Final Exam Questions Property and Casualty -
p p p p p p
NJ STATEEXAM WITH STUDY GUIDE EXAM 2024-
p p p p p p p p
2025
personalpautoppolicyp(PAP)p(LMPDA/IMCONOV/BIPBIOPDO/10D/20D)
......answer. ... providespprotectionpforpliability,pmedicalppayments,pandpdamagepto
thepautomobilepforpindividualspandpmarriedpcouplespandptheirpownedpand
nonownedpvehicles;pmostpwidelypusedppersonalplinespautopcontractpinpUSpand
Alabama,plimitspofpliabilitypalwayspwrittenpaspBIpperpperson,pBIpperpoccurrence,pand
PDpperpoccurrence;pcancellationpnoticespincludep10pdayspafterpreceivingpfor
nonpaymentpandp20pdayspafterpreceivingpforpotherpreason;(cancellationpapplied
differentlyptoppoliciespunderpAssignedpRiskpplan,ppoliciespwithp4porpmorepautos,
andppoliciespinsuringpvehiclespoverp1,500plbsporpusedpinpinsured'spbusiness)
exclusionspVMMp(DG/T/B/L/E/VP)p ......answer. .... exclusionspincludepdamagepto
glass,ptheft,pburglary,plarceny,pexplosion,pandpvacantppremisespifpleftpforpmorepthan
60pdays
umbrellapliabilitypcoveragepp......answer. ... liabilitypinsurancepthatpprovidesphigher
limitspforpbiz,porgs,pandpindividualspandpsupplementspbasicpliabilitypcoverage
(limitspnotpsamepforpallpcoveredplosses,pcertainplossespexcludedpbypprimary
contractspcovered,pthispbecomespprimarypwhenpunderlyingpcoveragepexhausted)
,commonpexclusionsptopspecialpopenpperilspcausepofplosspform
(FDVUS/TITDUC/W/GELWTDMBSRSVF/SSBED/LAOI/C)p ......answer. ... freezing
damageptopvacant,punoccupiedpstructuresp(unlesspreasonablepcarephaspbeenptaken
orptopfences,ppavement,ppatios,petc);ptheftpinporptopapdwellingpunderpconstruction;
windpdamagepitemsplikepoutsidepantennapandpotherpsuchpitems;pgradualpand
expectedplossespsuchpaspwearpandptear,pdeterioration,pinherentpvice,platentpdefect,
mechanicalpbreakdown,psmog,prust,petc;psmoke,pvapor,pfumes,petcpoccurringpover
aplongpperiodpofptime;psettling,pshrinking,pbulgingporpexpansionpdamagepcausedpby
normalpactionspofpthispnature;plossespcausedpbypanimalspownedpbypinsured;
collapsepfrompmostpotherpcauses
consultantp ......answer. ... aptypepofpinsuranceppersonpwhopdoespnotpactuallypsell
insurancepbutpsellspadvicepaboutpinsurance
commercialpblockppolicyp(OPC/HVI/BC)p ......answer. .... generallypprovidespopen
perilspcoverage,pitemspofphighpvalue,pandpbaileepcoveragep(excludespprotection
againstpemployeepdishonesty)
croppcoveragepexclusionpunderpfarmppolicyp ......answer. .... coveragepdesignedpto
coverpcultivatedpagriculturalpplantsplikepgrain,pvegetables,porpfruitpwhilepstillpin
field;pnotpeligiblepforpcoveragepunderpfarmpprogram;pdamagepfrompcroppdusting
notpcovered
,negativepequitypinsurancepunderpPAPp ......answer .... coveragepsometimespsoldpby
autopdealerspthatpcoverspdifferencepinpwhatpthepinsurerpwillppaypandpwhatpispowed
onpthepcarpunderpPAP;pex.pautopcoveredpunderpcollisionpisptotalplosspafterpaccident,
insuredpowesp$30,000pbutpactualpcashpvaluepisp$15,000=pinsurerppaysp$15,000
minuspdeductiblepsincepinsuredpowed-ACV=amountpforpinsurer-deductible
fourpL'sprulep(LOLA/PL/UTLII)p ......answer. ... rulepstatingpthatpinsuredpwillpcollect
afterpapcoveredplossptheplowestpofptheplosspamount,ptheppolicyplimit,porpupptopthe
levelpofpinsurablepinterest
facultativepreinsurancep ......answer. ... occurspinpreinsuranceppoliciespwhen
reinsurerpacceptsponeporpallpofpapcertainpclasspofpbusinesspfromporiginalpinsurer
viapapprearrangeptreaty
reinsuranceptreatyp ......answer. ... occurspinpapreinsuranceppolicypwhenpanpentire
bookpofpbusinesspisptransferredpfromponepinsurerptopanother
fourpcausepofplosspformspusedpwithpcommercialppropertyppolicyp(BBSE)
......answer. ... basic,pbroad,pspecial,pandpearthquake
vacantp ......answer. ... meansppropertypdoespnotpcontainpsufficientpfurnishingspto
supportpitspintendedpoccupancyporpuse
, unoccupiedp ......answer. ... meanspthepinsuredppropertypispnotpcurrentlypbeingpused
butpoccupantpintendsptopreturn
breakdownpperilpcoveragepunderpequipmentpbreakdownpformp(FPVE/MF/EFAA)
......answer. ... onlypperilpcoveredpunderpequipmentpbreakdown;pincludespfailurepof
pressure/vacuumpequipment,pmechanicalpfailure,pelectricalpfailurepincluding
arcingpandparsonp(excludespleakagepofpanypvalve,pfitting,pjointporpconnection)
policypformatpforpPAPp(DPD)pp......answer. ....declarationpandppolicypdefinitions
PAPpdeclarationppagep(PA/I/AC/PL/P/E)p ......answer. .... identifiespallppersonal
aspectspofpcontract,pthepinsured,pautospcovered,ppolicyplimits,ppremiums,pand
endorsements
namedpinsuredpforpPAPp ......answer. .... includespthepinsuredpandpspousepifpsame
household
6ptypespofpcoveredpautospunderpPAPp(DV/RA/NAA/TSA/TBTCA/FAUEB)
......answer. ... vehiclespshownpinpdeclarations,preplacementpauto,pnewlypacquired
automobiles,ptemporarypsubstitutepautos,ptrailerspbeingptowedpbypcoveredpauto,
furnishedpautospforpusepinpemployer'spbusinesspcovered;pexamplespincludeptrailer
attachedptopinsured'spauto,p1/2ptonpvanpusedponpfarm,pandppick-upptruckp(onpfamily
farmptoo)
p p p p p p
NJ STATEEXAM WITH STUDY GUIDE EXAM 2024-
p p p p p p p p
2025
personalpautoppolicyp(PAP)p(LMPDA/IMCONOV/BIPBIOPDO/10D/20D)
......answer. ... providespprotectionpforpliability,pmedicalppayments,pandpdamagepto
thepautomobilepforpindividualspandpmarriedpcouplespandptheirpownedpand
nonownedpvehicles;pmostpwidelypusedppersonalplinespautopcontractpinpUSpand
Alabama,plimitspofpliabilitypalwayspwrittenpaspBIpperpperson,pBIpperpoccurrence,pand
PDpperpoccurrence;pcancellationpnoticespincludep10pdayspafterpreceivingpfor
nonpaymentpandp20pdayspafterpreceivingpforpotherpreason;(cancellationpapplied
differentlyptoppoliciespunderpAssignedpRiskpplan,ppoliciespwithp4porpmorepautos,
andppoliciespinsuringpvehiclespoverp1,500plbsporpusedpinpinsured'spbusiness)
exclusionspVMMp(DG/T/B/L/E/VP)p ......answer. .... exclusionspincludepdamagepto
glass,ptheft,pburglary,plarceny,pexplosion,pandpvacantppremisespifpleftpforpmorepthan
60pdays
umbrellapliabilitypcoveragepp......answer. ... liabilitypinsurancepthatpprovidesphigher
limitspforpbiz,porgs,pandpindividualspandpsupplementspbasicpliabilitypcoverage
(limitspnotpsamepforpallpcoveredplosses,pcertainplossespexcludedpbypprimary
contractspcovered,pthispbecomespprimarypwhenpunderlyingpcoveragepexhausted)
,commonpexclusionsptopspecialpopenpperilspcausepofplosspform
(FDVUS/TITDUC/W/GELWTDMBSRSVF/SSBED/LAOI/C)p ......answer. ... freezing
damageptopvacant,punoccupiedpstructuresp(unlesspreasonablepcarephaspbeenptaken
orptopfences,ppavement,ppatios,petc);ptheftpinporptopapdwellingpunderpconstruction;
windpdamagepitemsplikepoutsidepantennapandpotherpsuchpitems;pgradualpand
expectedplossespsuchpaspwearpandptear,pdeterioration,pinherentpvice,platentpdefect,
mechanicalpbreakdown,psmog,prust,petc;psmoke,pvapor,pfumes,petcpoccurringpover
aplongpperiodpofptime;psettling,pshrinking,pbulgingporpexpansionpdamagepcausedpby
normalpactionspofpthispnature;plossespcausedpbypanimalspownedpbypinsured;
collapsepfrompmostpotherpcauses
consultantp ......answer. ... aptypepofpinsuranceppersonpwhopdoespnotpactuallypsell
insurancepbutpsellspadvicepaboutpinsurance
commercialpblockppolicyp(OPC/HVI/BC)p ......answer. .... generallypprovidespopen
perilspcoverage,pitemspofphighpvalue,pandpbaileepcoveragep(excludespprotection
againstpemployeepdishonesty)
croppcoveragepexclusionpunderpfarmppolicyp ......answer. .... coveragepdesignedpto
coverpcultivatedpagriculturalpplantsplikepgrain,pvegetables,porpfruitpwhilepstillpin
field;pnotpeligiblepforpcoveragepunderpfarmpprogram;pdamagepfrompcroppdusting
notpcovered
,negativepequitypinsurancepunderpPAPp ......answer .... coveragepsometimespsoldpby
autopdealerspthatpcoverspdifferencepinpwhatpthepinsurerpwillppaypandpwhatpispowed
onpthepcarpunderpPAP;pex.pautopcoveredpunderpcollisionpisptotalplosspafterpaccident,
insuredpowesp$30,000pbutpactualpcashpvaluepisp$15,000=pinsurerppaysp$15,000
minuspdeductiblepsincepinsuredpowed-ACV=amountpforpinsurer-deductible
fourpL'sprulep(LOLA/PL/UTLII)p ......answer. ... rulepstatingpthatpinsuredpwillpcollect
afterpapcoveredplossptheplowestpofptheplosspamount,ptheppolicyplimit,porpupptopthe
levelpofpinsurablepinterest
facultativepreinsurancep ......answer. ... occurspinpreinsuranceppoliciespwhen
reinsurerpacceptsponeporpallpofpapcertainpclasspofpbusinesspfromporiginalpinsurer
viapapprearrangeptreaty
reinsuranceptreatyp ......answer. ... occurspinpapreinsuranceppolicypwhenpanpentire
bookpofpbusinesspisptransferredpfromponepinsurerptopanother
fourpcausepofplosspformspusedpwithpcommercialppropertyppolicyp(BBSE)
......answer. ... basic,pbroad,pspecial,pandpearthquake
vacantp ......answer. ... meansppropertypdoespnotpcontainpsufficientpfurnishingspto
supportpitspintendedpoccupancyporpuse
, unoccupiedp ......answer. ... meanspthepinsuredppropertypispnotpcurrentlypbeingpused
butpoccupantpintendsptopreturn
breakdownpperilpcoveragepunderpequipmentpbreakdownpformp(FPVE/MF/EFAA)
......answer. ... onlypperilpcoveredpunderpequipmentpbreakdown;pincludespfailurepof
pressure/vacuumpequipment,pmechanicalpfailure,pelectricalpfailurepincluding
arcingpandparsonp(excludespleakagepofpanypvalve,pfitting,pjointporpconnection)
policypformatpforpPAPp(DPD)pp......answer. ....declarationpandppolicypdefinitions
PAPpdeclarationppagep(PA/I/AC/PL/P/E)p ......answer. .... identifiespallppersonal
aspectspofpcontract,pthepinsured,pautospcovered,ppolicyplimits,ppremiums,pand
endorsements
namedpinsuredpforpPAPp ......answer. .... includespthepinsuredpandpspousepifpsame
household
6ptypespofpcoveredpautospunderpPAPp(DV/RA/NAA/TSA/TBTCA/FAUEB)
......answer. ... vehiclespshownpinpdeclarations,preplacementpauto,pnewlypacquired
automobiles,ptemporarypsubstitutepautos,ptrailerspbeingptowedpbypcoveredpauto,
furnishedpautospforpusepinpemployer'spbusinesspcovered;pexamplespincludeptrailer
attachedptopinsured'spauto,p1/2ptonpvanpusedponpfarm,pandppick-upptruckp(onpfamily
farmptoo)
