Study Guide for NJ Title Insurance Exam (questions and answers)

Study Guide for NJ Title Insurance Exam (questions and answers) An insurance agent is defined as an individual who transacts business on behalf of a _______ - CORRECT ANSWER-a client Knowingly making false statements which are derogatory against and meant solely to injure another - CORRECT ANSWER-defamation Type of authority that is either stated orally or in writing and allows an agent to act on behalf of the insurance company - CORRECT ANSWER-express authority Type of authority holds an agent has when any reasonable person assumes the agent has - CORRECT ANSWER-apparent authority The chance or uncertainty of loss - CORRECT ANSWER-risk Conditions and ground rules for a policy specify - CORRECT ANSWER-obligations and responsibilities for the insurer and the insured The insuring agreement of a property insurance policy includes - CORRECT ANSWERpromise made by the insurance company to the insured to provide coverage Insurable Interest means - CORRECT ANSWER-type of investment that protects anything subject to a financial loss A loss for which there is no protection under insurance policy terms - CORRECT ANSWER-exclusion Modified Whole Life Policies - CORRECT ANSWER-The premium is lower than normal during the early years and increases to a fixed premium after a 3-5 year period In which of the DP Forms is the dwelling covered under open perils and the personal property on a named peril basis - CORRECT ANSWER-DP - 3 In a level term life policy, _______ always remains constant - CORRECT ANSWERdeath benefit This is excluded on DP - 3 coverage - CORRECT ANSWER-Ice damage to homes Dwelling Property Policy's cover - CORRECT ANSWER-mountain vacation homes used on weekends and summers DP - 1 basic policy covers - CORRECT ANSWER-Lightning Strikes and Not Earthquakes Grace periods protect policy holders from - CORRECT ANSWER-unintentional lapses of the policy Dwelling Policy conditions describe how an insurance company - CORRECT ANSWERhas the option to repair to pre-loss conditions The policy and application constitute the complete agreement between the policyowner and the insurance company - CORRECT ANSWER-Entire Contract Provision Is switching the policy from one insured top another an ownership right? - CORRECT ANSWER-NO. Under the misstatement of age provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application - CORRECT ANSWER-Benefits are adjusted to an amount that the premium would have purchased at the correct age or gender ______ is NOT a nonforfeiture option available in a Whole Life Policy - CORRECT ANSWER-Accumulation at interest During the first 60 days an automobile policy is in force, when may an insurer cancel the policy? - CORRECT ANSWER-by a statement of the specific reason These are not covered by title insurance - CORRECT ANSWER-Exclusions These outline the relationships between insurance companies and the insured - CORRECT ANSWER-Conditions Temporary transfer of title to insurance companies for litigation purposes - CORRECT ANSWER-subrogation This schedule contains policy number, amount, dates, company info, legal descriptions of property - CORRECT ANSWER-Schedule A This schedule identifies exemptions that carry over and how they may have been satisfied. IE gaps in time, lack of signatures on old documents - CORRECT ANSWERSchedule B Temporary Work Certificates last for - CORRECT ANSWER-6 mo