NJ P+C Exam UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
A producer acting as an agent for an insurance company may take which of the following actions? -
CORRECT ANSWER discount the premiums
When a corporation purchases a Commercial General Liability Policy, all of the following are named
insureds EXCEPT: - CORRECT ANSWER clients
A policy with an 80% coinsurance clause protects a building valued at $100,000. The insured carries
$85,000 of coverage, and a $30,000 loss occurs. How much will the insurer pay? - CORRECT
ANSWER $30,000
In a business income coverage form, the period of restoration ends when the: - CORRECT
ANSWER repairs should have been completed
Which of the following is a valid reason for cancellation of a property insurance policy? - CORRECT
ANSWER material change in exposure
A commercial property's basic cause of loss form does NOT cover water damage resulting from: -
CORRECT ANSWER an overflowing sewer
Which of the following is an example of an indirect loss? - CORRECT ANSWER a
manufacturing plant is unable to operate because one of its suppliers lost its production plant in a fire
A farm fertilizer company has four claims-made policies with a retro-date of 1995: policy W went into
effect in 1995; policy X went into effect in 1996; policy Y went into effect in 1997; and policy Z went
into effect in 1998. Under a claims-made policy, if a loss occurred in 1995 generating a claim in 1997,
which policy will pay this claim? - CORRECT ANSWER Y (1997)
When New Jersey law requires that double compensation be paid for a Workers Compensation claim,
the extra amount is paid solely by which of the following entities? - CORRECT ANSWER the
employer of the claimant
, ABC Contracting Company is constructing a new building for national bank. What is the term for
ABC Contracting? - CORRECT ANSWER the principal
A producer must maintain client records for a MINIMUM of how many years after a client's coverage
is terminated? - CORRECT ANSWER 5
An insurer often pays an insured party for a loss and takes over the insured's right to collect from any
other person that may be responsible for causing the loss. The provision in the policy that governs this
action by the insurer is the - CORRECT ANSWER subrogation clause
Before a Pennsylvania corporation can open an insurance agency in New Jersey, it MUST -
CORRECT ANSWER obtain authorization from the New Jersey Department of Treasury to
conduct business in New Jersey
All commercial package policies contain four key components. Which of the following is NOT one of
them? - CORRECT ANSWER deductible amount
Which section of an insurance policy lists the duties and rights of both the insured and insurer after a
loss? - CORRECT ANSWER conditions
Which is NOT covered in Commercial General Liability Policies? - CORRECT
ANSWER recall and warranties
Strict liability is best defined as - CORRECT ANSWER liability without regard to fault
A grocery tore worker drops a box on a customer while stocking a shelf. What type of coverage
applies? - CORRECT ANSWER premises liability
The declarations page of a Homeowners Insurance policy does NOT list the - CORRECT
ANSWER coverage territory
Under the regulations of the Producer Licensing Act, a producer may name an insurance agency -
CORRECT ANSWER Jones Insurance Brokerage
QUESTIONS AND CORRECT ANSWERS
A producer acting as an agent for an insurance company may take which of the following actions? -
CORRECT ANSWER discount the premiums
When a corporation purchases a Commercial General Liability Policy, all of the following are named
insureds EXCEPT: - CORRECT ANSWER clients
A policy with an 80% coinsurance clause protects a building valued at $100,000. The insured carries
$85,000 of coverage, and a $30,000 loss occurs. How much will the insurer pay? - CORRECT
ANSWER $30,000
In a business income coverage form, the period of restoration ends when the: - CORRECT
ANSWER repairs should have been completed
Which of the following is a valid reason for cancellation of a property insurance policy? - CORRECT
ANSWER material change in exposure
A commercial property's basic cause of loss form does NOT cover water damage resulting from: -
CORRECT ANSWER an overflowing sewer
Which of the following is an example of an indirect loss? - CORRECT ANSWER a
manufacturing plant is unable to operate because one of its suppliers lost its production plant in a fire
A farm fertilizer company has four claims-made policies with a retro-date of 1995: policy W went into
effect in 1995; policy X went into effect in 1996; policy Y went into effect in 1997; and policy Z went
into effect in 1998. Under a claims-made policy, if a loss occurred in 1995 generating a claim in 1997,
which policy will pay this claim? - CORRECT ANSWER Y (1997)
When New Jersey law requires that double compensation be paid for a Workers Compensation claim,
the extra amount is paid solely by which of the following entities? - CORRECT ANSWER the
employer of the claimant
, ABC Contracting Company is constructing a new building for national bank. What is the term for
ABC Contracting? - CORRECT ANSWER the principal
A producer must maintain client records for a MINIMUM of how many years after a client's coverage
is terminated? - CORRECT ANSWER 5
An insurer often pays an insured party for a loss and takes over the insured's right to collect from any
other person that may be responsible for causing the loss. The provision in the policy that governs this
action by the insurer is the - CORRECT ANSWER subrogation clause
Before a Pennsylvania corporation can open an insurance agency in New Jersey, it MUST -
CORRECT ANSWER obtain authorization from the New Jersey Department of Treasury to
conduct business in New Jersey
All commercial package policies contain four key components. Which of the following is NOT one of
them? - CORRECT ANSWER deductible amount
Which section of an insurance policy lists the duties and rights of both the insured and insurer after a
loss? - CORRECT ANSWER conditions
Which is NOT covered in Commercial General Liability Policies? - CORRECT
ANSWER recall and warranties
Strict liability is best defined as - CORRECT ANSWER liability without regard to fault
A grocery tore worker drops a box on a customer while stocking a shelf. What type of coverage
applies? - CORRECT ANSWER premises liability
The declarations page of a Homeowners Insurance policy does NOT list the - CORRECT
ANSWER coverage territory
Under the regulations of the Producer Licensing Act, a producer may name an insurance agency -
CORRECT ANSWER Jones Insurance Brokerage
