NJ PSI PROPERTY AND CASUALTY ACTUAL
EXAM PAPER 2026 VERIFIED QUESTIONS
AND CORRECT ANSWERS GRADED A+
⩥ Which policies issued must follow the provisions of the Commercial
Insurance Deregulation Act?
Answer: Commercial policies
⩥ When must rate amendments & policy forms be filed with the
commissioner?
Answer: 30 days before
⩥ What losses are excluded from flood insurance?
Answer: -Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
⩥ Who administers the NFIP?
Answer: Federal Insurance Administration (FIA)
,⩥ What does the NFIP stand for?
Answer: National Flood Insurance Program
⩥ Why was the National Flood insurance Program constructed?
Answer: to fill in gaps of flood coverage by the private sector
⩥ What are the 3 NFIP requirements for coverage?
Answer: -community land management & flood control programs must
reduce flood losses in the future
-Flood insurance required in specific flood prone areas as a condition for
receiving loans through/ backed by the federal government
-Property owners that fail to purchase flood insurance within 1 year after
it is available will not be eligible for full disaster relief funding. It will
be reduced by an amount of insurance that could have been purchased
⩥ What is the NFIP max coverage for a single family?
Answer: Building $250K, Contents $100K
⩥ What is the NFIP max coverage for other residential?
Answer: Building $250K, Contents $100K
⩥ What is the NFIP max coverage for small business?
Answer: Building $500K, Contents $500K
,⩥ What is the NFIP max coverage for Other Non-Residential?
Answer: Building $500k, Contents $500K
⩥ What is the NFIP subsidized rate for a single family?
Answer: Building $35K, Contents $10K
⩥ What is the NFIP subsidized rate for Other Residential?
Answer: Building $100K , Contents $100K
⩥ What is the NFIP subsidized rate for small businesses?
Answer: Building $100K, Contents $100K
⩥ What is the NFIP subsidized rate for other non-residential?
Answer: Building $100K, Contents $100K
⩥ What is the wait period before flood insurance can be effective?
Answer: 30 days, no binders issued
⩥ What are the exceptions to the 30 day NFIP wait period?
, Answer: -1st 30 days after coverage, community enters standard or
emergency program, coverage will begin at 12:01 am the date after
application and premium were mailed
-When an existing policy was assigned to a property purchaser
-At 12:01 am on the 5th day after an endorsement request & premium
has been mailed for existing policy
⩥ What was the Supreme Court's decision regarding the Paul v. Virginia
case?
Answer: insurance was NOT interstate commerce and could not be
regulated by the federal govt.
⩥ Who heard the Paul v. Virginia case?
Answer: Supreme Court
⩥ Who heard the US v Southeastern Underwriting Association case?
Answer: Supreme Court
⩥ What was the decision in the US v Southeastern Underwriting
Association Case?
Answer: Insurance is interstate commerce and should be subject to
federal regulations (currently in effect today)
⩥ What is the McCarran-Ferguson Act?
EXAM PAPER 2026 VERIFIED QUESTIONS
AND CORRECT ANSWERS GRADED A+
⩥ Which policies issued must follow the provisions of the Commercial
Insurance Deregulation Act?
Answer: Commercial policies
⩥ When must rate amendments & policy forms be filed with the
commissioner?
Answer: 30 days before
⩥ What losses are excluded from flood insurance?
Answer: -Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
⩥ Who administers the NFIP?
Answer: Federal Insurance Administration (FIA)
,⩥ What does the NFIP stand for?
Answer: National Flood Insurance Program
⩥ Why was the National Flood insurance Program constructed?
Answer: to fill in gaps of flood coverage by the private sector
⩥ What are the 3 NFIP requirements for coverage?
Answer: -community land management & flood control programs must
reduce flood losses in the future
-Flood insurance required in specific flood prone areas as a condition for
receiving loans through/ backed by the federal government
-Property owners that fail to purchase flood insurance within 1 year after
it is available will not be eligible for full disaster relief funding. It will
be reduced by an amount of insurance that could have been purchased
⩥ What is the NFIP max coverage for a single family?
Answer: Building $250K, Contents $100K
⩥ What is the NFIP max coverage for other residential?
Answer: Building $250K, Contents $100K
⩥ What is the NFIP max coverage for small business?
Answer: Building $500K, Contents $500K
,⩥ What is the NFIP max coverage for Other Non-Residential?
Answer: Building $500k, Contents $500K
⩥ What is the NFIP subsidized rate for a single family?
Answer: Building $35K, Contents $10K
⩥ What is the NFIP subsidized rate for Other Residential?
Answer: Building $100K , Contents $100K
⩥ What is the NFIP subsidized rate for small businesses?
Answer: Building $100K, Contents $100K
⩥ What is the NFIP subsidized rate for other non-residential?
Answer: Building $100K, Contents $100K
⩥ What is the wait period before flood insurance can be effective?
Answer: 30 days, no binders issued
⩥ What are the exceptions to the 30 day NFIP wait period?
, Answer: -1st 30 days after coverage, community enters standard or
emergency program, coverage will begin at 12:01 am the date after
application and premium were mailed
-When an existing policy was assigned to a property purchaser
-At 12:01 am on the 5th day after an endorsement request & premium
has been mailed for existing policy
⩥ What was the Supreme Court's decision regarding the Paul v. Virginia
case?
Answer: insurance was NOT interstate commerce and could not be
regulated by the federal govt.
⩥ Who heard the Paul v. Virginia case?
Answer: Supreme Court
⩥ Who heard the US v Southeastern Underwriting Association case?
Answer: Supreme Court
⩥ What was the decision in the US v Southeastern Underwriting
Association Case?
Answer: Insurance is interstate commerce and should be subject to
federal regulations (currently in effect today)
⩥ What is the McCarran-Ferguson Act?
