NJ PROPERTY AND CASUALTY EXAM QUESTIONS WITH 100% CORRECT ANSWERS 2023.

Property and Casualty-NJ
l l




1. Alcontractlinlwhichlonlylonelpartyl-lthelinsurerl-lmakeslanlenforceablelpromiselislsaidltolbel-lANS-A-
lQuotation




B-lUnilateral

C-lAlcontractloflIndemnity

D-

AlcontractloflAdhesionlB-
l




Unilateral
l




Anlinsurancelpolicylislconsideredltolbelunilateral,lsincelonlylonelpartyltolthelcontract,lthelinsurancelco
mpany,lmakeslanlenforceablelpromise.

2. Anlinsurerlwhoselmainlhomelofficelisldomiciledlinlthelstatelwhereltheylwritelbusinesslislknow
nlaslal-lANS-A-lAlienlInsurer

B-lForeignlInsurer

C-lSurpluslLineslInsurer

D-

DomesticlInsurerlD-
l




DomesticlInsurer
l




AlDomesticlinsurerlislonelwhoselmainlhomelofficelisllocatedlinlthelstateltheylareldoinglbusiness.lAlS
urpluslLineslinsurerlcouldlbelaldomesticlcarrierlbutlthelbestlanswerlchoicelislD.

3. AllloflthelfollowinglareltruelregardinglthelAssignedlRisklPlanlforlWorkerslCompensationlinlNewlJ
ersey,lExceptl-lANS-
A.lIt'slalmethodlforlemployersltolobtainlWorkerslCompensationlinsurancelwhenltheylarelhavingldif
ficultylinlthelnormallmarketplace

B. Iflanlemployerlislunableltolobtainlcoveragelinlthelnormallmarketplace,lthelstatelwilllassignlanlins
urerltolwritelthelrisk

C. Thelplanlapproveslthelratelstructureslusedlbylalllinsurerslwritinglworkerslcompensationlcove
ragelinlthelstate.

D. Allladmittedlcarrierslwritinglworkerslcompensationlinsurancelinlthelstatelmustlbelongltolthelplan

,C-
lThelAssignedlRisklPlanlislNOTlinvolvedlinlapprovinglrating lplansloflthelvariouslinsurerslinlthelstate.l

Thelotherlchoiceslarelalllcorrect

4. Whichloflthelfollowinglisltruelregardinglcoveragelforlaldomesticlemployeelforlworkerslcompen
sationlinlNewlJersey?l-lANS-
A.lThelassignedlrisklplanlforlworkerslcompensationlinlnewljerseylwouldlprovidelthelcoveragelaut
omatically

B. Domesticlemployeeslarelexemptlfromlcoverage

C. Coveragelmustlbelprovidedlbylthelhomeownerslpolicyliflthelinjuredlisltolalresidentlorlhiredldomes
ticlservantlinlthelhome

D. Thelemployerlmustlbuylworkerslcompensationlinsurancelonltheldomesticlemployee

C-
lIflaldomesticlservantlislinjuredlwhilelworkinglinlthelhome,lthelhomeownerslinsurancelforlthelemployerl

mustlprovidelthelworkerslcompensationlcoveragelforltheldomesticlemployee

5. VacancylonlthelBOPlcanleliminatelcertainlperilsl-lANS-A.lAfterl60lDays

Iflthelpremiseslhavelbeenlvacantlforloverl60ldays,lmanylimportantlperilsl(suchlaslglasslbreakage,lvand
alism,landltheft)lwilllbelexcluded.

6. Anlinsurer'slsharedlparticipationlpercentagelinlthelUrbanlEnterpriselZonel(UEZ)programlislbas
edlon:l-lANS-A.lThelnumberloflwrittenlpolicieslinlthelurbanlenterpriselzone.

B. Theldiscretionloflthelcommissionerloflinsurance

C. Thelnumberloflyearsloperatinglinlthelstate

D. thelfinanciallsizeloflthelinsurer.

A-
lThelinsurer'slparticipationlpercentagelinlthelUEZlprogramlislbasedlonlthelnumberloflpolicieslthelinsure

rlhaslinlforcelinlthatlurbanlenterpriselzone.

7. ThelminimumllimitsloflalbasiclautomobilelliabilitylinsurancelrequiredlbylthelstateloflNewlJerse
ylis:l-lANS-A.l20/40/10

B.l25/50/25

C.l12.5/l25/l7.5

D.l$15,000loflPIPlandl$5,000loflPDL

,D-
lBylstatellaw,lthelbasiclautolpolicylmustlcontainlPIPlcoveragelandlanloptionall$5,000lforlpropertyldama

gelliability.

8. ThelCommissionerlmaylsuspend,lrevoke,lrefuseltolrenew,lorlrefuseltolissuelallicense.lPriorltolthel
revocationlorldenialloflallicense,lthelCommissionerlmustlprovideltolthellicenseelorlapplicantl-lANS-
A.lAnlopportunitylforlthelindividualltolhavelalhearing

B. Neitherloflthelanswers

C. Bothloflthelanswers

D. Thelfindingslwhichlledltolthelcommissioner'sldecision.

C-
lBeforelthelCommissionerlcanltakelanylactionlagainstlanlagent,lthelagentlhaslthelrightltolalhearinglre

gardinglthelCommissioner'slfindings.

9. AnlagentlmustlnotifylthelDepartmentloflInsuranceloflanyladministrativelactionslleviedlagainstlherlwi
thinl-lANS-A.l30ldaysloflthelfinal
dispositionloflthelmatter

B.60ldays.

C.10ldaysloflbeinglcharged.

D.24lhours.

A-
lAnlagentlmustlnotifylthelDepartmentloflInsuranceloflanyladministrativelactionsltakenlagainstlherlwithinl

30ldayslofltheldispositionloflthelaction.

10. Whichloflthelfollowinglislanloptionallcoveragelonlthelstandardlautolpolicylbutlnotlavailablelonlthel
basiclautolpolicy?l-lANS-A.lPersonallinjurylprotection

B. Roadsidelassistance

C. Autolphysicalldamagelcoverage

D. Uninsuredlandlunderinsuredlmotorists

D-
lUninsuredlandlunderinsuredlmotoristlcoveragelislavailablelaslanloptionlonlthelstandardlautolpolicyl

butlnotlavailablelonlthelbasic.lThelotherlthreelchoiceslarelalllavailablelonlthelbasiclautolpolicy.

11. Making,lcirculatinglorldistributinglinformationlaboutlbenefitslwhichlcanlconfuselorlmisleadlalpote
ntiallcustomerlislanlexamplelof:l-lANS-A.lDefamation

, B. FalselA
dvertising

C. Misrepresentation

D. IllegallInducement

B-
lAdvertisinglmustlbeltruthfullinlalllaspects.lIllegallinducementlislanotherlwordlforlrebating.lDefamationlis

lmakelfalselstatementslmeantltolinjurelsomeonelinlthelinsurancelbusiness




12. Policieslarelwrittenlforlthatlpersonlsuchlaslalhomelpolicylandldolnotltransferluponlthelsaleloflthatl
exposurelarelwhatltypeloflcontractl-lANS-A.lAleatorylContract

B. UnilaterallContract

C. ConditionallContract

D. PersonallContractl

D-lPersonallContract

Alpolicylislpersonal.lInlotherlwords,lwithlalsaleloflalcarlorlhouselthelpolicyldoeslnotlautomaticallyltrans
ferltolthelnewlowner.

13. Anlunauthorizedlcompanylwritinglbusinesslinlthelstatelthatlislnotlsubjectltolstatelapprovedlpolicyl
forms,lrates,lorlruleslislknownlaslal-lANS-A.lStocklinsurer.

B. SurpluslLineslinsurer.

C. Reciprocallinsurer.

D. Mutuallinsurer.

B-lSurpluslLineslInsurer

SurpluslLineslcompanieslcanlchargelwhateverltheylwantlandltheirlpolicieslcanlsaylwhateverltheylwa
nt.lTheylarelNOTlauthorizedltoldolbusinesslinlthelstatelandlthereforelnotlsubjectltolstatelapprovedlp
olicylforms,lruleslandlrates.

14. Makinglanylmisrepresentationlorlincompletelcomparisonloflpoliciesltolanylpersonlforlthelpurp
oseloflinducinglthatlpersonltollapselalcurrentlpolicylbestldescribesl-lANS-A.lcoercion.

B. falseladvertising.