Exam Questions Missed

An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay?

$1,000

What is the maximum value of property that can be covered by the FAIR Plan?

$1,500,000

The extension of coverage under the Commercial Fine Arts Floater includes coverage for newly acquired property for a maximum of

$10,000,

In New Jersey, the minimum coverage limits for Uninsured and Underinsured Motorist Coverage are

$15,000/S30.000/S5,000,

The insured purchased a $200,000 extra expense policy. If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47-day-loss?

$160,000

How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card?

$500

What coverages are offered by the New Jersey Automobile Full Insurance Underwriting Association?

$500,000 bodily injury, comprehensive and collision, and medical payment of $500,000 with a limit of $250,000 per person

Under business owners policy section 1, if an insurer wants to non renew a policy for nonpayment, how many days before the expiration date must the insurer notify the mortgageholder?

10 days

If an insurer cancels an agency contract, it must notify the Commissioner in writing within how many days?

15

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

30 days

Under businessowners policy Section I, if an insurer wants to cancel a policy for any reason except nonpayment of premium, how many days before the effective cancellation date must the insurer notify the mortgageholder?

30 days

Within how many days must a producer report claims to the insurer?

5 business days

Multiple incidents of terrorism would be deemed one incident if they occurred within

72 hours

The temporarily employee theft outside crime the policy coverage includes territory a coverage for up to extension that applies to employees

90 days

An insurance producer refused to comply with a subpoena. What would be the producer's penalty for this violation?

A fine up to $5,000

What are common carriers required to issue to every shipper that it transports goods for?

A uniform bill of lading

The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs

After the execution of the contract.

All of the following statements concerning the New Jersey Insurance Underwriting Association are true, EXCEPT

All insurers licensed in the State are members.

What is reinsurance?

An agreement between a ceding insurer and an assuming insurer

Which would NOT be covered by the inside the premises- robbery or safe burglary of other property coverage?

An employee is caught stealing cash from the register

Which of the following is NOT covered under accounts receivable coverage form?

Any loans required to offset uncollectible amounts

An insured insists that the insurer owes him $10.000 for liability damages, while the insurer asserts that they owe no more than $7,000. Which of the following would most likely describe the type of claim settlement that the insured and the insurer might pursue?

Arbitration

Retroactive dates in claims made CGL policies apply to

Both Bl and PD and PIL and Advertising Liability

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

Breakage of glass

The Department can run a report on a specific producer that lists his or her license information, current license status, and the types of insurance that he or she can transact. What is the name of this report?

Certification of licensestatus roport

and insured is driving her car through a residential area when she loses control and crashes into her neighbors front porch. the neighbor who is sitting on the porch is injured. the insured liability policy has a limit of $500,000. this amount applied to the total of damages for any bodily injury and property damage resulting from one accident. what type of limit of liability does the insured have?

Combined single

Which of the following authorities is in charge of investigating claims held against licensees?

Commissioner

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT

Conditions.

With regards to a homeowners policy, which coverage provides for indirect or consequential losses?

Coverage D

An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure. Which condition is part of the insured's policy?

Deposit prernium audit

An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay?

Each policy will pay $25,000 of the loss.

What is the purpose of the coinsurance clause found in property insurance policies?

Encourage the insured to insure the property closer to its full value

Which of the following would modify the original insurance contract by either adding or removing coverage?

Endorsements

Which federal act provides benefits to injured civilians who are employed by the federal government?

Federal Employees Compensation Act

The requirement that agents must account for all insurance funds collected, and are not permitted to comingle those funds with their own is known as

Fiduciary responsibility.

Who is responsible for filling out a notice of claim form?

Insured

Persons covered under an insurance policy, whether named or not, are known as the

Insureds.

A basic dwelling policy automatically provides coverage against fire, lightning, and

Internal explosion

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

It is imposed on defendants engaged in hazardous activities.

How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?

It removes the coverage

Which of the following coverages in dwelling and homeowners policies is for indirect losses?

Loss of use

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

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

Misrepresentation

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

Motor truck cargo- owners form

ABC Trucking hauls products for Acme, Inc, as a contract carrier, On one shipment, the driver stopped at a truck stop for lunch. Leaving the truck in the parking lot, he made certain that the truck was locked before leaving it. Upon returning to the truck, he discovered that someone had broken into the truck and stolen the cargo, Is ABC legally liable for this loss?

No, the driver had taken reasonable measures to protect the property by locking the truck.

A nonresident licensed producer decides to conduct business under an assumed name. Which of the following is true?

Nonresident producers may not conduct business under any name besides legal names.

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid.

Which of the following personal auto coverages would apply for damage caused by a bird hitting the windshield?

Other-than-collision coverage

Which professional liability endorsement covers claims caused by the negligence of a contractor or subcontractor hired by the insured?

Owners and Contractors Protective Liability

All of the following are requirements for a nonresident license EXCEPT

Passing the New Jersey licensing examination.

Who might receive dividends from a mutual insurer?

Policyholders

A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called

Proof of loss

A situation in which a person can only lose or have no change represents

Pure risk

When the insured is the owner and only designated driver for two or more automobiles and is the only licensed driver residing in the household, the insured is charged

Reduced PIP premiums on each vehicle.

What method do insurers use to protect themselves against catastrophic losses?

Reinsurance

What type of information would be found in a policy's insuring agreement?

Renewal dates

Which method of loss valuation is contrary to the basic concept of indemnity?

Replacement cost

An insured has $5.000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured Medical treatment costs $7.000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?

S14,000

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

S15.000/S30,000/$5.000.

Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called

Specific coverage

All of the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in settling the claim.

All of the following are considered limited lines of authority EXCEPT

Surplus lines

Who directs the New Jersey Automobile Full Insurance Underwriting 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

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

When Personal Injury Protection benefits are paid in excess of $75,000 to any one person, the excess will be paid by the insurer in consultation with

The Unsatisfied Claim and Judgment Fund Board.

a company has a businessowners policy on a building with an estimated replacement cost of $300,000. The company carries $150,000 of insurance. If a loss occurs, how much will the insured company be paid?

The coinsurance formula would apply

Which of the following statements is true regarding the commercial general liability policy's Coverage C- Medical Payments?

The coverage is consideredgood will because payments are made without regard to fault.

A homeowner sells his house to a friend. The friend wants to keep the homeowner's current policy in effect. Under the assignment provision, which of the following is most likely?

The homeowner will need to get written consent from the insurer before the policy can be reassigned.

All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT

The injury or damage must occur within 90 days after the insured's work is completed

Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy?

The insured is injured while driving his motorcycle on his resident premises

All of the following are true regarding physical damage coverage EXCEPT

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

An applicant for a producer's license has successfully completed all of the steps necessary to until he receives his licenseobtain the license. The soon-to-be producer does not want to wait in order to begin working. Which of the following is possible?

The person can obtain a temporary work authority

Which of the following best expresses the purpose of a stated value contract?

To pre-establish the amount of coverage available for property items that are difficult to value

Iney Frank's Steaks furnishes meat to steakhouses. An accident on the premises causes the building to lose refrigeration for 32 hours. The state inspectors will not allow the meat in the refrigerating units to be sold for human consumption, and Frank loses $18,500 in disposing of the meat. What coverage under Frank's BOP policy will cover the loss?

Utility service- direct damage

coverage under a floor plan merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. what is the time frame for those reports?

within 30 days after the end of each month