NJ PSI PROPERTY CASUALTY
QUESTION BANK 2026 FULL
SOLUTIONS 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?
Answer: The federal govt won't regulate insurance business as long as
states perform an adequate job of managing their own insurance
industries.
◉ When was the McCarran-Ferguson Act passed?
Answer: March 9, 1945
◉ To whom does the insurance commissioner have to provide a report?
QUESTION BANK 2026 FULL
SOLUTIONS 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?
Answer: The federal govt won't regulate insurance business as long as
states perform an adequate job of managing their own insurance
industries.
◉ When was the McCarran-Ferguson Act passed?
Answer: March 9, 1945
◉ To whom does the insurance commissioner have to provide a report?
