State Farm Casualty
To be issued a business entity producer license by the commissioner the business
entity must have how many partners or officers licensed as producers Correct
Answer: atleast 1
The occurence form trigger is based on which of the following? Correct Answer:
the date where injury and damage occur
How are surety bonds different from insurance? Correct Answer: Surety bonds
guarantee specific duties or obligations will be fulfilled and insurance pays for
losses
What is the deductible of a personal liability umbrella policy called? Correct
Answer: The SIR - self insured retention
What is self insured retention Correct Answer: SIR is an initial part of a loss the
insured pays before the umbrella pays if no other policy covers the loss
Which of the following is a common exclusion found in part D coverage for
damage to your auto of a PAP? Correct Answer: mechanical breakdown
Damage due to wear and tear, freezing, mechanical or electrical break down, and
road damage to tires is a common exclusion to the physical damage coverage
section. The risk of loss may be classified as Correct Answer: pure risk and
speculative risk
What is an insuring agreemet? Correct Answer: insurance company's promise to
pay
What is additional supplementary coverage Correct Answer: additional amount of
coverage for specific losses
An insured's building has an actual cash value of 200k and he has insured the
property for 120k with an 80% coinsurance clause. A 40k loss occurs. How much
will the policy pay? Correct Answer: 30,000
, Inland marine coverage Correct Answer: property insurance for property in transit
over land, certain types of moveable property, instrumentalities of transportation
and piers, instrumentalities of communication and legal liability exposures of
bailees
When Jane and her insurer could not agree on the amount of liability loss after her
accident, the settlement was submitted to someone whose decision was then
binding on both parties. What condition did Jane use? Correct Answer: Arbitration
An insured is at fault in an auto accident, damaging the insured's own car. The
damage to the car is covered by Correct Answer: the insured's collision coverage
When an insured's gardener was spraying weeds in his lawn, he failed to notice that
the wind was drifting the spray into the neighbor's yard where he damaged their
flower bed. The insured was found to be legally liable for this damage. This is an
example of Correct Answer: vicarious liability
An insured just purchased an auto policy for his new car. He wants to understand
what perils are not insured against. Which section of his policy should the insured
check? Correct Answer: Exclusions
Which of the following documents notifies the insurer of events that may lead to a
possible claim? Correct Answer: Notice of claim
Which provision defines how the policy will respond if there is other valid
insurance written on the same risk? Correct Answer: coinsurance
An insured incorporated under the laws of another state but doing business in this
state is considered Correct Answer: domestic
Who pays for benefits under a worker's compensation program? Correct Answer:
New jersey worker's compensation association
Which of the following would be required to complete the producer licensing
requirements? Correct Answer: agency supervisor whose actions do not include
selling insurance
An insurance producer dies and his wife takes over his business temporarily
through an agreement with another producer. What is the maximum time she can
do this? Correct Answer: 90 days
To be issued a business entity producer license by the commissioner the business
entity must have how many partners or officers licensed as producers Correct
Answer: atleast 1
The occurence form trigger is based on which of the following? Correct Answer:
the date where injury and damage occur
How are surety bonds different from insurance? Correct Answer: Surety bonds
guarantee specific duties or obligations will be fulfilled and insurance pays for
losses
What is the deductible of a personal liability umbrella policy called? Correct
Answer: The SIR - self insured retention
What is self insured retention Correct Answer: SIR is an initial part of a loss the
insured pays before the umbrella pays if no other policy covers the loss
Which of the following is a common exclusion found in part D coverage for
damage to your auto of a PAP? Correct Answer: mechanical breakdown
Damage due to wear and tear, freezing, mechanical or electrical break down, and
road damage to tires is a common exclusion to the physical damage coverage
section. The risk of loss may be classified as Correct Answer: pure risk and
speculative risk
What is an insuring agreemet? Correct Answer: insurance company's promise to
pay
What is additional supplementary coverage Correct Answer: additional amount of
coverage for specific losses
An insured's building has an actual cash value of 200k and he has insured the
property for 120k with an 80% coinsurance clause. A 40k loss occurs. How much
will the policy pay? Correct Answer: 30,000
, Inland marine coverage Correct Answer: property insurance for property in transit
over land, certain types of moveable property, instrumentalities of transportation
and piers, instrumentalities of communication and legal liability exposures of
bailees
When Jane and her insurer could not agree on the amount of liability loss after her
accident, the settlement was submitted to someone whose decision was then
binding on both parties. What condition did Jane use? Correct Answer: Arbitration
An insured is at fault in an auto accident, damaging the insured's own car. The
damage to the car is covered by Correct Answer: the insured's collision coverage
When an insured's gardener was spraying weeds in his lawn, he failed to notice that
the wind was drifting the spray into the neighbor's yard where he damaged their
flower bed. The insured was found to be legally liable for this damage. This is an
example of Correct Answer: vicarious liability
An insured just purchased an auto policy for his new car. He wants to understand
what perils are not insured against. Which section of his policy should the insured
check? Correct Answer: Exclusions
Which of the following documents notifies the insurer of events that may lead to a
possible claim? Correct Answer: Notice of claim
Which provision defines how the policy will respond if there is other valid
insurance written on the same risk? Correct Answer: coinsurance
An insured incorporated under the laws of another state but doing business in this
state is considered Correct Answer: domestic
Who pays for benefits under a worker's compensation program? Correct Answer:
New jersey worker's compensation association
Which of the following would be required to complete the producer licensing
requirements? Correct Answer: agency supervisor whose actions do not include
selling insurance
An insurance producer dies and his wife takes over his business temporarily
through an agreement with another producer. What is the maximum time she can
do this? Correct Answer: 90 days
