NJ Property/ Casualty Insurance Exam
Set
Why was the industrial Insurance Deregulation Act Created? - ANSTo guard the public from the
damaging consequences of excessive, inadequate, & unfair discriminatory fees & marketing
practices
Which guidelines issued should follow the provisions of the Commercial Insurance Deregulation
Act? - ANSCommercial regulations
When should fee amendments & coverage forms be filed with the commissioner? - ANS30 days
before
What losses are excluded from flood coverage? - ANS-Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
Who administers the NFIP? - ANSFederal Insurance Administration (FIA)
What does the NFIP stand for? - ANSNational Flood Insurance Program
Why turned into the National Flood coverage Program built? - ANSto fill in gaps of flood
insurance by using the non-public zone
What are the three NFIP requirements for insurance? - ANS-network land control & flood control
applications should lessen flood losses within the future
-Flood insurance required in unique flood susceptible areas as a circumstance for receiving
loans thru/ sponsored by using the federal authorities
-Property proprietors that fail to buy flood insurance inside 1 yr after it is available will now not
be eligible for complete disaster remedy investment. It could be decreased via an amount of
coverage that would were purchased
What is the NFIP max insurance for a unmarried own family? - ANSBuilding $250K, Contents
$100K
What is the NFIP max coverage for other residential? - ANSBuilding $250K, Contents $100K
What is the NFIP max coverage for small business? - ANSBuilding $500K, Contents $500K
,What is the NFIP max coverage for Other Non-Residential? - ANSBuilding $500k, Contents
$500K
What is the NFIP subsidized charge for a unmarried circle of relatives? - ANSBuilding $35K,
Contents $10K
What is the NFIP sponsored charge for Other Residential? - ANSBuilding $100K , Contents
$100K
What is the NFIP subsidized fee for small companies? - ANSBuilding $100K, Contents $100K
What is the NFIP sponsored fee for different non-residential? - ANSBuilding $100K, Contents
$100K
What is the wait period earlier than flood coverage can be powerful? - ANS30 days, no binders
issued
What are the exceptions to the 30 day NFIP wait length? - ANS-1st 30 days after insurance,
network enters wellknown or emergency application, insurance will begin at 12:01 am the date
after application and top rate had been mailed
-When an present coverage become assigned to a property client
-At 12:01 am at the 5th day after an endorsement request & top rate has been mailed for
existing policy
What changed into the Supreme Court's selection regarding the Paul v. Virginia case? -
ANSinsurance changed into NOT interstate trade and could not be regulated by means of the
federal government.
Who heard the Paul v. Virginia case? - ANSSupreme Court
Who heard the US v Southeastern Underwriting Association case? - ANSSupreme Court
What become the decision within the US v Southeastern Underwriting Association Case? -
ANSInsurance is interstate trade and should be subject to federal policies (currently in effect
these days)
What is the McCarran-Ferguson Act? - ANSThe federal govt may not modify insurance business
as long as states carry out an adequate job of dealing with their very own insurance industries.
When was the McCarran-Ferguson Act handed? - ANSMarch nine, 1945
To whom does the coverage commissioner ought to provide a record? - ANSGovernor &
Legislature
,How frequently ought to the insurance Commissioner offer a document? - ANSAnnually
How lengthy earlier than a disciplinary hearing ought to the coverage commissioner notify
interested events? - ANS10 days earlier than
What is the quality for failing to comply with a court docket-ordered subpoena? - ANS$5000
If the commissioner decides one has violated the coverage code, what is the great for
accidental acts accomplished? - ANS$a thousand
If the commissioner comes to a decision one has violated the insurance code, what is the max
nice? - ANS1st offense: $5K, 2d offense $10K, every additional $15K
If the coverage commissioner decides one has violated the insurance code, what's the fine for
violating a end & desist? - ANS$5k every violation
If the coverage commissioner comes to a decision one has violated the insurance code, what is
the best for illegal acts with intentional & fabric notion? - ANS$5k
What is the first-class for not contacting the dept with an address or name alternate within 30
days? - ANS$250 max if over 60 days
What is the fine for if a license rate take a look at is lower back for inadequate budget? -
ANS$500
What is the excellent for in case you do not contact the branch regarding a alternate in partners,
proprietors, officers, or administrators? - ANS$250
What is the pleasant for no longer returning a license to a manufacturer? - ANS$500
What is the fine for no longer maintaining an office address or employment contracts on
document with the department? - ANS$a hundred for each settlement
What file is required before an insurance employer may also transact business in a nation? -
ANSCertificate of Authority
What is a domestic insurer? - ANSAn insurer that conducts commercial enterprise inside the
state wherein it turned into integrated
A manufacturer who is appointed with a couple of insurer is taken into consideration to be... -
ANSA Licensed Solicitor
, Implied authority is described as... - ANSAbility to act outside the authority specifically granted
in an business enterprise settlement & extends organization's liability
What sort of clause relates to this announcement: E&N Company issued a policy in attention of
the representations on an application & the payment of the 1st top class? - ANSConsideration
An insured's representations and warranties are incorrectly stated wherein of the subsequent
statements?
A. Statements made through an applicant that are guaranteed true are taken into consideration
to be warranties
b. Statements that an applicant believes to be real, but does now not guarantee to be actual,
are considered to be representations
c. An applicant's statements on an software are considered warranties
d. An applicant's statements on an software are taken into consideration representations -
ANSc. An applicant's statements on an application are taken into consideration warranties
What term relates to an settlement without legal impact? - ANSVoid
An authorized but non-admitted insurer can be represented on this country only by means of
which of the following? - ANSSurplus traces broking
In franchise companies, what number of grasp regulations may be issued? - ANSNone
Self-insurance is an instance of what sort of chance control? - ANSretention
What type of plan is a Stock existence insurance corporation carrying out while it problems
participating and non-collaborating guidelines? - ANSMixed
What is the exceptional for in case you do now not touch the department concerning a change
in companions, proprietors, officers, or directors? - ANS$250
What is that this an instance of: Doctors pooling their funds to cowl their malpractice exposures?
- ANSrisk sharing
Which entity makes an enforceable promise in a unilateral agreement? - ANSInsurer
In a courtroom of law, any ambiguity observed in a coverage will go in prefer of the insured
because an coverage coverage is what kind of agreement? - ANScontract of adhesion
In regard to an casual agreement, while will it end up binding? - ANSWhen one party makes a
proposal and the alternative birthday party accepts the offer
When a risk is insurable, what must be calculable? - ANSchance of loss
Set
Why was the industrial Insurance Deregulation Act Created? - ANSTo guard the public from the
damaging consequences of excessive, inadequate, & unfair discriminatory fees & marketing
practices
Which guidelines issued should follow the provisions of the Commercial Insurance Deregulation
Act? - ANSCommercial regulations
When should fee amendments & coverage forms be filed with the commissioner? - ANS30 days
before
What losses are excluded from flood coverage? - ANS-Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
Who administers the NFIP? - ANSFederal Insurance Administration (FIA)
What does the NFIP stand for? - ANSNational Flood Insurance Program
Why turned into the National Flood coverage Program built? - ANSto fill in gaps of flood
insurance by using the non-public zone
What are the three NFIP requirements for insurance? - ANS-network land control & flood control
applications should lessen flood losses within the future
-Flood insurance required in unique flood susceptible areas as a circumstance for receiving
loans thru/ sponsored by using the federal authorities
-Property proprietors that fail to buy flood insurance inside 1 yr after it is available will now not
be eligible for complete disaster remedy investment. It could be decreased via an amount of
coverage that would were purchased
What is the NFIP max insurance for a unmarried own family? - ANSBuilding $250K, Contents
$100K
What is the NFIP max coverage for other residential? - ANSBuilding $250K, Contents $100K
What is the NFIP max coverage for small business? - ANSBuilding $500K, Contents $500K
,What is the NFIP max coverage for Other Non-Residential? - ANSBuilding $500k, Contents
$500K
What is the NFIP subsidized charge for a unmarried circle of relatives? - ANSBuilding $35K,
Contents $10K
What is the NFIP sponsored charge for Other Residential? - ANSBuilding $100K , Contents
$100K
What is the NFIP subsidized fee for small companies? - ANSBuilding $100K, Contents $100K
What is the NFIP sponsored fee for different non-residential? - ANSBuilding $100K, Contents
$100K
What is the wait period earlier than flood coverage can be powerful? - ANS30 days, no binders
issued
What are the exceptions to the 30 day NFIP wait length? - ANS-1st 30 days after insurance,
network enters wellknown or emergency application, insurance will begin at 12:01 am the date
after application and top rate had been mailed
-When an present coverage become assigned to a property client
-At 12:01 am at the 5th day after an endorsement request & top rate has been mailed for
existing policy
What changed into the Supreme Court's selection regarding the Paul v. Virginia case? -
ANSinsurance changed into NOT interstate trade and could not be regulated by means of the
federal government.
Who heard the Paul v. Virginia case? - ANSSupreme Court
Who heard the US v Southeastern Underwriting Association case? - ANSSupreme Court
What become the decision within the US v Southeastern Underwriting Association Case? -
ANSInsurance is interstate trade and should be subject to federal policies (currently in effect
these days)
What is the McCarran-Ferguson Act? - ANSThe federal govt may not modify insurance business
as long as states carry out an adequate job of dealing with their very own insurance industries.
When was the McCarran-Ferguson Act handed? - ANSMarch nine, 1945
To whom does the coverage commissioner ought to provide a record? - ANSGovernor &
Legislature
,How frequently ought to the insurance Commissioner offer a document? - ANSAnnually
How lengthy earlier than a disciplinary hearing ought to the coverage commissioner notify
interested events? - ANS10 days earlier than
What is the quality for failing to comply with a court docket-ordered subpoena? - ANS$5000
If the commissioner decides one has violated the coverage code, what is the great for
accidental acts accomplished? - ANS$a thousand
If the commissioner comes to a decision one has violated the insurance code, what is the max
nice? - ANS1st offense: $5K, 2d offense $10K, every additional $15K
If the coverage commissioner decides one has violated the insurance code, what's the fine for
violating a end & desist? - ANS$5k every violation
If the coverage commissioner comes to a decision one has violated the insurance code, what is
the best for illegal acts with intentional & fabric notion? - ANS$5k
What is the first-class for not contacting the dept with an address or name alternate within 30
days? - ANS$250 max if over 60 days
What is the fine for if a license rate take a look at is lower back for inadequate budget? -
ANS$500
What is the excellent for in case you do not contact the branch regarding a alternate in partners,
proprietors, officers, or administrators? - ANS$250
What is the pleasant for no longer returning a license to a manufacturer? - ANS$500
What is the fine for no longer maintaining an office address or employment contracts on
document with the department? - ANS$a hundred for each settlement
What file is required before an insurance employer may also transact business in a nation? -
ANSCertificate of Authority
What is a domestic insurer? - ANSAn insurer that conducts commercial enterprise inside the
state wherein it turned into integrated
A manufacturer who is appointed with a couple of insurer is taken into consideration to be... -
ANSA Licensed Solicitor
, Implied authority is described as... - ANSAbility to act outside the authority specifically granted
in an business enterprise settlement & extends organization's liability
What sort of clause relates to this announcement: E&N Company issued a policy in attention of
the representations on an application & the payment of the 1st top class? - ANSConsideration
An insured's representations and warranties are incorrectly stated wherein of the subsequent
statements?
A. Statements made through an applicant that are guaranteed true are taken into consideration
to be warranties
b. Statements that an applicant believes to be real, but does now not guarantee to be actual,
are considered to be representations
c. An applicant's statements on an software are considered warranties
d. An applicant's statements on an software are taken into consideration representations -
ANSc. An applicant's statements on an application are taken into consideration warranties
What term relates to an settlement without legal impact? - ANSVoid
An authorized but non-admitted insurer can be represented on this country only by means of
which of the following? - ANSSurplus traces broking
In franchise companies, what number of grasp regulations may be issued? - ANSNone
Self-insurance is an instance of what sort of chance control? - ANSretention
What type of plan is a Stock existence insurance corporation carrying out while it problems
participating and non-collaborating guidelines? - ANSMixed
What is the exceptional for in case you do now not touch the department concerning a change
in companions, proprietors, officers, or directors? - ANS$250
What is that this an instance of: Doctors pooling their funds to cowl their malpractice exposures?
- ANSrisk sharing
Which entity makes an enforceable promise in a unilateral agreement? - ANSInsurer
In a courtroom of law, any ambiguity observed in a coverage will go in prefer of the insured
because an coverage coverage is what kind of agreement? - ANScontract of adhesion
In regard to an casual agreement, while will it end up binding? - ANSWhen one party makes a
proposal and the alternative birthday party accepts the offer
When a risk is insurable, what must be calculable? - ANSchance of loss
