NJ Property Producer Exam Questions and Answers (Graded A+)

Dwelling Policy - ANSWER-Only insures property DP-1 - ANSWER-Basic Form DP-2 - ANSWER-Broad Form DP-3 - ANSWER-Special Form Dwelling Coverage A - ANSWER-Dwelling- Covers dwelling, structures attached to dwelling, and materials/supplies for the dwelling. Dwelling Coverage B - ANSWER-Other Structures- Insures buildings on premise but separate from the dwelling. Dwelling Coverage C - ANSWER-Personal Property- Covers the insured's personal property and must be requested. If rental property, a tenant's property is not covered. Dwelling Coverage D - ANSWER-Fair Rental Value- Covers insured in the event a covered loss makes the rental portion of a property unfit for normal use. Dwelling Coverage E - ANSWER-Additional Living Expense- Included in DP-2 & DP-3 and pays for additional living expenses the insured incurs after a loss. DP-1 by endorsement. HO-2 - ANSWER-Broad Form. Owner Occupied HO-3 - ANSWER-Special Form. Owner Occupied HO-4 - ANSWER-Tenants or Renters. HO-5 - ANSWER-Comprehensive Form (Open). Covers everything minus named exclusions. HO-6 - ANSWER-Condominium Owners HO-8 - ANSWER-Modified form. For special Risks. Think Antique homes. Mobile Homes - ANSWER-By endorsement to a DP or HO policy. Can be a separate policy. Insures home, other structures (10%) and contents. Personal property - 40% of coverage. Permanent Foundation. Time Element Coverage Forms - ANSWER-Business Income. Covers loss of income and expenses due to suspension of business following a covered loss. Commercial Package Policy (CPP) - ANSWER-Must have at least 2 kinds of coverage. CPP's can't contain: - ANSWER-Workers' Compensation, Life Insurance, Health and Disability Insurance, Certain types of Professional Liability Equipment Breakdown Coverage - ANSWER-NOT a maintenance policy, Designed to cover breakdown, Failure of pressure or vacuum equipment, Mechanical failure (including rupture or bursting caused by centrifugal force), Electrical failure. Business-owners Policy - ANSWER-Similar to CPP, but more for small business owners. Inland Marine - ANSWER-Insurance for property in transit Personal Floaters - ANSWER-For individuals who want to insure their belongings while traveling. Commercial Property Floaters - ANSWER-Protect property that a company does not store at a permanent location. National Flood Insurance Program (NFIP) - ANSWER-Created in 1968 to offer flood insurance to eligible communities. What are the two types of Flood Insurance? - ANSWER-Emergency & Regular Building Limits for Flood Insurance - ANSWER-Emergency: $35,000 Regular: $250,000 Contents Limits for Flood Insurance - ANSWER-Emergency: $10,000 Regular: $100,000 Commercial Building Limits for Flood Insurance - ANSWER-Emergency: $100,000 Regular: $500,000 Business Personal Property for Flood Insurance - ANSWER-Emergency: $100,000 Regular: $500,000 How many hours for an Earthquake occurrence? - ANSWER-168 Hours Insurance - ANSWER-Transfer of risk from a person or a business to an insurer Insurable Interest - ANSWER-Risk of financial loss Risk - ANSW