PNC review

What is the primary difference between the 2 Tort options the named insured must choose from for PIP coverage?

Option 1 exempts the owner, registrant, operator, or occupant of an auto from liability; Option 2 holds them liable

Which of the following is covered under the Camera and Musical Instruments Dealers floater?

A customer's camera left at a camera shop for repair

What term includes damage where the insured peril was the proximate cause of loss?

Direct loss

All of the following statements describe the concept of strict liability EXCEPT

It is imposed on defendants engaged in hazardous activities

The New Jersey Compensation Rating and Inspection Bureau is responsible for all of the following, EXCEPT

Making payments under personal injury protection to persons injured in auto accidents

The risk of loss may be classified as

Pure risk and speculative risk.

Who is responsible for directing the Association's board to prepare, adopt and file rates that are based on past and prospective loss experience of the risks underwritten by the Association?

The Commissioner

What is the purpose of the Commercial Insurance Deregulation Act?

To protect the public against excessing and unfair rates

The BOP standard property coverage form covers which of the following causes of loss?

Transportation

Under the commercial crime coverage inside the premises - robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records?

$5,000

The standard property deductible per occurrence on a CPP is

$500.

An insured with a homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for

30 days.

The company owes premium money to the insured. The insurer gave the funds to the producer to return to the insured. Within how many days must the producer pay the insured?

5

In New Jersey, in the event of cancellation for nonpayment of the premium on an Auto policy, the insured must be given ___ days prior written notice of the insurer's intent.

15

In New Jersey, automobile liability insurance policies must be written with limits of at least

15,000(person)/$30,000 (accident)/$5,000 (property)

How long is the waiting period after the application has been accepted before flood coverage goes into effect?

30 days

The New Jersey Commercial Insurance Deregulation Act requires insurers to file policy forms with the Commissioner for approval at least

30 days before they become effective

Which of the following is NOT considered an insured contract under the Commercial General Liability Policy?

An written agreement which indemnifies a person for fire damage to the premises rented to the insured

Which of the following other coverages is NOT included in the basic form dwelling policy?

Breakage of glass

Which of the following statements concerning the Urban Enterprise Program (UEZ) is correct?

Businesses participating in the UEZ program can charge half of the standard sales tax rate on certain purchases

The difference in the contents coverage on an HO-3 and HO-5 is which of the following?

Contents are covered open peril on HO-5, and named peril on HO-3.

All of the following are supplemental payments found in liability policies EXCEPT

Costs the insured incurred in hiring an attorney

Which of the following policies does NOT contain an automatic reinstatement provision?

General liability written with an aggregate limit

Under PIP coverage, an insured may choose to exclude any of the following benefits, EXCEPT

Medical expenses

If during a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant, the producer has committed

Misrepresentation.

A business using its own trucks to move its own cargo would insure the cargo using

Motor truck cargo - owners form.

Richard owns and operates a commercial business. He has included a business income coverage form with his commercial package policy. When Richard's business is severely damaged by fire, the business income coverage will pay for

Net income plus continuing expenses of the business

All of the following statements are FALSE regarding garage physical damage coverage EXCEPT

No coverage is provided for any auto stored for more than forty-five days at a location not shown in the declarations.

How much is the premium for the dwelling under construction endorsement under the dwelling policy?

The average amount of insurance during construction

What happens if an employer rejects compliance with the Workers Compensation Act?

The employer is deprived of common law defenses

If more than one person has an insurable interest in the property covered under a dwelling policy,

The insurer will be liable for only the insured's interest in the damaged property.

All of the following statements are true regarding physical damage coverage EXCEPT

The limit of liability is the greater of the ACV of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.

An organization licensed as a producer business entity based in New York would like to transact insurance in New Jersey. Which of the following is true?

The organization will need to obtain a nonresident business entity license, and its producers will need to obtain nonresident licenses