NJ Property Insurance Exam With 100%
Correct Answers 2024.
Abandonment
the abdication of insured property into the hands of another, or into the possession of no
one in particular
accident
an unfortunate incident that happens unexpectedly and unintentionally, typically
resulting in damage or injury.
ACV. actual cash value
the required amount to pay damages for property loss, which is calculated based on the
property's current replacement value minus depreciation
additional coverage
A provision in an insurance policy that allows for more coverage for specific loss
expense without increase in premium.
additional insureds
Individuals or business that are not named as insured on the declaration page, but are
protected by the policy, usually in regard to a specific interest.
Adhesion
a contract offered on a take it or leave it basis by an insurer, in which the insured only
option is to accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured
Admitted Insurer
An insurance company authorized and licensed to transact business in a particular
state.
Adverse Selection
The tendency of risks with higher probability of loss to purchase and maintain insurance
more often than the risks who present lower probability.
agent
An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of
an insurer.
Agreed Value
A property policy with a provision agreed upon by the insurer and insured as to the
amount of insurance that represents a fair valuation for the property at the time the
insurance is written.
aleatory
A contract in which participating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amount the insured will pay in premiums is unequal to
the amount the insurer will pay in the event of a loss.
Alien Insurer
An insurance company that is incorporated outside the United States.
Apparent Authority
The appearance or the assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal created.
, Apparent Authority
The appearance or the assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal created.
appraisal
An assessment of property to determine either the correct amount of insurance to be
written or the amount of loss to be paid.
Arbitration
Method of claim settlement used when the insured and insurer cannot agree upon the
amount of the loss.
assingment
the transfer of legal right or interest in an insurance policy. In property and casualty
insurance, assignments of policies are usually valid only with the prior written consent of
the insurer
auto
A land motor vehicle, trailer or semi-trailer designed for use on public roads, including
attached machinery or equipment; auto does not include mobile equipment.
Avoidance
A method of dealing with risk by deliberately keeping away from it (e.g. if a person
wanted to avoid the risk of being killed in an airplane crash, he/she might choose never
to fly in a plane).
Bailee
A person or entity that has possession of personal property entrusted to him/her by the
owner. For example, a television repair person that has possession of a customer's
television would be a bailee.
beneficiary
a person who receives the proceeds from the insurance policy
binder
A temporary written or oral agreement to provide insurance coverage until a formal
written policy is issued.
blanket bond
A type of bond that covers losses caused by dishonest employees.
Blanket Insurance
A single property insurance policy that provides coverage for multiple classes of
property at one location, or provides coverage for one or more classes of property at
multiple locations.
Boycott
a unfair trade practice in which one person refuses to do business with another until he
or she agrees to certain conditions
Builders Risk Coverage Form
A commercial property form that covers buildings under construction.
Building and Personal Property Coverage Form
A commercial property form that covers buildings, and/or their contents.
burglary
The forced entry into another's premises with felonious intent.
cancellation
Correct Answers 2024.
Abandonment
the abdication of insured property into the hands of another, or into the possession of no
one in particular
accident
an unfortunate incident that happens unexpectedly and unintentionally, typically
resulting in damage or injury.
ACV. actual cash value
the required amount to pay damages for property loss, which is calculated based on the
property's current replacement value minus depreciation
additional coverage
A provision in an insurance policy that allows for more coverage for specific loss
expense without increase in premium.
additional insureds
Individuals or business that are not named as insured on the declaration page, but are
protected by the policy, usually in regard to a specific interest.
Adhesion
a contract offered on a take it or leave it basis by an insurer, in which the insured only
option is to accept or reject the contract. Any ambiguities in the contract will be settled in
favor of the insured
Admitted Insurer
An insurance company authorized and licensed to transact business in a particular
state.
Adverse Selection
The tendency of risks with higher probability of loss to purchase and maintain insurance
more often than the risks who present lower probability.
agent
An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of
an insurer.
Agreed Value
A property policy with a provision agreed upon by the insurer and insured as to the
amount of insurance that represents a fair valuation for the property at the time the
insurance is written.
aleatory
A contract in which participating parties exchange unequal amounts. Insurance
contracts are aleatory in that the amount the insured will pay in premiums is unequal to
the amount the insurer will pay in the event of a loss.
Alien Insurer
An insurance company that is incorporated outside the United States.
Apparent Authority
The appearance or the assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal created.
, Apparent Authority
The appearance or the assumption of authority based on the actions, words, or deeds
of the principal or because of circumstances the principal created.
appraisal
An assessment of property to determine either the correct amount of insurance to be
written or the amount of loss to be paid.
Arbitration
Method of claim settlement used when the insured and insurer cannot agree upon the
amount of the loss.
assingment
the transfer of legal right or interest in an insurance policy. In property and casualty
insurance, assignments of policies are usually valid only with the prior written consent of
the insurer
auto
A land motor vehicle, trailer or semi-trailer designed for use on public roads, including
attached machinery or equipment; auto does not include mobile equipment.
Avoidance
A method of dealing with risk by deliberately keeping away from it (e.g. if a person
wanted to avoid the risk of being killed in an airplane crash, he/she might choose never
to fly in a plane).
Bailee
A person or entity that has possession of personal property entrusted to him/her by the
owner. For example, a television repair person that has possession of a customer's
television would be a bailee.
beneficiary
a person who receives the proceeds from the insurance policy
binder
A temporary written or oral agreement to provide insurance coverage until a formal
written policy is issued.
blanket bond
A type of bond that covers losses caused by dishonest employees.
Blanket Insurance
A single property insurance policy that provides coverage for multiple classes of
property at one location, or provides coverage for one or more classes of property at
multiple locations.
Boycott
a unfair trade practice in which one person refuses to do business with another until he
or she agrees to certain conditions
Builders Risk Coverage Form
A commercial property form that covers buildings under construction.
Building and Personal Property Coverage Form
A commercial property form that covers buildings, and/or their contents.
burglary
The forced entry into another's premises with felonious intent.
cancellation
