Nj property and Casualty Insurance Exam With 100% Correct Answers 2024 Updated

Nj property and Casualty Insurance Exam With 100% Correct Answers 2024 Updated Aleatory Contract - Correct Answer-Insurance policy is based upon uncertainty of a loss, equal value is not given by the parties to the contract. Utmost Good Faith - Correct Answer-Parties to the contract rely upon the integrity of one another. Insuring Agreement - Correct Answer-The section of an insurance policy containing the insurer's promise to pay, the description of coverage provided and perils insured against. Conditions - Correct Answer-The rights and responsibilities of all parties of the contract. Exclusions - Correct Answer-Rights and responsibilities of both parties to the contract Monoline Policy - Correct Answer-Policy that covers only one line of business Multiline policy - Correct Answer-Policy that includes more than one type of insurance coverage. Property—Personal Lines Insurance - Correct Answer-Dwelling and contents, homeowners , mobile homes, personal inland marine floaters, personal watercraft,flood,earthquake Property—Commercial Lines Insurance - Correct Answer-Business owners BOP, commercial package policy CPP, boiler and machinery, commercial inland and ocean marine floaters Casualty— personal lines - Correct Answer-Personal liability, personal auto policy PAP, personal umbrella policy Casualty— Commercial lines - Correct Answer-Commercial general liability CGL, Business auto coverage, workers compensation and liability insurance, surety bonds, commercial crime insurance and Fidelity bonds, personal liability insurance, commercial umbrella policies and excess coverages. Surplus Lines - Correct Answer-any type of insurance for which there is no available market within the state, and the coverage must be placed with a non admitted insurer, are often allow to operate under open competition Residual market coverage - Correct Answer-A responsibility assumes by insurance regulators to step in and provide insurance situations where private insurance is not readily available when the government provides a type of insurance or mechanism to procure insurance Examples of surplus lines-federal level - Correct Answer-FloodInsurance, Federal crop insurance, nuclear energy liability insurance, terrorism insurance program. Examples of surplus lines—State level - Correct Answer-Personal auto insurance plan PAIP an assigned risk plan , commercial auto insurance plan an assigned risk plan, The fair plan (property insurance) , Worker's Compensation assigned risk programs binder - Correct Answer-A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued. Certificate of Insurance - Correct Answer-A legal document that indicates that an insurance policy has been issued, and that states both the amounts and types of insurance provided. Adverse Selection - Correct Answer-Poor risk will seek insurance in greater numbers than good risks Experience Rating - Correct Answer-A rating plan that adjusts the premium for the current policy period to recognize the loss experience of the insured organization during past policy periods. Usually 3 years retrospective rating - Correct Answer-A self-rating plan under which the actual losses during the policy period determine the final premium (subject to a minimum and maximum premium). Schedule Rating - Correct Answer-applies a system of debits or credits to reflect characteristics of a particular insured Nonrenewal - Correct Answer-A termination of a policy by an insurer on the anniversary or renewal date. Insuring Agreement - Correct Answer-Promises — Policy coverages, additional coverages, perils insured against, direct and indirect property losses. Conditions - Correct Answer-Cancellation, non-renewal, misrepresentation, concealment or fraud, Duties following a loss, valuation or loss settlement or how losses will be settled Replacement Cost - Correct Answer-Replacement cost - depreciation equals actual cash value Insurable Interest - Correct Answer-And property insurance in insurable interest must be present at the time of the loss Coinsurance - Correct Answer-Designed to encourage insurers to insure their property for the full value many property policies require the insured to carry 80% properties replacement cost