EXAMFX NJ Property & Casualty Q&A
The New Jersey Commercial Insurance Deregulation Act requires insurers to file rates and any changes or amendments with the Commissioner no later than
30 days after becoming effective
The New Jersey Commercial Insurance Deregulation Act requires insurers to file rates and any changes or amendments with the Commissioner no later than
30 days before becoming effective
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?
Indemnity
Who will transport the property of anyone who hires them?
Common carriers
#24. An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover?
$0
A producer was found guilty of a 3rd violation of the Insurance Code. What would be the monetary penalty he will have to pay?
$10,000
Equipment breakdown coverage is written with a single limit of insurance per accident. However, what is the sublimit for hazardous substance cleanup, or repair or replacement of contaminated property?
$25,000
The War, Military Act, and Terrorism Exclusion will only apply to an incident of terrorism in which the total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds what amount?
$25,000,000
A dwelling policy has a standard deductible that applies to all property coverage, except fair rental value, additional living expense, and the fire department service charge. How much is this deductible?
$250
The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage?
$48,000
A commercial property special form covers property in transit up to
$5,000
If a person violates a cease and desist order, the Commissioner can turn the matter over to the New Jersey Superior Court for further legal action and can assess a fine for each violation of up to
$5,000
What is the fine for violating the Commissioner's cease and desist order?
$5,000
A producer received a group master policy and certificates for delivery to the insured. Within how many days must the policy and certificates be delivered?
10 calendar days
If a producer has been convicted of a crime, he or she must notify the Commissioner within
30 days
The removal coverage included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days
How many days does a producer have to remit the collected premiums to the insurer?
5 business days
Insurers that are authorized to write basic property insurance in New Jersey must impose a ___ surcharge on basic property insurance policies.
5%
Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is
A mutual insurer
A tornado that destroys property would be an example of which of the following?
A peril
What must every insurer authorized to write property insurance in this state collect from insureds under any policy of basic property insurance?
A surcharge
Presenting any written or oral statement in support of or in opposition to a claim payment, while knowing that the statement contains false or misleading information material to the claim, would be best considered
A violation of the New Jersey Insurance Fraud Prevention Act
Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?
Additional coverage
When transacting business in this state an insurer formed under the laws of another country is known as a/an
Alien Insurer
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of
Concealment
Which of the following clauses establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of property or amount of loss?
Appraisal Clause
According to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties
Automatically transfer to a legal representative
Under the HO-4 and HO-6 homeowners policy forms, property is insured against
Broad form perils
When an insurance producer negotiates for an insurance contract on behalf of a client, the producer is acting as a(n)
Broker
Which of the following is the legal name of a corporation or partnership under which a licensee conducts insurance business?
Business name
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of
Coercion
An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?
Combined single
Which authority has the power to deny someone an insurance producer's license?
Commissioner
An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
Consequential
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
Which of the following property coverages would provide protection to contents damaged by fire?
Coverage C
In a dwelling policy, which of the following provides coverage for additional living expenses incurred by an owner-occupant in the event a covered peril makes the premises uninhabitable due to a covered loss?
Coverage E
The extra expense coverage form provides
Coverage that will permit the insured to continue in business without interruption following a property damage loss
The part of a property policy that shows the amount of insurance, premium, and policy term is the
Declarations
Which of the following homeowners forms is designed to provide named peril coverage for personal property to individuals who rent an apartment?
HO-4
U.S. vs. South-Eastern Underwriters was decided in 1944. To what extent does the Supreme Court's decision still apply to insurance today?
It still stands in full. Insurance is considered to be interstate commerce and is therefore subject to regulation by the federal government
What significance did Paul vs. Virginia have on the insurance industry?
It was decided that insurance was not interstate commerce and could not be regulated by the federal government
Insurance is regulated
Mostly on a state level
The Federal Fair Credit Reporting Act
Regulates consumer reports
According to the businessowners policy (BOP) definitions, which of the following does NOT mean valuable papers and records?
Securities
Under the commercial property coverage program, the basic causes of loss form insures against loss caused by
Sprinkler leakage
The amount an insurer will pay under Coverage D (Loss of Use) depends on
The amount of coverage on the dwelling
For the purpose of insurance, risk is defined as
The uncertainty or chance of loss
Personal business property out in the open is covered under commercial property policy only while
Within 100 feet of the described premises