer: HO-3 Special Form
Coverage for the home and other structures is written on an all-risk
basis - damage from any peril is covered, unless specifically
excluded. Broad coverages extends to dwelling
◉ A temporary license may be issued without state examination to
all of the following EXCEPT. Answer: A prospective producer who is
currently enrolled in a pre-licensing insurance class
◉ Garage liability insurance. Answer: offers financial protection
against lawsuits for those who sell, store, and service vehicles. This
includes auto dealers, service stations, and parking garage
,◉ What is the term if the buyer of an insurance policy receives any
part of the producers commission or anything else of significant
values as an inducement to purchase a policy.. Answer: rebating
◉ which of the following would be a component of a rate?a) service
bureausb) loss costsc) dividendsd) ratification. Answer: b
◉ the dwelling policy endorsement coverage M-Medical Payment to
Others pays for ... EXCEPT one that is caused bya) a fight with the
insuredb) conditions on the insured's locationc) the activities of the
insuredd) an animal in the insured's car. Answer: a
◉ on a dwelling policy, what percentage of the coverage C - Personal
property .. A 5% b) 10%. c) 20%. d) 50%. Answer: b
◉ A customer at a local deli trips over a folded rug while entering
the establishment. This would be considered what type of business
liability?
a)products exposure
b)completed operations exposure
c)operations exposure
d)premises exposure. Answer: D
, ◉ Which endorsement can an insured add to their business
automobile policy to cover the owner of the leased vehicle?a)
miscellaneous vehicle endorsementb) drive other car coverage
endorsementc) additional insured-lessor endorsementd) individual
named insured endorsement. Answer: additional insured lessor
◉ replacement cost coverage under the homeowners forms applies
if a dwelling ...a) 50%b) 60%c) 80%d) 90%. Answer: 80%
◉ the application that is made with facts that are believed to be true
without doubt are called. Answer: warranties
◉ which of the following water damage losses are not covered by a
dwelling policy special form
-flood water
-leaky sprinkler heads
-broken water pipes
-appliance overflow. Answer: flood water
-
leaky sprinkler head is covered and overflowing of appliances,
broken pipes covered
FINAL PAPER 2026 QUESTIONS WITH FULL
SOLUTION GRADED A+
◉ state law:
funeral expense benefit
-2,000
-5,000
-2500
-1500. Answer: 2500
◉ a standard fire policy in pennsylvania may be cancelled by the
insurer. Answer: at any time with 5 days written notice
◉ conditioins that increase the probability of an insured loss.
Answer: hazard
◉ courts may rely on this legal doctrine to see if coverage applies.
Answer: reasonable expectations
,◉ a person decides not to get phyiscal damage coverage on their
snowmobile what form of risk management is this. Answer:
retention
◉ what is a component of a rate. Answer: loss reserves, loss
adjusting expenses, operating expenses, profits
◉ ambiguous wording on an insurance contract would be most
helpful towards. Answer: the insured
◉ Which HO form covers damage to the DWELLING that occurs as
the result of any event that is not specifically excluded in the polic.
Answer: HO-3 Special Form
Coverage for the home and other structures is written on an all-risk
basis - damage from any peril is covered, unless specifically
excluded. Broad coverages extends to dwelling
◉ A temporary license may be issued without state examination to
all of the following EXCEPT. Answer: A prospective producer who is
currently enrolled in a pre-licensing insurance class
◉ Garage liability insurance. Answer: offers financial protection
against lawsuits for those who sell, store, and service vehicles. This
includes auto dealers, service stations, and parking garage
,◉ What is the term if the buyer of an insurance policy receives any
part of the producers commission or anything else of significant
values as an inducement to purchase a policy.. Answer: rebating
◉ which of the following would be a component of a rate?a) service
bureausb) loss costsc) dividendsd) ratification. Answer: b
◉ the dwelling policy endorsement coverage M-Medical Payment to
Others pays for ... EXCEPT one that is caused bya) a fight with the
insuredb) conditions on the insured's locationc) the activities of the
insuredd) an animal in the insured's car. Answer: a
◉ on a dwelling policy, what percentage of the coverage C - Personal
property .. A 5% b) 10%. c) 20%. d) 50%. Answer: b
◉ A customer at a local deli trips over a folded rug while entering
the establishment. This would be considered what type of business
liability?
a)products exposure
b)completed operations exposure
c)operations exposure
d)premises exposure. Answer: D
, ◉ Which endorsement can an insured add to their business
automobile policy to cover the owner of the leased vehicle?a)
miscellaneous vehicle endorsementb) drive other car coverage
endorsementc) additional insured-lessor endorsementd) individual
named insured endorsement. Answer: additional insured lessor
◉ replacement cost coverage under the homeowners forms applies
if a dwelling ...a) 50%b) 60%c) 80%d) 90%. Answer: 80%
◉ the application that is made with facts that are believed to be true
without doubt are called. Answer: warranties
◉ which of the following water damage losses are not covered by a
dwelling policy special form
-flood water
-leaky sprinkler heads
-broken water pipes
-appliance overflow. Answer: flood water
-
leaky sprinkler head is covered and overflowing of appliances,
broken pipes covered
