Property and Casualty-NJ
l l
1. Alcontractlinlwhichlonlylonelpartyl-lthelinsurerl-lmakeslanlenforceablelpromiselislsaidltolbel-lANS-A-
lQuotation
B-lUnilateral
C-lAlcontractloflIndemnity
D-
AlcontractloflAdhesionlB-
l
Unilateral
l
Anlinsurancelpolicylislconsideredltolbelunilateral,lsincelonlylonelpartyltolthelcontract,lthelinsurancelco
mpany,lmakeslanlenforceablelpromise.
2. Anlinsurerlwhoselmainlhomelofficelisldomiciledlinlthelstatelwhereltheylwritelbusinesslislknow
nlaslal-lANS-A-lAlienlInsurer
B-lForeignlInsurer
C-lSurpluslLineslInsurer
D-
DomesticlInsurerlD-
l
DomesticlInsurer
l
AlDomesticlinsurerlislonelwhoselmainlhomelofficelisllocatedlinlthelstateltheylareldoinglbusiness.lAlS
urpluslLineslinsurerlcouldlbelaldomesticlcarrierlbutlthelbestlanswerlchoicelislD.
3. AllloflthelfollowinglareltruelregardinglthelAssignedlRisklPlanlforlWorkerslCompensationlinlNewlJ
ersey,lExceptl-lANS-
A.lIt'slalmethodlforlemployersltolobtainlWorkerslCompensationlinsurancelwhenltheylarelhavingldif
ficultylinlthelnormallmarketplace
B. Iflanlemployerlislunableltolobtainlcoveragelinlthelnormallmarketplace,lthelstatelwilllassignlanlins
urerltolwritelthelrisk
C. Thelplanlapproveslthelratelstructureslusedlbylalllinsurerslwritinglworkerslcompensationlcove
ragelinlthelstate.
D. Allladmittedlcarrierslwritinglworkerslcompensationlinsurancelinlthelstatelmustlbelongltolthelplan
,C-
lThelAssignedlRisklPlanlislNOTlinvolvedlinlapprovinglrating lplansloflthelvariouslinsurerslinlthelstate.l
Thelotherlchoiceslarelalllcorrect
4. Whichloflthelfollowinglisltruelregardinglcoveragelforlaldomesticlemployeelforlworkerslcompen
sationlinlNewlJersey?l-lANS-
A.lThelassignedlrisklplanlforlworkerslcompensationlinlnewljerseylwouldlprovidelthelcoveragelaut
omatically
B. Domesticlemployeeslarelexemptlfromlcoverage
C. Coveragelmustlbelprovidedlbylthelhomeownerslpolicyliflthelinjuredlisltolalresidentlorlhiredldomes
ticlservantlinlthelhome
D. Thelemployerlmustlbuylworkerslcompensationlinsurancelonltheldomesticlemployee
C-
lIflaldomesticlservantlislinjuredlwhilelworkinglinlthelhome,lthelhomeownerslinsurancelforlthelemployerl
mustlprovidelthelworkerslcompensationlcoveragelforltheldomesticlemployee
5. VacancylonlthelBOPlcanleliminatelcertainlperilsl-lANS-A.lAfterl60lDays
Iflthelpremiseslhavelbeenlvacantlforloverl60ldays,lmanylimportantlperilsl(suchlaslglasslbreakage,lvand
alism,landltheft)lwilllbelexcluded.
6. Anlinsurer'slsharedlparticipationlpercentagelinlthelUrbanlEnterpriselZonel(UEZ)programlislbas
edlon:l-lANS-A.lThelnumberloflwrittenlpolicieslinlthelurbanlenterpriselzone.
B. Theldiscretionloflthelcommissionerloflinsurance
C. Thelnumberloflyearsloperatinglinlthelstate
D. thelfinanciallsizeloflthelinsurer.
A-
lThelinsurer'slparticipationlpercentagelinlthelUEZlprogramlislbasedlonlthelnumberloflpolicieslthelinsure
rlhaslinlforcelinlthatlurbanlenterpriselzone.
7. ThelminimumllimitsloflalbasiclautomobilelliabilitylinsurancelrequiredlbylthelstateloflNewlJerse
ylis:l-lANS-A.l20/40/10
B.l25/50/25
C.l12.5/l25/l7.5
D.l$15,000loflPIPlandl$5,000loflPDL
,D-
lBylstatellaw,lthelbasiclautolpolicylmustlcontainlPIPlcoveragelandlanloptionall$5,000lforlpropertyldama
gelliability.
8. ThelCommissionerlmaylsuspend,lrevoke,lrefuseltolrenew,lorlrefuseltolissuelallicense.lPriorltolthel
revocationlorldenialloflallicense,lthelCommissionerlmustlprovideltolthellicenseelorlapplicantl-lANS-
A.lAnlopportunitylforlthelindividualltolhavelalhearing
B. Neitherloflthelanswers
C. Bothloflthelanswers
D. Thelfindingslwhichlledltolthelcommissioner'sldecision.
C-
lBeforelthelCommissionerlcanltakelanylactionlagainstlanlagent,lthelagentlhaslthelrightltolalhearinglre
gardinglthelCommissioner'slfindings.
9. AnlagentlmustlnotifylthelDepartmentloflInsuranceloflanyladministrativelactionslleviedlagainstlherlwi
thinl-lANS-A.l30ldaysloflthelfinal
dispositionloflthelmatter
B.60ldays.
C.10ldaysloflbeinglcharged.
D.24lhours.
A-
lAnlagentlmustlnotifylthelDepartmentloflInsuranceloflanyladministrativelactionsltakenlagainstlherlwithinl
30ldayslofltheldispositionloflthelaction.
10. Whichloflthelfollowinglislanloptionallcoveragelonlthelstandardlautolpolicylbutlnotlavailablelonlthel
basiclautolpolicy?l-lANS-A.lPersonallinjurylprotection
B. Roadsidelassistance
C. Autolphysicalldamagelcoverage
D. Uninsuredlandlunderinsuredlmotorists
D-
lUninsuredlandlunderinsuredlmotoristlcoveragelislavailablelaslanloptionlonlthelstandardlautolpolicyl
butlnotlavailablelonlthelbasic.lThelotherlthreelchoiceslarelalllavailablelonlthelbasiclautolpolicy.
11. Making,lcirculatinglorldistributinglinformationlaboutlbenefitslwhichlcanlconfuselorlmisleadlalpote
ntiallcustomerlislanlexamplelof:l-lANS-A.lDefamation
, B. FalselA
dvertising
C. Misrepresentation
D. IllegallInducement
B-
lAdvertisinglmustlbeltruthfullinlalllaspects.lIllegallinducementlislanotherlwordlforlrebating.lDefamationlis
lmakelfalselstatementslmeantltolinjurelsomeonelinlthelinsurancelbusiness
12. Policieslarelwrittenlforlthatlpersonlsuchlaslalhomelpolicylandldolnotltransferluponlthelsaleloflthatl
exposurelarelwhatltypeloflcontractl-lANS-A.lAleatorylContract
B. UnilaterallContract
C. ConditionallContract
D. PersonallContractl
D-lPersonallContract
Alpolicylislpersonal.lInlotherlwords,lwithlalsaleloflalcarlorlhouselthelpolicyldoeslnotlautomaticallyltrans
ferltolthelnewlowner.
13. Anlunauthorizedlcompanylwritinglbusinesslinlthelstatelthatlislnotlsubjectltolstatelapprovedlpolicyl
forms,lrates,lorlruleslislknownlaslal-lANS-A.lStocklinsurer.
B. SurpluslLineslinsurer.
C. Reciprocallinsurer.
D. Mutuallinsurer.
B-lSurpluslLineslInsurer
SurpluslLineslcompanieslcanlchargelwhateverltheylwantlandltheirlpolicieslcanlsaylwhateverltheylwa
nt.lTheylarelNOTlauthorizedltoldolbusinesslinlthelstatelandlthereforelnotlsubjectltolstatelapprovedlp
olicylforms,lruleslandlrates.
14. Makinglanylmisrepresentationlorlincompletelcomparisonloflpoliciesltolanylpersonlforlthelpurp
oseloflinducinglthatlpersonltollapselalcurrentlpolicylbestldescribesl-lANS-A.lcoercion.
B. falseladvertising.
l l
1. Alcontractlinlwhichlonlylonelpartyl-lthelinsurerl-lmakeslanlenforceablelpromiselislsaidltolbel-lANS-A-
lQuotation
B-lUnilateral
C-lAlcontractloflIndemnity
D-
AlcontractloflAdhesionlB-
l
Unilateral
l
Anlinsurancelpolicylislconsideredltolbelunilateral,lsincelonlylonelpartyltolthelcontract,lthelinsurancelco
mpany,lmakeslanlenforceablelpromise.
2. Anlinsurerlwhoselmainlhomelofficelisldomiciledlinlthelstatelwhereltheylwritelbusinesslislknow
nlaslal-lANS-A-lAlienlInsurer
B-lForeignlInsurer
C-lSurpluslLineslInsurer
D-
DomesticlInsurerlD-
l
DomesticlInsurer
l
AlDomesticlinsurerlislonelwhoselmainlhomelofficelisllocatedlinlthelstateltheylareldoinglbusiness.lAlS
urpluslLineslinsurerlcouldlbelaldomesticlcarrierlbutlthelbestlanswerlchoicelislD.
3. AllloflthelfollowinglareltruelregardinglthelAssignedlRisklPlanlforlWorkerslCompensationlinlNewlJ
ersey,lExceptl-lANS-
A.lIt'slalmethodlforlemployersltolobtainlWorkerslCompensationlinsurancelwhenltheylarelhavingldif
ficultylinlthelnormallmarketplace
B. Iflanlemployerlislunableltolobtainlcoveragelinlthelnormallmarketplace,lthelstatelwilllassignlanlins
urerltolwritelthelrisk
C. Thelplanlapproveslthelratelstructureslusedlbylalllinsurerslwritinglworkerslcompensationlcove
ragelinlthelstate.
D. Allladmittedlcarrierslwritinglworkerslcompensationlinsurancelinlthelstatelmustlbelongltolthelplan
,C-
lThelAssignedlRisklPlanlislNOTlinvolvedlinlapprovinglrating lplansloflthelvariouslinsurerslinlthelstate.l
Thelotherlchoiceslarelalllcorrect
4. Whichloflthelfollowinglisltruelregardinglcoveragelforlaldomesticlemployeelforlworkerslcompen
sationlinlNewlJersey?l-lANS-
A.lThelassignedlrisklplanlforlworkerslcompensationlinlnewljerseylwouldlprovidelthelcoveragelaut
omatically
B. Domesticlemployeeslarelexemptlfromlcoverage
C. Coveragelmustlbelprovidedlbylthelhomeownerslpolicyliflthelinjuredlisltolalresidentlorlhiredldomes
ticlservantlinlthelhome
D. Thelemployerlmustlbuylworkerslcompensationlinsurancelonltheldomesticlemployee
C-
lIflaldomesticlservantlislinjuredlwhilelworkinglinlthelhome,lthelhomeownerslinsurancelforlthelemployerl
mustlprovidelthelworkerslcompensationlcoveragelforltheldomesticlemployee
5. VacancylonlthelBOPlcanleliminatelcertainlperilsl-lANS-A.lAfterl60lDays
Iflthelpremiseslhavelbeenlvacantlforloverl60ldays,lmanylimportantlperilsl(suchlaslglasslbreakage,lvand
alism,landltheft)lwilllbelexcluded.
6. Anlinsurer'slsharedlparticipationlpercentagelinlthelUrbanlEnterpriselZonel(UEZ)programlislbas
edlon:l-lANS-A.lThelnumberloflwrittenlpolicieslinlthelurbanlenterpriselzone.
B. Theldiscretionloflthelcommissionerloflinsurance
C. Thelnumberloflyearsloperatinglinlthelstate
D. thelfinanciallsizeloflthelinsurer.
A-
lThelinsurer'slparticipationlpercentagelinlthelUEZlprogramlislbasedlonlthelnumberloflpolicieslthelinsure
rlhaslinlforcelinlthatlurbanlenterpriselzone.
7. ThelminimumllimitsloflalbasiclautomobilelliabilitylinsurancelrequiredlbylthelstateloflNewlJerse
ylis:l-lANS-A.l20/40/10
B.l25/50/25
C.l12.5/l25/l7.5
D.l$15,000loflPIPlandl$5,000loflPDL
,D-
lBylstatellaw,lthelbasiclautolpolicylmustlcontainlPIPlcoveragelandlanloptionall$5,000lforlpropertyldama
gelliability.
8. ThelCommissionerlmaylsuspend,lrevoke,lrefuseltolrenew,lorlrefuseltolissuelallicense.lPriorltolthel
revocationlorldenialloflallicense,lthelCommissionerlmustlprovideltolthellicenseelorlapplicantl-lANS-
A.lAnlopportunitylforlthelindividualltolhavelalhearing
B. Neitherloflthelanswers
C. Bothloflthelanswers
D. Thelfindingslwhichlledltolthelcommissioner'sldecision.
C-
lBeforelthelCommissionerlcanltakelanylactionlagainstlanlagent,lthelagentlhaslthelrightltolalhearinglre
gardinglthelCommissioner'slfindings.
9. AnlagentlmustlnotifylthelDepartmentloflInsuranceloflanyladministrativelactionslleviedlagainstlherlwi
thinl-lANS-A.l30ldaysloflthelfinal
dispositionloflthelmatter
B.60ldays.
C.10ldaysloflbeinglcharged.
D.24lhours.
A-
lAnlagentlmustlnotifylthelDepartmentloflInsuranceloflanyladministrativelactionsltakenlagainstlherlwithinl
30ldayslofltheldispositionloflthelaction.
10. Whichloflthelfollowinglislanloptionallcoveragelonlthelstandardlautolpolicylbutlnotlavailablelonlthel
basiclautolpolicy?l-lANS-A.lPersonallinjurylprotection
B. Roadsidelassistance
C. Autolphysicalldamagelcoverage
D. Uninsuredlandlunderinsuredlmotorists
D-
lUninsuredlandlunderinsuredlmotoristlcoveragelislavailablelaslanloptionlonlthelstandardlautolpolicyl
butlnotlavailablelonlthelbasic.lThelotherlthreelchoiceslarelalllavailablelonlthelbasiclautolpolicy.
11. Making,lcirculatinglorldistributinglinformationlaboutlbenefitslwhichlcanlconfuselorlmisleadlalpote
ntiallcustomerlislanlexamplelof:l-lANS-A.lDefamation
, B. FalselA
dvertising
C. Misrepresentation
D. IllegallInducement
B-
lAdvertisinglmustlbeltruthfullinlalllaspects.lIllegallinducementlislanotherlwordlforlrebating.lDefamationlis
lmakelfalselstatementslmeantltolinjurelsomeonelinlthelinsurancelbusiness
12. Policieslarelwrittenlforlthatlpersonlsuchlaslalhomelpolicylandldolnotltransferluponlthelsaleloflthatl
exposurelarelwhatltypeloflcontractl-lANS-A.lAleatorylContract
B. UnilaterallContract
C. ConditionallContract
D. PersonallContractl
D-lPersonallContract
Alpolicylislpersonal.lInlotherlwords,lwithlalsaleloflalcarlorlhouselthelpolicyldoeslnotlautomaticallyltrans
ferltolthelnewlowner.
13. Anlunauthorizedlcompanylwritinglbusinesslinlthelstatelthatlislnotlsubjectltolstatelapprovedlpolicyl
forms,lrates,lorlruleslislknownlaslal-lANS-A.lStocklinsurer.
B. SurpluslLineslinsurer.
C. Reciprocallinsurer.
D. Mutuallinsurer.
B-lSurpluslLineslInsurer
SurpluslLineslcompanieslcanlchargelwhateverltheylwantlandltheirlpolicieslcanlsaylwhateverltheylwa
nt.lTheylarelNOTlauthorizedltoldolbusinesslinlthelstatelandlthereforelnotlsubjectltolstatelapprovedlp
olicylforms,lruleslandlrates.
14. Makinglanylmisrepresentationlorlincompletelcomparisonloflpoliciesltolanylpersonlforlthelpurp
oseloflinducinglthatlpersonltollapselalcurrentlpolicylbestldescribesl-lANS-A.lcoercion.
B. falseladvertising.
