NJ PSI Property and Casualty Exam 2023 with complete solutions

The Mobile Home Endorsement of a Homeowners policy affords coverage to mobile homes under the? A. HO-1 (Basic Form) B. HO-2 (Broad Form) C. HO-3 (Special Form) D. HO-2 or HO-3 (Broad and Special) - ANSWER-D. HO-2 or HO-3 (Broad and Special) All of the following are eligible for coverage under Homeowners policy except? A. A condominium unit owner. B. A farm owner. C. A mobile home owner. D. A tenant in an apartment building. - ANSWER-B. A farm owner. The term Insured Location under Section II of Homeowners policies refers to all of the following except? A. The insured premises. B. Farm land. C. A non-owned premises where an insured temporarily resides. D. A newly-acquired premises. - ANSWER-B. Farm land. All of the following would be considered insured's under a Homeowner's policy expect? A. Resident relatives of the insured. B. A non-relative resident under age 21 in the care of the insured. C. The insured's spouse if the spouse lives in the household. D. A non-relative resident over age 21. - ANSWER-D. A non-relative resident over age 21. All of the following homeowners policies provide dwelling coverage except? A. HO-2 B. HO-3 C. HO-4 D. HO-1 - ANSWER-C. HO-4 Dwelling coverage A includes all of the following except? A. The dwelling. B. The deck on the back of the dwelling. C. A Gazebo. D. Construction materials on the residence premises for use in the repair of the dwelling. - ANSWER-C. A Gazebo. Under Homeowners policies, the base deductible applicable to property losses, Section I, is? A. $100 B. $250 C. $500 D. $1000 - ANSWER-B. $250 The National Flood Insurance Program (NFIP) is a ________ program? A. State. B. Municipal. C. Federal. D. Worldwide. - ANSWER-C. Federal. All of the following are optional coverage's under Homeowners policies except? A. Personal Property Replacement Cost coverage. B. Increased coverage limits from items suck as jewelry, furs, and silverware. C. Loss of Use coverage. D. Earthquake coverage. - ANSWER-C. Loss of Use Coverage. The National Flood Insurance Program (NFIP) standards are set by, and the Program is administered by, the? A. National Flood Management Association (NFMA) B. National Emergency Standards Agency (NESA) C. Federal Flood Coverage Association (FFCA) D. Federal Emergency Management Agency (FEMA) - ANSWER-D. Federal Emergency Management Agency (FEMA) Under Homeowners policies, which of the following is/are considered optional property coverage endorsement(s)? A. Earthquake. B. Fine Arts. C. Replacement Cost coverage on personal property. D. All of the above. - ANSWER-D. All of the above. Under an NFIP Flood policy, flood is broadly defined as all of the following except? A. The overflow of inland or tidal waters. B. Mudflow, a river of liquid and flowing mud on the surfaces of normally dry land area, as when earth is carried by a current of water. C. Heavy, driving sheets of wind blown rain. D. The collapse of subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood. - ANSWER-C. Heavy, driving sheets of wind blown rain. Under an NFIP Flood policy, in most cases the waiting period before a new policy can be made effective is? A. 10 days. B. 20 days. C. 30 days. D. 60 days. - ANSWER-C. 30 days. If your baby sitter falls down the stairs in your home and breaks her leg, her injury will be covered by? A. Your Homeowners policy. B. Your Medical Insurance policy. C. The babysitter's Homeowners policy. D. The babysitter's Medical Insurance policy. - ANSWER-A. Your Homeowners policy. On Homeowners policies, the full limit on personal property (Coverage C) applies to personal property while it is? A. In the state of residence only. B. In the United States only. C. Anywhere in the world. D. In the United States and Canada only. - ANSWER-C. Anywhere in the world. Under an NFIP Flood policy, there is coverage for? A. Both direct damage and loss of use. B. Direct damage only. C. Loss of use only. D. Consequential loss only. - ANSWER-B. Direct damage only. Loses to which of the following are not covered under Homeowners policies? A. Property of roomers or boarders. B. Articles separately described and specifically covered by other insurance. C. Animals, birds, and fish. D. All of the above. - ANSWER-D. All of the above. A scheduled Personal Property Endorsement is usually written on a ______ basis? A. Special Perils. B. Named Perils. C. Premises. D. Blanket. - ANSWER-A. Special Perils. Under Homeowners policies, Section II, the basic limit for Personal Liability Coverage is? A. $50,000. B. $75,000. C. $100,000. D. $150,000. - ANSWER-C. $100,000. Under Section II Additional Coverage's of Homeowners policies, the insurer agrees to pay? A. The costs of defending a claim. B. Premiums on bonds required in a suit. C. Court costs. D. All of the above. - ANSWER-D. All of the above. Under Homeowners and other policies, ACV is the abbreviation for which property insurance valuation? A. Approved Coverage Valuation. B. Approximate Cash Value.