NJ Property, Casualty, and Auto Licensing Exam Correct 100%.

Insuring Agreement - ANSWER company's obligation to pay, includes the perils and coverage for specific or named peril policies Exclusions - ANSWER what the policy will not pay for Definitions - ANSWER names of the persons insured in addition to the named insured are listed here, along with any other (blank) of terms in the policy Additional Coverage - ANSWER coverages under a policy that are provided by the insurer at no extra cost Casualty Policies - ANSWER defense costs over and above liability limits, post-judgement interest, bail bonds and appeal bonds Property Policies - ANSWER debris removal, falls within the insured dwelling limit and cannot exceed the limit Binder - ANSWER temporary proof of coverage before policy is issued (oral is good for 10 days, written for 60 days) Bodily Injury and Property Damage Coverage Amounts - ANSWER Minimum: 15k per person/30k per accident/5k for property; Max is $500k Auto - Personal Assigned Risk Policy - ANSWER PAIP; standard risk 0 points, non-standard risk 1-8 points, assigned risk 9 points. (blank) classification runs for 3 years Auto - Commercial Assigned Risk Policy - ANSWER CAIP; assigned risk policy for commercial vehicles, including private vehicles owned by the business Personal Injury Protection - ANSWER PIP or No-Fault, NJ Representations Act; mandatory, encourage the insured to recover under his/her own policy, tries to reduce premiums and hasten settlements through avoidance of lengthy litigation that would normally be the case. The benefits of the standard policy are statutory and therefor minimal Fire - ANSWER A named peril policy. (blank) policies must be filed with the DOBI commissioner before use and must provide a fairly uniform look, and provide ample space for coverage, limits, rates, policy inception, and expiration dates Friendly Fire - ANSWER fire is within it's intended confines (not covered) Hostile Fire - ANSWER fire is outside it's intended confines Covered Fire Perils - ANSWER fire - hostile, lightening, debris removal, theft within first 5 days Excluded Fire Perils - ANSWER theft (after first 5 days of fire), neglect that gives rise to proximate cause of fire, war, government action, fire - friendly Fair Plan - ANSWER (blank) policies are designed to prevent redlining in urban areas: improve property conditions from an availability standpoint, stabilize the property insurance market, provide coverage for risks which insurance cannot be obtained in the open market $1.5 million - ANSWER FAIR Plan max limit Covered FAIR Plan Perils - ANSWER FAIR: fire, lightening, debris removal Excluded FAIR Plan Perils - ANSWER FAIR: burglary damage, flood, farms (farms are not urban) Dwelling Policy - ANSWER 1st party coverage only, not necessary to be owner-occupied, no more than 4 families or 5 roomers Basic Peril Coverage - DP1 - ANSWER basic peril coverage - named perils - most basic dwelling policy Broad Peril Coverage - DP2 - ANSWER named perils, but more perils than DP1 Special Peril Coverage - DP3 - ANSWER ALL-RISK on dwelling unless specifically excluded and BROAD on contents or personal property