Casualty
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
What is the maximum allowed value of gift that an agent can give to an insured without violating the regulartions on rebating
$100
In NJ, automobile insurance policies must be written with limits of at least
$15,000/$30,000/$5,000
An insured has a personal auto policy with both other than collision and collision coverage. his car is stolen and recovered 5 days later, if the insured claims transportation expenses of $20 per day, how much will his policy pau
$60, free for the first 48 hours and can't exceed 30 days total.
In order to become a producer in NJ, after submitting a licensing application, candidates must pass a licensing examination within
1 year
The Commissioner believes that a licensee has violated an insurance regulation and decides to conduct a hearing. How long of a notice must the commissioner provide the licensee
10 days
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 $7000 for the insured, $4000 for the first passenger, and $8000 for the second passengers. How much will the policy pay under medical payments coverage
14,000
In NJ, in the even of cancellation of nonpayment of the premium on an auto policy, the insured must be given how many days notice
15
In the split limit coverage in personal auto policies, what limit indicates that maximum amount the policy will pay for bodily injury per person
1st limit
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident thatare incurred and services rendered within what maximum time perion
3 years
Coverage for medical payments under a personal auto policy applies to expenses following accident that are incurred and services rendered within what maximum time period
3 years
If a producer has been convicted of a crime, he or she must notify the Commissioner within
30 day
The NJ 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 after becoming effective
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
A "certification of license" status report can be run on an currently licensesd NJ producer, but can only contain information on formal disciplinary action taken witin the past
4 years
Within how many days must a producer report claims to the insurer
5 business days
Following the filing of a claim for benefits covered under personal injury Protection (PIP) after ______ any coverage benefits not paid are considered overdue
60 days; after the 60 days any PIP coverage that are not paid are then considered overdue.
the employee theft crime policy includes a coverage extension that applies to employees temporarily outside the covered territory for up to
90 days
Who administers the NJ personal automobile insurance plan
NJ automobile full insurance underwriting association
What statement accurately describes the difference between the two tort options the named insured must choose from for PIP coverage
One of the options exempts the owner of an auto from liability for noneconomic loss
When the insured's car was totaled in a recent accident, the ownership of the car was transferred to the insurer. The insurer then sold off the wrecked car to recover some of the loss it paid to the insured. What is this callecd
Salvage; salvage clause in insurance policies allows the insurer to sell the damaged property as salvage to recover part of the paid loss
According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three - other states' insurance of the workers compensation and employer liability policy when
The insured expects to extend operation to the states; by naming a state in part three of a workers compensation and employers liability (WC&El) policy, an employers provides that company operations may be conducted in that state
What statement concerning the Automobile Insurance UEZ Program is correct
The program was established to increase the availability of insurance in urban areas; NJ established the automobile insurance UEZ Program to increase the availability of insurance in urban area.
A tornado that destroys property would be an example of what
a peril
What is a material misrepresentation
a statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. what could not be insured under a personal auto policy
a two-ton grain truck with a 6500-pound capacity -a two-ton truck weighs 4,000lb. with its cargo weight of 6500lb, it exceeds the 10,000lb gross vehicle weight (GVW) limit and would not be eligible. The GVW is the maximun recommended weight, including the weight of the vehicle, fuel and fluids, passengers and all cargo
What is not considered an insured contract under the CGL policy
a written agreement which indemnifies a person for fire damage to the premises rented to the insured
What is a certificate of insurance
a written document showing the type and amount of insurance that have been issued to the insured
In a personal auto policy, the medical payments coverage is similar to
accident insurance, because it pays medical expenses regardless of fault
What part of an insurance policy covers claim-related expenses
additional coverage
What part of an insurance policy covers claim-related expenses, reasonable expenses incurred by an insured to protect damage property from further loss, or defense expenses
additional coverage; additional coverage portion of a policy provides an additional amount of coverage for specific loss expense, at no additional premium
What is reinsurance
an agreement between a ceding insurer and assuming insurer
What is not qualify as a hired autp
an auto borrowed from an employee
What would not be covered by inside the premises - robbery or safe burglary of other property coverage
an employee is caught stealing cash from the register
According to the NJ workers compensation laws, who qualifies as an employee?
any natural person, including an officer of a corporation, who performs services for an employer for compensation
What is a method of claim settlement used in casualty insurance when the insured and the insurer cannot agree on how to settle a claim
arbitration
Bob insists that the insurer owes him $10,000 for liability damages, while his insurer asserts that they owe him no more than $7,000. What would most likely describe the type of claim settlement that they might pursue.
arbitration; when an insured and insurer cannot agree on how to settle a claim, arbitration is often used. The settlement is submitted to an arbitrator whose decision may or may not be binding on both parties dependent on state law
special automobile insurance policy makes limited auto insurance coverage available to driver who
are currently enrolled in medicaid with hospitalization
The garage coverage form is used to insure
auto business, such as auto dealers, service stations and auto repair shops
a plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly
completed operation
The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called
conditions
The part of the policy that set forth the rules of conduct, duties and obligations of the parties is called the
conditions; the conditions is the part of an insurance policy that set forth the obligations and duties of the insurer and the insured
Which of the following is an insurance professional who offers advice regarding benefits or advantages of an insurance policy to clients fora fee
consultant; an insurance consultant is a person who, for a fee, commission, or other consideration, act or holds himself or herself out to the public or to any licensee as offering any advice, counsel, opinion, or service with respect to the benefits, advantages, or disadvantages under any insurance policy or contract
Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement
contractual liability policy; the insurer agrees to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement
The designation symbols used in commercial auto policies can be found in what policy section
covered auto
The designation symbols used in commercial auto policies can be found in which policy section
covered auto; section-1 covered auto of a commercial auto policy explains the designation symbols used in the coverage
What type of insurance would be written by a limited lines agent
credit insurance
what type of insurance would be written by a limited lines agent
credit insurance
Professional liability coverage protects the insured against legal liability resulting from
errors and omissions
Circulating deceptive sales material in the public is what type of unfair trade practice
false advertising; this is considered to be false, deceptive or misleading advertising
Which federal act provides benefits to injured civilians who are employed by the federal government?
federal employee compensation act; the federal employees compensation act provides benefits to injured civilians who are employed by the federal government; no private insurers are involved.
Applicants for surplus lines authority must fulfill all of the following requirements except
hold a bond as a condition for liensure
In liability insurance policies, supplementary payments are made
in addition to the limit of liability
if an insured needs protection on property other than money and securities inside the premises from losses caused by breaking and entering after business hours, what following crime coverage forms should be purchased
inside premises- robbery or burglary of other property
What is the best describes a misrepresentation
issuing sales material with exaggerated statements about policy benefits
What best describes a misrepresentation
issuing sales material with exaggerated statments about policy benefits
One advantage of claims-made liability forms from the insurer's POV is that
it prevents stacking of limits
An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. the damage to the other vehicle totals $5,000. What is true regarding producer's errors and omissions liability policy
it will provide coverage b/c the damage to the client resulted from the producer's negligence
Retrospective rating plans allow an adjustment of the final premium for a risk based on
its own loss experience
Retrospective rating plans allow an adjustment of the final premium for a risk based on
its own loss experience;
The primary purpose of a surety bond is to
make sure obligations are fulfilled.; a surety bond guarantees the performance of the principal
What is a common exclusion found in Part D: Coverage for damage to your auto PAP - personal auto policy
mechanical breakdown; damage due to wear and tear, freezing, mechanical, or electrical breakdown, and road damage to tires is a common exclusion to the physical damage coverage section
Under PIP coverage, an insured may choose to exclude any of the following benefits, except
medical expenses; additional coverages may be excluded by the insured
Every noninsurer servicing carrier must have been in the insurance business for at least 5 years and be able to demonstrate that it has the capacity to issue and service a minimum of 100,000 private passenger automobile policies. What else is required of a noninsurer servicing carrier
minimum assets of $10 million
Most insurance policies exclude losses by
mysterious disappearance
A nonresident licensed producer decides to conduct business under as assumed name. What is true
nonresident producers may not conduct business under any name besides legal name
What statement accurately describes the difference between the two tort options the named insured must choose of PIP coverage
one of the options exempts the owner of an auto from liability for noneconomic loss
What professional liability endorsement covers claims caused by the negligence of a contractor or subcontractor hired by the insured
owners and contractors protective liability
A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as
penalty
What coverages is automatically included in a basic auto policy
personal injury protection coverage
What vehicle must have several options regarding deductible in NJ
private passenger vehicles; NJ is required to offer several options for private passenger automobile collision and comprehensive coverages
While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store
property damage liability
While an insured was towing a utility trailer with is auto, the trailer came loose and ran into a store front. what part of the insured's auto policy would pay for the damage to the store
property damage liability
For insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gain the property, this is define as
robbery; robbery coverage requires that the insured property was taken by the use of violence or threat of violence
What is included under the physical damage coverage of a personal auto policy
sound reproduction equipment permanently installed in a covered auto
in the event of a claim under a commercial general liability policy, the insured has all of the following duties to the insured except
submitting to a medical exam when requested
What is not considered a limited line of authority
surplus lines
Burglary is defined as
taking of property from within the premises leaving visible signs of forced entry
Who is responsible for directing the Association's board to prepare, adopt and file rates that are based on the past and prospective loss experience of the risks underwritten by the association
the commissionerllllllllllllllll
The claims-made trigger is based on
the date the claim is first made
if the issuance of a license is denied and a hearing is requested, which entity will be making determination whether or not the license should be issued
the department of insurance
What happens if an employer rejects compliance with the Workers Compensation Act
the employer is deprived of common law defenses
All 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 of damage must occur within 90 days after the insured's work is completed; the products and completed operations hazard includes injuries and damage that occur after the insured has completed its job and left the site, or relinquished control of a produce it manufactured or sold. There is no time limit on the injury or damage
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 except
the injury or damage must occur within 90 days after the insured's work is completed
What circumstance would be excluded under medical payments coverage of a personal auto policuy
the insured is injured while driving his motocycle on his resident premises
The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following except
the insured is injured while exiting a friend's mobile home; medical payments only provide coverage to the insured and any passengers in the insured's vehicles. Injuries to other persons are coverd by a personal auto policy, PAP, liability coverage
An insured is driving her auto and strikes a large pothole, causing a flat tire. What coverage of the insured's personal auto policy will pay for this repair
this loss is not covered; a flat tire that occurs from a cause other an vandalism is considered a road hazard and is specifically excluded from coverage in the policy
WHat is the purpose of claims made form
to allow insurers to determine adequate rates for unknown losses claimed in the future
What is the purpose of NJ assigned risk plan
to provide workers compensation insurance to employers who are unable to obtain coverage in the voluntary market
In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for
uninsured motorist coverage
All of the following are supplmental payments include in liability section of a personal auto policy except
up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident
Supplementary payments on a CGl provides all of the following except
up to $500 a day for loss earning and $2,000 for the cost of bail bonds
New Jersey Workers Compensation law provides a schedule of benefits
without regard to fault or negligence on the employer's part
