NJ PROPERTY/ CASUALTY INSURANCE
EXAM SET QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT RATED A+ NEWLY UPDATED
2025
Q: Why was the Commercial Insurance Deregulation Act created?
✔✔ To protect the public from the adverse effects of excessive, inadequate, and
unfairly discriminatory rates and marketing practices
Q: Which policies must follow the provisions of the Commercial Insurance
Deregulation Act?
✔✔ Commercial policies
Q: When must rate amendments and policy forms be filed with the
Commissioner?
✔✔ 30 days before
Q: What losses are excluded from flood insurance?
✔✔
Landslides
Sewer backup
Windblown rain
Snow
Sleet
,Q: Who administers the NFIP?
✔✔ Federal Insurance Administration (FIA)
Q: What does NFIP stand for?
✔✔ National Flood Insurance Program
Q: Why was the National Flood Insurance Program created?
✔✔ To fill in gaps of flood coverage not offered by the private insurance sector
What are the 3 NFIP requirements for coverage? -ANSWER✔✔-community land
management & flood control programs must reduce flood losses in the future
-Flood insurance required in specific flood prone areas as a condition for receiving
loans through/ backed by the federal government
-Property owners that fail to purchase flood insurance within 1 year after it is
available will not be eligible for full disaster relief funding. It will be reduced by
an amount of insurance that could have been purchased
What is the NFIP max coverage for a single family? -ANSWER✔✔Building
$250K, Contents $100K
What is the NFIP max coverage for other residential? -ANSWER✔✔Building
$250K, Contents $100K
What is the NFIP max coverage for small business? -ANSWER✔✔Building
$500K, Contents $500K
What is the NFIP max coverage for Other Non-Residential? -
ANSWER✔✔Building $500k, Contents $500K
,What is the NFIP subsidized rate for a single family? -ANSWER✔✔Building
$35K, Contents $10K
What is the NFIP subsidized rate for Other Residential? -ANSWER✔✔Building
$100K , Contents $100K
What is the NFIP subsidized rate for small businesses? -ANSWER✔✔Building
$100K, Contents $100K
What is the NFIP subsidized rate for other non-residential? -
ANSWER✔✔Building $100K, Contents $100K
What is the wait period before flood insurance can be effective? -ANSWER✔✔30
days, no binders issued
What are the exceptions to the 30 day NFIP wait period? -ANSWER✔✔-1st 30
days after coverage, community enters standard or emergency program, coverage
will begin at 12:01 am the date after application and premium were mailed
-When an existing policy was assigned to a property purchaser
-At 12:01 am on the 5th day after an endorsement request & premium has been
mailed for existing policy
What was the Supreme Court's decision regarding the Paul v. Virginia case? -
ANSWER✔✔insurance was NOT interstate commerce and could not be regulated
by the federal govt.
Who heard the Paul v. Virginia case? -ANSWER✔✔Supreme Court
, Who heard the US v Southeastern Underwriting Association case? -
ANSWER✔✔Supreme Court
What was the decision in the US v Southeastern Underwriting Association Case? -
ANSWER✔✔Insurance is interstate commerce and should be subject to federal
regulations (currently in effect today)
What is the McCarran-Ferguson Act? -ANSWER✔✔The federal govt won't
regulate insurance business as long as states perform an adequate job of managing
their own insurance industries.
When was the McCarran-Ferguson Act passed? -ANSWER✔✔March 9, 1945
To whom does the insurance commissioner have to provide a report? -
ANSWER✔✔Governor & Legislature
How often must the insurance Commissioner provide a report? -
ANSWER✔✔Annually
How long before a disciplinary hearing must the insurance commissioner notify
interested parties? -ANSWER✔✔10 days before
What is the fine for failing to comply with a court-ordered subpoena? -
ANSWER✔✔$5000
If the commissioner decides one has violated the insurance code, what is the fine
for unintentional acts performed? -ANSWER✔✔$1000
EXAM SET QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT RATED A+ NEWLY UPDATED
2025
Q: Why was the Commercial Insurance Deregulation Act created?
✔✔ To protect the public from the adverse effects of excessive, inadequate, and
unfairly discriminatory rates and marketing practices
Q: Which policies must follow the provisions of the Commercial Insurance
Deregulation Act?
✔✔ Commercial policies
Q: When must rate amendments and policy forms be filed with the
Commissioner?
✔✔ 30 days before
Q: What losses are excluded from flood insurance?
✔✔
Landslides
Sewer backup
Windblown rain
Snow
Sleet
,Q: Who administers the NFIP?
✔✔ Federal Insurance Administration (FIA)
Q: What does NFIP stand for?
✔✔ National Flood Insurance Program
Q: Why was the National Flood Insurance Program created?
✔✔ To fill in gaps of flood coverage not offered by the private insurance sector
What are the 3 NFIP requirements for coverage? -ANSWER✔✔-community land
management & flood control programs must reduce flood losses in the future
-Flood insurance required in specific flood prone areas as a condition for receiving
loans through/ backed by the federal government
-Property owners that fail to purchase flood insurance within 1 year after it is
available will not be eligible for full disaster relief funding. It will be reduced by
an amount of insurance that could have been purchased
What is the NFIP max coverage for a single family? -ANSWER✔✔Building
$250K, Contents $100K
What is the NFIP max coverage for other residential? -ANSWER✔✔Building
$250K, Contents $100K
What is the NFIP max coverage for small business? -ANSWER✔✔Building
$500K, Contents $500K
What is the NFIP max coverage for Other Non-Residential? -
ANSWER✔✔Building $500k, Contents $500K
,What is the NFIP subsidized rate for a single family? -ANSWER✔✔Building
$35K, Contents $10K
What is the NFIP subsidized rate for Other Residential? -ANSWER✔✔Building
$100K , Contents $100K
What is the NFIP subsidized rate for small businesses? -ANSWER✔✔Building
$100K, Contents $100K
What is the NFIP subsidized rate for other non-residential? -
ANSWER✔✔Building $100K, Contents $100K
What is the wait period before flood insurance can be effective? -ANSWER✔✔30
days, no binders issued
What are the exceptions to the 30 day NFIP wait period? -ANSWER✔✔-1st 30
days after coverage, community enters standard or emergency program, coverage
will begin at 12:01 am the date after application and premium were mailed
-When an existing policy was assigned to a property purchaser
-At 12:01 am on the 5th day after an endorsement request & premium has been
mailed for existing policy
What was the Supreme Court's decision regarding the Paul v. Virginia case? -
ANSWER✔✔insurance was NOT interstate commerce and could not be regulated
by the federal govt.
Who heard the Paul v. Virginia case? -ANSWER✔✔Supreme Court
, Who heard the US v Southeastern Underwriting Association case? -
ANSWER✔✔Supreme Court
What was the decision in the US v Southeastern Underwriting Association Case? -
ANSWER✔✔Insurance is interstate commerce and should be subject to federal
regulations (currently in effect today)
What is the McCarran-Ferguson Act? -ANSWER✔✔The federal govt won't
regulate insurance business as long as states perform an adequate job of managing
their own insurance industries.
When was the McCarran-Ferguson Act passed? -ANSWER✔✔March 9, 1945
To whom does the insurance commissioner have to provide a report? -
ANSWER✔✔Governor & Legislature
How often must the insurance Commissioner provide a report? -
ANSWER✔✔Annually
How long before a disciplinary hearing must the insurance commissioner notify
interested parties? -ANSWER✔✔10 days before
What is the fine for failing to comply with a court-ordered subpoena? -
ANSWER✔✔$5000
If the commissioner decides one has violated the insurance code, what is the fine
for unintentional acts performed? -ANSWER✔✔$1000
