NJ Property, Casualty, and Auto
Licensing Exam|191 Complete
Questions And Answers,.
Insuring Agreement - Correct answercompany's obligation to pay, includes the perils
and coverage for specific or named peril policies
Exclusions - Correct answerwhat the policy will not pay for
Definitions - Correct answernames of the persons insured in addition to the named
insured are listed here, along with any other (blank) of terms in the policy
Additional Coverage - Correct answercoverages under a policy that are provided by
the insurer at no extra cost
Casualty Policies - Correct answerdefense costs over and above liability limits, post-
judgement interest, bail bonds and appeal bonds
Property Policies - Correct answerdebris removal, falls within the insured dwelling
limit and cannot exceed the limit
Binder - Correct answertemporary proof of coverage before policy is issued (oral is
good for 10 days, written for 60 days)
Bodily Injury and Property Damage Coverage Amounts - Correct answerMinimum:
15k per person/30k per accident/5k for property; Max is $500k
Auto - Personal Assigned Risk Policy - Correct answerPAIP; standard risk 0 points,
non-standard risk 1-8 points, assigned risk 9 points. (blank) classification runs for 3
years
Auto - Commercial Assigned Risk Policy - Correct answerCAIP; assigned risk policy
for commercial vehicles, including private vehicles owned by the business
Personal Injury Protection - Correct answerPIP or No-Fault, NJ Representations
Act; mandatory, encourage the insured to recover under his/her own policy, tries to
reduce premiums and hasten settlements through avoidance of lengthy litigation that
would normally be the case. The benefits of the standard policy are statutory and
therefor minimal
, Fire - Correct answerA named peril policy. (blank) policies must be filed with the
DOBI commissioner before use and must provide a fairly uniform look, and provide
ample space for coverage, limits, rates, policy inception, and expiration dates
Friendly Fire - Correct answerfire is within it's intended confines (not covered)
Hostile Fire - Correct answerfire is outside it's intended confines
Covered Fire Perils - Correct answerfire - hostile, lightening, debris removal, theft
within first 5 days
Excluded Fire Perils - Correct answertheft (after first 5 days of fire), neglect that
gives rise to proximate cause of fire, war, government action, fire - friendly
Fair Plan - Correct answer(blank) policies are designed to prevent redlining in urban
areas: improve property conditions from an availability standpoint, stabilize the property
insurance market, provide coverage for risks which insurance cannot be obtained in the
open market
$1.5 million - Correct answerFAIR Plan max limit
Covered FAIR Plan Perils - Correct answerFAIR: fire, lightening, debris removal
Excluded FAIR Plan Perils - Correct answerFAIR: burglary damage, flood, farms
(farms are not urban)
Dwelling Policy - Correct answer1st party coverage only, not necessary to be
owner-occupied, no more than 4 families or 5 roomers
Basic Peril Coverage - DP1 - Correct answerbasic peril coverage - named perils -
most basic dwelling policy
Broad Peril Coverage - DP2 - Correct answernamed perils, but more perils than
DP1
Special Peril Coverage - DP3 - Correct answerALL-RISK on dwelling unless
specifically excluded and BROAD on contents or personal property
Coverage A - Correct answerdwelling + attached structures - no co-insurance
requirement unlike homeowners policy
Coverage B - Correct answerdetached structures - limited to 10% of coverage A
amount
Licensing Exam|191 Complete
Questions And Answers,.
Insuring Agreement - Correct answercompany's obligation to pay, includes the perils
and coverage for specific or named peril policies
Exclusions - Correct answerwhat the policy will not pay for
Definitions - Correct answernames of the persons insured in addition to the named
insured are listed here, along with any other (blank) of terms in the policy
Additional Coverage - Correct answercoverages under a policy that are provided by
the insurer at no extra cost
Casualty Policies - Correct answerdefense costs over and above liability limits, post-
judgement interest, bail bonds and appeal bonds
Property Policies - Correct answerdebris removal, falls within the insured dwelling
limit and cannot exceed the limit
Binder - Correct answertemporary proof of coverage before policy is issued (oral is
good for 10 days, written for 60 days)
Bodily Injury and Property Damage Coverage Amounts - Correct answerMinimum:
15k per person/30k per accident/5k for property; Max is $500k
Auto - Personal Assigned Risk Policy - Correct answerPAIP; standard risk 0 points,
non-standard risk 1-8 points, assigned risk 9 points. (blank) classification runs for 3
years
Auto - Commercial Assigned Risk Policy - Correct answerCAIP; assigned risk policy
for commercial vehicles, including private vehicles owned by the business
Personal Injury Protection - Correct answerPIP or No-Fault, NJ Representations
Act; mandatory, encourage the insured to recover under his/her own policy, tries to
reduce premiums and hasten settlements through avoidance of lengthy litigation that
would normally be the case. The benefits of the standard policy are statutory and
therefor minimal
, Fire - Correct answerA named peril policy. (blank) policies must be filed with the
DOBI commissioner before use and must provide a fairly uniform look, and provide
ample space for coverage, limits, rates, policy inception, and expiration dates
Friendly Fire - Correct answerfire is within it's intended confines (not covered)
Hostile Fire - Correct answerfire is outside it's intended confines
Covered Fire Perils - Correct answerfire - hostile, lightening, debris removal, theft
within first 5 days
Excluded Fire Perils - Correct answertheft (after first 5 days of fire), neglect that
gives rise to proximate cause of fire, war, government action, fire - friendly
Fair Plan - Correct answer(blank) policies are designed to prevent redlining in urban
areas: improve property conditions from an availability standpoint, stabilize the property
insurance market, provide coverage for risks which insurance cannot be obtained in the
open market
$1.5 million - Correct answerFAIR Plan max limit
Covered FAIR Plan Perils - Correct answerFAIR: fire, lightening, debris removal
Excluded FAIR Plan Perils - Correct answerFAIR: burglary damage, flood, farms
(farms are not urban)
Dwelling Policy - Correct answer1st party coverage only, not necessary to be
owner-occupied, no more than 4 families or 5 roomers
Basic Peril Coverage - DP1 - Correct answerbasic peril coverage - named perils -
most basic dwelling policy
Broad Peril Coverage - DP2 - Correct answernamed perils, but more perils than
DP1
Special Peril Coverage - DP3 - Correct answerALL-RISK on dwelling unless
specifically excluded and BROAD on contents or personal property
Coverage A - Correct answerdwelling + attached structures - no co-insurance
requirement unlike homeowners policy
Coverage B - Correct answerdetached structures - limited to 10% of coverage A
amount
