CASUALTY PRODUCER CORE EXAM TEST QUESTIONS AND
ANSWERS GRADED A+
✔✔Edgar decided to sue his neighbor for damages to his driveway. He got a bond that
guarantees he will be able to pay the court costs and damages if he loses his case.
What bond did he receive? - ✔✔Cost bond
✔✔What kind of bonds is also known as a Securities bond? - ✔✔Lost instrument bond
✔✔What was created to expand the availability of insurance coverage in urban
communities and to encourage insurers to write auto coverage in urban areas? -
✔✔The UEZ
✔✔How far in advance must an insurer file their policy forms with the Commissioner's
Office before they can be used? - ✔✔30 days
✔✔Bob didn't elect PIP coverage option in writing, so which will be automatically
designated for him? - ✔✔Limitation on lawsuit option
✔✔If a Household insurance policy was issued, delivered or renewed, it must give an
insured coverage against liability from an injured household employee, their
dependents, and their domestic servants during which timeframe? - ✔✔Always
✔✔A Certificate of Coverage insuring a covered financed vehicle must be delivered
within ____ days after the effective date of coverage. - ✔✔20
✔✔What bureau is responsible for supervising the Worker's Comp premium rate
classification system, rating programs, reviewing individual employer insurance,
records, and overseeing the residual market? - ✔✔The NJ Compensation Rating and
Inspection Bureau
✔✔What does the FAIR plan stand for? - ✔✔Fair Access to Insurance Requirements
✔✔Who has to be a member of the FAIR plan? - ✔✔Every property insurer in NJ
✔✔Who is the administrator of the FAIR plan? - ✔✔NJ Insurance Underwriting
Association (NJIUA)
✔✔What things does the FAIR plan have the authority to do ? - ✔✔-Apply reinsurance
for its members
-Cause property policies to be issued to applicants
-Cede or abandon insurance
,✔✔What is the maximum amount of insurance a FAIR plan policy could purchase? -
✔✔$1, 500,000
✔✔What is binding? - ✔✔Placing coverage in force before the insurer issues a policy. It
lasts until an application has been denied, a policy was issued, or the onset of 60 days
✔✔Mark buys insurance coverage and you bind it for him. How long is his binder good
for?
a. 62 days
b. 45 days
c. 75 days
d. 100 days - ✔✔b. 45 days (# must be 60 or less)
✔✔What must brokers do BEFORE placing business with the NJIUA - ✔✔register
✔✔What info is required for registration w the NJIUA? - ✔✔-copy of NJ producer's
license
-tax payer ID# & W-9 cert
✔✔How much should be collected as a surcharge to be forwarded to the NJ Insurance
Development Fund? - ✔✔Not to exceed 5% of the premium
✔✔How many days of notice must the insurer give to insureds before cancelling a
policy? - ✔✔60 days
✔✔When must non-renewal & cancellation notices be sent? - ✔✔No later than 120
days and no less than 30 days before the expiration of a policy UNLESS due to a non-
payment of premium, then 10 days before
✔✔If a block non-renewal or block cancellation adversely affects the insurance market,
the commissioner may extend the timeframe for block non-renewals or cancellations for
up to a ____ year period. - ✔✔3
✔✔How many attempts must a producer make to place coverage with a different
authorized insurer before surplus lines insurance may be written? - ✔✔3 attempts
✔✔What department does the insurance commissioner run in NJ? - ✔✔Department of
Banking and Insurance
✔✔Who approves hurricane insurance deductibles in NJ? - ✔✔Dept of Banking &
Insurance or Insurance Commissioner
, ✔✔What is defined as a hurricane? - ✔✔Storm's wind was recorded at 74 mph and has
been measured in another location in the state
✔✔What is the deductible in coastal areas for hurricane damage? - ✔✔4%
✔✔What is the deductible in inland areas for a hurricane? - ✔✔2-3%
✔✔All of the following are allowed coverage under Personal Injury Protection coverage
EXCEPT:
A. Family member who resides in the household struck by an uninsured motor vehicle
B. Non-resident who was insured
C. Pedestrian who was injured
D. Passenger - ✔✔A. Family member who resides in the household struck by an
uninsured motor vehicle
✔✔When a PIP waiver is signed there is:
A. No medical payment coverage for passengers in an insured's vehicle
B. Medical payment coverage for listed family members under the age of 16
C. No medical coverage for pedestrians struck by an insured's vehicle
D. No coverage for family members of an insured over the age of 16 - ✔✔B. Medical
payment coverage for listed family members under the age of 16
✔✔What is the Garage Auto Symbol for any auto?
A. Symbol 20
B. Symbol 21
C. Symbol 22
D. Symbol 23 - ✔✔B. Symbol 21
✔✔Which of the following is not used to rate Workers Compensation coverage?
A. Losses
B. Payroll
C. Job classification
D. Sales - ✔✔D. Sales
✔✔Which of the following is not recognized as a substitute for the New Jersey
education and exam requirements?
A. Chartered Life Underwriter
B. Professional Insurance Agent
C. Chartered Financial Consultant
D. Chartered Property& Casualty Underwriter - ✔✔B. Professional Insurance Agent
✔✔John refused to comply with a subpoena. What will be his fine?
A. $100
B. $500
ANSWERS GRADED A+
✔✔Edgar decided to sue his neighbor for damages to his driveway. He got a bond that
guarantees he will be able to pay the court costs and damages if he loses his case.
What bond did he receive? - ✔✔Cost bond
✔✔What kind of bonds is also known as a Securities bond? - ✔✔Lost instrument bond
✔✔What was created to expand the availability of insurance coverage in urban
communities and to encourage insurers to write auto coverage in urban areas? -
✔✔The UEZ
✔✔How far in advance must an insurer file their policy forms with the Commissioner's
Office before they can be used? - ✔✔30 days
✔✔Bob didn't elect PIP coverage option in writing, so which will be automatically
designated for him? - ✔✔Limitation on lawsuit option
✔✔If a Household insurance policy was issued, delivered or renewed, it must give an
insured coverage against liability from an injured household employee, their
dependents, and their domestic servants during which timeframe? - ✔✔Always
✔✔A Certificate of Coverage insuring a covered financed vehicle must be delivered
within ____ days after the effective date of coverage. - ✔✔20
✔✔What bureau is responsible for supervising the Worker's Comp premium rate
classification system, rating programs, reviewing individual employer insurance,
records, and overseeing the residual market? - ✔✔The NJ Compensation Rating and
Inspection Bureau
✔✔What does the FAIR plan stand for? - ✔✔Fair Access to Insurance Requirements
✔✔Who has to be a member of the FAIR plan? - ✔✔Every property insurer in NJ
✔✔Who is the administrator of the FAIR plan? - ✔✔NJ Insurance Underwriting
Association (NJIUA)
✔✔What things does the FAIR plan have the authority to do ? - ✔✔-Apply reinsurance
for its members
-Cause property policies to be issued to applicants
-Cede or abandon insurance
,✔✔What is the maximum amount of insurance a FAIR plan policy could purchase? -
✔✔$1, 500,000
✔✔What is binding? - ✔✔Placing coverage in force before the insurer issues a policy. It
lasts until an application has been denied, a policy was issued, or the onset of 60 days
✔✔Mark buys insurance coverage and you bind it for him. How long is his binder good
for?
a. 62 days
b. 45 days
c. 75 days
d. 100 days - ✔✔b. 45 days (# must be 60 or less)
✔✔What must brokers do BEFORE placing business with the NJIUA - ✔✔register
✔✔What info is required for registration w the NJIUA? - ✔✔-copy of NJ producer's
license
-tax payer ID# & W-9 cert
✔✔How much should be collected as a surcharge to be forwarded to the NJ Insurance
Development Fund? - ✔✔Not to exceed 5% of the premium
✔✔How many days of notice must the insurer give to insureds before cancelling a
policy? - ✔✔60 days
✔✔When must non-renewal & cancellation notices be sent? - ✔✔No later than 120
days and no less than 30 days before the expiration of a policy UNLESS due to a non-
payment of premium, then 10 days before
✔✔If a block non-renewal or block cancellation adversely affects the insurance market,
the commissioner may extend the timeframe for block non-renewals or cancellations for
up to a ____ year period. - ✔✔3
✔✔How many attempts must a producer make to place coverage with a different
authorized insurer before surplus lines insurance may be written? - ✔✔3 attempts
✔✔What department does the insurance commissioner run in NJ? - ✔✔Department of
Banking and Insurance
✔✔Who approves hurricane insurance deductibles in NJ? - ✔✔Dept of Banking &
Insurance or Insurance Commissioner
, ✔✔What is defined as a hurricane? - ✔✔Storm's wind was recorded at 74 mph and has
been measured in another location in the state
✔✔What is the deductible in coastal areas for hurricane damage? - ✔✔4%
✔✔What is the deductible in inland areas for a hurricane? - ✔✔2-3%
✔✔All of the following are allowed coverage under Personal Injury Protection coverage
EXCEPT:
A. Family member who resides in the household struck by an uninsured motor vehicle
B. Non-resident who was insured
C. Pedestrian who was injured
D. Passenger - ✔✔A. Family member who resides in the household struck by an
uninsured motor vehicle
✔✔When a PIP waiver is signed there is:
A. No medical payment coverage for passengers in an insured's vehicle
B. Medical payment coverage for listed family members under the age of 16
C. No medical coverage for pedestrians struck by an insured's vehicle
D. No coverage for family members of an insured over the age of 16 - ✔✔B. Medical
payment coverage for listed family members under the age of 16
✔✔What is the Garage Auto Symbol for any auto?
A. Symbol 20
B. Symbol 21
C. Symbol 22
D. Symbol 23 - ✔✔B. Symbol 21
✔✔Which of the following is not used to rate Workers Compensation coverage?
A. Losses
B. Payroll
C. Job classification
D. Sales - ✔✔D. Sales
✔✔Which of the following is not recognized as a substitute for the New Jersey
education and exam requirements?
A. Chartered Life Underwriter
B. Professional Insurance Agent
C. Chartered Financial Consultant
D. Chartered Property& Casualty Underwriter - ✔✔B. Professional Insurance Agent
✔✔John refused to comply with a subpoena. What will be his fine?
A. $100
B. $500
