NJ Title Exam
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,An insurance agent is defined as an individual who transacts business on behalf of a _______ - Answer:
a client
Knowingly making false statements which are derogatory against and meant solely to injure another -
Answer: defamation
Type of authority that is either stated orally or in writing and allows an agent to act on behalf of the
insurance company - Answer: express authority
Type of authority holds an agent has when any reasonable person assumes the agent has - Answer:
apparent authority
The chance or uncertainty of loss - Answer: risk
Conditions and ground rules for a policy specify - Answer: obligations and responsibilities for the
insurer and the insured
The insuring agreement of a property insurance policy includes - Answer: promise made by the
insurance company to the insured to provide coverage
Insurable Interest means - Answer: type of investment that protects anything subject to a financial loss
A loss for which there is no protection under insurance policy terms - Answer: exclusion
Modified Whole Life Policies - Answer: The premium is lower than normal during the early years and
increases to a fixed premium after a 3-5 year period
In which of the DP Forms is the dwelling covered under open perils and the personal property on a
named peril basis - Answer: DP - 3
In a level term life policy, _______ always remains constant - Answer: death benefit
, This is excluded on DP - 3 coverage - Answer: Ice damage to homes
Dwelling Property Policy's cover - Answer: mountain vacation homes used on weekends and summers
DP - 1 basic policy covers - Answer: Lightning Strikes and Not Earthquakes
Grace periods protect policy holders from - Answer: unintentional lapses of the policy
Dwelling Policy conditions describe how an insurance company - Answer: has the option to repair to
pre-loss conditions
The policy and application constitute the complete agreement between the policyowner and the
insurance company - Answer: Entire Contract Provision
Is switching the policy from one insured top another an ownership right? - Answer: NO.
Under the misstatement of age provision, what happens if it is determined at death that the insured's
age or gender was misstated on a life insurance policy application - Answer: Benefits are adjusted to an
amount that the premium would have purchased at the correct age or gender
______ is NOT a nonforfeiture option available in a Whole Life Policy - Answer: Accumulation at
interest
During the first 60 days an automobile policy is in force, when may an insurer cancel the policy? -
Answer: by a statement of the specific reason
These are not covered by title insurance - Answer: Exclusions
These outline the relationships between insurance companies and the insured - Answer: Conditions
Temporary transfer of title to insurance companies for litigation purposes - Answer: subrogation
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,An insurance agent is defined as an individual who transacts business on behalf of a _______ - Answer:
a client
Knowingly making false statements which are derogatory against and meant solely to injure another -
Answer: defamation
Type of authority that is either stated orally or in writing and allows an agent to act on behalf of the
insurance company - Answer: express authority
Type of authority holds an agent has when any reasonable person assumes the agent has - Answer:
apparent authority
The chance or uncertainty of loss - Answer: risk
Conditions and ground rules for a policy specify - Answer: obligations and responsibilities for the
insurer and the insured
The insuring agreement of a property insurance policy includes - Answer: promise made by the
insurance company to the insured to provide coverage
Insurable Interest means - Answer: type of investment that protects anything subject to a financial loss
A loss for which there is no protection under insurance policy terms - Answer: exclusion
Modified Whole Life Policies - Answer: The premium is lower than normal during the early years and
increases to a fixed premium after a 3-5 year period
In which of the DP Forms is the dwelling covered under open perils and the personal property on a
named peril basis - Answer: DP - 3
In a level term life policy, _______ always remains constant - Answer: death benefit
, This is excluded on DP - 3 coverage - Answer: Ice damage to homes
Dwelling Property Policy's cover - Answer: mountain vacation homes used on weekends and summers
DP - 1 basic policy covers - Answer: Lightning Strikes and Not Earthquakes
Grace periods protect policy holders from - Answer: unintentional lapses of the policy
Dwelling Policy conditions describe how an insurance company - Answer: has the option to repair to
pre-loss conditions
The policy and application constitute the complete agreement between the policyowner and the
insurance company - Answer: Entire Contract Provision
Is switching the policy from one insured top another an ownership right? - Answer: NO.
Under the misstatement of age provision, what happens if it is determined at death that the insured's
age or gender was misstated on a life insurance policy application - Answer: Benefits are adjusted to an
amount that the premium would have purchased at the correct age or gender
______ is NOT a nonforfeiture option available in a Whole Life Policy - Answer: Accumulation at
interest
During the first 60 days an automobile policy is in force, when may an insurer cancel the policy? -
Answer: by a statement of the specific reason
These are not covered by title insurance - Answer: Exclusions
These outline the relationships between insurance companies and the insured - Answer: Conditions
Temporary transfer of title to insurance companies for litigation purposes - Answer: subrogation
