NJ PROPERTY AND CASUALTY
REGULATORY EXAMINATION 2026
COMPLETE FINAL PAPER QUESTIONS AND
ANSWERS
◉ Physical Hazard
Answer: hazards - broken sidewalk & faulty wiring
◉ Moral Hazard
Answer: hazards - character defect such as dishonesty, arsonist, etc
◉ Morale Hazard
Answer: hazards - indifference, "i don't care", business owner places
expensive computer on the edge of a table and does not care if it falls
because it is covered
◉ Inherent Vice
Answer: natural ability of the property to self-destruct e.g. wear-
and-tear is not covered
◉ Theft
,Answer: stealing of property without visible signs of forcible entry
or robbery. can be all by itself, or can be included in robbery or
burglary
◉ Burglary
Answer: theft of articles where forcible entry or exit is evident
◉ Premises Burglary
Answer: premises must be closed/locked for there to be a claim for
(blank)
◉ Vacant
Answer: totally empty, commercial coverage void after 60 days,
home owners coverage void after 30 days, fire is always covered
◉ Unoccupied
Answer: no occupants, but furnishings remain. same coverage rules
at vacant - if you go away for 60 days on vacation from your business
or 30 days away from your home, you need additional coverage
◉ Robbery and Safe
Answer: there is a threat of violence or actual violence involved in
the theft; gold coins are covered
, ◉ Barratry
Answer: criminal acts by a ship's master or crew
◉ Inchmaree
Answer: negligence of a ship's captain or crew members - includes
navigational errors
◉ Moral Responsibiity
Answer: a homeowner borrows a neighbor's lawnmower and
damages is by striking a rock while using it. the homeowner can
request up to $500 from the insurance company to pay the neighbor
◉ Event or Accident
Answer: 1. definite time and place 2. neither expected nor intended
3. results in bodily injury or property damage 4. sudden, unforeseen,
fortuitous. (blank)s must occur during the policy period but may be
reported after the policy expires
◉ Occurrence
Answer: accident + continuous and repeated exposure to injurious
conditions. example: fumes over an extended time caused death,
working with asbestos. (blank) must occur during the policy but
may be reported after the policy expires
REGULATORY EXAMINATION 2026
COMPLETE FINAL PAPER QUESTIONS AND
ANSWERS
◉ Physical Hazard
Answer: hazards - broken sidewalk & faulty wiring
◉ Moral Hazard
Answer: hazards - character defect such as dishonesty, arsonist, etc
◉ Morale Hazard
Answer: hazards - indifference, "i don't care", business owner places
expensive computer on the edge of a table and does not care if it falls
because it is covered
◉ Inherent Vice
Answer: natural ability of the property to self-destruct e.g. wear-
and-tear is not covered
◉ Theft
,Answer: stealing of property without visible signs of forcible entry
or robbery. can be all by itself, or can be included in robbery or
burglary
◉ Burglary
Answer: theft of articles where forcible entry or exit is evident
◉ Premises Burglary
Answer: premises must be closed/locked for there to be a claim for
(blank)
◉ Vacant
Answer: totally empty, commercial coverage void after 60 days,
home owners coverage void after 30 days, fire is always covered
◉ Unoccupied
Answer: no occupants, but furnishings remain. same coverage rules
at vacant - if you go away for 60 days on vacation from your business
or 30 days away from your home, you need additional coverage
◉ Robbery and Safe
Answer: there is a threat of violence or actual violence involved in
the theft; gold coins are covered
, ◉ Barratry
Answer: criminal acts by a ship's master or crew
◉ Inchmaree
Answer: negligence of a ship's captain or crew members - includes
navigational errors
◉ Moral Responsibiity
Answer: a homeowner borrows a neighbor's lawnmower and
damages is by striking a rock while using it. the homeowner can
request up to $500 from the insurance company to pay the neighbor
◉ Event or Accident
Answer: 1. definite time and place 2. neither expected nor intended
3. results in bodily injury or property damage 4. sudden, unforeseen,
fortuitous. (blank)s must occur during the policy period but may be
reported after the policy expires
◉ Occurrence
Answer: accident + continuous and repeated exposure to injurious
conditions. example: fumes over an extended time caused death,
working with asbestos. (blank) must occur during the policy but
may be reported after the policy expires
