NJ Property Casualty Insurance Exam Set With 100% Correct Answers 2023

NJ Property/ Casualty Insurance Exam Set
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With 100% Correct Answers 2023
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WhyowasotheocommercialoInsuranceoDeregulationoActoCreated?o-oCorrectoAnswer-
Tooprotectotheopublicofromotheoadverseoeffectsoofoexcessive,oinadequate,o&ounfairodiscrimin
atoryorateso&omarketingopractices

WhichopoliciesoissuedomustofollowotheoprovisionsoofotheoCommercialoInsuranceoDeregulati
onoAct?o-oCorrectoAnswer-Commercialopolicies

Whenomustorateoamendmentso&opolicyoformsobeofiledowithotheocommissioner?o-
oCorrectoAnswer-30odaysobefore




Whatolossesoareoexcludedofromofloodoinsurance?o-oCorrectoAnswer--Landslides
-Sewerobackup
-WindblownoRain
-Snow
-Sleet

WhooadministersotheoNFIP?o-oCorrectoAnswer-FederaloInsuranceoAdministrationo(FIA)

WhatodoesotheoNFIPostandofor?o-oCorrectoAnswer-NationaloFloodoInsuranceoProgram

WhyowasotheoNationaloFloodoinsuranceoProgramoconstructed?o-oCorrectoAnswer-
toofilloinogapsoofofloodocoverageobyotheoprivateosector

Whatoareotheo3oNFIPorequirementsoforocoverage?o-oCorrectoAnswer--
communityolandomanagemento&ofloodocontroloprogramsomustoreduceofloodolossesoinotheofu
ture
-
Floodoinsuranceorequiredoinospecificofloodoproneoareasoasoaoconditionofororeceivingoloansot
hrough/obackedobyotheofederalogovernment
-
Propertyoownersothatofailotoopurchaseofloodoinsuranceowithino1oyearoafteroitoisoavailableowillo
notobeoeligibleoforofullodisasteroreliefofunding.oItowillobeoreducedobyoanoamountoofoinsuranceot
hatocouldohaveobeenopurchased

WhatoisotheoNFIPomaxocoverageoforoaosingleofamily?o-oCorrectoAnswer-
Buildingo$250K,oContentso$100K

WhatoisotheoNFIPomaxocoverageoforootheroresidential?o-oCorrectoAnswer-
Buildingo$250K,oContentso$100K

,WhatoisotheoNFIPomaxocoverageoforosmallobusiness?o-oCorrectoAnswer-
Buildingo$500K,oContentso$500K

WhatoisotheoNFIPomaxocoverageoforoOtheroNon-Residential?o-oCorrectoAnswer-
Buildingo$500k,oContentso$500K

WhatoisotheoNFIPosubsidizedorateoforoaosingleofamily?o-oCorrectoAnswer-
Buildingo$35K,oContentso$10K

WhatoisotheoNFIPosubsidizedorateoforoOtheroResidential?o-oCorrectoAnswer-
Buildingo$100Ko,oContentso$100K

WhatoisotheoNFIPosubsidizedorateoforosmallobusinesses?o-oCorrectoAnswer-
Buildingo$100K,oContentso$100K

WhatoisotheoNFIPosubsidizedorateoforootheronon-residential?o-oCorrectoAnswer-
Buildingo$100K,oContentso$100K

Whatoisotheowaitoperiodobeforeofloodoinsuranceocanobeoeffective?o-oCorrectoAnswer-
30odays,onoobindersoissued

Whatoareotheoexceptionsotootheo30odayoNFIPowaitoperiod?o-oCorrectoAnswer--
1sto30odaysoafterocoverage,ocommunityoentersostandardooroemergencyoprogram,ocoverage
owillobeginoato12:01oamotheodateoafteroapplicationoandopremiumowereomailed

-Whenoanoexistingopolicyowasoassignedotooaopropertyopurchaser
-
Ato12:01oamoonotheo5thodayoafteroanoendorsementorequesto&opremiumohasobeenomailedofor
oexistingopolicy




WhatowasotheoSupremeoCourt'sodecisionoregardingotheoPaulov.oVirginiaocase?o-
oCorrectoAnswer-

insuranceowasoNOTointerstateocommerceoandocouldonotobeoregulatedobyotheofederalogovt.

WhooheardotheoPaulov.oVirginiaocase?o-oCorrectoAnswer-SupremeoCourt

WhooheardotheoUSovoSoutheasternoUnderwritingoAssociationocase?o-oCorrectoAnswer-
SupremeoCourt

WhatowasotheodecisionoinotheoUSovoSoutheasternoUnderwritingoAssociationoCase?o-
oCorrectoAnswer-

Insuranceoisointerstateocommerceoandoshouldobeosubjectotoofederaloregulationso(currentlyoi
noeffectotoday)

WhatoisotheoMcCarran-FergusonoAct?o-oCorrectoAnswer-
Theofederalogovtowon'toregulateoinsuranceobusinessoasolongoasostatesoperformoanoadequat
eojoboofomanagingotheiroownoinsuranceoindustries.

,WhenowasotheoMcCarran-FergusonoActopassed?o-oCorrectoAnswer-Marcho9,o1945

Toowhomodoesotheoinsuranceocommissionerohaveotooprovideoaoreport?o-oCorrectoAnswer-
Governoro&oLegislature

HowooftenomustotheoinsuranceoCommissioneroprovideoaoreport?o-oCorrectoAnswer-
Annually

Howolongobeforeoaodisciplinaryohearingomustotheoinsuranceocommissioneronotifyointerested
oparties?o-oCorrectoAnswer-10odaysobefore




Whatoisotheofineoforofailingotoocomplyowithoaocourt-orderedosubpoena?o-oCorrectoAnswer-
$5000

Ifotheocommissionerodecidesooneohasoviolatedotheoinsuranceocode,owhatoisotheofineoforounin
tentionaloactsoperformed?o-oCorrectoAnswer-$1000

Ifotheocommissionerodecidesooneohasoviolatedotheoinsuranceocode,owhatoisotheomaxofine?o-
oCorrectoAnswer-1stooffense:o$5K,o2ndooffenseo$10K,oeachoadditionalo$15K




Ifotheoinsuranceocommissionerodecidesooneohasoviolatedotheoinsuranceocode,owhatoisotheofi
neoforoviolatingoaoceaseo&odesist?o-oCorrectoAnswer-$5koeachoviolation

Ifotheoinsuranceocommissionerodecidesooneohasoviolatedotheoinsuranceocode,owhatoisotheofi
neoforounlawfuloactsowithointentionalo&omaterialothought?o-oCorrectoAnswer-$5k

Whatoisotheofineoforonotocontactingotheodeptowithoanoaddressooronameochangeowithino30oday
s?o-oCorrectoAnswer-$250omaxoifoovero60odays

Whatoisotheofineoforoifoaolicenseofeeocheckoisoreturnedoforoinsufficientofunds?o-
oCorrectoAnswer-$500




Whatoisotheofineoforoifoyouodoonotocontactotheodepartmentoregardingoaochangeoinopartners,oo
wners,oofficers,oorodirectors?o-oCorrectoAnswer-$250

Whatoisotheofineoforonotoreturningoaolicenseotooaoproducer?o-oCorrectoAnswer-$500

Whatoisotheofineoforonotomaintainingoanoofficeoaddressooroemploymentocontractsoonofileowith
otheodepartment?o-oCorrectoAnswer-$100oforoeachocontract




Whatodocumentoisorequiredobeforeoanoinsuranceocompanyomayotransactobusinessoinoaostat
e?o-oCorrectoAnswer-CertificateoofoAuthority

Whatoisoaodomesticoinsurer?o-oCorrectoAnswer-
Anoinsurerothatoconductsobusinessoinotheostateoinowhichoitowasoincorporated

, Aoproducerowhooisoappointedowithomoreothanooneoinsureroisoconsideredotoobe...o-
oCorrectoAnswer-AoLicensedoSolicitor




Impliedoauthorityoisodefinedoas...o-oCorrectoAnswer-
Abilityotooactooutsideotheoauthorityospecificallyograntedoinoanoagencyoagreemento&oextendso
company'soliability

Whatokindoofoclauseorelatesotoothisostatement:oE&NoCompanyoissuedoaopolicyoinoconsiderat
ionoofotheorepresentationsoonoanoapplicationo&otheopaymentoofotheo1stopremium?o-
oCorrectoAnswer-Consideration




Anoinsured'sorepresentationsoandowarrantiesoareoincorrectlyostatedoinowhichoofotheofollowin
gostatements?
a.oStatementsomadeobyoanoapplicantothatoareoguaranteedotrueoareoconsideredotoobeowarra
nties
b.oStatementsothatoanoapplicantobelievesotoobeotrue,obutodoesonotoguaranteeotoobeotrue,oare
oconsideredotoobeorepresentations

c.oAnoapplicant'sostatementsoonoanoapplicationoareoconsideredowarranties
d.oAnoapplicant'sostatementsoonoanoapplicationoareoconsideredorepresentationso-
oCorrectoAnswer-

c.oAnoapplicant'sostatementsoonoanoapplicationoareoconsideredowarranties

Whatotermorelatesotooanoagreementowithoutolegaloeffect?o-oCorrectoAnswer-Void

Anoauthorizedobutonon-
admittedoinsurerocanobeorepresentedoinothisostateoonlyobyowhichoofotheofollowing?o-
oCorrectoAnswer-Surplusolinesobroker




Inofranchiseogroups,ohowomanyomasteropoliciesowillobeoissued?o-oCorrectoAnswer-None

Self-insuranceoisoanoexampleoofowhatokindooforiskomanagement?o-oCorrectoAnswer-
retention

WhatokindoofoplanoisoaoStockolifeoinsuranceocompanyoconductingowhenoitoissuesoparticipatin
goandonon-participatingopolicies?o-oCorrectoAnswer-Mixed

Whatoisotheofineoforoifoyouodoonotocontactotheodepartmentoregardingoaochangeoinopartners,oo
wners,oofficers,oorodirectors?o-oCorrectoAnswer-$250

Whatoisothisoanoexampleoof:oDoctorsopoolingotheirofundsotoocoverotheiromalpracticeoexposur
es?o-oCorrectoAnswer-riskosharing

Whichoentityomakesoanoenforceableopromiseoinoaounilateralocontract?o-oCorrectoAnswer-
Insurer