NJ property insurance Exam
Questions and Answers 100%
PASS
Abandonment—ANSWER-the abdication of insured property into the hands
of another, or into the possession of no one in particular
accident—ANSWER-an unfortunate incident that happens unexpectedly and
unintentionally, typically resulting in damage or injury.
ACV. actual cash value—ANSWER-the required amount to pay damages for
property loss, which is calculated based on the property's current
replacement value minus depreciation
additional coverage—ANSWER-A provision in an insurance policy that
allows for more coverage for specific loss expense without increase in
premium.
additional insureds—ANSWER-Individuals or business that are not named
as insured on the declaration page, but are protected by the policy, usually
in regard to a specific interest.
, Adhesion—ANSWER-a contract offered on a take it or leave it basis by an
insurer, in which the insured only option is to accept or reject the contract.
Any ambiguities in the contract will be settled in favor of the insured
Admitted Insurer—ANSWER-An insurance company authorized and licensed
to transact business in a particular state.
Adverse Selection—ANSWER-The tendency of risks with higher probability of
loss to purchase and maintain insurance more often than the risks who
present lower probability.
agent—ANSWER-An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of an insurer.
Agreed Value—ANSWER-A property policy with a provision agreed upon by
the insurer and insured as to the amount of insurance that represents a fair
valuation for the property at the time the insurance is written.
aleatory—ANSWER-A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will pay
in the event of a loss.
Alien Insurer—ANSWER-An insurance company that is incorporated outside
the United States.
Apparent Authority—ANSWER-The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because
of circumstances the principal created.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
Questions and Answers 100%
PASS
Abandonment—ANSWER-the abdication of insured property into the hands
of another, or into the possession of no one in particular
accident—ANSWER-an unfortunate incident that happens unexpectedly and
unintentionally, typically resulting in damage or injury.
ACV. actual cash value—ANSWER-the required amount to pay damages for
property loss, which is calculated based on the property's current
replacement value minus depreciation
additional coverage—ANSWER-A provision in an insurance policy that
allows for more coverage for specific loss expense without increase in
premium.
additional insureds—ANSWER-Individuals or business that are not named
as insured on the declaration page, but are protected by the policy, usually
in regard to a specific interest.
, Adhesion—ANSWER-a contract offered on a take it or leave it basis by an
insurer, in which the insured only option is to accept or reject the contract.
Any ambiguities in the contract will be settled in favor of the insured
Admitted Insurer—ANSWER-An insurance company authorized and licensed
to transact business in a particular state.
Adverse Selection—ANSWER-The tendency of risks with higher probability of
loss to purchase and maintain insurance more often than the risks who
present lower probability.
agent—ANSWER-An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of an insurer.
Agreed Value—ANSWER-A property policy with a provision agreed upon by
the insurer and insured as to the amount of insurance that represents a fair
valuation for the property at the time the insurance is written.
aleatory—ANSWER-A contract in which participating parties exchange
unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will pay
in the event of a loss.
Alien Insurer—ANSWER-An insurance company that is incorporated outside
the United States.
Apparent Authority—ANSWER-The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because
of circumstances the principal created.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
