NJ Property, Casualty, and Auto Licensing Exam EXAM
NEWEST, 2025/ 2026, ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS |ALREADY GRADED
A
Equal Knowledge - ......answer.....contract: of all material and relevant facts on both sides Declarations - ......answer.....name and
address, amount of premium, endorsements - list of them, policy period, limits $
18 - ......answer.....age to apply for license
20 hours - ......answer....._____ hours prelicensing education required for each line of authority
60 days - ......answer.....temp work authority valid ____ days
2 years - ......answer....._____ years to apply for license after completing prelicensing education/producer licensing valid/
1 year - ......answer.....____ year to apply for license after passing licensing examination/renew lapsed license without written exam
180 days - ......answer.....temporary license valid for ______ days
24 hours - ......answer.....CE hours required every 2 years
3 hours - ......answer.....CE hours required in professional ethics
10 days - ......answer.....producer license must submit renewal application before _____ days
90 days - ......answer.....for nonresident licensee to notify dept of intent to qualify as resident ____ days
5 years - ......answer.....producer with revoked license can reapply for a new license after
____ years/to keep records of financial transactions after termination of coverage
30 days - ......answer.....____ days to report change of mailing address or of business address or name/to report opening or closing of
a branch office
15 days - ......answer.....____ days for insurers to notify commissioner of cancelled agency contract
5 business days - ......answer....._____ days for premiums to be remitted to the insurer or the insured/producer must report claims to
the insurer after receipt of notice of claim
10 calendar days - ......answer.....producer must deliver policies to the insured after receiving them in ____ days
15 calendar days - ......answer.....producer must reply in writing to inquiries from commissioner within ____ days
1
, $1,000 Fine - ......answer.....fine $ per violation for unintentional violations of fair methods of competition or fair trade practice laws
$5,000 fine - ......answer.....fine $ per violation for willful violations or fair methods or competition or fair trade practice laws/fine $ for
each violation of cease and desist orders/fine $ for 1st violation insurance law
$10,000 fine - ......answer.....fine $ for subsequent violations of an insurance law
$15,000 fine - ......answer.....max fine $ for violation of the NJ insurance fraud protection act
Coverage B - ......answer.....detached structures - limited to 10% of coverage A amount
Coverage C - ......answer.....personal property - limited to 50% of coverage A amount / 10% of secondary insurance
Coverage D - ......answer.....fair rental value - limited to 10% of coverage A amount
Coverage E - ......answer.....additional living expense - limited to 20% of coverage A amount
Boat Owner's Policy - ......answer.....similar to auto insurance policy, except that PIP or "no-fault" is not available. damage from waves
is referred to as "hull-damage" and is covered. no workers' compensation coverage
Yacht Owner's Policy - ......answer.....for boats that ply international waters, high seas, and engage in commercial fishing. workers'
compensation coverage is included
Flood Insurance Policy - ......answer.....operated by HUD to provide coverage in floodprone areas for one-family residential homes,
commercial buildings, and house contents. basic policy covers loss due to flood, inundation of tidal waters, mudslide, and soil
erosion. can request additional coverage at any time, but there is a 30 day waiting perod before the insurance can go into effect
Flood Insurance Policy Exclusions - ......answer.....landslide, damage from water main breakage, sewer main breakage, and wind-
driven rain. not a general flood condition (your house is the only one that is flooded but your neighbor's houses are not - your house
is not covered)
Personal Injury - ......answer.....defamation (slander-oral, libel-written), false arrest or imprisonment, wrongful eviction, invasion of
privacy, copyright infringement, industrial espionage - do not confuse with bodily injury
Advertising Liability - ......answer.....injury arising from advertising activities, libel in an advertisement, and misrepresentation of a
competitor
Contractual Liability - ......answer.....coverage is restricted to those that are automatically covered; Lease, Easement, Agreement to
indemnity municipality, Side track also known as spur agreement for a rail road loading facility, and Elevator maintenance or
L.E.A.S.E
Medical Payments - ......answer.....party must incur and report (blank) within 1 year, must arise from business operations on or off
premises. max amount is $5,000
Occurrence Basis - ......answer.....incident must have occurred during the policy period, report of incident may be made after the
policy period
2
NEWEST, 2025/ 2026, ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS |ALREADY GRADED
A
Equal Knowledge - ......answer.....contract: of all material and relevant facts on both sides Declarations - ......answer.....name and
address, amount of premium, endorsements - list of them, policy period, limits $
18 - ......answer.....age to apply for license
20 hours - ......answer....._____ hours prelicensing education required for each line of authority
60 days - ......answer.....temp work authority valid ____ days
2 years - ......answer....._____ years to apply for license after completing prelicensing education/producer licensing valid/
1 year - ......answer.....____ year to apply for license after passing licensing examination/renew lapsed license without written exam
180 days - ......answer.....temporary license valid for ______ days
24 hours - ......answer.....CE hours required every 2 years
3 hours - ......answer.....CE hours required in professional ethics
10 days - ......answer.....producer license must submit renewal application before _____ days
90 days - ......answer.....for nonresident licensee to notify dept of intent to qualify as resident ____ days
5 years - ......answer.....producer with revoked license can reapply for a new license after
____ years/to keep records of financial transactions after termination of coverage
30 days - ......answer.....____ days to report change of mailing address or of business address or name/to report opening or closing of
a branch office
15 days - ......answer.....____ days for insurers to notify commissioner of cancelled agency contract
5 business days - ......answer....._____ days for premiums to be remitted to the insurer or the insured/producer must report claims to
the insurer after receipt of notice of claim
10 calendar days - ......answer.....producer must deliver policies to the insured after receiving them in ____ days
15 calendar days - ......answer.....producer must reply in writing to inquiries from commissioner within ____ days
1
, $1,000 Fine - ......answer.....fine $ per violation for unintentional violations of fair methods of competition or fair trade practice laws
$5,000 fine - ......answer.....fine $ per violation for willful violations or fair methods or competition or fair trade practice laws/fine $ for
each violation of cease and desist orders/fine $ for 1st violation insurance law
$10,000 fine - ......answer.....fine $ for subsequent violations of an insurance law
$15,000 fine - ......answer.....max fine $ for violation of the NJ insurance fraud protection act
Coverage B - ......answer.....detached structures - limited to 10% of coverage A amount
Coverage C - ......answer.....personal property - limited to 50% of coverage A amount / 10% of secondary insurance
Coverage D - ......answer.....fair rental value - limited to 10% of coverage A amount
Coverage E - ......answer.....additional living expense - limited to 20% of coverage A amount
Boat Owner's Policy - ......answer.....similar to auto insurance policy, except that PIP or "no-fault" is not available. damage from waves
is referred to as "hull-damage" and is covered. no workers' compensation coverage
Yacht Owner's Policy - ......answer.....for boats that ply international waters, high seas, and engage in commercial fishing. workers'
compensation coverage is included
Flood Insurance Policy - ......answer.....operated by HUD to provide coverage in floodprone areas for one-family residential homes,
commercial buildings, and house contents. basic policy covers loss due to flood, inundation of tidal waters, mudslide, and soil
erosion. can request additional coverage at any time, but there is a 30 day waiting perod before the insurance can go into effect
Flood Insurance Policy Exclusions - ......answer.....landslide, damage from water main breakage, sewer main breakage, and wind-
driven rain. not a general flood condition (your house is the only one that is flooded but your neighbor's houses are not - your house
is not covered)
Personal Injury - ......answer.....defamation (slander-oral, libel-written), false arrest or imprisonment, wrongful eviction, invasion of
privacy, copyright infringement, industrial espionage - do not confuse with bodily injury
Advertising Liability - ......answer.....injury arising from advertising activities, libel in an advertisement, and misrepresentation of a
competitor
Contractual Liability - ......answer.....coverage is restricted to those that are automatically covered; Lease, Easement, Agreement to
indemnity municipality, Side track also known as spur agreement for a rail road loading facility, and Elevator maintenance or
L.E.A.S.E
Medical Payments - ......answer.....party must incur and report (blank) within 1 year, must arise from business operations on or off
premises. max amount is $5,000
Occurrence Basis - ......answer.....incident must have occurred during the policy period, report of incident may be made after the
policy period
2
