NJ PSI PROPERTY AND CASUALTY EXAM 2
ACTUAL PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ Property Insurance Basics-
listed on a property policy. Answer: -mortgagees
-loss payees
-legal insured
◉ Property Insurance Basics-
when property is valued on a replacement cost basis losses are paid:
A
At the cost to replace with functionally equivalent property
B
At today's costs, without any deduction for depreciation
C
At market value of the damaged property
D
At an amount previously agreed upon by the insured and insurer.
Answer: B
,remember functional replacement cost is for materials or techniques
that are outdated or too expensive
◉ Property Insurance Basics-
Which construction classification uses materials that can withstand
fire for at least 2 hours?
A
Frame
B
Noncombustible
C
Fire-Resistive
D
Masonry. Answer: Fire-Resistive
◉ The pair and set clause found in property policies states that in
the event of a loss to only part of pair or set, losses will be settled
either by
A. repairing or replacing the damaged part or by paying the
difference between the actual cash value before and after the loss
B. deny coverage
C. Replace entire set with equal value
,D. Pay the appraised value. Answer: Repairing or replacing the
damaged part
OR
paying the difference of ACV before and after loss
◉ Property Insurance Basics-
when filing a property insurance claim, the insured is required to do
all of the following except
A
Hire an appraiser
B
Give notice of loss as soon as possible
C
Protect property from further damage
D
Submit to an examination under oath at the insurer's request.
Answer: A
Insured's duties after a loss
-furnishing inventory
-submitting to examination
-giving prompt notice of loss
, -protect property from further damage
◉ Does fire insurance insure against
A-friendly fires (confined to their intended place)
B- accidental fires
C-Hostile fires. Answer: C
Fire insurance insures against uncontrolled or hostile fires
◉ Property Insurance Basics-
The standard fire policy requires that all property insurance policies
provide coverage for all of the following perils, except:
A
Fire
B
Lightning
C
Theft
D
Removal of property. Answer: theft
FIRE THINK (RFL)
ACTUAL PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
◉ Property Insurance Basics-
listed on a property policy. Answer: -mortgagees
-loss payees
-legal insured
◉ Property Insurance Basics-
when property is valued on a replacement cost basis losses are paid:
A
At the cost to replace with functionally equivalent property
B
At today's costs, without any deduction for depreciation
C
At market value of the damaged property
D
At an amount previously agreed upon by the insured and insurer.
Answer: B
,remember functional replacement cost is for materials or techniques
that are outdated or too expensive
◉ Property Insurance Basics-
Which construction classification uses materials that can withstand
fire for at least 2 hours?
A
Frame
B
Noncombustible
C
Fire-Resistive
D
Masonry. Answer: Fire-Resistive
◉ The pair and set clause found in property policies states that in
the event of a loss to only part of pair or set, losses will be settled
either by
A. repairing or replacing the damaged part or by paying the
difference between the actual cash value before and after the loss
B. deny coverage
C. Replace entire set with equal value
,D. Pay the appraised value. Answer: Repairing or replacing the
damaged part
OR
paying the difference of ACV before and after loss
◉ Property Insurance Basics-
when filing a property insurance claim, the insured is required to do
all of the following except
A
Hire an appraiser
B
Give notice of loss as soon as possible
C
Protect property from further damage
D
Submit to an examination under oath at the insurer's request.
Answer: A
Insured's duties after a loss
-furnishing inventory
-submitting to examination
-giving prompt notice of loss
, -protect property from further damage
◉ Does fire insurance insure against
A-friendly fires (confined to their intended place)
B- accidental fires
C-Hostile fires. Answer: C
Fire insurance insures against uncontrolled or hostile fires
◉ Property Insurance Basics-
The standard fire policy requires that all property insurance policies
provide coverage for all of the following perils, except:
A
Fire
B
Lightning
C
Theft
D
Removal of property. Answer: theft
FIRE THINK (RFL)
