NJ P+C EXAM QUESTIONS AND COMPLETE ANSW
A cproducer cacting cas can cagent cfor can cinsurance ccompany cmay ctake cwhich cof cthe cfollowing ca
cANS✔✔discount cthe cpremiums
When ca ccorporation cpurchases ca cCommercial cGeneral cLiability cPolicy, call cof cthe cfollowing care
cCORRECT cANS✔✔clients
A cpolicy cwith can c80% ccoinsurance cclause cprotects ca cbuilding cvalued cat c$100,000. cThe cinsure
ccoverage, cand ca c$30,000 closs coccurs. cHow cmuch cwill cthe cinsurer cpay? c- cCORRECT cANS✔✔
Which cof cthe cfollowing cis ca cvalid creason cfor ccancellation cof ca cproperty cinsurance cpolicy? c- cC
cchange cin cexposure
A ccommercial cproperty's cbasic ccause cof closs cform cdoes cNOT ccover cwater cdamage cresulting c
coverflowing csewer
Which cof cthe cfollowing cis can cexample cof can cindirect closs? c- cCORRECT cANS✔✔a cmanufactur
cbecause cone cof cits csuppliers clost cits cproduction cplant cin ca cfire
A cfarm cfertilizer ccompany chas cfour cclaims-made cpolicies cwith ca cretro-date cof c1995: cpolicy cW c
cpolicy cX cwent cinto ceffect cin c1996; cpolicy cY cwent cinto ceffect cin c1997; cand cpolicy cZ cwent cinto
cclaims-made cpolicy, cif ca closs coccurred cin c1995 cgenerating ca cclaim cin c1997, cwhich cpolicy cwill
cANS✔✔Y c(1997)
When cNew cJersey claw crequires cthat cdouble ccompensation cbe cpaid cfor ca cWorkers cCompensa
cpaid csolely cby cwhich cof cthe cfollowing centities? c- cCORRECT cANS✔✔the cemployer cof cthe cclai
A cproducer cmust cmaintain cclient crecords cfor ca cMINIMUM cof chow cmany cyears cafter ca cclient's
cCORRECT cANS✔✔5
Before ca cPennsylvania ccorporation ccan copen can cinsurance cagency cin cNew cJersey, cit cMUST c
cauthorization cfrom cthe cNew cJersey cDepartment cof cTreasury cto cconduct cbusiness cin cNew cJer
All ccommercial cpackage cpolicies ccontain cfour ckey ccomponents. cWhich cof cthe cfollowing cis cNOT
cANS✔✔deductible camount
, The cCommissioner cof cBanking cand cInsurance cmay cwaive can capplicant's cprelicensing ceducatio
cfollowing creasons cEXCEPT cthat cthe capplicant c- cCORRECT cANS✔✔has cbeen cemployed cin cth
cminimum cof cfive cyears
What cis cthe cMINIMUM camount can cautomobile cliability cpolicy cwith climits cof c$100,000/$300,000/
ceach cproperty cdamage cclaim? c- cCORRECT cANS✔✔$25,000
Workers cCompensation cCoverage cA cprovides cbenefits cfor cwhich cof cthe cfollowing cclaims? c- cCO
incurred coccupational cdisease
A cbusinessowners cpolicy c(BOP) cwould cNEVER cbe can cappropriate cway cto cprovide cinsurance cc
cANS✔✔general ccontractor
What celement cof can cinsurance ccontract cdemonstrates cthat ceach cparty cis cgiving csomething cof
cANS✔✔consideration
Which ccondition cspecifies cthat cthe cinsurer ccan ctake cpossession cof cdamaged cproperty cafter cpa
cANS✔✔salvage
Under cthe cCommercial cInsurance cDeregulation cAct, ca cspecial crisk cis cdefined cas cany c- cCORR
crisk cin cwhich cthe cannual cpremium cexceeds c$10,000
After cthe climits cof cbodily cliability cfrom ca cresponsible cparty care cexhausted, closses care crecovera
cpersonal cauto cpolicy cunder cwhich cof cthe cfollowing coptional ccoverages? c- cCORRECT cANS✔✔
When cthe cunearned cpremium cis creduced cbecause can cinsured ccancels ca cpolicy cmid-term, cit cis
cANS✔✔short crate
A cproducer cwho cfails cto crespond cto ca csubpoena con cbehalf cof cthe cBanking cand cInsurance cCo
cby c- cCORRECT cANS✔✔the ccourt cfor ccontempt
Under cCoverage cB c- cOther cStructures cof ca cdwelling cpolicy, ca cstructure cwould cbe ccovered cif ci
cCORRECT cANS✔✔copper cpipe cused cin cthe cinsured's cplumbing cbusiness cthat cis coperated cat
Uninsured/underinsured cMotorists cCoverage cindemnifies cthe cinsured cfor cbodily cinjury cas ca cres
cfollowing ccases cEXCEPT can caccident c- cCORRECT cANS✔✔in cwhich cthe cinsured cis cat cfault
absolute cliability cis cBest cdescribed cas c- cCORRECT cANS✔✔liability cwithout cregard cto cfault
Mrs. cCook ccarries climits cof cliability cof c$100,000/$300,000/$50,000 con cher cpersonal cautomobile
cMrs. cCook's cinsurer cpaid c$80,000 cin cbodily cinjury cdamages cand cher cdefense ccosts cwere c$40
cinsurer cpay cas ca cresult cof cthis caccident? c- cCORRECT cANS✔✔$120,000
Which cof cthe cfollowing cperils cis cincluded cin can cHO-3 cpolicy? c- cCORRECT cANS✔✔volcanic ce
Which cof cthe cfollowing cis can cexample cof ca cmoral chazard? c- cCORRECT cANS✔✔an cindividual
ccollect cinsurance cmoney
The cpremises cand coperations cexposure cincludes cliability cfor cbodily cinjury, cproperty cdamage, ca
cANS✔✔personal cand cadvertising cinjury
The cCommercial cInsurance cDeregulation cAct cwas cestablished cto cserve cwhich cof cthe cfollowing
cANS✔✔to cencourage cprice ccompetition camong cinsurers cwho cwrite ccommercial clines cinsuranc
An cinsuring cagreement ccontains ca cpromise cto cthe cpolicyowner cand cin cgeneral cterms, cstates ct
A cproducer cacting cas can cagent cfor can cinsurance ccompany cmay ctake cwhich cof cthe cfollowing ca
cANS✔✔discount cthe cpremiums
When ca ccorporation cpurchases ca cCommercial cGeneral cLiability cPolicy, call cof cthe cfollowing care
cCORRECT cANS✔✔clients
A cpolicy cwith can c80% ccoinsurance cclause cprotects ca cbuilding cvalued cat c$100,000. cThe cinsure
ccoverage, cand ca c$30,000 closs coccurs. cHow cmuch cwill cthe cinsurer cpay? c- cCORRECT cANS✔✔
Which cof cthe cfollowing cis ca cvalid creason cfor ccancellation cof ca cproperty cinsurance cpolicy? c- cC
cchange cin cexposure
A ccommercial cproperty's cbasic ccause cof closs cform cdoes cNOT ccover cwater cdamage cresulting c
coverflowing csewer
Which cof cthe cfollowing cis can cexample cof can cindirect closs? c- cCORRECT cANS✔✔a cmanufactur
cbecause cone cof cits csuppliers clost cits cproduction cplant cin ca cfire
A cfarm cfertilizer ccompany chas cfour cclaims-made cpolicies cwith ca cretro-date cof c1995: cpolicy cW c
cpolicy cX cwent cinto ceffect cin c1996; cpolicy cY cwent cinto ceffect cin c1997; cand cpolicy cZ cwent cinto
cclaims-made cpolicy, cif ca closs coccurred cin c1995 cgenerating ca cclaim cin c1997, cwhich cpolicy cwill
cANS✔✔Y c(1997)
When cNew cJersey claw crequires cthat cdouble ccompensation cbe cpaid cfor ca cWorkers cCompensa
cpaid csolely cby cwhich cof cthe cfollowing centities? c- cCORRECT cANS✔✔the cemployer cof cthe cclai
A cproducer cmust cmaintain cclient crecords cfor ca cMINIMUM cof chow cmany cyears cafter ca cclient's
cCORRECT cANS✔✔5
Before ca cPennsylvania ccorporation ccan copen can cinsurance cagency cin cNew cJersey, cit cMUST c
cauthorization cfrom cthe cNew cJersey cDepartment cof cTreasury cto cconduct cbusiness cin cNew cJer
All ccommercial cpackage cpolicies ccontain cfour ckey ccomponents. cWhich cof cthe cfollowing cis cNOT
cANS✔✔deductible camount
, The cCommissioner cof cBanking cand cInsurance cmay cwaive can capplicant's cprelicensing ceducatio
cfollowing creasons cEXCEPT cthat cthe capplicant c- cCORRECT cANS✔✔has cbeen cemployed cin cth
cminimum cof cfive cyears
What cis cthe cMINIMUM camount can cautomobile cliability cpolicy cwith climits cof c$100,000/$300,000/
ceach cproperty cdamage cclaim? c- cCORRECT cANS✔✔$25,000
Workers cCompensation cCoverage cA cprovides cbenefits cfor cwhich cof cthe cfollowing cclaims? c- cCO
incurred coccupational cdisease
A cbusinessowners cpolicy c(BOP) cwould cNEVER cbe can cappropriate cway cto cprovide cinsurance cc
cANS✔✔general ccontractor
What celement cof can cinsurance ccontract cdemonstrates cthat ceach cparty cis cgiving csomething cof
cANS✔✔consideration
Which ccondition cspecifies cthat cthe cinsurer ccan ctake cpossession cof cdamaged cproperty cafter cpa
cANS✔✔salvage
Under cthe cCommercial cInsurance cDeregulation cAct, ca cspecial crisk cis cdefined cas cany c- cCORR
crisk cin cwhich cthe cannual cpremium cexceeds c$10,000
After cthe climits cof cbodily cliability cfrom ca cresponsible cparty care cexhausted, closses care crecovera
cpersonal cauto cpolicy cunder cwhich cof cthe cfollowing coptional ccoverages? c- cCORRECT cANS✔✔
When cthe cunearned cpremium cis creduced cbecause can cinsured ccancels ca cpolicy cmid-term, cit cis
cANS✔✔short crate
A cproducer cwho cfails cto crespond cto ca csubpoena con cbehalf cof cthe cBanking cand cInsurance cCo
cby c- cCORRECT cANS✔✔the ccourt cfor ccontempt
Under cCoverage cB c- cOther cStructures cof ca cdwelling cpolicy, ca cstructure cwould cbe ccovered cif ci
cCORRECT cANS✔✔copper cpipe cused cin cthe cinsured's cplumbing cbusiness cthat cis coperated cat
Uninsured/underinsured cMotorists cCoverage cindemnifies cthe cinsured cfor cbodily cinjury cas ca cres
cfollowing ccases cEXCEPT can caccident c- cCORRECT cANS✔✔in cwhich cthe cinsured cis cat cfault
absolute cliability cis cBest cdescribed cas c- cCORRECT cANS✔✔liability cwithout cregard cto cfault
Mrs. cCook ccarries climits cof cliability cof c$100,000/$300,000/$50,000 con cher cpersonal cautomobile
cMrs. cCook's cinsurer cpaid c$80,000 cin cbodily cinjury cdamages cand cher cdefense ccosts cwere c$40
cinsurer cpay cas ca cresult cof cthis caccident? c- cCORRECT cANS✔✔$120,000
Which cof cthe cfollowing cperils cis cincluded cin can cHO-3 cpolicy? c- cCORRECT cANS✔✔volcanic ce
Which cof cthe cfollowing cis can cexample cof ca cmoral chazard? c- cCORRECT cANS✔✔an cindividual
ccollect cinsurance cmoney
The cpremises cand coperations cexposure cincludes cliability cfor cbodily cinjury, cproperty cdamage, ca
cANS✔✔personal cand cadvertising cinjury
The cCommercial cInsurance cDeregulation cAct cwas cestablished cto cserve cwhich cof cthe cfollowing
cANS✔✔to cencourage cprice ccompetition camong cinsurers cwho cwrite ccommercial clines cinsuranc
An cinsuring cagreement ccontains ca cpromise cto cthe cpolicyowner cand cin cgeneral cterms, cstates ct
