NJ Property and Casualty Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(4)/NJ%20Property%
NJ Property and Casualty Exam
Questions & Answers
1. the one basic characteristic of any type of insurance is that the insured is
returned to the same status that existed prior to the loss, but without a chancefor
gain or profit
Answer true
2. which of the following coverages does an open peril policy provide?
Answer perilsother than those specifically named as being excluded
3. determine the actual cash value in the following situation original price of
office equiptment when purchased 8 years ago- 9,000. depreciated amount at
time of fire-5,000 current replacement cost 12,000
Answer 7,000
4. liquor liability
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,NJ Property and Casualty Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(4)/NJ%20Property%
Answer need for a dram shot, liquor, or package store
5. inherent vice or defect
Answer iron rusting, milk going sour, rubber breaking down areall inherent vices
6. how is hitting an animal on the road covered?
Answer other than collision otc
7. medicare supplement insurance
Answer aka medical gap insurance.must include corebenefits
8. ordinance or law
Answer an endorsement for building code upgrades
9. loss sustained/discovery forms under crime coverage
Answer loss is for later thanthe policy period. discovery is for before the policy (loss
is later, discovery before)
10. designated brush fire or civil unrest areas
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Answer qualifying areas under the fair plan
11. stop loss provision
Answer used in health insurance to limit the maximum amount ofmoney the insured
would have to pay out of pocket on a health claim in any particularclaim
12. shortages of inventory
Answer under crime insurance the employee dishonesty en-dorsement never
covers
13. can the mortgagee still collect if the insured burns their house down
Answer yes,the mortgage clause is a standard provision
14. otc covers
Answer earthquake, flood, hail, theft, hitting an animal, gunshots (no colli-sion or
upset)
15. law of large numbers
Answer the greater the number of insured the more accuratelythe prediction
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