NJ Property Producer Exam With 100%
Correct Answers 2023
Dwelling Policy
Only insures property
DP-1
Basic Form
DP-2
Broad Form
DP-3
Special Form
Dwelling Coverage A
Dwelling- Covers dwelling, structures attached to dwelling, and materials/supplies for
the dwelling.
Dwelling Coverage B
Other Structures- Insures buildings on premise but separate from the dwelling.
Dwelling Coverage C
Personal Property- Covers the insured's personal property and must be requested. If
rental property, a tenant's property is not covered.
Dwelling Coverage D
Fair Rental Value- Covers insured in the event a covered loss makes the rental portion
of a property unfit for normal use.
Dwelling Coverage E
Additional Living Expense- Included in DP-2 & DP-3 and pays for additional living
expenses the insured incurs after a loss. DP-1 by endorsement.
HO-2
Broad Form. Owner Occupied
HO-3
Special Form. Owner Occupied
HO-4
Tenants or Renters.
HO-5
Comprehensive Form (Open). Covers everything minus named exclusions.
HO-6
Condominium Owners
HO-8
Modified form. For special Risks. Think Antique homes.
Mobile Homes
By endorsement to a DP or HO policy. Can be a separate policy. Insures home, other
structures (10%) and contents. Personal property - 40% of coverage. Permanent
Foundation.
Time Element Coverage Forms
Business Income. Covers loss of income and expenses due to suspension of business
following a covered loss.
, Commercial Package Policy (CPP)
Must have at least 2 kinds of coverage.
CPP's can't contain:
Workers' Compensation, Life Insurance, Health and Disability Insurance, Certain types
of Professional Liability
Equipment Breakdown Coverage
NOT a maintenance policy, Designed to cover breakdown, Failure of pressure or
vacuum equipment, Mechanical failure (including rupture or bursting caused by
centrifugal force), Electrical failure.
Business-owners Policy
Similar to CPP, but more for small business owners.
Inland Marine
Insurance for property in transit
Personal Floaters
For individuals who want to insure their belongings while traveling.
Commercial Property Floaters
Protect property that a company does not store at a permanent location.
National Flood Insurance Program (NFIP)
Created in 1968 to offer flood insurance to eligible communities.
What are the two types of Flood Insurance?
Emergency & Regular
Building Limits for Flood Insurance
Emergency: $35,000
Regular: $250,000
Contents Limits for Flood Insurance
Emergency: $10,000
Regular: $100,000
Commercial Building Limits for Flood Insurance
Emergency: $100,000
Regular: $500,000
Business Personal Property for Flood Insurance
Emergency: $100,000
Regular: $500,000
How many hours for an Earthquake occurrence?
168 Hours
Insurance
Transfer of risk from a person or a business to an insurer
Insurable Interest
Risk of financial loss
Risk
The uncertainty of financial loss
Speculative Risk
Chance of loss or gain; Not insurable
Pure Risk
Chance of loss only; insurable
Hazard
Correct Answers 2023
Dwelling Policy
Only insures property
DP-1
Basic Form
DP-2
Broad Form
DP-3
Special Form
Dwelling Coverage A
Dwelling- Covers dwelling, structures attached to dwelling, and materials/supplies for
the dwelling.
Dwelling Coverage B
Other Structures- Insures buildings on premise but separate from the dwelling.
Dwelling Coverage C
Personal Property- Covers the insured's personal property and must be requested. If
rental property, a tenant's property is not covered.
Dwelling Coverage D
Fair Rental Value- Covers insured in the event a covered loss makes the rental portion
of a property unfit for normal use.
Dwelling Coverage E
Additional Living Expense- Included in DP-2 & DP-3 and pays for additional living
expenses the insured incurs after a loss. DP-1 by endorsement.
HO-2
Broad Form. Owner Occupied
HO-3
Special Form. Owner Occupied
HO-4
Tenants or Renters.
HO-5
Comprehensive Form (Open). Covers everything minus named exclusions.
HO-6
Condominium Owners
HO-8
Modified form. For special Risks. Think Antique homes.
Mobile Homes
By endorsement to a DP or HO policy. Can be a separate policy. Insures home, other
structures (10%) and contents. Personal property - 40% of coverage. Permanent
Foundation.
Time Element Coverage Forms
Business Income. Covers loss of income and expenses due to suspension of business
following a covered loss.
, Commercial Package Policy (CPP)
Must have at least 2 kinds of coverage.
CPP's can't contain:
Workers' Compensation, Life Insurance, Health and Disability Insurance, Certain types
of Professional Liability
Equipment Breakdown Coverage
NOT a maintenance policy, Designed to cover breakdown, Failure of pressure or
vacuum equipment, Mechanical failure (including rupture or bursting caused by
centrifugal force), Electrical failure.
Business-owners Policy
Similar to CPP, but more for small business owners.
Inland Marine
Insurance for property in transit
Personal Floaters
For individuals who want to insure their belongings while traveling.
Commercial Property Floaters
Protect property that a company does not store at a permanent location.
National Flood Insurance Program (NFIP)
Created in 1968 to offer flood insurance to eligible communities.
What are the two types of Flood Insurance?
Emergency & Regular
Building Limits for Flood Insurance
Emergency: $35,000
Regular: $250,000
Contents Limits for Flood Insurance
Emergency: $10,000
Regular: $100,000
Commercial Building Limits for Flood Insurance
Emergency: $100,000
Regular: $500,000
Business Personal Property for Flood Insurance
Emergency: $100,000
Regular: $500,000
How many hours for an Earthquake occurrence?
168 Hours
Insurance
Transfer of risk from a person or a business to an insurer
Insurable Interest
Risk of financial loss
Risk
The uncertainty of financial loss
Speculative Risk
Chance of loss or gain; Not insurable
Pure Risk
Chance of loss only; insurable
Hazard
