New Jersey Property and Casualty Insurance Exam 2023

Bail - ANSWER-a security depost that guarantees the appearance of a defendant in court for trail, forgeited if the defendant fails to appear for trail; also the act of delivering goods to another to be helf in trust for a special purpose bailee - ANSWER-a person one who has care, custody, or control of another's property, usually for repair, cleaning, processing, storage, ro service bailee's customer policy - ANSWER-this provides coverage for loss of or damage to property of others that is in the care, custody, or control of a bailee bailor - ANSWER-the owner of property who delivers it in trust to a bailee for a special purpose banker's blanket bond - ANSWER-this provides protection for financial institutions and similiar organiziation against employee and non emoloyee dishonesty bankruptcy - ANSWER-the legal process that determines and oversees the distribution of an insolvent person's or company's assets to creditors. after distribution, the person or company is relieved of all libaility to these creditors, even though some payments may have been less than the full obligation bankruptcy clause - ANSWER-insruance policy clause that stipulates that the bankruptcy or insolvency of the insured does not relieve the insurance company of any of its obligations under the policy betterment - ANSWER-an improvement to property that puts it in a better condition than it was before the occupancy or loss. for example, a renter's redesign of an office space to accomodate his needs. see also improvements and betterments coverage binder - ANSWER-a written or oral acknowledgment of insurance in force and evidence of acceptance of the applicant's offer to purchase the insurance, whether or not premium settlement has been reach and pending issuance of the policu. blanket crime policy - ANSWER-this provices coverage against dishonesty, with money and securities coverage and forgery coverage, covering all employees blanket insurance - ANSWER-a property liability policy extending to more than one location, class of property or employee, without specigfically naming the location, class, or employee. see also specific insurance. blankey position bond - ANSWER-an employee dishonesty bond that covers all employees of the insured and provides protection for the insured from dishonest acts of those employees, without specifically naming the employees or their positions. boatowner's policy - ANSWER-this provides hull physical damage and liability coverage for losses arising out of th eownership, maintenance and use of a watercrafy. see also yacht coverage bodily injury (BI) liability coverage - ANSWER-liability coverage that protects the insured from financial loss in the event he or she is legally liable to pay damages because of bodily injury, sickness, or disease, including required care, loss of service, and resulting death boiler and machinery insurance - ANSWER-see equipment breakdown coverage bond - ANSWER-a written agreement under which the surety agrees to pay, within stated limits, for a financial loss caused to another (obligee) by the act or default of a third party (principal) or by some contingency over which the principal may have no control breach of contract - ANSWER-the failure to comply with terms or conditions of an insurance policy that may result in restricted coverage or void the policy broker - ANSWER-a person who, for a commission from the insurance company, solicits, negotiates, and services insurance policies on behalf of the person buying the insurance. see also agent; producer builder's risk insurance - ANSWER-this provides coverage against loss to a building in the course of contruction and to temporary structures, materials, and supplies incidental to that construction. may also cover the builder's machinery and equipment while on the premises. burglary - ANSWER-the forcible entry into or exit out of another premises with the intent to steal property. there must be visible signs of forces entry or exit in order for an incident to be considered a burglary. business auto policy - ANSWER-this is insurance for commercial a utombiles risks against legal liability, dmaage to vehicles, medical expenses, loss from uninsured motorists, and personal injury protection or other equivalent no fault coverage. coverage can be extended to owned, leased, and borrowed vehicles. business income insurance/business interruption insurance. - ANSWER-this provides coverage for loss of earnings that results when a business must shut down or curtail its operations after damage or destruction of property by an insured peril. coverage applies for the length of time it takes to rebuild, repair, or repl