NJ Property Producer License Questions &
Answers
1.A "certification of license status" report can be run on any currently li-
censed New Jersey producer, but can only contain information on
formal disciplinary actions taken within the past
Answer 4 Years
2.What is not an additional cause of loss in broad form commercial
property policies
Answer Replacement Cost
3.An installation floater is used to insure
Answer Appliances intended to become a permanent part of the
building.
4.The list of lines of insurance for which there is no reasonable or adequate
market in New Jersey, as determined by the Commissioner, is known as
Answer The exportable list.
5.If an insurer cancels an agency contract, it must notify the
Commissioner in writing within how many days?
Answer 15 Days
,6.A unique feature in a bailee form is that it covers
Answer Customers' property whether or not the insured has been
negligent.
7.What condition is not commonly found in insurance policies?
Answer Insuring agreement
8.Which method of loss valuation is contrary to the basic concept of
indem- nity?
Answer Replacement cost
9.Replacement cost is defined as
Answer Full replacement of property at its current cost, new and without
reduction for depreciation.
10.When is coinsurance formula not applied?
Answer In Total Losses
11. The New Jersey Insurance Underwriting Association is supported by
funds from the
Answer New Jersey Insurance Development Fund.
12.The New Jersey Commercial Insurance Deregulation Act requires
insurers to file rates and any changes or amendments with the
Commissioner no later than
, Answer 30 days after becoming effective.
13.An insured's business is damaged because of a fire, and he is forced to
close the business temporarily for repairs. As a result, the insured lost
income. What type of loss is this?
Answer Consequential
14.During renovations to a home, a roof opening is left exposed. A heavy
rainstorm causes $20,000 of damage to the interior of the home. How
much would the HO-2 policy pay for damages?
Answer Nothing
15.The removal coverage that is included in the broad form dwelling policy
will cover property temporarily removed from the premises to protect it
from damage for how long?
Answer 30 Days
16.Besides the peril of earthquake, which other peril is covered by the
earthquake cause of loss form under a commercial property policy?
Answer Volcanic eruption
17.What policy covers a carrier for liability for loss to cargo while it is
being transported in a truck?
Answer Motor truck cargo policy - carriers form
Answers
1.A "certification of license status" report can be run on any currently li-
censed New Jersey producer, but can only contain information on
formal disciplinary actions taken within the past
Answer 4 Years
2.What is not an additional cause of loss in broad form commercial
property policies
Answer Replacement Cost
3.An installation floater is used to insure
Answer Appliances intended to become a permanent part of the
building.
4.The list of lines of insurance for which there is no reasonable or adequate
market in New Jersey, as determined by the Commissioner, is known as
Answer The exportable list.
5.If an insurer cancels an agency contract, it must notify the
Commissioner in writing within how many days?
Answer 15 Days
,6.A unique feature in a bailee form is that it covers
Answer Customers' property whether or not the insured has been
negligent.
7.What condition is not commonly found in insurance policies?
Answer Insuring agreement
8.Which method of loss valuation is contrary to the basic concept of
indem- nity?
Answer Replacement cost
9.Replacement cost is defined as
Answer Full replacement of property at its current cost, new and without
reduction for depreciation.
10.When is coinsurance formula not applied?
Answer In Total Losses
11. The New Jersey Insurance Underwriting Association is supported by
funds from the
Answer New Jersey Insurance Development Fund.
12.The New Jersey Commercial Insurance Deregulation Act requires
insurers to file rates and any changes or amendments with the
Commissioner no later than
, Answer 30 days after becoming effective.
13.An insured's business is damaged because of a fire, and he is forced to
close the business temporarily for repairs. As a result, the insured lost
income. What type of loss is this?
Answer Consequential
14.During renovations to a home, a roof opening is left exposed. A heavy
rainstorm causes $20,000 of damage to the interior of the home. How
much would the HO-2 policy pay for damages?
Answer Nothing
15.The removal coverage that is included in the broad form dwelling policy
will cover property temporarily removed from the premises to protect it
from damage for how long?
Answer 30 Days
16.Besides the peril of earthquake, which other peril is covered by the
earthquake cause of loss form under a commercial property policy?
Answer Volcanic eruption
17.What policy covers a carrier for liability for loss to cargo while it is
being transported in a truck?
Answer Motor truck cargo policy - carriers form
