NJ PSI PROPERTY AND CASUALTY EXAM
TEST PAPER 2026 SOLVED QUESTIONS
AND COMPLETE CORRECT ANSWERS
⫸ d. vacant means the absence of people and property - Which of the
following BEST differentiates the terms vacant versus unoccupied?
a. vacant means insured is a way for a period of time
b. vacant means the absence of people
c. unoccupied means absence of people and property
d. vacant means the absence of people and property
⫸ c. named perils - Which of the following types of policy BEST
describes the DP-2 broad form policy?
a. all risk
b. expanded
c. named perils
d. open perils
⫸ c. premises and operations - Which of the following business liability
exposure does a slip and fall loss fall under?
a. indirect and contingent
b. medical expenses
c. premises and operations
,d. retail hazards
⫸ b. indirect loss - Which of the following defines a loss which is
consequential and comes as a result of an original loss?
a. direct loss
b. indirect loss
c. partial loss
d. total loss
⫸ b. company has the option to repair to pre-loss condition - Which of
the following situations under dwelling policy conditions describe how
the insurance company will settle a loss?
a. pay the full value of a pair of earrings when only one is lost
b. company has the option to repair to pre-loss condition
c. if loss is covered by other insurance the other insurance pays full loss
d. property is replaced by company at full replacement value at loss
⫸ c. insuring your friend's automobile - All of the following are
examples of insurable interest except?
a. insuring your home
b. insuring expensive jewelry
c. insuring your friend's automobile
d. insuring business property you own
, ⫸ c. list the state on the information page for other states' coverage -
When an employer sends employees out of state on work related
business, which of the following must he do to ensure the appropriate
workers' compensation coverage?
a. purchase a separate policy for the state in question
b. list the names of the employees sent out of state
c. list the state on the information page for other states' coverage
d. report the work to the insurance company as soon as it is completed
⫸ b. HO-4 - Which homeowner form covers fixtures, installations, and
improvements made or acquired at the insured's expense?
a. HO-6
b. HO-4
c. HO-3
d. HO-2
⫸ c. loss due to crime - Which of the following would be covered by a
commercial package policy?
a. small to medium sized businesses
b. ocean marine
c. loss due to crime
d. injury to worker on the job
TEST PAPER 2026 SOLVED QUESTIONS
AND COMPLETE CORRECT ANSWERS
⫸ d. vacant means the absence of people and property - Which of the
following BEST differentiates the terms vacant versus unoccupied?
a. vacant means insured is a way for a period of time
b. vacant means the absence of people
c. unoccupied means absence of people and property
d. vacant means the absence of people and property
⫸ c. named perils - Which of the following types of policy BEST
describes the DP-2 broad form policy?
a. all risk
b. expanded
c. named perils
d. open perils
⫸ c. premises and operations - Which of the following business liability
exposure does a slip and fall loss fall under?
a. indirect and contingent
b. medical expenses
c. premises and operations
,d. retail hazards
⫸ b. indirect loss - Which of the following defines a loss which is
consequential and comes as a result of an original loss?
a. direct loss
b. indirect loss
c. partial loss
d. total loss
⫸ b. company has the option to repair to pre-loss condition - Which of
the following situations under dwelling policy conditions describe how
the insurance company will settle a loss?
a. pay the full value of a pair of earrings when only one is lost
b. company has the option to repair to pre-loss condition
c. if loss is covered by other insurance the other insurance pays full loss
d. property is replaced by company at full replacement value at loss
⫸ c. insuring your friend's automobile - All of the following are
examples of insurable interest except?
a. insuring your home
b. insuring expensive jewelry
c. insuring your friend's automobile
d. insuring business property you own
, ⫸ c. list the state on the information page for other states' coverage -
When an employer sends employees out of state on work related
business, which of the following must he do to ensure the appropriate
workers' compensation coverage?
a. purchase a separate policy for the state in question
b. list the names of the employees sent out of state
c. list the state on the information page for other states' coverage
d. report the work to the insurance company as soon as it is completed
⫸ b. HO-4 - Which homeowner form covers fixtures, installations, and
improvements made or acquired at the insured's expense?
a. HO-6
b. HO-4
c. HO-3
d. HO-2
⫸ c. loss due to crime - Which of the following would be covered by a
commercial package policy?
a. small to medium sized businesses
b. ocean marine
c. loss due to crime
d. injury to worker on the job
