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
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
A producer must maintain client records for a MINIMUM of how many years after a client's coverage
is terminated? - CORRECT ANSWER 5
, 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 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
On an individual insurance application, which of the following signatures is NOT required? -
CORRECT ANSWER the insurer
A producer offers a prospective insured an auto policy that contains deductibles but tells the prospect
that it contains no deductibles. In this situation, the producer may be found guilty of - CORRECT
ANSWER misrepresentation
Misrepresentation of what facts will result in a voided contract - CORRECT ANSWER material
The Commissioner of Banking and Insurance may waive an applicant's prelicensing education
requirement for all of the following reasons EXCEPT that the applicant - CORRECT
ANSWER has been employed in the insurance industry for a minimum of five years
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
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
A producer must maintain client records for a MINIMUM of how many years after a client's coverage
is terminated? - CORRECT ANSWER 5
, 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 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
On an individual insurance application, which of the following signatures is NOT required? -
CORRECT ANSWER the insurer
A producer offers a prospective insured an auto policy that contains deductibles but tells the prospect
that it contains no deductibles. In this situation, the producer may be found guilty of - CORRECT
ANSWER misrepresentation
Misrepresentation of what facts will result in a voided contract - CORRECT ANSWER material
The Commissioner of Banking and Insurance may waive an applicant's prelicensing education
requirement for all of the following reasons EXCEPT that the applicant - CORRECT
ANSWER has been employed in the insurance industry for a minimum of five years
