Exam (elaborations)
Property and Casualty-NJ Questions and Answers
- Course
- Institution
Property and Casualty-NJ
[Show more]
Content preview
Property and Casualty-NJ1. A contract in which only one party - the insurer - makes an enforceable promise is
said to be - answer A- Quotation
B- Unilateral
C- A contract of Indemnity
D- A contract of Adhesion
B- Unilateral
An insurance policy is considered to be unilateral, since only one party to the contract,
the insurance company, makes an enforceable promise.
2. An insurer whose main home office is domiciled in the state where they write
business is known as a - answer A- Alien Insurer
B- Foreign Insurer
C- Surplus Lines Insurer
D- Domestic Insurer
D- Domestic Insurer
A Domestic insurer is one whose main home office is located in the state they are doing
business. A Surplus Lines insurer could be a domestic carrier but the best answer
choice is D.
3. All of the following are true regarding the Assigned Risk Plan for Workers
Compensation in New Jersey, Except - answerA. It's a method for employers to obtain
Workers Compensation insurance when they are having difficulty in the normal
marketplace
B. If an employer is unable to obtain coverage in the normal marketplace, the state will
assign an insurer to write the risk
C. The plan approves the rate structures used by all insurers writing workers
compensation coverage in the state.
,D. All admitted carriers writing workers compensation insurance in the state must
belong to the plan
C- The Assigned Risk Plan is NOT involved in approving rating plans of the various
insurers in the state. The other choices are all correct
4. Which of the following is true regarding coverage for a domestic employee for
workers compensation in New Jersey? - answerA. The assigned risk plan for workers
compensation in new jersey would provide the coverage automatically
B. Domestic employees are exempt from coverage
C. Coverage must be provided by the homeowners policy if the injured is to a resident
or hired domestic servant in the home
D. The employer must buy workers compensation insurance on the domestic employee
C- If a domestic servant is injured while working in the home, the homeowners
insurance for the employer must provide the workers compensation coverage for the
domestic employee
5. Vacancy on the BOP can eliminate certain perils - answerA. After 60 Days
If the premises have been vacant for over 60 days, many important perils (such as glass
breakage, vandalism, and theft) will be excluded.
6. An insurer's shared participation percentage in the Urban Enterprise Zone
(UEZ)program is based on: - answerA. The number of written policies in the urban
enterprise zone.
B. The discretion of the commissioner of insurance
C. The number of years operating in the state
D. the financial size of the insurer.
A- The insurer's participation percentage in the UEZ program is based on the number of
policies the insurer has in force in that urban enterprise zone.
7. The minimum limits of a basic automobile liability insurance required by the state of
New Jersey is: - answerA. 20/40/10
B. 25/50/25
C. 12.5/ 25/ 7.5
,D. $15,000 of PIP and $5,000 of PDL
D- By state law, the basic auto policy must contain PIP coverage and an optional
$5,000 for property damage liability.
8. The Commissioner may suspend, revoke, refuse to renew, or refuse to issue a
license. Prior to the revocation or denial of a license, the Commissioner must provide to
the licensee or applicant - answerA. An opportunity for the individual to have a hearing
B. Neither of the answers
C. Both of the answers
D. The findings which led to the commissioner's decision.
C- Before the Commissioner can take any action against an agent, the agent has the
right to a hearing regarding the Commissioner's findings.
9. An agent must notify the Department of Insurance of any administrative actions levied
against her within - answerA. 30 days of the final
disposition of the matter
B.60 days.
C.10 days of being charged.
D.24 hours.
A- An agent must notify the Department of Insurance of any administrative actions taken
against her within 30 days of the disposition of the action.
10. Which of the following is an optional coverage on the standard auto policy but not
available on the basic auto policy? - answerA. Personal injury protection
B. Roadside assistance
C. Auto physical damage coverage
D. Uninsured and underinsured motorists
D- Uninsured and underinsured motorist coverage is available as an option on the
standard auto policy but not available on the basic. The other three choices are all
available on the basic auto policy.
11. Making, circulating or distributing information about benefits which can confuse or
mislead a potential customer is an example of: - answerA. Defamation
, B. False
Advertising
C. Misrepresentation
D. Illegal Inducement
B- Advertising must be truthful in all aspects. Illegal inducement is another word for
rebating. Defamation is make false statements meant to injure someone in the
insurance business
12. Policies are written for that person such as a home policy and do not transfer upon
the sale of that exposure are what type of contract - answerA. Aleatory Contract
B. Unilateral Contract
C. Conditional Contract
D. Personal Contract
D- Personal Contract
A policy is personal. In other words, with a sale of a car or house the policy does not
automatically transfer to the new owner.
13. An unauthorized company writing business in the state that is not subject to state
approved policy forms, rates, or rules is known as a - answerA. Stock insurer.
B. Surplus Lines insurer.
C. Reciprocal insurer.
D. Mutual insurer.
B- Surplus Lines Insurer
Surplus Lines companies can charge whatever they want and their policies can say
whatever they want. They are NOT authorized to do business in the state and therefore
not subject to state approved policy forms, rules and rates.
14. Making any misrepresentation or incomplete comparison of policies to any person
for the purpose of inducing that person to lapse a current policy best describes -
answerA. coercion.
B. false advertising.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80796 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now