NJ property insurance law
Exam Questions and Answers
100% PASS
In New Jersey, and insurer must provide at least______ advance notice for
cancellation of property coverages for nonpayment of premium—ANSWER-
10 days
The employment of another producer by a producer is subject to all of the
following requirements, except
a. the employer shall examine the credentials of the kinds of business
described in the contract.
b. the employer shall be responsible for the insurance related conduct of the
employee
c. the employee producer will conduct business under the supervision of the
employer producer
d. The Department of Insurance approves the contract.—ANSWER-d. The
Department of Insurance approves the contract.
,In order to cancel a Property insurance policy, an insurer must give the
insured a ______ advance notice—ANSWER-30 days
An authorized agency of the insurer may release consumer information in
which of the following situations?
a. When requested by a related third part of the insured
b. When requested in a fraud investigation
c. More than 3 claims in the past 3 years
d. When requested by a credit agency—ANSWER-b. When requested in a
fraud investigation
If an agent is charged with a misdemeanor involving theft, any felony, or
crimes of moral turpitude, he or she must report the charge to the
department of insurance within:—ANSWER-30 days of being charged
All of the following are true regarding the hurricane deductible, except:
a. the hurricane deductible is a percentage of the claim amount
b. An optional deductible of 10% is available
c. Coverage D loss of use is the standard deductible for all other perils
d. The mandatory deductible minimum is 5%—ANSWER-a. the hurricane
deductible is a percentage of the claim amount
(it is a percentage of the policy limit not claim amount)
All of the following are true regarding commercial property coverage under
the New Jersey FAIR plan, except:
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
, a. Maximum coverage of 750,000 for joisted masonry buildings
b. Maximum coverage of 500,000 for frame buildings
c. Maximum coverage of 600,000 for frame buildings
d. Maximum coverage of $1 million for fire resistive buildings—ANSWER-c.
Maximum coverage of 600,000 for frame buildings
A person found guilty of the unfair act of misrepresentation may be fined up
to ______per violation
a. $2500
b. $500
c. $1000
d. $5000—ANSWER-d. $5000
If an agent cancels or allows the license to non renew, which of the following
are true?
a. Any disciplinary actions, fine, penalties or restitution orders
b. Fines and penalties are forgiven if the license is surrendered for cause
c. The agent may complete whatever transactions were in the process when
the license authority ended
d. The agent may continue to act in that capacity for up to 30 days after the
license authority ended—ANSWER-a. Any disciplinary actions, fine,
penalties or restitution orders
In order to apply for a surplus lines license, the candidate must:
Exam Questions and Answers
100% PASS
In New Jersey, and insurer must provide at least______ advance notice for
cancellation of property coverages for nonpayment of premium—ANSWER-
10 days
The employment of another producer by a producer is subject to all of the
following requirements, except
a. the employer shall examine the credentials of the kinds of business
described in the contract.
b. the employer shall be responsible for the insurance related conduct of the
employee
c. the employee producer will conduct business under the supervision of the
employer producer
d. The Department of Insurance approves the contract.—ANSWER-d. The
Department of Insurance approves the contract.
,In order to cancel a Property insurance policy, an insurer must give the
insured a ______ advance notice—ANSWER-30 days
An authorized agency of the insurer may release consumer information in
which of the following situations?
a. When requested by a related third part of the insured
b. When requested in a fraud investigation
c. More than 3 claims in the past 3 years
d. When requested by a credit agency—ANSWER-b. When requested in a
fraud investigation
If an agent is charged with a misdemeanor involving theft, any felony, or
crimes of moral turpitude, he or she must report the charge to the
department of insurance within:—ANSWER-30 days of being charged
All of the following are true regarding the hurricane deductible, except:
a. the hurricane deductible is a percentage of the claim amount
b. An optional deductible of 10% is available
c. Coverage D loss of use is the standard deductible for all other perils
d. The mandatory deductible minimum is 5%—ANSWER-a. the hurricane
deductible is a percentage of the claim amount
(it is a percentage of the policy limit not claim amount)
All of the following are true regarding commercial property coverage under
the New Jersey FAIR plan, except:
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
, a. Maximum coverage of 750,000 for joisted masonry buildings
b. Maximum coverage of 500,000 for frame buildings
c. Maximum coverage of 600,000 for frame buildings
d. Maximum coverage of $1 million for fire resistive buildings—ANSWER-c.
Maximum coverage of 600,000 for frame buildings
A person found guilty of the unfair act of misrepresentation may be fined up
to ______per violation
a. $2500
b. $500
c. $1000
d. $5000—ANSWER-d. $5000
If an agent cancels or allows the license to non renew, which of the following
are true?
a. Any disciplinary actions, fine, penalties or restitution orders
b. Fines and penalties are forgiven if the license is surrendered for cause
c. The agent may complete whatever transactions were in the process when
the license authority ended
d. The agent may continue to act in that capacity for up to 30 days after the
license authority ended—ANSWER-a. Any disciplinary actions, fine,
penalties or restitution orders
In order to apply for a surplus lines license, the candidate must:
