NJ PSI PROPERTY AND CASUALTY EXAM
SCRIPT 2026 COMPREHENSIVE QUESTIONS
AND FULL SOLUTIONS GRADED A+
⩥ 2. An individual purchases a vehicle and financed it though his credit
union. Which party does NOT have an insurance interest?
a. The owner
b. The insurer
c. The title holder
d. The credit union.
Answer: The insurer
⩥ coverage D of the farm property provides additional coverage for
which of the following
a. Poultry and livestock incidental to farm use
b. Growing crops beyond 250 feet of the covered residence
c Living expenses for the loss of use of living quarters in residence
premises
d. Barns or farm outbuildings or structures other than private garages
that are used primarily for farming purposes.
Answer: c
,⩥ 1. Under a dwelling policy, which coverage part insures buildings on
the premises that are connected to the dwelling only by a fence?a.
Coverage Ab. Coverage Bc. Coverage Cd. Coverage D.
Answer: coverage B
⩥ 1. What type of liability is based on a product being unreasonable
dangerous?a. Generalb. Strictc. Contractuald. Negligence.
Answer: strict also known as absolute liability where its so dangerous
youre at fault anyway (playing w venomous snake)
⩥ 1. Which type of insurance protection guarantees protection against
legal liability from any risk arising from the ownership, maintenance, or
use
a. Errors and omission insurance
b. Professional liability
c. Employment related practices liability
d. Commercial general liability.
Answer: b
⩥ 1. In PA, what is the minimum amount required for damages for
liability to cover motor vehicles accidents?
a. 5K,10K,3K
b. 10K, 20K, 5K
c. 15K, 30K, 5K
,d. 25K, 50K, 10K.
Answer: c
⩥ 1. Under an equipment breakdown coverage form, a breakdown
would include
a. Wear and tear
b. Leakage of valves
c. Explosion of a pressure vessel
d. Failure of a safety device.
Answer: explosion of a power vessel. EQUIPMENT BREAKDOWN-
sudden and accidental breakdowns of covered machinery and
equipment, which can include pressure vessels.
⩥ 1. Which of the following benefits are not paid under workers comp
laws
a. Medical
b. Rehab
c. Pain and suffering
d. Disability income.
Answer: c
⩥ workers compensation covers the following.
Answer: -survivor benefits
, -death and survivor benefits
-rehabilitation
-medical benefits unlimited
IF THEY ARE IN JAIL NO THEY DONT GET WC
⩥ 1. What is the effect on a personal automobile policy in PA, if an
insured switches from a $250 deductible for a $500 deductible
a. The physical damage premium is reduced
b. The physical damge limits are increased
c. There is no deduction for depreciation when losses are settled
d. The policy no longer satisfies the commonwealths financial
reposibility law.
Answer: physical damage premium is reduced
⩥ the builders risk coverage form will not cover which of the following
a. fixtures attached to the completed structure
b. service equipment
c. roof antenna
D. building material within 100 feet.
Answer: antenna
SCRIPT 2026 COMPREHENSIVE QUESTIONS
AND FULL SOLUTIONS GRADED A+
⩥ 2. An individual purchases a vehicle and financed it though his credit
union. Which party does NOT have an insurance interest?
a. The owner
b. The insurer
c. The title holder
d. The credit union.
Answer: The insurer
⩥ coverage D of the farm property provides additional coverage for
which of the following
a. Poultry and livestock incidental to farm use
b. Growing crops beyond 250 feet of the covered residence
c Living expenses for the loss of use of living quarters in residence
premises
d. Barns or farm outbuildings or structures other than private garages
that are used primarily for farming purposes.
Answer: c
,⩥ 1. Under a dwelling policy, which coverage part insures buildings on
the premises that are connected to the dwelling only by a fence?a.
Coverage Ab. Coverage Bc. Coverage Cd. Coverage D.
Answer: coverage B
⩥ 1. What type of liability is based on a product being unreasonable
dangerous?a. Generalb. Strictc. Contractuald. Negligence.
Answer: strict also known as absolute liability where its so dangerous
youre at fault anyway (playing w venomous snake)
⩥ 1. Which type of insurance protection guarantees protection against
legal liability from any risk arising from the ownership, maintenance, or
use
a. Errors and omission insurance
b. Professional liability
c. Employment related practices liability
d. Commercial general liability.
Answer: b
⩥ 1. In PA, what is the minimum amount required for damages for
liability to cover motor vehicles accidents?
a. 5K,10K,3K
b. 10K, 20K, 5K
c. 15K, 30K, 5K
,d. 25K, 50K, 10K.
Answer: c
⩥ 1. Under an equipment breakdown coverage form, a breakdown
would include
a. Wear and tear
b. Leakage of valves
c. Explosion of a pressure vessel
d. Failure of a safety device.
Answer: explosion of a power vessel. EQUIPMENT BREAKDOWN-
sudden and accidental breakdowns of covered machinery and
equipment, which can include pressure vessels.
⩥ 1. Which of the following benefits are not paid under workers comp
laws
a. Medical
b. Rehab
c. Pain and suffering
d. Disability income.
Answer: c
⩥ workers compensation covers the following.
Answer: -survivor benefits
, -death and survivor benefits
-rehabilitation
-medical benefits unlimited
IF THEY ARE IN JAIL NO THEY DONT GET WC
⩥ 1. What is the effect on a personal automobile policy in PA, if an
insured switches from a $250 deductible for a $500 deductible
a. The physical damage premium is reduced
b. The physical damge limits are increased
c. There is no deduction for depreciation when losses are settled
d. The policy no longer satisfies the commonwealths financial
reposibility law.
Answer: physical damage premium is reduced
⩥ the builders risk coverage form will not cover which of the following
a. fixtures attached to the completed structure
b. service equipment
c. roof antenna
D. building material within 100 feet.
Answer: antenna
