NJ TITLE INSURANCE EXAM PRACTICE
QUESTIONS WITH DETAILED EXPLANATIONS
2026
◉ Knowingly making false statements which are derogatory against
and meant solely to injure another.
Answer: defamation
◉ Type of authority that is either stated orally or in writing and
allows an agent to act on behalf of the insurance company.
Answer: express authority
◉ Type of authority holds an agent has when any reasonable person
assumes the agent has.
Answer: apparent authority
◉ An insurance agent is defined as an individual who transacts
business on behalf of a _______.
Answer: a client
◉ The chance or uncertainty of loss.
Answer: risk
,◉ Conditions and ground rules for a policy specify.
Answer: obligations and responsibilities for the insurer and the
insured
◉ The insuring agreement of a property insurance policy includes.
Answer: promise made by the insurance company to the insured to
provide coverage
◉ Insurable Interest means.
Answer: type of investment that protects anything subject to a
financial loss
◉ A loss for which there is no protection under insurance policy
terms.
Answer: exclusion
◉ Modified Whole Life Policies.
Answer: The premium is lower than normal during the early years
and increases to a fixed premium after a 3-5 year period
◉ In which of the DP Forms is the dwelling covered under open
perils and the personal property on a named peril basis.
,Answer: DP - 3
◉ In a level term life policy, _______ always remains constant.
Answer: death benefit
◉ This is excluded on DP - 3 coverage.
Answer: Ice damage to homes
◉ Dwelling Property Policy's cover.
Answer: mountain vacation homes used on weekends and summers
◉ DP - 1 basic policy covers.
Answer: Lightning Strikes and Not Earthquakes
◉ Grace periods protect policy holders from.
Answer: unintentional lapses of the policy
◉ Dwelling Policy conditions describe how an insurance company.
Answer: has the option to repair to pre-loss conditions
◉ The policy and application constitute the complete agreement
between the policyowner and the insurance company.
, Answer: Entire Contract Provision
◉ Is switching the policy from one insured top another an
ownership right?.
Answer: NO.
◉ Under the misstatement of age provision, what happens if it is
determined at death that the insured's age or gender was misstated
on a life insurance policy application.
Answer: Benefits are adjusted to an amount that the premium would
have purchased at the correct age or gender
◉ ______ is NOT a nonforfeiture option available in a Whole Life
Policy.
Answer: Accumulation at interest
◉ During the first 60 days an automobile policy is in force, when
may an insurer cancel the policy?.
Answer: by a statement of the specific reason
◉ These are not covered by title insurance.
Answer: Exclusions
QUESTIONS WITH DETAILED EXPLANATIONS
2026
◉ Knowingly making false statements which are derogatory against
and meant solely to injure another.
Answer: defamation
◉ Type of authority that is either stated orally or in writing and
allows an agent to act on behalf of the insurance company.
Answer: express authority
◉ Type of authority holds an agent has when any reasonable person
assumes the agent has.
Answer: apparent authority
◉ An insurance agent is defined as an individual who transacts
business on behalf of a _______.
Answer: a client
◉ The chance or uncertainty of loss.
Answer: risk
,◉ Conditions and ground rules for a policy specify.
Answer: obligations and responsibilities for the insurer and the
insured
◉ The insuring agreement of a property insurance policy includes.
Answer: promise made by the insurance company to the insured to
provide coverage
◉ Insurable Interest means.
Answer: type of investment that protects anything subject to a
financial loss
◉ A loss for which there is no protection under insurance policy
terms.
Answer: exclusion
◉ Modified Whole Life Policies.
Answer: The premium is lower than normal during the early years
and increases to a fixed premium after a 3-5 year period
◉ In which of the DP Forms is the dwelling covered under open
perils and the personal property on a named peril basis.
,Answer: DP - 3
◉ In a level term life policy, _______ always remains constant.
Answer: death benefit
◉ This is excluded on DP - 3 coverage.
Answer: Ice damage to homes
◉ Dwelling Property Policy's cover.
Answer: mountain vacation homes used on weekends and summers
◉ DP - 1 basic policy covers.
Answer: Lightning Strikes and Not Earthquakes
◉ Grace periods protect policy holders from.
Answer: unintentional lapses of the policy
◉ Dwelling Policy conditions describe how an insurance company.
Answer: has the option to repair to pre-loss conditions
◉ The policy and application constitute the complete agreement
between the policyowner and the insurance company.
, Answer: Entire Contract Provision
◉ Is switching the policy from one insured top another an
ownership right?.
Answer: NO.
◉ Under the misstatement of age provision, what happens if it is
determined at death that the insured's age or gender was misstated
on a life insurance policy application.
Answer: Benefits are adjusted to an amount that the premium would
have purchased at the correct age or gender
◉ ______ is NOT a nonforfeiture option available in a Whole Life
Policy.
Answer: Accumulation at interest
◉ During the first 60 days an automobile policy is in force, when
may an insurer cancel the policy?.
Answer: by a statement of the specific reason
◉ These are not covered by title insurance.
Answer: Exclusions
