Nj Property & Casualty Exam Fx Q&A
2023.
For the purpose of insurance, risk is defined as - Correct Answer-The uncertainty or
chance of loss
What significance did Paul vs. Virginia have on the insurance industry? - Correct
Answer-It was decided that insurance was not interstate commerce and could not be
regulated by the federal government
The War, Military Act, and Terrorism Exclusion will only apply to an incident of terrorism
in which the total of insured damage to all types of property in the United States, its
territories and possessions, Puerto Rico and Canada exceeds what amount? - Correct
Answer-$25,000,000
If a producer has been convicted of a crime, he or she must notify the Commissioner
within - Correct Answer-30 days
Which part of an insurance policy covers claims-related expenses, reasonable
expenses incurred by an insured to protect damaged property from further loss, or
defense expenses? - Correct Answer-Additional coverage
The removal coverage included in the broad form dwelling policy will cover property
temporarily removed from the premises to protect it from damage for how long? -
Correct Answer-30 days
The part of a property policy that shows the amount of insurance, premium, and policy
term is the - Correct Answer-Declarations
Insurers that are authorized to write basic property insurance in New Jersey must
impose a ___ surcharge on basic property insurance policies. - Correct Answer-5%
Which of the following homeowners forms is designed to provide named peril coverage
for personal property to individuals who rent an apartment? - Correct Answer-HO-4
If a person violates a cease and desist order, the Commissioner can turn the matter
over to the New Jersey Superior Court for further legal action and can assess a fine for
each violation of up to - Correct Answer-$5,000
The New Jersey Commercial Insurance Deregulation Act requires insurers to file rates
and any changes or amendments with the Commissioner no later than - Correct
Answer-30 days before becoming effective
, The amount an insurer will pay under Coverage D (Loss of Use) depends on - Correct
Answer-The amount of coverage on the dwelling
What is the fine for violating the Commissioner's cease and desist order? - Correct
Answer-$5,000
A commercial property special form covers property in transit up to - Correct Answer-
$5,000
Equipment breakdown coverage is written with a single limit of insurance per accident.
However, what is the sublimit for hazardous substance cleanup, or repair or
replacement of contaminated property? - Correct Answer-$25,000
When an insurance producer negotiates for an insurance contract on behalf of a client,
the producer is acting as a(n) - Correct Answer-Broker
A producer was found guilty of a 3rd violation of the Insurance Code. What would be the
monetary penalty he will have to pay? - Correct Answer-$10,000
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan
but only if the customer purchases a life insurance policy from the bank in the amount of
the loan. This is an example of - Correct Answer-Coercion
An applicant knowingly fails to communicate information that would help an underwriter
make a sound decision regarding coverage. This is an example of - Correct Answer-
Concealment
Which authority has the power to deny someone an insurance producer's license? -
Correct Answer-Commissioner
According to the businessowners policy (BOP) definitions, which of the following does
NOT mean valuable papers and records? - Correct Answer-Securities
Under the commercial property coverage program, the basic causes of loss form
insures against loss caused by - Correct Answer-Sprinkler leakage
The insured's home is covered by an HO-3. Two years ago, the insured bought the
home for $58,000. Today, its replacement value is $60,000. How much Coverage A
does the insured need to qualify for replacement cost coverage? - Correct Answer-
$48,000
When transacting business in this state an insurer formed under the laws of another
country is known as a/an - Correct Answer-Alien Insurer
A tornado that destroys property would be an example of which of the following? -
Correct Answer-A peril
2023.
For the purpose of insurance, risk is defined as - Correct Answer-The uncertainty or
chance of loss
What significance did Paul vs. Virginia have on the insurance industry? - Correct
Answer-It was decided that insurance was not interstate commerce and could not be
regulated by the federal government
The War, Military Act, and Terrorism Exclusion will only apply to an incident of terrorism
in which the total of insured damage to all types of property in the United States, its
territories and possessions, Puerto Rico and Canada exceeds what amount? - Correct
Answer-$25,000,000
If a producer has been convicted of a crime, he or she must notify the Commissioner
within - Correct Answer-30 days
Which part of an insurance policy covers claims-related expenses, reasonable
expenses incurred by an insured to protect damaged property from further loss, or
defense expenses? - Correct Answer-Additional coverage
The removal coverage included in the broad form dwelling policy will cover property
temporarily removed from the premises to protect it from damage for how long? -
Correct Answer-30 days
The part of a property policy that shows the amount of insurance, premium, and policy
term is the - Correct Answer-Declarations
Insurers that are authorized to write basic property insurance in New Jersey must
impose a ___ surcharge on basic property insurance policies. - Correct Answer-5%
Which of the following homeowners forms is designed to provide named peril coverage
for personal property to individuals who rent an apartment? - Correct Answer-HO-4
If a person violates a cease and desist order, the Commissioner can turn the matter
over to the New Jersey Superior Court for further legal action and can assess a fine for
each violation of up to - Correct Answer-$5,000
The New Jersey Commercial Insurance Deregulation Act requires insurers to file rates
and any changes or amendments with the Commissioner no later than - Correct
Answer-30 days before becoming effective
, The amount an insurer will pay under Coverage D (Loss of Use) depends on - Correct
Answer-The amount of coverage on the dwelling
What is the fine for violating the Commissioner's cease and desist order? - Correct
Answer-$5,000
A commercial property special form covers property in transit up to - Correct Answer-
$5,000
Equipment breakdown coverage is written with a single limit of insurance per accident.
However, what is the sublimit for hazardous substance cleanup, or repair or
replacement of contaminated property? - Correct Answer-$25,000
When an insurance producer negotiates for an insurance contract on behalf of a client,
the producer is acting as a(n) - Correct Answer-Broker
A producer was found guilty of a 3rd violation of the Insurance Code. What would be the
monetary penalty he will have to pay? - Correct Answer-$10,000
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan
but only if the customer purchases a life insurance policy from the bank in the amount of
the loan. This is an example of - Correct Answer-Coercion
An applicant knowingly fails to communicate information that would help an underwriter
make a sound decision regarding coverage. This is an example of - Correct Answer-
Concealment
Which authority has the power to deny someone an insurance producer's license? -
Correct Answer-Commissioner
According to the businessowners policy (BOP) definitions, which of the following does
NOT mean valuable papers and records? - Correct Answer-Securities
Under the commercial property coverage program, the basic causes of loss form
insures against loss caused by - Correct Answer-Sprinkler leakage
The insured's home is covered by an HO-3. Two years ago, the insured bought the
home for $58,000. Today, its replacement value is $60,000. How much Coverage A
does the insured need to qualify for replacement cost coverage? - Correct Answer-
$48,000
When transacting business in this state an insurer formed under the laws of another
country is known as a/an - Correct Answer-Alien Insurer
A tornado that destroys property would be an example of which of the following? -
Correct Answer-A peril
