NJ Property, Casualty, and Auto Licensing Exam EXAM
NEWEST, 2024/ 2025, ACTUAL EXAM QUESTIONS AND
WELL VERIFIED ANSWERS 2025
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,
postjudgement 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,
nonstandard 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
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
owneroccupied, 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
NEWEST, 2024/ 2025, ACTUAL EXAM QUESTIONS AND
WELL VERIFIED ANSWERS 2025
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,
postjudgement 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,
nonstandard 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
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
owneroccupied, 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
