NJ Property Producer Exam
Dwelling Policy - (correct Answer) - Only insures property
DP-1 - (correct Answer) - Basic Form
DP-2 - (correct Answer) - Broad Form
DP-3 - (correct Answer) - Special Form
Dwelling Coverage A - (correct Answer) - Dwelling- Covers dwelling, structures attached to dwelling, and
materials/supplies for the dwelling.
Dwelling Coverage B - (correct Answer) - Other Structures- Insures buildings on premise but separate
from the dwelling.
Dwelling Coverage C - (correct Answer) - Personal Property- Covers the insured's personal property and
must be requested. If rental property, a tenant's property is not covered.
Dwelling Coverage D - (correct Answer) - Fair Rental Value- Covers insured in the event a covered loss
makes the rental portion of a property unfit for normal use.
Dwelling Coverage E - (correct Answer) - Additional Living Expense- Included in DP-2 & DP-3 and pays for
additional living expenses the insured incurs after a loss. DP-1 by endorsement.
HO-2 - (correct Answer) - Broad Form. Owner Occupied
HO-3 - (correct Answer) - Special Form. Owner Occupied
HO-4 - (correct Answer) - Tenants or Renters.
HO-5 - (correct Answer) - Comprehensive Form (Open). Covers everything minus named exclusions.
HO-6 - (correct Answer) - Condominium Owners
HO-8 - (correct Answer) - Modified form. For special Risks. Think Antique homes.
Mobile Homes - (correct Answer) - By endorsement to a DP or HO policy. Can be a separate policy.
Insures home, other structures (10%) and contents. Personal property - 40% of coverage. Permanent
Foundation.
Time Element Coverage Forms - (correct Answer) - Business Income. Covers loss of income and expenses
due to suspension of business following a covered loss.
Commercial Package Policy (CPP) - (correct Answer) - Must have at least 2 kinds of coverage.
CPP's can't contain: - (correct Answer) - Workers' Compensation, Life Insurance, Health and Disability
Insurance, Certain types of Professional Liability
, Equipment Breakdown Coverage - (correct Answer) - NOT a maintenance policy, Designed to cover
breakdown, Failure of pressure or vacuum equipment, Mechanical failure (including rupture or bursting
caused by centrifugal force), Electrical failure.
Business-owners Policy - (correct Answer) - Similar to CPP, but more for small business owners.
Inland Marine - (correct Answer) - Insurance for property in transit
Personal Floaters - (correct Answer) - For individuals who want to insure their belongings while traveling.
Commercial Property Floaters - (correct Answer) - Protect property that a company does not store at a
permanent location.
National Flood Insurance Program (NFIP) - (correct Answer) - Created in 1968 to offer flood insurance to
eligible communities.
What are the two types of Flood Insurance? - (correct Answer) - Emergency & Regular
Building Limits for Flood Insurance - (correct Answer) - Emergency: $35,000
Regular: $250,000
Contents Limits for Flood Insurance - (correct Answer) - Emergency: $10,000
Regular: $100,000
Commercial Building Limits for Flood Insurance - (correct Answer) - Emergency: $100,000
Regular: $500,000
Business Personal Property for Flood Insurance - (correct Answer) - Emergency: $100,000
Regular: $500,000
How many hours for an Earthquake occurrence? - (correct Answer) - 168 Hours
Insurance - (correct Answer) - Transfer of risk from a person or a business to an insurer
Insurable Interest - (correct Answer) - Risk of financial loss
Risk - (correct Answer) - The uncertainty of financial loss
Speculative Risk - (correct Answer) - Chance of loss or gain; Not insurable
Pure Risk - (correct Answer) - Chance of loss only; insurable
Hazard - (correct Answer) - Physical or moral conditions which may create or increase the probability of a
loss
Physical Hazard - (correct Answer) - The hazard can be seen
Moral Hazard - (correct Answer) - Dishonesty that intentionally causing a loss is acceptable
Dwelling Policy - (correct Answer) - Only insures property
DP-1 - (correct Answer) - Basic Form
DP-2 - (correct Answer) - Broad Form
DP-3 - (correct Answer) - Special Form
Dwelling Coverage A - (correct Answer) - Dwelling- Covers dwelling, structures attached to dwelling, and
materials/supplies for the dwelling.
Dwelling Coverage B - (correct Answer) - Other Structures- Insures buildings on premise but separate
from the dwelling.
Dwelling Coverage C - (correct Answer) - Personal Property- Covers the insured's personal property and
must be requested. If rental property, a tenant's property is not covered.
Dwelling Coverage D - (correct Answer) - Fair Rental Value- Covers insured in the event a covered loss
makes the rental portion of a property unfit for normal use.
Dwelling Coverage E - (correct Answer) - Additional Living Expense- Included in DP-2 & DP-3 and pays for
additional living expenses the insured incurs after a loss. DP-1 by endorsement.
HO-2 - (correct Answer) - Broad Form. Owner Occupied
HO-3 - (correct Answer) - Special Form. Owner Occupied
HO-4 - (correct Answer) - Tenants or Renters.
HO-5 - (correct Answer) - Comprehensive Form (Open). Covers everything minus named exclusions.
HO-6 - (correct Answer) - Condominium Owners
HO-8 - (correct Answer) - Modified form. For special Risks. Think Antique homes.
Mobile Homes - (correct Answer) - By endorsement to a DP or HO policy. Can be a separate policy.
Insures home, other structures (10%) and contents. Personal property - 40% of coverage. Permanent
Foundation.
Time Element Coverage Forms - (correct Answer) - Business Income. Covers loss of income and expenses
due to suspension of business following a covered loss.
Commercial Package Policy (CPP) - (correct Answer) - Must have at least 2 kinds of coverage.
CPP's can't contain: - (correct Answer) - Workers' Compensation, Life Insurance, Health and Disability
Insurance, Certain types of Professional Liability
, Equipment Breakdown Coverage - (correct Answer) - NOT a maintenance policy, Designed to cover
breakdown, Failure of pressure or vacuum equipment, Mechanical failure (including rupture or bursting
caused by centrifugal force), Electrical failure.
Business-owners Policy - (correct Answer) - Similar to CPP, but more for small business owners.
Inland Marine - (correct Answer) - Insurance for property in transit
Personal Floaters - (correct Answer) - For individuals who want to insure their belongings while traveling.
Commercial Property Floaters - (correct Answer) - Protect property that a company does not store at a
permanent location.
National Flood Insurance Program (NFIP) - (correct Answer) - Created in 1968 to offer flood insurance to
eligible communities.
What are the two types of Flood Insurance? - (correct Answer) - Emergency & Regular
Building Limits for Flood Insurance - (correct Answer) - Emergency: $35,000
Regular: $250,000
Contents Limits for Flood Insurance - (correct Answer) - Emergency: $10,000
Regular: $100,000
Commercial Building Limits for Flood Insurance - (correct Answer) - Emergency: $100,000
Regular: $500,000
Business Personal Property for Flood Insurance - (correct Answer) - Emergency: $100,000
Regular: $500,000
How many hours for an Earthquake occurrence? - (correct Answer) - 168 Hours
Insurance - (correct Answer) - Transfer of risk from a person or a business to an insurer
Insurable Interest - (correct Answer) - Risk of financial loss
Risk - (correct Answer) - The uncertainty of financial loss
Speculative Risk - (correct Answer) - Chance of loss or gain; Not insurable
Pure Risk - (correct Answer) - Chance of loss only; insurable
Hazard - (correct Answer) - Physical or moral conditions which may create or increase the probability of a
loss
Physical Hazard - (correct Answer) - The hazard can be seen
Moral Hazard - (correct Answer) - Dishonesty that intentionally causing a loss is acceptable
