NJProperty, Casualty, andAuto
l l l l
Licensing Exam With 100% CorrectA
l l l l l
nswers 2023 l
InsuringlAgreementl-lCorrectlAnswer-
company'slobligationltolpay,lincludeslthelperilslandlcoveragelforlspecificlorlnamedlperillpo
licies
Exclusionsl-lCorrectlAnswer-whatlthelpolicylwilllnotlpaylfor
Definitionsl-lCorrectlAnswer-
namesloflthelpersonslinsuredlinladditionltolthelnamedlinsuredlarellistedlhere,lalonglwithlan
ylotherl(blank)lofltermslinlthelpolicy
AdditionallCoveragel-lCorrectlAnswer-
coverageslunderlalpolicylthatlarelprovidedlbylthelinsurerlatlnolextralcost
CasualtylPoliciesl-lCorrectlAnswer-defenselcostsloverlandlabovelliabilityllimits,lpost-
ljudgementlinterest,lbaillbondslandlappeallbonds
PropertylPoliciesl-lCorrectlAnswer-
debrislremoval,lfallslwithinlthelinsuredldwellingllimitlandlcannotlexceedlthellimit
Binderl-lCorrectlAnswer-
temporarylproofloflcoveragelbeforelpolicylislissuedl(orallislgoodlforl10ldays,lwrittenlforl60ld
ays)
BodilylInjurylandlPropertylDamagelCoveragelAmountsl-lCorrectlAnswer-
Minimum:l15klperlperson/30klperlaccident/5klforlproperty;lMaxlisl$500k
Autol-lPersonallAssignedlRisklPolicyl-lCorrectlAnswer-PAIP;lstandardlriskl0lpoints,lnon-
standardlriskl1-8lpoints,lassignedlriskl9lpoints.l(blank)lclassificationlrunslforl3lyears
Autol-lCommerciallAssignedlRisklPolicyl-lCorrectlAnswer-
CAIP;lassignedlrisklpolicylforlcommerciallvehicles,lincludinglprivatelvehicleslownedlbylthelbu
siness
PersonallInjurylProtectionl-lCorrectlAnswer-PIPlorlNo-
Fault,lNJlRepresentationslAct;lmandatory,lencouragelthelinsuredltolrecoverlunderlhis/herlow
nlpolicy,ltriesltolreducelpremiumslandlhastenlsettlementslthroughlavoidancelofllengthyllitigatio
nlthatlwouldlnormallylbelthelcase.lThelbenefitsloflthelstandardlpolicylarelstatutorylandlthereforl
minimal
Firel-lCorrectlAnswer-
Alnamedlperillpolicy.l(blank)lpolicieslmustlbelfiledlwithlthelDOBIlcommissionerlbeforeluselan
dlmustlprovidelalfairlyluniformllook,landlprovidelamplelspacelforlcoverage,llimits,lrates,lpolic
ylinception,landlexpirationldates
,FriendlylFirel-lCorrectlAnswer-firelislwithinlit'slintendedlconfinesl(notlcovered)
HostilelFirel-lCorrectlAnswer-firelisloutsidelit'slintendedlconfines
CoveredlFirelPerilsl-lCorrectlAnswer-firel-
lhostile,llightening,ldebrislremoval,ltheftlwithinlfirstl5ldays
ExcludedlFirelPerilsl-lCorrectlAnswer-
theftl(afterlfirstl5ldaysloflfire),lneglectlthatlgiveslriseltolproximatelcauseloflfire,lwar,lgovernm
entlaction,lfirel-lfriendly
FairlPlanl-lCorrectlAnswer-
(blank)lpolicieslareldesignedltolpreventlredlininglinlurbanlareas:limprovelpropertylcondition
slfromlanlavailabilitylstandpoint,lstabilizelthelpropertylinsurancelmarket,lprovidelcoveragelfo
rlriskslwhichlinsurancelcannotlbelobtainedlinlthelopenlmarket
$1.5lmillionl-lCorrectlAnswer-FAIRlPlanlmaxllimit
CoveredlFAIRlPlanlPerilsl-lCorrectlAnswer-FAIR:lfire,llightening,ldebrislremoval
ExcludedlFAIRlPlanlPerilsl-lCorrectlAnswer-
FAIR:lburglaryldamage,lflood,lfarmsl(farmslarelnotlurban)
DwellinglPolicyl-lCorrectlAnswer-1stlpartylcoveragelonly,lnotlnecessaryltolbelowner-
loccupied,lnolmorelthanl4lfamilieslorl5lroomers
BasiclPerillCoveragel-lDP1l-lCorrectlAnswer-basiclperillcoveragel-lnamedlperilsl-
lmostlbasicldwellinglpolicy
BroadlPerillCoveragel-lDP2l-lCorrectlAnswer-namedlperils,lbutlmorelperilslthanlDP1
SpeciallPerillCoveragel-lDP3l-lCorrectlAnswer-ALL-
RISKlonldwellinglunlesslspecificallylexcludedlandlBROADlonlcontentslorlperson
allproperty
CoveragelAl-lCorrectlAnswer-dwellingl+lattachedlstructuresl-lnolco-
insurancelrequirementlunlikelhomeownerslpolicy
CoveragelBl-lCorrectlAnswer-detachedlstructuresl-
llimitedltol10%loflcoveragelAlamount
CoveragelCl-lCorrectlAnswer-personallpropertyl-llimitedltol50%loflcoveragelAlamount
/l10%loflsecondarylinsurance
CoveragelDl-lCorrectlAnswer-fairlrentallvaluel-llimitedltol10%loflcoveragelAlamount
, CoveragelEl-lCorrectlAnswer-additionalllivinglexpensel-
llimitedltol20%loflcoveragelAlamount
BoatlOwner'slPolicyl-lCorrectlAnswer-
similarltolautolinsurancelpolicy,lexceptlthatlPIPlorl"no-
fault"lislnotlavailable.ldamagelfromlwaveslislreferredltolasl"hull-
damage"landlislcovered.lnolworkers'lcompensationlcoverage
YachtlOwner'slPolicyl-lCorrectlAnswer-
forlboatslthatlplylinternationallwaters,lhighlseas,landlengagelinlcommerciallfishing.lworkers'lc
ompensationlcoveragelislincluded
FloodlInsurancelPolicyl-lCorrectlAnswer-operatedlbylHUDltolprovidelcoveragelinlflood-
lpronelareaslforlone-
familylresidentiallhomes,lcommerciallbuildings,landlhouselcontents.lbasiclpolicylcoverslloss
ldueltolflood,linundationlofltidallwaters,lmudslide,landlsoillerosion.lcanlrequestladditionallcov
eragelatlanyltime,lbutltherelislal30ldaylwaitinglperodlbeforelthelinsurancelcanlgolintoleffect
FloodlInsurancelPolicylExclusionsl-lCorrectlAnswer-
landslide,ldamagelfromlwaterlmainlbreakage,lsewerlmainlbreakage,landlwind-
drivenlrain.lnotlalgenerallfloodlconditionl(yourlhouselislthelonlylonelthatlislfloodedlbutlyourlnei
ghbor'slhouseslarelnotl-lyourlhouselislnotlcovered)
PersonallInjuryl-lCorrectlAnswer-defamationl(slander-oral,llibel-
written),lfalselarrestlorlimprisonment,lwrongfulleviction,linvasionloflprivacy,lcopyrightlinfrin
gement,lindustriallespionagel-ldolnotlconfuselwithlbodilylinjury
AdvertisinglLiabilityl-lCorrectlAnswer-
injurylarisinglfromladvertisinglactivities,llibellinlanladvertisement,landlmisrepresentationloflal
competitor
ContractuallLiabilityl-lCorrectlAnswer-
coveragelislrestrictedltolthoselthatlarelautomaticallylcovered;lLease,lEasement,lAgreem
entltolindemnitylmunicipality,lSideltracklalsolknownlaslspurlagreementlforlalraillroadlloadin
glfacility,landlElevatorlmaintenancelorlL.E.A.S.E
MedicallPaymentsl-lCorrectlAnswer-
partylmustlincurlandlreportl(blank)lwithinl1lyear,lmustlariselfromlbusinessloperationslonlorl
offlpremises.lmaxlamountlisl$5,000
OccurrencelBasisl-lCorrectlAnswer-
incidentlmustlhaveloccurredlduringlthelpolicylperiod,lreportloflincidentlmaylbelmadelaft
erlthelpolicylperiod
Claims-madelBasisl-lCorrectlAnswer-
Incidentlmustlhavelhappenedlduringlthelpolicylperiod,landlnotlbeforelalretroactiveldatelari
singlfromlanlarbitrarylperiodlofltimelincorporatedlinlthelpolicylthatlcanlbelmadellongerlbylad
ditionallpremium
ExtendedlReportinglPeriodl-lCorrectlAnswer-basicl-
l60ldayslafterlexpirationldatelifloccurrencelislwithinlpolicylperiod,lbutlwaslunknown/unrepo
l l l l
Licensing Exam With 100% CorrectA
l l l l l
nswers 2023 l
InsuringlAgreementl-lCorrectlAnswer-
company'slobligationltolpay,lincludeslthelperilslandlcoveragelforlspecificlorlnamedlperillpo
licies
Exclusionsl-lCorrectlAnswer-whatlthelpolicylwilllnotlpaylfor
Definitionsl-lCorrectlAnswer-
namesloflthelpersonslinsuredlinladditionltolthelnamedlinsuredlarellistedlhere,lalonglwithlan
ylotherl(blank)lofltermslinlthelpolicy
AdditionallCoveragel-lCorrectlAnswer-
coverageslunderlalpolicylthatlarelprovidedlbylthelinsurerlatlnolextralcost
CasualtylPoliciesl-lCorrectlAnswer-defenselcostsloverlandlabovelliabilityllimits,lpost-
ljudgementlinterest,lbaillbondslandlappeallbonds
PropertylPoliciesl-lCorrectlAnswer-
debrislremoval,lfallslwithinlthelinsuredldwellingllimitlandlcannotlexceedlthellimit
Binderl-lCorrectlAnswer-
temporarylproofloflcoveragelbeforelpolicylislissuedl(orallislgoodlforl10ldays,lwrittenlforl60ld
ays)
BodilylInjurylandlPropertylDamagelCoveragelAmountsl-lCorrectlAnswer-
Minimum:l15klperlperson/30klperlaccident/5klforlproperty;lMaxlisl$500k
Autol-lPersonallAssignedlRisklPolicyl-lCorrectlAnswer-PAIP;lstandardlriskl0lpoints,lnon-
standardlriskl1-8lpoints,lassignedlriskl9lpoints.l(blank)lclassificationlrunslforl3lyears
Autol-lCommerciallAssignedlRisklPolicyl-lCorrectlAnswer-
CAIP;lassignedlrisklpolicylforlcommerciallvehicles,lincludinglprivatelvehicleslownedlbylthelbu
siness
PersonallInjurylProtectionl-lCorrectlAnswer-PIPlorlNo-
Fault,lNJlRepresentationslAct;lmandatory,lencouragelthelinsuredltolrecoverlunderlhis/herlow
nlpolicy,ltriesltolreducelpremiumslandlhastenlsettlementslthroughlavoidancelofllengthyllitigatio
nlthatlwouldlnormallylbelthelcase.lThelbenefitsloflthelstandardlpolicylarelstatutorylandlthereforl
minimal
Firel-lCorrectlAnswer-
Alnamedlperillpolicy.l(blank)lpolicieslmustlbelfiledlwithlthelDOBIlcommissionerlbeforeluselan
dlmustlprovidelalfairlyluniformllook,landlprovidelamplelspacelforlcoverage,llimits,lrates,lpolic
ylinception,landlexpirationldates
,FriendlylFirel-lCorrectlAnswer-firelislwithinlit'slintendedlconfinesl(notlcovered)
HostilelFirel-lCorrectlAnswer-firelisloutsidelit'slintendedlconfines
CoveredlFirelPerilsl-lCorrectlAnswer-firel-
lhostile,llightening,ldebrislremoval,ltheftlwithinlfirstl5ldays
ExcludedlFirelPerilsl-lCorrectlAnswer-
theftl(afterlfirstl5ldaysloflfire),lneglectlthatlgiveslriseltolproximatelcauseloflfire,lwar,lgovernm
entlaction,lfirel-lfriendly
FairlPlanl-lCorrectlAnswer-
(blank)lpolicieslareldesignedltolpreventlredlininglinlurbanlareas:limprovelpropertylcondition
slfromlanlavailabilitylstandpoint,lstabilizelthelpropertylinsurancelmarket,lprovidelcoveragelfo
rlriskslwhichlinsurancelcannotlbelobtainedlinlthelopenlmarket
$1.5lmillionl-lCorrectlAnswer-FAIRlPlanlmaxllimit
CoveredlFAIRlPlanlPerilsl-lCorrectlAnswer-FAIR:lfire,llightening,ldebrislremoval
ExcludedlFAIRlPlanlPerilsl-lCorrectlAnswer-
FAIR:lburglaryldamage,lflood,lfarmsl(farmslarelnotlurban)
DwellinglPolicyl-lCorrectlAnswer-1stlpartylcoveragelonly,lnotlnecessaryltolbelowner-
loccupied,lnolmorelthanl4lfamilieslorl5lroomers
BasiclPerillCoveragel-lDP1l-lCorrectlAnswer-basiclperillcoveragel-lnamedlperilsl-
lmostlbasicldwellinglpolicy
BroadlPerillCoveragel-lDP2l-lCorrectlAnswer-namedlperils,lbutlmorelperilslthanlDP1
SpeciallPerillCoveragel-lDP3l-lCorrectlAnswer-ALL-
RISKlonldwellinglunlesslspecificallylexcludedlandlBROADlonlcontentslorlperson
allproperty
CoveragelAl-lCorrectlAnswer-dwellingl+lattachedlstructuresl-lnolco-
insurancelrequirementlunlikelhomeownerslpolicy
CoveragelBl-lCorrectlAnswer-detachedlstructuresl-
llimitedltol10%loflcoveragelAlamount
CoveragelCl-lCorrectlAnswer-personallpropertyl-llimitedltol50%loflcoveragelAlamount
/l10%loflsecondarylinsurance
CoveragelDl-lCorrectlAnswer-fairlrentallvaluel-llimitedltol10%loflcoveragelAlamount
, CoveragelEl-lCorrectlAnswer-additionalllivinglexpensel-
llimitedltol20%loflcoveragelAlamount
BoatlOwner'slPolicyl-lCorrectlAnswer-
similarltolautolinsurancelpolicy,lexceptlthatlPIPlorl"no-
fault"lislnotlavailable.ldamagelfromlwaveslislreferredltolasl"hull-
damage"landlislcovered.lnolworkers'lcompensationlcoverage
YachtlOwner'slPolicyl-lCorrectlAnswer-
forlboatslthatlplylinternationallwaters,lhighlseas,landlengagelinlcommerciallfishing.lworkers'lc
ompensationlcoveragelislincluded
FloodlInsurancelPolicyl-lCorrectlAnswer-operatedlbylHUDltolprovidelcoveragelinlflood-
lpronelareaslforlone-
familylresidentiallhomes,lcommerciallbuildings,landlhouselcontents.lbasiclpolicylcoverslloss
ldueltolflood,linundationlofltidallwaters,lmudslide,landlsoillerosion.lcanlrequestladditionallcov
eragelatlanyltime,lbutltherelislal30ldaylwaitinglperodlbeforelthelinsurancelcanlgolintoleffect
FloodlInsurancelPolicylExclusionsl-lCorrectlAnswer-
landslide,ldamagelfromlwaterlmainlbreakage,lsewerlmainlbreakage,landlwind-
drivenlrain.lnotlalgenerallfloodlconditionl(yourlhouselislthelonlylonelthatlislfloodedlbutlyourlnei
ghbor'slhouseslarelnotl-lyourlhouselislnotlcovered)
PersonallInjuryl-lCorrectlAnswer-defamationl(slander-oral,llibel-
written),lfalselarrestlorlimprisonment,lwrongfulleviction,linvasionloflprivacy,lcopyrightlinfrin
gement,lindustriallespionagel-ldolnotlconfuselwithlbodilylinjury
AdvertisinglLiabilityl-lCorrectlAnswer-
injurylarisinglfromladvertisinglactivities,llibellinlanladvertisement,landlmisrepresentationloflal
competitor
ContractuallLiabilityl-lCorrectlAnswer-
coveragelislrestrictedltolthoselthatlarelautomaticallylcovered;lLease,lEasement,lAgreem
entltolindemnitylmunicipality,lSideltracklalsolknownlaslspurlagreementlforlalraillroadlloadin
glfacility,landlElevatorlmaintenancelorlL.E.A.S.E
MedicallPaymentsl-lCorrectlAnswer-
partylmustlincurlandlreportl(blank)lwithinl1lyear,lmustlariselfromlbusinessloperationslonlorl
offlpremises.lmaxlamountlisl$5,000
OccurrencelBasisl-lCorrectlAnswer-
incidentlmustlhaveloccurredlduringlthelpolicylperiod,lreportloflincidentlmaylbelmadelaft
erlthelpolicylperiod
Claims-madelBasisl-lCorrectlAnswer-
Incidentlmustlhavelhappenedlduringlthelpolicylperiod,landlnotlbeforelalretroactiveldatelari
singlfromlanlarbitrarylperiodlofltimelincorporatedlinlthelpolicylthatlcanlbelmadellongerlbylad
ditionallpremium
ExtendedlReportinglPeriodl-lCorrectlAnswer-basicl-
l60ldayslafterlexpirationldatelifloccurrencelislwithinlpolicylperiod,lbutlwaslunknown/unrepo
