Property Exam Pt. 2
How long is the waiting period after the application has been accepted before flood coverage goes into effect? 1. 6 months 2. 12:01 am the next day 3. 5 days 4. 30 days
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? 1. 5 days 2. 15 days 3. 30 days 4. 60 days
30 days
Multiple incidents of terrorism would be deemed one incident if they occurred within 1. 24 hours. 2. 36 hours. 3. 48 hours.' 4. 72 hours.
72 hours
What is the coinsurance requirement for a theatrical property floater under an Inland Marine policy? 1. 100% 2. 50% 3. 75% 4. 80%
80%
Which of the following is authorized to appoint and remove officers and other personnel employed within the Department? 1. Insurance Officer Regulation Board 2. Department of Insurance 3. Commissioner 4. Governor
Commissioner
The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the 1. Exclusions. 2. Declarations. 3. Insuring clause. 4. Conditions.
Conditions
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? 1. Adhesion 2. Consideration 3. Good faith 4. Representation
Consideration
Which of the following is NOT an essential element of an insurance contract? 1. Counteroffer 2. Consideration 3. Agreement 4. Legal purpose
Counteroffer
Valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT 1. Historical records. 2. Prepackaged software. 3. Blueprints. 4. Deeds.
Prepackaged software
Before an insurer will pay any loss under a policy, what is usually required from the insured? 1. A claims-made form 2. Proof of loss 3. Notice of claim 4. A binder
Proof of loss
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT 1. $1,000 on silverware. 2. $200 on money. 3. $1,500 on securities. 4. $1,500 on jewelry.
$1,000 on silverware
A producer was found guilty of a 3rd violation of the Insurance Code. What would be the monetary penalty he will have to pay? 1. $10,000 2.$15,000 3.$25,000 4.$5,000
$10,000
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? 1. $15,000 all expenses incurred during a 12-month period 2. $20,000 all expenses incurred during a 12-month period 3. $5,000 for all expenses incurred during a 12-month period 4. $10,000 for all expenses incurred during a 12-month period
$10,000 for all expenses incurred during a 12-month period
What is the maximum allowed value of a gift that an agent can give to an insured without violating the regulation on rebating? 1. $10 2. $50 3. $100 4. $200
$100
A licensee violates an insurance regulation. A hearing is held, and the person is found guilty. If this is the person's first offense, the penalty is no more than 1. $5,000. 2. $1,000. 3. $1,500. 4. $3,000.
$5,000
Provided that it is a first offense, what is the maximum penalty for failing to respond to a subpoena? 1. $100 2. $10,000 3. $5,000 4. $500
$5,000
The Commissioner believes that an insurance rule or regulation has been violated, and decides to call a disciplinary hearing. How many days before a hearing must the Commissioner issue a notice to the person charged with a violation? 1. 20 days 2. 30 days 3. 7 days 4. 10 days
10 days
Under the conditions of a Film Coverage Form, how long must the insured maintain records of each production? 1. 1 year after production completion 2. 3 years after the policy expires 3. 5 years after the policy expires 4. 7 years after production completion
3 years after the policy expires
An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? 1. 100% of the market value 2. $400,000 3. $32,000 4. 80% of the property's replacement cost or more
80% of the property's replacement cost or more
Which of the following is eligible for a business owners policy? 1. A convenience store with gas pumps with 60% of gross sales from gasoline sales 2. A mercantile risk with gross sales of $4 million 3. A 6-story office building with less than 100,000 square feet total area 4. An 8-story office building
A 6-story office building with less than 100,000 square feet total area
A contract for the transport of goods between the shipper and the carrier is called 1. A bill of lading 2. A bailment 3. A binder 4. A bill of sale
A bill of lading
A tornado that destroys property would be an example of which of the following? 1. A peril 2. A pure risk 3. A loss 4. A physical hazard
A peril
The declarations page of the homeowners policy provides all of the following information EXCEPT 1. What deductible amount applies to each loss covered by the policy. 2. A statement that earthquake damage is not covered. 3. The amount of premium charged for each coverage. 4. The insured's address.
A statement that earthquake damage is not covered
What must every insurer authorized to write property insurance in this state collect from insureds under any policy of basic property insurance? 1. A surcharge 2. Tax 3. A donation 4. A tariff
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 1. Grounds for license revocation. 2. A violation of the "Unsatisfied Claim and Judgment Fund Law." 3. A violation of the New Jersey Insurance Fraud Prevention Act. 4. A permissible act.
A violation of the New Jersey Insurance Fraud Prevention Act
What type of liability would a person who owns wild animals have? 1. Implied 2. Direct 3. Absolute 4. Vicarious
Absolute
When transacting business in this state an insurer formed under the laws of another country is known as a/an 1. Alien insurer 2. Domestic insurer 3. Foreign insurer 4. Admitted insurer
Alien insurer
All of the following would be considered rebating EXCEPT 1. An agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him. 2. An agent offers to share his commission with a policyholder. 3. An agent offers tickets to a baseball game as an inducement to buy insurance. 4. An agent misrepresents policy benefits to convince a policyowner to replace policies.
An agent misrepresents policy benefits to convince a policyowner to replace policies
Which of the following describes the transfer of a legal right or interest in an insurance policy? 1. Obligation 2. Legal purpose 3. Assignment 4. Abandonment
Assignment
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as 1. Coercion 2. Rebating 3. Misleading advertising 4. Defamation
Coercion
In return for premium, an insurance company must 1. Give the insurer valuable consideration. 2. Be fair in underwriting and pay covered losses. 3. Provide the insured with coverage adequate for all potential losses. 4. Use standardized tables of coverage for specific risks to be excluded from coverage
Be fair in underwriting and pay covered losses
A policy that insures all property at multiple locations for a single amount is referred to as 1. Reporting 2. Special 3. Specific 4. Blanket
Blanket
The NFIP emergency program 1. Goes into effect after the community has received a Flood Hazard Boundary Map and ends when the normal program begins. 2. Provides limited amounts of coverage at subsidized rates. 3. Provides more coverage than the normal program. 4. Both 1 and 2
Both 1 and 2
Which of the following other coverages is NOT included in the basic form dwelling policy? 1. Tenant's improvements, alterations, and additions 2. Breakage of glass 3. Removal coverage 4. Personal property temporarily away from the insured premises
Breakage of glass
Which of the following is NOT a primary property coverage in homeowners coverage? 1. Collapse 2. Dwelling 3. Other structures 4. Loss of use
Collapse
Which authority has the power to deny someone an insurance producer's license? 1. Federal Insurance Licensing Regulation Board 2. Commissioner 3. Insurance company 4. Guaranty Association
Commissioner
Which of the following must an insurer obtain in order to transact insurance within a given state? 1. Certificate of authority 2. Producer's certificate 3. Business entity license 4. Insurer's license
Certificate of authority
Which of the following dwelling coverage forms would pay replacement cost for the dwelling? 1. All dwelling property coverage forms 2. DP-1 3. DP-2 and DP-3 4. DP-3 only
DP-2 and DP-3
The part of a property policy that shows the amount of insurance, premium, and policy term is the 1. Endorsements. 2. Declarations. 3. Insuring clause. 4. Conditions.
Declarations
A beauty parlor burns to the ground. What type of loss is this to the owner? 1. Consecutive 2. Direct 3. Consequential 4. Specific
Direct
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? 1. Law of large numbers 2. Misrepresentation 3. Adverse selection 4. Discrimination
Discrimination
Which of the following would NOT be included in a commercial package policy? 1. Commercial crime coverage 2. Equipment breakdown coverage 3. Farm coverage 4. Dwelling coverage
Dwelling coverage
Which of the following terms best describes a trembling or shaking of the earth that is volcanic or seismic in origin? 1. Earthquake 2. Tectonic shifting 3. Tsunami 4. Geotectonic inversion
Earthquake
Which of the following would modify the original insurance contract by either adding or removing coverage? 1. Endorsements 2. Additional coverage form 3. Conditions 4. Flexible policy
Endorsements
The proof of loss statement must be 1. An oral statement. 2. In writing. 3. Both oral and in writing. 4. In a videotape format.
In writing
An additional loss that results from a direct loss of property is called a/an 1. Liability loss. 2. Punitive loss. 3. Indirect loss. 4. Proximate loss.
Indirect loss
According to the Nationwide Marine definitions, risks that may be the subject of inland marine insurance include all of the following EXCEPT 1. Property while stored at a warehouse. 2. Shipments made by freight train. 3. Cargo transported by truck. 4. Large pleasure boats
Large pleasure boats
The Physicians and Surgeons Equipment Floater in NOT intended for which of the following? 1. Waiting room furniture in a doctor's office 2. Office equipment located in a dentist's office 3. Medical supplies located in a hospital 4. Surgeon's supplies located in the surgeon's office
Medical supplies located in a hospital
Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called 1. Described coverage. 2. Specific coverage. 3. Schedule coverage. 4. Blanket coverage.
Specific coverage
Who is covered by an HO-4 policy? 1. Tenants 2. Owners of a vehicle 3. Owners of a condominium 4. Owners of a home
Tenants
The list of lines of insurance for which there is no reasonable or adequate market in New Jersey, as determined by the Commissioner, is known as 1. The surplus lines list 2. The uninsurable risk list 3. The high-risk list 4. The exportable list
The exportable list
The list of lines of insurance for which there is no reasonable or adequate market in New Jersey, as determined by the Commissioner, is known as 1. The surplus lines list 2. The uninsurable risk list. 3. The high-risk list. 4. The exportable list.
The exportable list
Which of the following is included in the term "insurance-related conduct"? 1. Transmitting funds between producers and the insurance company 2. Insurer's acting with the scope of the Insurance Code 3. Producer's ethical behavior 4. Producer licensing
Transmitting funds between producers and the insurance company
Which of the following is an example of a protective safeguard in a business owners policy? 1. Professional liability endorsement 2. Automatic sprinkler system 3. Errors and omissions insurance 4. Recordkeeping
automatic sprinkler system
Which of the following claims would be included under the dwelling policy? 1. Fire damage to a garage located on the insured premises used as an auto repair shop 2. Theft of the insured's auto from the detached garage 3. Death to the insured's pet caused by smoke inhalation 4. Fire damage to the insured's rowboat stored in the attached garage
Fire damage to the insured's rowboat stored in the attached garage
When would a misrepresentation on the insurance application be considered fraud? 1. When the application is incomplete 2. Any misrepresentation is considered fraud 3. If it is intentional and material 4. Never: statements by the applicant are only representations
If it is intentional and material
Insurance is regulated 1. Only on the level of social medicine, which is on both state and federal levels. 2. Mostly on a federal level. 3. Mostly on a state level. 4. Evenly between the state and federal levels.
Mostly on a state level
Which of the following does the term proximate cause refer to? 1. Duty of the defendant to act 2. Reason for filing a lawsuit 3. Negligence that leads to an injury 4. Injury that leads to monetary compensation
Negligence that leads to an injury
The causes of loss insured against in an insurance policy are known as 1. Losses 2. Risks 3. Hazards 4. Perils
Perils
What method do insurers use to protect themselves against catastrophic losses? 1. Pro rata liability 2. Risk management 3. Reinsurance 4. Indemnity
Reinsurance
Who does an insurance agent represent? 1. The Department 2. Him/herself 3. The insurer 4. The insured
The insurer
A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean? 1. Coverage is automatic 2. There is no coverage 3. Coverage applies without premium 4. This must be a misprint on the form
There is no coverage
In forming an insurance contract, when does acceptance usually occur? 1. When an insured submits an application 2. When an insurer's underwriter approves coverage 3. When an insurer delivers the policy 4. When an insurer receives an application
When an insurer's underwriter approves coverage
How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card? 1. $100 2. $500 3. $1000 4. $5000
$500
If a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person? 1. $30,000 2. $50,000 3. $100,000 4. $180,000
$50,000
An insurance producer refused to comply with a subpoena. What would be the producer's penalty for this violation? 1. Imprisonment up to 6 months 2. A fine up to $5,000 3. A fine and an imprisonment 4. A fine up to $10,000
A fine up to $5,000
In choosing an insurance business name, which of the following would be allowed? 1. A name with the same spelling as a competing company, but a different pronunciation 2. A name which implies eligibility for individuals to whom coverage is not actually offered 3. A proper name which does not belong to any officers, stockholders, or executives 4. A name with the same pronunciation as a competing company, but a different spelling
A proper name which does not belong to any officers, stockholders, or executives
Which of the following most likely would NOT be required to complete continuing education hours in this state? 1. Resident producers 2. Insurance consultants 3. Nonresident producers 4. Insurance brokers
Nonresident producers
Who might receive dividends from a mutual insurer? 1. Policyholders 2. Subscribers 3. Stockholders 4. Agents
Policyholders
Which of the following definitions best defines the term "accident"? 1. Injury to the character of another person caused by libel, slander, false arrest, invasion of privacy and other acts 2. Physical damage to tangible property of others caused by the negligence of an insured 3. The negligent or purposeful act or omission by an insured that results in physical trauma or death to a person 4. A sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage neither expected nor intended
A sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage neither expected nor intended
What are common carriers required to issue to every shipper that it transports goods for? 1. A common carrier cargo liability notice 2. A uniform bill of lading 3. A transit coverage form 4. A motor truck cargo form
A uniform bill of landing
The Commissioner may revoke a producer's license for all of the following reasons EXCEPT 1. Acting in a fiduciary capacity. 2. Accepting business from an unlicensed person. 3. Commingling of funds. 4. Misrepresenting the terms of a policy.
Acting in a fiduciary capacity
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? 1. Exclusions 2. Declarations 3. Insuring agreement 4. Additional coverage
Additional coverage
Which of the following may be covered by electronic data processing coverage form under an inland marine policy? 1. Computer hardware that is specifically scheduled. 2. Extra expense the insured incurs to continue the business following a loss. 3. Data processing media, including magnetic tapes or paper tapes, punch cards and discs 4. All of these are covered.
All of these are covered
How much is covered for debris removal under the HO property additional coverages? 1. Nothing, unless added by an endorsement 2. All reasonable costs 3. 90% of the total cost of clean-up 4. Everything after a $200 deductible
All reasonable costs
The insured with a homeowners policy has had damage to his property caused by a volcano. Which of the following is true? 1. None of the damage is covered. 2. All eruptions are considered separate occurrences no matter how close together. 3. Coverage for each volcanic eruption would require a separate deductible. 4. All volcanic eruptions within a 72-hour period will be considered one occurrence.
All volcanic eruptions within a 72-hour period will be considered one occurrence
Binders cease at the earliest of 1. Rejection of the application by underwriting 2. Issuance of the policy 3. 60 days following the issue date of the binder 4. Any of the above
Any of the above
A policy condition that stipulates how the amount of damaged or lost property will be determined if the insured and the principal do not agree on the value of a property loss is known as 1. Appraisal. 2. Coinsurance. 3. Loss valuation. 4. Third-party provision.
Appraisal
To be issued a business entity producer license by the Commissioner, the business entity must have how many partners or officers licensed as producers? 1. No more than 2 2. No more than 5 3. At least 3 4. At least 1
At least 1
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? 1. Certification of license status report 2. MIB report 3. Producer's report 4. Investigative consumer report
Certification of license status report
Which of the following is an insurance professional who offers advice regarding benefits or advantages of an insurance policy to clients for a fee? 1. Counselor 2. Consultant 3. Producer 4. Broker
Consultant
What is the purpose of the coinsurance clause found in property insurance policies? 1. Ensure that insureds do not over insure their property 2. Prevent insureds from profiting from a loss 3. Encourage the insured to insure the property closer to its full value 4. Encourage higher standards of care by requiring the insured to pay a portion of every loss
Encourage the insured to insure property closer to its full value
Individuals in the business of selling construction equipment and mobile equipment should insure with a/an 1. Personal property floater. 2. Equipment dealers coverage form. 3. Contractors equipment floater. 4. Installation floater.
Equipment dealers coverage form
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 1. Fiscal responsibility. 2. Fiduciary responsibility. 3. Premium accountability. 4. Insurance-related conduct.
Fiduciary responsibility
The homeowners policy covers collapse caused by all of the following EXCEPT 1. Foundation cracks 2. Weight of snow 3. Hidden insect or vermin damage 4. Weight of too many people attending an event hosted in the house
Foundation cracks
Events or conditions that increase the chances of an insured loss occurring are referred to as 1. Risks. 2. Perils. 3. Hazards. 4. Exposures.
Hazards
To become licensed as a nonresident producer in this state, a producer must do which of the following? 1. Be a member of the New Jersey Insurance Guaranty Association. 2. Spend at least 25% of his or her working hours in New Jersey. 3. Hold a resident license in good standing in the producer's home state. 4. Have been licensed as a producer for at least 3 years before applying in New Jersey.
Hold a resident license in good standing in the producer's home state
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? 1. Legal, provided that the information can be verified 2. Illegal until endorsed by the Guaranty Association 3. Legal, provided that the other insurers are paid royalties for the usage of their names 4. Illegal under any circumstances
Illegal under any circumstances
To purchase insurance, the policyowner must have financial interest in the property being insured. This is known as 1. Loss valuation 2. Indemnity 3. Insurable interest 4. Pure loss
Insurable interest
The additional living expense coverage on homeowners policies 1. Does not begin to pay until the family has been out of the house for at least 7 days 2. Is intended to allow the family to stay in the least expensive accommodations available. 3. Is intended to allow the family to maintain its normal standard of living. 4. Is automatically paid after any loss to the covered house.
Is intended to allow the family to maintain its normal standard of living.
What significance did U.S. vs. South-Eastern Underwriters have on the insurance industry? 1. It determined that insurance licenses should no longer be issued by the individual states and should instead be issued by the federal government. 2. It reversed the decision of Paul vs. Virginia, determining that insurance is interstate commerce and should be regulated federally 3. It reversed the decision of Paul vs. Virginia, determining that insurance is not interstate commerce and should not be regulated federally. 4. It determined that insurance licenses should no longer be issued by the federal government and should instead be issued by individual states.
It reversed the decision of Paul vs. Virginia, determining that insurance is interstate commerce and should be regulated federally
The process of determining the premium charged and how much insurance is required for a particular loss is called 1. Loss valuation 2. Agreed value 3. Loss payment 4. Coinsurance
Loss valuation
What type of property does a personal floaters policy cover? 1. Permanently attached property located on the insured's premises 2. Moveable personal property, located exclusively outside of the insured's home 3. Movable personal property located in the insured's home, only 4. Movable personal property, wherever it may be located
Movable personal property, wherever it may be located
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? 1. Nonprofit service organization 2. Stock 3. Mutual 4. Reciprocal
Mutual
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are 1. Not taxable since the IRS treats them as a return of a portion of the premium paid 2. Paid at a fixed rate every year 3. Taxable as ordinary income 4. Guaranteed
Not taxable since the IRS treats them as a return of a portion of the premium paid
Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of which of the following terms? 1. Occurrence 2. Peril 3. Hazard 4. Accident
Occurrence
Which of the following lines of insurance is NOT included in the commercial package policy? 1. Equipment breakdown 2. Inland marine 3. Ocean marine 4. Crime
Ocean marine
What type of insurance policy insures against all risk of loss that are not specifically excluded by the policy? 1. Specified peril policy 2. Binder policy 3. Named peril policy 4. Open peril policy
Open peril policy
A building insured with commercial property insurance has been vacant for more than 60 consecutive days. Which of the following is NOT true? 1. The insured has no coverage for losses caused by theft 2. The insured has no coverage for losses caused by glass breakage 3.Payment for unnamed perils is reduced by 15% 4. Payment for unnamed perils is reduced by 25%
Payment for unnamed perils is reduced by 25%
A building insured with commercial property insurance has been vacant for more than 60 consecutive days. Which of the following is NOT true? 1. The insured has no coverage for losses caused by theft. 2. The insured has no coverage for losses caused by glass breakage. 3. Payment for unnamed perils is reduced by 15%. 4. Payment for unnamed perils is reduced by 25%.
Payment for unnamed perils is reduced by 25%
Which of the following is NOT required information a producer must provide before soliciting insurance? 1. Producer's name 2. Producer contact information 3. The nature of producer's relationship with the insurer being represented 4. The name of the insurer the producer represents
Producer contact information
Which of the following licenses is required for a surplus lines producer? 1. Adjusters 2. Property and Casualty 3. Credit insurance 4. Life and health
Property and Casualty
The risk of loss may be classified as 1. Named risk and un-named risk 2. High risk and low risk 3. Pure risk and speculative risk 4. Certain risk and uncertain risk
Pure risk and speculative risk
What type of information would be found in a policy's insuring agreement? 1. Location of premises 2. Policy limits 3. Insurer's address 4. Renewal dates
Renewal dates
All of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT 1. Water damage. 2. Replacement cost. 3. Falling objects. 4. Weight of ice, snow, or sleet
Replacement cost
A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method? 1. Reproduction cost 2. Stated amount 3. Actual cash value 4. Replacement cost
Stated amount
The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called 1. Consent to settle loss 2. Right of salvage 3. Appraisal 4. Subrogation
Subrogation
All of the following are unfair claims settlement practices EXCEPT 1. Failing to adopt and implement reasonable standards for settling claims. 2. Failing to acknowledge pertinent communication pertaining to a claim. 3. Suggesting negotiations in settling the claim. 4. Refusing to pay claims without conducting a reasonable investigation.
Suggesting negotiations in settling the claim
Bob has been trying to obtain essential property insurance but has had no success. Which of the following would provide this insurance to Bob? 1. The High-Risk Pool 2. The NAIC's Essential Property Insurance Plan 3. The FAIR Plan 4. The Guaranty Association
The FAIR Plan
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? 1. Consumer Privacy Act 2. The Fair Credit Reporting Act 3. Unfair Trade Practices Law 4. The Guaranty Association
The Fair Credit Reporting Act
The Supreme Court stated that insurance is interstate commerce and is therefore subject to regulation by the federal government in the decision of what case? 1. Rosche-Wall vs. Alabama 2. Paul vs. Virginia 3. The U.S. vs. the South-Eastern Underwriters Association 4. McCarran-Ferguson vs. New York
The U.S. vs. South-Eastern Underwriters Association
Which of the following would qualify as a competent party in an insurance contract? 1. The applicant is a 12-year old student 2. The applicant is under the influence of a mind-impairing medication at the time of application 3. The applicant has a prior felony conviction 4. The applicant is intoxicated at the time of the application
The applicant has a prior felony conviction
In New Jersey, hurricane deductibles apply to losses from a storm designated a hurricane by which of the following entities? 1. The New Jersey Coast Guard 2. The department of banking and insurance 3. The national weather service 4. The New Jersey FAIR Plan
The national weather service
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? 1. The organization will not have to obtain a nonresident license, unless more than 50% of its business is conducted in New Jersey. However, its producers will need to obtain nonresident licenses. 2. The organization will not have to obtain a nonresident license, since it is a business entity. However, all of its producers will need to have nonresident licenses. 3. The organization will need to obtain a nonresident business entity license, which will secure nonresident status for the business itself and all of its producers. 4. The organization will need to obtain a nonresident business entity license, and its producers will need to obtain nonresident licenses
The organization will need to obtain a nonresident business entity license, and its producers will need to obtain nonresident licenses
An applicant for a producer's license has successfully completed all of the steps necessary to obtain the license. The soon-to-be producer does not want to wait until he receives his license in order to begin working. Which of the following is possible? 1. The person must apply for a shortened preliminary period. 2. As long as the producer is appointed, he may begin working, and the license will be issued with a retroactive date. 3. The person can obtain a temporary work authority. 4. The person must wait until the license is issued.
The person can obtain a temporary work authority
A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered 1. Closed. 2. Vacant. 3. Unoccupied. 4. Condemned.
Vacant
When a parent is required to pay for damages caused by his or her children, this is an example of 1. Strict liability. 2. Intervening cause. 3. Assumption of risk. 4. Vicarious liability.
Vicarious liability