NJ Property Producer Exam
Study online at https://quizlet.com/_5kjb7d
1. Dwelling Policy: Only insures property
2. DP-1: Basic Form
3. DP-2: Broad Form
4. DP-3: Special Form
5. Dwelling Coverage A: Dwelling- Covers dwelling, structures attached to
dwelling, and materials/supplies for the dwelling.
6. Dwelling Coverage B: Other Structures- Insures buildings on premise but sepa-
rate from the dwelling.
7. Dwelling Coverage C: Personal Property- Covers the insured's personal prop-
erty and must be requested. If rental property, a tenant's property is not covered.
8. Dwelling Coverage D: Fair Rental Value- Covers insured in the event a covered
loss makes the rental portion of a property unfit for normal use.
9. Dwelling Coverage E: 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.
10. HO-2: Broad Form. Owner Occupied
11. HO-3: Special Form. Owner Occupied
12. HO-4: Tenants or Renters.
13. HO-5: Comprehensive Form (Open). Covers everything minus named exclu-
sions.
14. HO-6: Condominium Owners
15. HO-8: Modified form. For special Risks. Think Antique homes.
16. Mobile Homes: 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.
17. Time Element Coverage Forms: Business Income. Covers loss of income and
expenses due to suspension of business following a covered loss.
18. Commercial Package Policy (CPP): Must have at least 2 kinds of coverage.
19. CPP's can't contain:: Workers' Compensation, Life Insurance, Health and Dis-
ability Insurance, Certain types of Professional Liability
20. Equipment Breakdown Coverage: 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.
21. Business-owners Policy: Similar to CPP, but more for small business owners.
22. Inland Marine: Insurance for property in transit
23. Personal Floaters: For individuals who want to insure their belongings while
traveling.
24. Commercial Property Floaters: Protect property that a company does not
store at a permanent location.
1/6
, NJ Property Producer Exam
Study online at https://quizlet.com/_5kjb7d
25. National Flood Insurance Program (NFIP): Created in 1968 to offer flood
insurance to eligible communities.
26. What are the two types of Flood Insurance?: Emergency & Regular
27. Building Limits for Flood Insurance: Emergency: $35,000
Regular: $250,000
28. Contents Limits for Flood Insurance: Emergency: $10,000
Regular: $100,000
29. Commercial Building Limits for Flood Insurance: Emergency: $100,000
Regular: $500,000
30. Business Personal Property for Flood Insurance: Emergency: $100,000
Regular: $500,000
31. How many hours for an Earthquake occurrence?: 168 Hours
32. Insurance: Transfer of risk from a person or a business to an insurer
33. Insurable Interest: Risk of financial loss
34. Risk: The uncertainty of financial loss
35. Speculative Risk: Chance of loss or gain; Not insurable
36. Pure Risk: Chance of loss only; insurable
37. Hazard: Physical or moral conditions which may create or increase the proba-
bility of a loss
38. Physical Hazard: The hazard can be seen
39. Moral Hazard: Dishonesty that intentionally causing a loss is acceptable
40. Morale Hazard: Carelessness
41. Peril: The cause of a loss
42. Direct Loss: Physical Loss
43. Indirect Loss: Consequence of physical loss
44. Proximate Cause: What caused the accident?
45. Deductible: A provision in an insurance policy requiring the insured to pay a flat
amount before the insurer will make any benefit payments.
46. Indemnity: Pay for the loss with no gain
47. Actual Cash Value: The cost of repairing or replacing damaged property with
other of like kind and quality, less depreciation of the damaged property.
48. Equation for ACV: Replacement Cost - Depreciation = Actual Cash Value
49. Replacement Cost: How much it would cost to replace in today's market
50. Limits of Liability: The maximum amount that the insurer will pay in the event
of a loss.
51. Coinsurance: Total value of insurance should equal 80% of total value.
52. Accident: An unforeseen. unintended event.
53. Occurence: Accident, including continuous or repeated exposure to the same
general harmful conditions.
2/6
Study online at https://quizlet.com/_5kjb7d
1. Dwelling Policy: Only insures property
2. DP-1: Basic Form
3. DP-2: Broad Form
4. DP-3: Special Form
5. Dwelling Coverage A: Dwelling- Covers dwelling, structures attached to
dwelling, and materials/supplies for the dwelling.
6. Dwelling Coverage B: Other Structures- Insures buildings on premise but sepa-
rate from the dwelling.
7. Dwelling Coverage C: Personal Property- Covers the insured's personal prop-
erty and must be requested. If rental property, a tenant's property is not covered.
8. Dwelling Coverage D: Fair Rental Value- Covers insured in the event a covered
loss makes the rental portion of a property unfit for normal use.
9. Dwelling Coverage E: 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.
10. HO-2: Broad Form. Owner Occupied
11. HO-3: Special Form. Owner Occupied
12. HO-4: Tenants or Renters.
13. HO-5: Comprehensive Form (Open). Covers everything minus named exclu-
sions.
14. HO-6: Condominium Owners
15. HO-8: Modified form. For special Risks. Think Antique homes.
16. Mobile Homes: 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.
17. Time Element Coverage Forms: Business Income. Covers loss of income and
expenses due to suspension of business following a covered loss.
18. Commercial Package Policy (CPP): Must have at least 2 kinds of coverage.
19. CPP's can't contain:: Workers' Compensation, Life Insurance, Health and Dis-
ability Insurance, Certain types of Professional Liability
20. Equipment Breakdown Coverage: 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.
21. Business-owners Policy: Similar to CPP, but more for small business owners.
22. Inland Marine: Insurance for property in transit
23. Personal Floaters: For individuals who want to insure their belongings while
traveling.
24. Commercial Property Floaters: Protect property that a company does not
store at a permanent location.
1/6
, NJ Property Producer Exam
Study online at https://quizlet.com/_5kjb7d
25. National Flood Insurance Program (NFIP): Created in 1968 to offer flood
insurance to eligible communities.
26. What are the two types of Flood Insurance?: Emergency & Regular
27. Building Limits for Flood Insurance: Emergency: $35,000
Regular: $250,000
28. Contents Limits for Flood Insurance: Emergency: $10,000
Regular: $100,000
29. Commercial Building Limits for Flood Insurance: Emergency: $100,000
Regular: $500,000
30. Business Personal Property for Flood Insurance: Emergency: $100,000
Regular: $500,000
31. How many hours for an Earthquake occurrence?: 168 Hours
32. Insurance: Transfer of risk from a person or a business to an insurer
33. Insurable Interest: Risk of financial loss
34. Risk: The uncertainty of financial loss
35. Speculative Risk: Chance of loss or gain; Not insurable
36. Pure Risk: Chance of loss only; insurable
37. Hazard: Physical or moral conditions which may create or increase the proba-
bility of a loss
38. Physical Hazard: The hazard can be seen
39. Moral Hazard: Dishonesty that intentionally causing a loss is acceptable
40. Morale Hazard: Carelessness
41. Peril: The cause of a loss
42. Direct Loss: Physical Loss
43. Indirect Loss: Consequence of physical loss
44. Proximate Cause: What caused the accident?
45. Deductible: A provision in an insurance policy requiring the insured to pay a flat
amount before the insurer will make any benefit payments.
46. Indemnity: Pay for the loss with no gain
47. Actual Cash Value: The cost of repairing or replacing damaged property with
other of like kind and quality, less depreciation of the damaged property.
48. Equation for ACV: Replacement Cost - Depreciation = Actual Cash Value
49. Replacement Cost: How much it would cost to replace in today's market
50. Limits of Liability: The maximum amount that the insurer will pay in the event
of a loss.
51. Coinsurance: Total value of insurance should equal 80% of total value.
52. Accident: An unforeseen. unintended event.
53. Occurence: Accident, including continuous or repeated exposure to the same
general harmful conditions.
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