©THEBRIGHT EXAM SOLUTIONS
11/7/2024 12:35 PM
NJ Property, Casualty, and Auto Licensing
Exam Study Guide.
Insuring Agreement - answer✔company's obligation to pay, includes the perils and coverage for
specific or named peril policies
Exclusions - answer✔what the policy will not pay for
Definitions - answer✔names of the persons insured in addition to the named insured are listed
here, along with any other (blank) of terms in the policy
Additional Coverage - answer✔coverages under a policy that are provided by the insurer at no
extra cost
Casualty Policies - answer✔defense costs over and above liability limits, post-judgement
interest, bail bonds and appeal bonds
Property Policies - answer✔debris removal, falls within the insured dwelling limit and cannot
exceed the limit
Binder - answer✔temporary proof of coverage before policy is issued (oral is good for 10 days,
written for 60 days)
Bodily Injury and Property Damage Coverage Amounts - answer✔Minimum: 15k per
person/30k per accident/5k for property; Max is $500k
Auto - Personal Assigned Risk Policy - answer✔PAIP; standard risk 0 points, non-standard risk 1-
8 points, assigned risk 9 points. (blank) classification runs for 3 years
Auto - Commercial Assigned Risk Policy - answer✔CAIP; assigned risk policy for commercial
vehicles, including private vehicles owned by the business
Personal Injury Protection - answer✔PIP or No-Fault, NJ Representations Act; mandatory,
encourage the insured to recover under his/her own policy, tries to reduce premiums and
hasten settlements through avoidance of lengthy litigation that would normally be the case.
The benefits of the standard policy are statutory and therefor minimal
, ©THEBRIGHT EXAM SOLUTIONS
11/7/2024 12:35 PM
Fire - answer✔A named peril policy. (blank) policies must be filed with the DOBI commissioner
before use and must provide a fairly uniform look, and provide ample space for coverage,
limits, rates, policy inception, and expiration dates
Friendly Fire - answer✔fire is within it's intended confines (not covered)
Hostile Fire - answer✔fire is outside it's intended confines
Covered Fire Perils - answer✔fire - hostile, lightening, debris removal, theft within first 5 days
Excluded Fire Perils - answer✔theft (after first 5 days of fire), neglect that gives rise to
proximate cause of fire, war, government action, fire - friendly
Fair Plan - answer✔(blank) policies are designed to prevent redlining in urban areas: improve
property conditions from an availability standpoint, stabilize the property insurance market,
provide coverage for risks which insurance cannot be obtained in the open market
$1.5 million - answer✔FAIR Plan max limit
Covered FAIR Plan Perils - answer✔FAIR: fire, lightening, debris removal
Excluded FAIR Plan Perils - answer✔FAIR: burglary damage, flood, farms (farms are not urban)
Dwelling Policy - answer✔1st party coverage only, not necessary to be owner-occupied, no
more than 4 families or 5 roomers
Basic Peril Coverage - DP1 - answer✔basic peril coverage - named perils - most basic dwelling
policy
Broad Peril Coverage - DP2 - answer✔named perils, but more perils than DP1
Special Peril Coverage - DP3 - answer✔ALL-RISK on dwelling unless specifically excluded and
BROAD on contents or personal property
Coverage A - answer✔dwelling + attached structures - no co-insurance requirement unlike
homeowners policy
Coverage B - answer✔detached structures - limited to 10% of coverage A amount
Coverage C - answer✔personal property - limited to 50% of coverage A amount / 10% of
secondary insurance
Coverage D - answer✔fair rental value - limited to 10% of coverage A amount
Coverage E - answer✔additional living expense - limited to 20% of coverage A amount
11/7/2024 12:35 PM
NJ Property, Casualty, and Auto Licensing
Exam Study Guide.
Insuring Agreement - answer✔company's obligation to pay, includes the perils and coverage for
specific or named peril policies
Exclusions - answer✔what the policy will not pay for
Definitions - answer✔names of the persons insured in addition to the named insured are listed
here, along with any other (blank) of terms in the policy
Additional Coverage - answer✔coverages under a policy that are provided by the insurer at no
extra cost
Casualty Policies - answer✔defense costs over and above liability limits, post-judgement
interest, bail bonds and appeal bonds
Property Policies - answer✔debris removal, falls within the insured dwelling limit and cannot
exceed the limit
Binder - answer✔temporary proof of coverage before policy is issued (oral is good for 10 days,
written for 60 days)
Bodily Injury and Property Damage Coverage Amounts - answer✔Minimum: 15k per
person/30k per accident/5k for property; Max is $500k
Auto - Personal Assigned Risk Policy - answer✔PAIP; standard risk 0 points, non-standard risk 1-
8 points, assigned risk 9 points. (blank) classification runs for 3 years
Auto - Commercial Assigned Risk Policy - answer✔CAIP; assigned risk policy for commercial
vehicles, including private vehicles owned by the business
Personal Injury Protection - answer✔PIP or No-Fault, NJ Representations Act; mandatory,
encourage the insured to recover under his/her own policy, tries to reduce premiums and
hasten settlements through avoidance of lengthy litigation that would normally be the case.
The benefits of the standard policy are statutory and therefor minimal
, ©THEBRIGHT EXAM SOLUTIONS
11/7/2024 12:35 PM
Fire - answer✔A named peril policy. (blank) policies must be filed with the DOBI commissioner
before use and must provide a fairly uniform look, and provide ample space for coverage,
limits, rates, policy inception, and expiration dates
Friendly Fire - answer✔fire is within it's intended confines (not covered)
Hostile Fire - answer✔fire is outside it's intended confines
Covered Fire Perils - answer✔fire - hostile, lightening, debris removal, theft within first 5 days
Excluded Fire Perils - answer✔theft (after first 5 days of fire), neglect that gives rise to
proximate cause of fire, war, government action, fire - friendly
Fair Plan - answer✔(blank) policies are designed to prevent redlining in urban areas: improve
property conditions from an availability standpoint, stabilize the property insurance market,
provide coverage for risks which insurance cannot be obtained in the open market
$1.5 million - answer✔FAIR Plan max limit
Covered FAIR Plan Perils - answer✔FAIR: fire, lightening, debris removal
Excluded FAIR Plan Perils - answer✔FAIR: burglary damage, flood, farms (farms are not urban)
Dwelling Policy - answer✔1st party coverage only, not necessary to be owner-occupied, no
more than 4 families or 5 roomers
Basic Peril Coverage - DP1 - answer✔basic peril coverage - named perils - most basic dwelling
policy
Broad Peril Coverage - DP2 - answer✔named perils, but more perils than DP1
Special Peril Coverage - DP3 - answer✔ALL-RISK on dwelling unless specifically excluded and
BROAD on contents or personal property
Coverage A - answer✔dwelling + attached structures - no co-insurance requirement unlike
homeowners policy
Coverage B - answer✔detached structures - limited to 10% of coverage A amount
Coverage C - answer✔personal property - limited to 50% of coverage A amount / 10% of
secondary insurance
Coverage D - answer✔fair rental value - limited to 10% of coverage A amount
Coverage E - answer✔additional living expense - limited to 20% of coverage A amount
