NJ Title Exam Questions With
Complete Solutions
/. An insurance agent is defined as an individual who transacts business on behalf of a
_______ - Answer-✅a client
/.Knowingly making false statements which are derogatory against and meant solely to
injure another - Answer-✅defamation
/.Type of authority that is either stated orally or in writing and allows an agent to act on
behalf of the insurance company - Answer-✅express authority
/.Type of authority holds an agent has when any reasonable person assumes the agent
has - Answer-✅apparent authority
/.The chance or uncertainty of loss - Answer-✅risk
/.Conditions and ground rules for a policy specify - Answer-✅obligations and
responsibilities for the insurer and the insured
/.The insuring agreement of a property insurance policy includes - Answer-✅promise
made by the insurance company to the insured to provide coverage
/.Insurable Interest means - Answer-✅type of investment that protects anything subject
to a financial loss
/.A loss for which there is no protection under insurance policy terms - Answer-
✅exclusion
/.Modified Whole Life Policies - Answer-✅The premium is lower than normal during the
early years and increases to a fixed premium after a 3-5 year period
/.In which of the DP Forms is the dwelling covered under open perils and the personal
property on a named peril basis - Answer-✅DP - 3
/.In a level term life policy, _______ always remains constant - Answer-✅death benefit
/.This is excluded on DP - 3 coverage - Answer-✅Ice damage to homes
/.Dwelling Property Policy's cover - Answer-✅mountain vacation homes used on
weekends and summers
, /.DP - 1 basic policy covers - Answer-✅Lightning Strikes and Not Earthquakes
/.Grace periods protect policy holders from - Answer-✅unintentional lapses of the policy
/.Dwelling Policy conditions describe how an insurance company - Answer-✅has the
option to repair to pre-loss conditions
/.The policy and application constitute the complete agreement between the
policyowner and the insurance company - Answer-✅Entire Contract Provision
/.Is switching the policy from one insured top another an ownership right? - Answer-
✅NO.
/.Under the misstatement of age provision, what happens if it is determined at death that
the insured's age or gender was misstated on a life insurance policy application -
Answer-✅Benefits are adjusted to an amount that the premium would have purchased
at the correct age or gender
/.______ is NOT a nonforfeiture option available in a Whole Life Policy - Answer-
✅Accumulation at interest
/.During the first 60 days an automobile policy is in force, when may an insurer cancel
the policy? - Answer-✅by a statement of the specific reason
/.These are not covered by title insurance - Answer-✅Exclusions
/.These outline the relationships between insurance companies and the insured -
Answer-✅Conditions
/.Temporary transfer of title to insurance companies for litigation purposes - Answer-
✅subrogation
/.This schedule contains policy number, amount, dates, company info, legal descriptions
of property - Answer-✅Schedule A
/.This schedule identifies exemptions that carry over and how they may have been
satisfied. IE gaps in time, lack of signatures on old documents - Answer-✅Schedule B
/.Temporary Work Certificates last for - Answer-✅6 months
/.This tenancy has right of survivorship - Answer-✅Join Tenancy
/.ABC -> AB-> A -> D/E - Answer-✅Joint Tenancy
Complete Solutions
/. An insurance agent is defined as an individual who transacts business on behalf of a
_______ - Answer-✅a client
/.Knowingly making false statements which are derogatory against and meant solely to
injure another - Answer-✅defamation
/.Type of authority that is either stated orally or in writing and allows an agent to act on
behalf of the insurance company - Answer-✅express authority
/.Type of authority holds an agent has when any reasonable person assumes the agent
has - Answer-✅apparent authority
/.The chance or uncertainty of loss - Answer-✅risk
/.Conditions and ground rules for a policy specify - Answer-✅obligations and
responsibilities for the insurer and the insured
/.The insuring agreement of a property insurance policy includes - Answer-✅promise
made by the insurance company to the insured to provide coverage
/.Insurable Interest means - Answer-✅type of investment that protects anything subject
to a financial loss
/.A loss for which there is no protection under insurance policy terms - Answer-
✅exclusion
/.Modified Whole Life Policies - Answer-✅The premium is lower than normal during the
early years and increases to a fixed premium after a 3-5 year period
/.In which of the DP Forms is the dwelling covered under open perils and the personal
property on a named peril basis - Answer-✅DP - 3
/.In a level term life policy, _______ always remains constant - Answer-✅death benefit
/.This is excluded on DP - 3 coverage - Answer-✅Ice damage to homes
/.Dwelling Property Policy's cover - Answer-✅mountain vacation homes used on
weekends and summers
, /.DP - 1 basic policy covers - Answer-✅Lightning Strikes and Not Earthquakes
/.Grace periods protect policy holders from - Answer-✅unintentional lapses of the policy
/.Dwelling Policy conditions describe how an insurance company - Answer-✅has the
option to repair to pre-loss conditions
/.The policy and application constitute the complete agreement between the
policyowner and the insurance company - Answer-✅Entire Contract Provision
/.Is switching the policy from one insured top another an ownership right? - Answer-
✅NO.
/.Under the misstatement of age provision, what happens if it is determined at death that
the insured's age or gender was misstated on a life insurance policy application -
Answer-✅Benefits are adjusted to an amount that the premium would have purchased
at the correct age or gender
/.______ is NOT a nonforfeiture option available in a Whole Life Policy - Answer-
✅Accumulation at interest
/.During the first 60 days an automobile policy is in force, when may an insurer cancel
the policy? - Answer-✅by a statement of the specific reason
/.These are not covered by title insurance - Answer-✅Exclusions
/.These outline the relationships between insurance companies and the insured -
Answer-✅Conditions
/.Temporary transfer of title to insurance companies for litigation purposes - Answer-
✅subrogation
/.This schedule contains policy number, amount, dates, company info, legal descriptions
of property - Answer-✅Schedule A
/.This schedule identifies exemptions that carry over and how they may have been
satisfied. IE gaps in time, lack of signatures on old documents - Answer-✅Schedule B
/.Temporary Work Certificates last for - Answer-✅6 months
/.This tenancy has right of survivorship - Answer-✅Join Tenancy
/.ABC -> AB-> A -> D/E - Answer-✅Joint Tenancy
