NJ P+C
A producer acting as an agent for an insurance company may take which of the following
actions? - ANS- discount the premiums
When a corporation purchases a Commercial General Liability Policy, all of the following
are named insureds EXCEPT: - ANS- clients
A policy with an 80% coinsurance clause protects a building valued at $100,000. The
insured carries $85,000 of coverage, and a $30,000 loss occurs. How much will the
insurer pay? - ANS- $30,000
Which of the following is a valid reason for cancellation of a property insurance policy? -
ANS- material change in exposure
A commercial property's basic cause of loss form does NOT cover water damage
resulting from: - ANS- an overflowing sewer
Which of the following is an example of an indirect loss? - ANS- a manufacturing plant is
unable to operate because one of its suppliers lost its production plant in a fire
A farm fertilizer company has four claims-made policies with a retro-date of 1995: policy
W went into effect in 1995; policy X went into effect in 1996; policy Y went into effect in
1997; and policy Z went into effect in 1998. Under a claims-made policy, if a loss occurred
in 1995 generating a claim in 1997, which policy will pay this claim? - ANS- Y (1997)
When New Jersey law requires that double compensation be paid for a Workers
Compensation claim, the extra amount is paid solely by which of the following entities? -
ANS- the employer of the claimant
A producer must maintain client records for a MINIMUM of how many years after a
client's coverage is terminated? - ANS- 5
Before a Pennsylvania corporation can open an insurance agency in New Jersey, it MUST
- ANS- obtain authorization from the New Jersey Department of Treasury to conduct
business in New Jersey
All commercial package policies contain four key components. Which of the following is
NOT one of them? - ANS- deductible amount
, Which is NOT covered in Commercial General Liability Policies? - ANS- recall and
warranties
Strict liability is best defined as - ANS- liability without regard to fault
A grocery tore worker drops a box on a customer while stocking a shelf. What type of
coverage applies? - ANS- premises liability
The declarations page of a Homeowners Insurance policy does NOT list the - ANS-
coverage territory
Under the regulations of the Producer Licensing Act, a producer may name an insurance
agency - ANS- Jones Insurance Brokerage
On an individual insurance application, which of the following signatures is NOT
required? - ANS- the insurer
A producer offers a prospective insured an auto policy that contains deductibles but tells
the prospect that it contains no deductibles. In this situation, the producer may be found
guilty of - ANS- misrepresentation
Misrepresentation of what facts will result in a voided contract - ANS- material
The Commissioner of Banking and Insurance may waive an applicant's prelicensing
education requirement for all of the following reasons EXCEPT that the applicant - ANS-
has been employed in the insurance industry for a minimum of five years
What is the MINIMUM amount an automobile liability policy with limits of
$100,000/$300,000/$25,000 will provide to cover each property damage claim? - ANS-
$25,000
Workers Compensation Coverage A provides benefits for which of the following claims?
- ANS- a job-incurred occupational disease
A businessowners policy (BOP) would NEVER be an appropriate way to provide
insurance coverage for a - ANS- general contractor
What element of an insurance contract demonstrates that each party is giving something
of value? - ANS- consideration
Which condition specifies that the insurer can take possession of damaged property
after payment of loss? - ANS- salvage
A producer acting as an agent for an insurance company may take which of the following
actions? - ANS- discount the premiums
When a corporation purchases a Commercial General Liability Policy, all of the following
are named insureds EXCEPT: - ANS- clients
A policy with an 80% coinsurance clause protects a building valued at $100,000. The
insured carries $85,000 of coverage, and a $30,000 loss occurs. How much will the
insurer pay? - ANS- $30,000
Which of the following is a valid reason for cancellation of a property insurance policy? -
ANS- material change in exposure
A commercial property's basic cause of loss form does NOT cover water damage
resulting from: - ANS- an overflowing sewer
Which of the following is an example of an indirect loss? - ANS- a manufacturing plant is
unable to operate because one of its suppliers lost its production plant in a fire
A farm fertilizer company has four claims-made policies with a retro-date of 1995: policy
W went into effect in 1995; policy X went into effect in 1996; policy Y went into effect in
1997; and policy Z went into effect in 1998. Under a claims-made policy, if a loss occurred
in 1995 generating a claim in 1997, which policy will pay this claim? - ANS- Y (1997)
When New Jersey law requires that double compensation be paid for a Workers
Compensation claim, the extra amount is paid solely by which of the following entities? -
ANS- the employer of the claimant
A producer must maintain client records for a MINIMUM of how many years after a
client's coverage is terminated? - ANS- 5
Before a Pennsylvania corporation can open an insurance agency in New Jersey, it MUST
- ANS- obtain authorization from the New Jersey Department of Treasury to conduct
business in New Jersey
All commercial package policies contain four key components. Which of the following is
NOT one of them? - ANS- deductible amount
, Which is NOT covered in Commercial General Liability Policies? - ANS- recall and
warranties
Strict liability is best defined as - ANS- liability without regard to fault
A grocery tore worker drops a box on a customer while stocking a shelf. What type of
coverage applies? - ANS- premises liability
The declarations page of a Homeowners Insurance policy does NOT list the - ANS-
coverage territory
Under the regulations of the Producer Licensing Act, a producer may name an insurance
agency - ANS- Jones Insurance Brokerage
On an individual insurance application, which of the following signatures is NOT
required? - ANS- the insurer
A producer offers a prospective insured an auto policy that contains deductibles but tells
the prospect that it contains no deductibles. In this situation, the producer may be found
guilty of - ANS- misrepresentation
Misrepresentation of what facts will result in a voided contract - ANS- material
The Commissioner of Banking and Insurance may waive an applicant's prelicensing
education requirement for all of the following reasons EXCEPT that the applicant - ANS-
has been employed in the insurance industry for a minimum of five years
What is the MINIMUM amount an automobile liability policy with limits of
$100,000/$300,000/$25,000 will provide to cover each property damage claim? - ANS-
$25,000
Workers Compensation Coverage A provides benefits for which of the following claims?
- ANS- a job-incurred occupational disease
A businessowners policy (BOP) would NEVER be an appropriate way to provide
insurance coverage for a - ANS- general contractor
What element of an insurance contract demonstrates that each party is giving something
of value? - ANS- consideration
Which condition specifies that the insurer can take possession of damaged property
after payment of loss? - ANS- salvage
