NJ Property & Casualty Exam Practice with 100% Correct Answers (Latest Update 2024)

NJ Property & Casualty What is a Business Owners Policy (BOP)? - Correct Answer-They usually are targeted at small and medium-sized businesses. This assembles the basic coverages required by a business owner in one bundle. What are the features of a BOP Policy? - Correct Answer-Property Liability, Business Income, and General Liability What is the method of valuation on building and business personal property? - Correct Answer-Replacement Cost / 80% or more of the full replacement cost of the property How long is the "Period of Restoration" following a covered direct loss? - Correct Answer-12 Consecutive Months, Restoration begins 72 hours after the time of direct physical loss & ends when the task is completed or business starts at a new permanent location What makes a business BOP eligible? - Correct Answer-Business has to generate sales over $6million or that occupy more than 35,000 square feet of space What types of Businesses are BOP Eligible? - Correct Answer-Apartment buildings, office buildings (6 stories or lower/ 100.000 sq ft.), Service, Processing, Wholesaler, Contractor, Restaurant (Fast Food), Motel (3 Stories or lower), Convenience Store/Gasoline Store, Self Storage What type of Businesses are not BOP Eligible? - Correct Answer-Auto Repair/Service Station, Restaurant (Not Fast Food), Place of Amusement, Manufacturers What is covered in Section 1 of the BOP? - Correct Answer-Buildings & Structures at the premises described in the dec, business personal property located in or on the building at the described premises or in the open (or vehicle) within 100 ft of the premises, leased personal property What is the ISO? - Correct Answer-Insurance Service Office - Provides rating services by filling out an ISO Form What are some coverage extensions in the BOP? - Correct Answer-Newly acquired/Constructed Property, Personal Property off Premises, Outdoor Property, Personal Effects, Valuable Paper & Records, Accounts Receivable, Exclusions What is Business Income Extra Expense? - Correct Answer-Loss of income and continuing expenses What are Additional Expenses? - Correct Answer-Any expense needed to not allow business income loss (Example - Extra Space) What is Liability? - Correct Answer-Bodily Injury & Property Damage through a 3rd party What is Advertising Liability? - Correct Answer-Publisher, getting sued for writing something (Slander, Defamation of Character, Ruin Someone) What is Products Liability? - Correct Answer-Bodily injury and property damage from your product What is Product Completed Operations? - Correct Answer-Completed Job and someone gets injured What is Medical Expense? - Correct Answer-Good will coverage, bodily injury (Whether or not legally liable), To avoid small claims and lawsuits What makes you Dwelling Program Eligible? - Correct Answer-Has to have Residential dwelling purposes & can't have more than 4 dwelling units or more than 5 roomers or boarders What are the dwelling coverage forms? - Correct Answer-DP1 (Basic) , DP2 (Broad), and DP3 (Special)