NJ PROPERTY AND CASUALTY
UNDERWRITING AND RISK MANAGEMENT
EXAM 2026 FULL SOLUTION STUDY PACK
◉ Tort
Answer: a civil wrong that is not a wrong arising from non
performance of a contract (contract violation)
◉ Bodily Injury
Answer: sickness, injury, death as well as pain and suffering
◉ Firefighter's Injuries
Answer: workers' compensation provided by the municipality will
pay for medical expenses of an injured voluntary fireman for injuries
arising out of a firefighter's efforts to put out the fire in a house. the
homeowner can request the insurance company pay up to $500 to
the volunteer fire department
◉ Errors and Omissions
Answer: professional liability: non-medical professionals, agents,
brokers, attorneys and accountants
, ◉ Malpractice
Answer: professional liability: medical professionals doctors, nurses
◉ Comparative Negligene
Answer: statutory defense; compares the negligence of the plaintiff
and the defendant
◉ Wrongful death
Answer: statutory defense; survivors have the right of recovery
against the wrongdoer
◉ Insurable Interest
Answer: the insured must have suffered a financial loss at the time of
the loss for the loss to be covered, loss has to be unintended
unforeseen and results in a reduction in economic value
◉ Indemnity
Answer: payment of an amount to offset all or part of a loss. pro-rata
insurance occurs when there are multiple policies for the same
location. no company will pay more than it's pro-rated share,
thereby upholding the principal of (blank) "back to where you
started"
◉ Liberalization
UNDERWRITING AND RISK MANAGEMENT
EXAM 2026 FULL SOLUTION STUDY PACK
◉ Tort
Answer: a civil wrong that is not a wrong arising from non
performance of a contract (contract violation)
◉ Bodily Injury
Answer: sickness, injury, death as well as pain and suffering
◉ Firefighter's Injuries
Answer: workers' compensation provided by the municipality will
pay for medical expenses of an injured voluntary fireman for injuries
arising out of a firefighter's efforts to put out the fire in a house. the
homeowner can request the insurance company pay up to $500 to
the volunteer fire department
◉ Errors and Omissions
Answer: professional liability: non-medical professionals, agents,
brokers, attorneys and accountants
, ◉ Malpractice
Answer: professional liability: medical professionals doctors, nurses
◉ Comparative Negligene
Answer: statutory defense; compares the negligence of the plaintiff
and the defendant
◉ Wrongful death
Answer: statutory defense; survivors have the right of recovery
against the wrongdoer
◉ Insurable Interest
Answer: the insured must have suffered a financial loss at the time of
the loss for the loss to be covered, loss has to be unintended
unforeseen and results in a reduction in economic value
◉ Indemnity
Answer: payment of an amount to offset all or part of a loss. pro-rata
insurance occurs when there are multiple policies for the same
location. no company will pay more than it's pro-rated share,
thereby upholding the principal of (blank) "back to where you
started"
◉ Liberalization
