NJ Title Exam questions with correct answers A+ Grade
2026\2027
An insurance agent is defined as an individual who transacts business on behalf of a _______
- correct answer a client
Knowingly making false statements which are derogatory against and meant solely to injure another
- correct 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
- correct answer express authority
Type of authority holds an agent has when any reasonable person assumes the agent has
- correct answer apparent authority
The chance or uncertainty of loss
- correct answer risk
Conditions and ground rules for a policy specify
- correct answer obligations and responsibilities for the insurer and the insured
The insuring agreement of a property insurance policy includes
- correct answer promise made by the insurance company to the insured to provide coverage
Insurable Interest means
- correct answer type of investment that protects anything subject to a financial loss
,A loss for which there is no protection under insurance policy terms
- correct answer exclusion
Modified Whole Life Policies
- correct 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
- correct answer DP - 3
In a level term life policy, _______ always remains constant
- correct answer death benefit
This is excluded on DP - 3 coverage
- correct answer Ice damage to homes
Dwelling Property Policy's cover
- correct answer mountain vacation homes used on weekends and summers
DP - 1 basic policy covers
- correct answer Lightning Strikes and Not Earthquakes
Grace periods protect policy holders from
- correct answer unintentional lapses of the policy
Dwelling Policy conditions describe how an insurance company
- correct 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
- correct answer Entire Contract Provision
, Is switching the policy from one insured top another an ownership right?
- correct 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
- correct 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
- correct answer Accumulation at interest
During the first 60 days an automobile policy is in force, when may an insurer cancel the policy?
- correct answer by a statement of the specific reason
These are not covered by title insurance
- correct answer Exclusions
These outline the relationships between insurance companies and the insured
- correct answer Conditions
Temporary transfer of title to insurance companies for litigation purposes
- correct answer subrogation
This schedule contains policy number, amount, dates, company info, legal descriptions of property
- correct 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
- correct answer Schedule B
Temporary Work Certificates last for
- correct answer 6 months
2026\2027
An insurance agent is defined as an individual who transacts business on behalf of a _______
- correct answer a client
Knowingly making false statements which are derogatory against and meant solely to injure another
- correct 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
- correct answer express authority
Type of authority holds an agent has when any reasonable person assumes the agent has
- correct answer apparent authority
The chance or uncertainty of loss
- correct answer risk
Conditions and ground rules for a policy specify
- correct answer obligations and responsibilities for the insurer and the insured
The insuring agreement of a property insurance policy includes
- correct answer promise made by the insurance company to the insured to provide coverage
Insurable Interest means
- correct answer type of investment that protects anything subject to a financial loss
,A loss for which there is no protection under insurance policy terms
- correct answer exclusion
Modified Whole Life Policies
- correct 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
- correct answer DP - 3
In a level term life policy, _______ always remains constant
- correct answer death benefit
This is excluded on DP - 3 coverage
- correct answer Ice damage to homes
Dwelling Property Policy's cover
- correct answer mountain vacation homes used on weekends and summers
DP - 1 basic policy covers
- correct answer Lightning Strikes and Not Earthquakes
Grace periods protect policy holders from
- correct answer unintentional lapses of the policy
Dwelling Policy conditions describe how an insurance company
- correct 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
- correct answer Entire Contract Provision
, Is switching the policy from one insured top another an ownership right?
- correct 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
- correct 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
- correct answer Accumulation at interest
During the first 60 days an automobile policy is in force, when may an insurer cancel the policy?
- correct answer by a statement of the specific reason
These are not covered by title insurance
- correct answer Exclusions
These outline the relationships between insurance companies and the insured
- correct answer Conditions
Temporary transfer of title to insurance companies for litigation purposes
- correct answer subrogation
This schedule contains policy number, amount, dates, company info, legal descriptions of property
- correct 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
- correct answer Schedule B
Temporary Work Certificates last for
- correct answer 6 months
