NJ Property, Casualty, And Auto
Licensing Exam Questions And Answers
With Verified Solutions 100% Correct!!!
Insuring Agreement - ANSWER✔✔company's obligation to pay, includes the
perils and coverage for specific or named peril policies
Exclusions - ANSWER✔✔what the policy will not pay for
Definitions - ANSWER✔✔names of the persons insured in addition to the named
insured are listed here, along with any other (blank) of terms in the policy
Additional Coverage - ANSWER✔✔coverages under a policy that are provided by
the insurer at no extra cost
Casualty Policies - ANSWER✔✔defense costs over and above liability limits,
post-judgement interest, bail bonds and appeal bonds
Property Policies - ANSWER✔✔debris removal, falls within the insured dwelling
limit and cannot exceed the limit
Binder - ANSWER✔✔temporary proof of coverage before policy is issued (oral is
good for 10 days, written for 60 days)
Bodily Injury and Property Damage Coverage Amounts - ANSWER✔✔Minimum:
15k per person/30k per accident/5k for property; Max is $500k
,Auto - Personal Assigned Risk Policy - ANSWER✔✔PAIP; standard risk 0 points,
non-standard risk 1-8 points, assigned risk 9 points. (blank) classification runs for
3 years
Auto - Commercial Assigned Risk Policy - ANSWER✔✔CAIP; assigned risk
policy for commercial vehicles, including private vehicles owned by the business
Personal Injury Protection - ANSWER✔✔PIP or No-Fault, NJ Representations
Act; mandatory, encourage the insured to recover under his/her own policy, tries to
reduce premiums and hasten settlements through avoidance of lengthy litigation
that would normally be the case. The benefits of the standard policy are statutory
and therefor minimal
Fire - ANSWER✔✔A named peril policy. (blank) policies must be filed with the
DOBI commissioner before use and must provide a fairly uniform look, and
provide ample space for coverage, limits, rates, policy inception, and expiration
dates
Friendly Fire - ANSWER✔✔fire is within it's intended confines (not covered)
Hostile Fire - ANSWER✔✔fire is outside it's intended confines
Covered Fire Perils - ANSWER✔✔fire - hostile, lightening, debris removal, theft
within first 5 days
Excluded Fire Perils - ANSWER✔✔theft (after first 5 days of fire), neglect that
gives rise to proximate cause of fire, war, government action, fire - friendly
, Fair Plan - ANSWER✔✔(blank) policies are designed to prevent redlining in
urban areas: improve property conditions from an availability standpoint, stabilize
the property insurance market, provide coverage for risks which insurance cannot
be obtained in the open market
$1.5 million - ANSWER✔✔FAIR Plan max limit
Covered FAIR Plan Perils - ANSWER✔✔FAIR: fire, lightening, debris removal
Excluded FAIR Plan Perils - ANSWER✔✔FAIR: burglary damage, flood, farms
(farms are not urban)
Dwelling Policy - ANSWER✔✔1st party coverage only, not necessary to be
owner-occupied, no more than 4 families or 5 roomers
Basic Peril Coverage - DP1 - ANSWER✔✔basic peril coverage - named perils -
most basic dwelling policy
Broad Peril Coverage - DP2 - ANSWER✔✔named perils, but more perils than
DP1
Special Peril Coverage - DP3 - ANSWER✔✔ALL-RISK on dwelling unless
specifically excluded and BROAD on contents or personal property
Coverage A - ANSWER✔✔dwelling + attached structures - no co-insurance
requirement unlike homeowners policy
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