NJ PROPERTY/ CASUALTY INSURANCE EXAM SCRIPT 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔What would be the result if a producer sold a policy at a loss cost rate? -
✔✔Financial loss to an insurer
✔✔What contract part contains an insurer's promise to pay? - ✔✔insuring agreement
✔✔What determines the unit of exposure in the measure of insurance? - ✔✔rate
✔✔An individual insured under a policy that is not named is known as: - ✔✔the insured
✔✔William wants to know whether theft will be covered under his basic form dwelling
policy. Will it be covered? - ✔✔No, it will not be covered.
✔✔Which coverage insures contents damaged by fire? - ✔✔Coverage c
✔✔The broad form dwelling policy with removal coverage will cover property
temporarily removed from the premises to protect it from damage. What is the length of
this coverage? - ✔✔30 days
✔✔What would be covered by Jan's dwelling policy?
a. Theft of her car from detached garage
b. Death of her dog due to smoke inhalation
c. Fire damage to her canoe in her garage
d. Fire damage to her garage on her premises used as a repair shop for cars - ✔✔c.
Fire damage to her canoe in her garage
✔✔Sally is moving to a new location. Her personal property coverage under her
dwelling policy will apply on a pro rata basis for how many days? - ✔✔30 days
✔✔Which coverage provides additional living expenses? - ✔✔Coverage E
✔✔What are the max coverage limits for Coverage A and Coverage C under the JIA? -
✔✔$455,000 & $228,000
✔✔Vandalism would be covered if an insured's premises was vacant for how many
days? - ✔✔35
✔✔Under dwelling policy coverage C, which is included
a. Small plane belonging to a renter
b. Sofa belonging to a renter
c. Watch belonging to a guest
,d. Garden shed belonging to a neighbor - ✔✔c. Watch belonging to a guest
✔✔Which of the following is not covered in the broad and special form dwelling policy?
a. glass breakage
b. trees
c. collapse
d. theft of personal property - ✔✔d. theft of personal property
✔✔Under a dwelling policy, how many separate causes of loss forms are available? -
✔✔3
✔✔Which coverage would replace the cost of a dwelling? - ✔✔DP-2 & DP-3
✔✔Frank had his dwelling policy for 30 days. How much notice must his insurer give to
cancel his policy? - ✔✔10 days
✔✔Which of the following is NOT covered under a dwelling policy:
a. earth movement
b. other structures
c. debris removal
d. improvements - ✔✔a. earth movement
✔✔When do mobile homes qualify for basic coverage? - ✔✔If permanently located on a
private lot
✔✔What is excluded from other coverages in the Basic Dwelling policy? - ✔✔breakage
of glass
✔✔DP-2 differs from dwelling basic form with extended coverage because DP-2 adds...
- ✔✔coverage for damage caused by burgulars
✔✔Which of the following clauses under a Dwelling policy would apply to Jane who lost
one of her two matching crystal candlesticks? - ✔✔Pair or set
✔✔In all homeowner's forms, additional coverage for a fire department service charge
covers charges made by the fire department to... - ✔✔save covered property from a fire
✔✔What homeowner's policy has the broad form? - ✔✔HO-2
✔✔What condition voids a homeowner's policy? - ✔✔Concealment/fraud
✔✔An exclusive home would likely be insured under which form? - ✔✔HO-8
,✔✔The Jackson's house is under repair after last month's storm. Which coverage will
allow the family to maintain its normal standard of living? - ✔✔Additional Living Expense
Coverage
✔✔When can a policy be voided if an insured committed fraud? - ✔✔Before or after a
loss
✔✔All forms of homeowner's policies exclude:
a. hail
b. earth movement
c. volcanic explosion
d. cyclones - ✔✔b. earth movement
✔✔Which homeowner's policy is called the renter's policy? - ✔✔HO-4
✔✔Which of the following would be considered an insured location under the HO-3?
a. cemetery plot of the insured
b. aircraft
c. stored business data
d. rented, vacant farmland - ✔✔d. rented, vacant farmland
✔✔Failure to use reasonable means to save & preserve property after a loss is... -
✔✔Neglect
✔✔Coverage F- medical payments to others contains a basic limit of which amount? -
✔✔$1,000
✔✔Under the homeowner's program, which policy contains the modified coverage
form? - ✔✔HO-8
✔✔Which HO policy has the contents broad form? - ✔✔HO-4
✔✔What will a HO policy pay for the removal of one fallen tree in a covered loss? -
✔✔$500
✔✔What is the HO-8 limit on worldwide coverage? - ✔✔$1,000
✔✔Under a homeowner's policy, which of the following statements are TRUE regarding
coverage of the Fire Dept. Service charge:
a. the cost is included in Dwelling Coverage A
b. the cost is included in addition to the limit of insurance property
c. included in personal coverage c
, d. no coverage at all - ✔✔b. the cost is included in addition to the limit of insurance
property
✔✔Under the HO-5 landlord furnishings in a rental apartment is limited to what amount?
- ✔✔$2500
✔✔The collapse additional coverage is included in what form? - ✔✔All forms except
HO-8
✔✔Under HO Property additional coverage, how much is covered for debris removal? -
✔✔All reasonable costs up to $1,000
✔✔What is the limitation on platinum coins under a HO policy? - ✔✔$200
✔✔When does a watercraft endorsement cover a rented boat? - ✔✔Never
✔✔George has a builder's risk form. When does his coverage begin? - ✔✔When
construction begins
✔✔The outdoor sign open peril inland marine coverage excludes breakage during
which time? - ✔✔transporting, repairing, installing, or dismantling
✔✔What coverage in a farm policy would reimburse for the loss of rental income after
damage to their insured dwelling? - ✔✔coverage D
✔✔What term best describes an insured's loss of their property caused by a violent act
from another to get it? - ✔✔robbery
✔✔Under a CPP, what other peril besides an earthquake is covered by the earthquake
cause of loss form? - ✔✔volcanic eruption
✔✔What form covers some farm fences? - ✔✔Coverage G
✔✔What coverage in a commercial general liability form covers medical payments? -
✔✔Coverage C
✔✔John's farm has been vacant for some time. Which would apply if it is vacant for
______ consecutive days, its building and contents will be reduced by 50%? - ✔✔120
✔✔What is not an additional coverage in a builder's risk form? - ✔✔vandalism
✔✔What is the pollutant cleanup & removal coverage limit in a BOP? - ✔✔$10,000
QUESTIONS WITH ANSWERS GRADED A+
✔✔What would be the result if a producer sold a policy at a loss cost rate? -
✔✔Financial loss to an insurer
✔✔What contract part contains an insurer's promise to pay? - ✔✔insuring agreement
✔✔What determines the unit of exposure in the measure of insurance? - ✔✔rate
✔✔An individual insured under a policy that is not named is known as: - ✔✔the insured
✔✔William wants to know whether theft will be covered under his basic form dwelling
policy. Will it be covered? - ✔✔No, it will not be covered.
✔✔Which coverage insures contents damaged by fire? - ✔✔Coverage c
✔✔The broad form dwelling policy with removal coverage will cover property
temporarily removed from the premises to protect it from damage. What is the length of
this coverage? - ✔✔30 days
✔✔What would be covered by Jan's dwelling policy?
a. Theft of her car from detached garage
b. Death of her dog due to smoke inhalation
c. Fire damage to her canoe in her garage
d. Fire damage to her garage on her premises used as a repair shop for cars - ✔✔c.
Fire damage to her canoe in her garage
✔✔Sally is moving to a new location. Her personal property coverage under her
dwelling policy will apply on a pro rata basis for how many days? - ✔✔30 days
✔✔Which coverage provides additional living expenses? - ✔✔Coverage E
✔✔What are the max coverage limits for Coverage A and Coverage C under the JIA? -
✔✔$455,000 & $228,000
✔✔Vandalism would be covered if an insured's premises was vacant for how many
days? - ✔✔35
✔✔Under dwelling policy coverage C, which is included
a. Small plane belonging to a renter
b. Sofa belonging to a renter
c. Watch belonging to a guest
,d. Garden shed belonging to a neighbor - ✔✔c. Watch belonging to a guest
✔✔Which of the following is not covered in the broad and special form dwelling policy?
a. glass breakage
b. trees
c. collapse
d. theft of personal property - ✔✔d. theft of personal property
✔✔Under a dwelling policy, how many separate causes of loss forms are available? -
✔✔3
✔✔Which coverage would replace the cost of a dwelling? - ✔✔DP-2 & DP-3
✔✔Frank had his dwelling policy for 30 days. How much notice must his insurer give to
cancel his policy? - ✔✔10 days
✔✔Which of the following is NOT covered under a dwelling policy:
a. earth movement
b. other structures
c. debris removal
d. improvements - ✔✔a. earth movement
✔✔When do mobile homes qualify for basic coverage? - ✔✔If permanently located on a
private lot
✔✔What is excluded from other coverages in the Basic Dwelling policy? - ✔✔breakage
of glass
✔✔DP-2 differs from dwelling basic form with extended coverage because DP-2 adds...
- ✔✔coverage for damage caused by burgulars
✔✔Which of the following clauses under a Dwelling policy would apply to Jane who lost
one of her two matching crystal candlesticks? - ✔✔Pair or set
✔✔In all homeowner's forms, additional coverage for a fire department service charge
covers charges made by the fire department to... - ✔✔save covered property from a fire
✔✔What homeowner's policy has the broad form? - ✔✔HO-2
✔✔What condition voids a homeowner's policy? - ✔✔Concealment/fraud
✔✔An exclusive home would likely be insured under which form? - ✔✔HO-8
,✔✔The Jackson's house is under repair after last month's storm. Which coverage will
allow the family to maintain its normal standard of living? - ✔✔Additional Living Expense
Coverage
✔✔When can a policy be voided if an insured committed fraud? - ✔✔Before or after a
loss
✔✔All forms of homeowner's policies exclude:
a. hail
b. earth movement
c. volcanic explosion
d. cyclones - ✔✔b. earth movement
✔✔Which homeowner's policy is called the renter's policy? - ✔✔HO-4
✔✔Which of the following would be considered an insured location under the HO-3?
a. cemetery plot of the insured
b. aircraft
c. stored business data
d. rented, vacant farmland - ✔✔d. rented, vacant farmland
✔✔Failure to use reasonable means to save & preserve property after a loss is... -
✔✔Neglect
✔✔Coverage F- medical payments to others contains a basic limit of which amount? -
✔✔$1,000
✔✔Under the homeowner's program, which policy contains the modified coverage
form? - ✔✔HO-8
✔✔Which HO policy has the contents broad form? - ✔✔HO-4
✔✔What will a HO policy pay for the removal of one fallen tree in a covered loss? -
✔✔$500
✔✔What is the HO-8 limit on worldwide coverage? - ✔✔$1,000
✔✔Under a homeowner's policy, which of the following statements are TRUE regarding
coverage of the Fire Dept. Service charge:
a. the cost is included in Dwelling Coverage A
b. the cost is included in addition to the limit of insurance property
c. included in personal coverage c
, d. no coverage at all - ✔✔b. the cost is included in addition to the limit of insurance
property
✔✔Under the HO-5 landlord furnishings in a rental apartment is limited to what amount?
- ✔✔$2500
✔✔The collapse additional coverage is included in what form? - ✔✔All forms except
HO-8
✔✔Under HO Property additional coverage, how much is covered for debris removal? -
✔✔All reasonable costs up to $1,000
✔✔What is the limitation on platinum coins under a HO policy? - ✔✔$200
✔✔When does a watercraft endorsement cover a rented boat? - ✔✔Never
✔✔George has a builder's risk form. When does his coverage begin? - ✔✔When
construction begins
✔✔The outdoor sign open peril inland marine coverage excludes breakage during
which time? - ✔✔transporting, repairing, installing, or dismantling
✔✔What coverage in a farm policy would reimburse for the loss of rental income after
damage to their insured dwelling? - ✔✔coverage D
✔✔What term best describes an insured's loss of their property caused by a violent act
from another to get it? - ✔✔robbery
✔✔Under a CPP, what other peril besides an earthquake is covered by the earthquake
cause of loss form? - ✔✔volcanic eruption
✔✔What form covers some farm fences? - ✔✔Coverage G
✔✔What coverage in a commercial general liability form covers medical payments? -
✔✔Coverage C
✔✔John's farm has been vacant for some time. Which would apply if it is vacant for
______ consecutive days, its building and contents will be reduced by 50%? - ✔✔120
✔✔What is not an additional coverage in a builder's risk form? - ✔✔vandalism
✔✔What is the pollutant cleanup & removal coverage limit in a BOP? - ✔✔$10,000
