NJ PSI PROPERTY AND CASUALTY EXAMS SCRIPT
2025/2026 ANSWERS AND QUESTIONS GRADED A+
✔✔On Homeowners policies, the full limit on personal property (Coverage C) applies to
personal property while it is?
A. In the state of residence only.
B. In the United States only.
C. Anywhere in the world.
D. In the United States and Canada only. - ✔✔C. Anywhere in the world.
✔✔Under an NFIP Flood policy, there is coverage for?
A. Both direct damage and loss of use.
B. Direct damage only.
C. Loss of use only.
D. Consequential loss only. - ✔✔B. Direct damage only.
✔✔Loses to which of the following are not covered under Homeowners policies?
A. Property of roomers or boarders.
B. Articles separately described and specifically covered by other insurance.
C. Animals, birds, and fish.
D. All of the above. - ✔✔D. All of the above.
✔✔A scheduled Personal Property Endorsement is usually written on a ______ basis?
A. Special Perils.
B. Named Perils.
C. Premises.
D. Blanket. - ✔✔A. Special Perils.
✔✔Under Homeowners policies, Section II, the basic limit for Personal Liability
Coverage is?
A. $50,000.
B. $75,000.
C. $100,000.
D. $150,000. - ✔✔C. $100,000.
✔✔Under Section II Additional Coverage's of Homeowners policies, the insurer agrees
to pay?
A. The costs of defending a claim.
B. Premiums on bonds required in a suit.
C. Court costs.
D. All of the above. - ✔✔D. All of the above.
✔✔Under Homeowners and other policies, ACV is the abbreviation for which property
insurance valuation?
, A. Approved Coverage Valuation.
B. Approximate Cash Value.
C. Actual Coverage Valuation.
D. Actual Cash Value. - ✔✔D. Actual Cash Value.
✔✔Under Homeowners and other policies, the definition of the property insurance
valuation known as Actual Cash Value (ACV) is?
A. Replacement Cost plus a cash payment.
B. Replacement Cost minus the cost of new material.
C. Replacement Cost minus depreciation.
D. Replacement Cost plus market value. - ✔✔C. Replacement Cost minus depreciation.
✔✔When dealing with jewelry, furs, or silverware, which carry special limits, a producer
should advise a client that if the value exceeds the limits specified in the policy, the
client should purchase?
A. A Scheduled Personal Property Endorsement.
B. Less Jewelry.
C. A Fine arts Endorsement.
D. Another policy. - ✔✔A. A Scheduled Personal Property Endorsement.
✔✔Under an NFIP Flood policy, the maximum amount of building coverage that can be
written on a single family property is?
A. $100,000.
B. $150,000.
C. $200,000.
D. $250,000. - ✔✔D. $250,000.
✔✔Which of the following applies as regards either a Scheduled Personal Property
Endorsement or a Personal Articles Floater?
A. Fine arts can be covered on either a named perils or a special perils basis.
B. The personal property insured on either form is not subject to the policy deductible.
C. All personal property must be described and an amount of insurance must be shown
for each item.
D. All of the above. - ✔✔D. All of the above.
✔✔Under an NFIP Flood policy, in most cases the waiting period before an increase in
the coverage amount can be made effective is?
A. 15 days.
B. 30 days.
C. 45 days.
D. 60 days. - ✔✔B. 30 days.
✔✔All of the following are Additional Coverage's under Homeowners policies except?
A. Removal coverage for 30 days.
B. Debris removal expense.
2025/2026 ANSWERS AND QUESTIONS GRADED A+
✔✔On Homeowners policies, the full limit on personal property (Coverage C) applies to
personal property while it is?
A. In the state of residence only.
B. In the United States only.
C. Anywhere in the world.
D. In the United States and Canada only. - ✔✔C. Anywhere in the world.
✔✔Under an NFIP Flood policy, there is coverage for?
A. Both direct damage and loss of use.
B. Direct damage only.
C. Loss of use only.
D. Consequential loss only. - ✔✔B. Direct damage only.
✔✔Loses to which of the following are not covered under Homeowners policies?
A. Property of roomers or boarders.
B. Articles separately described and specifically covered by other insurance.
C. Animals, birds, and fish.
D. All of the above. - ✔✔D. All of the above.
✔✔A scheduled Personal Property Endorsement is usually written on a ______ basis?
A. Special Perils.
B. Named Perils.
C. Premises.
D. Blanket. - ✔✔A. Special Perils.
✔✔Under Homeowners policies, Section II, the basic limit for Personal Liability
Coverage is?
A. $50,000.
B. $75,000.
C. $100,000.
D. $150,000. - ✔✔C. $100,000.
✔✔Under Section II Additional Coverage's of Homeowners policies, the insurer agrees
to pay?
A. The costs of defending a claim.
B. Premiums on bonds required in a suit.
C. Court costs.
D. All of the above. - ✔✔D. All of the above.
✔✔Under Homeowners and other policies, ACV is the abbreviation for which property
insurance valuation?
, A. Approved Coverage Valuation.
B. Approximate Cash Value.
C. Actual Coverage Valuation.
D. Actual Cash Value. - ✔✔D. Actual Cash Value.
✔✔Under Homeowners and other policies, the definition of the property insurance
valuation known as Actual Cash Value (ACV) is?
A. Replacement Cost plus a cash payment.
B. Replacement Cost minus the cost of new material.
C. Replacement Cost minus depreciation.
D. Replacement Cost plus market value. - ✔✔C. Replacement Cost minus depreciation.
✔✔When dealing with jewelry, furs, or silverware, which carry special limits, a producer
should advise a client that if the value exceeds the limits specified in the policy, the
client should purchase?
A. A Scheduled Personal Property Endorsement.
B. Less Jewelry.
C. A Fine arts Endorsement.
D. Another policy. - ✔✔A. A Scheduled Personal Property Endorsement.
✔✔Under an NFIP Flood policy, the maximum amount of building coverage that can be
written on a single family property is?
A. $100,000.
B. $150,000.
C. $200,000.
D. $250,000. - ✔✔D. $250,000.
✔✔Which of the following applies as regards either a Scheduled Personal Property
Endorsement or a Personal Articles Floater?
A. Fine arts can be covered on either a named perils or a special perils basis.
B. The personal property insured on either form is not subject to the policy deductible.
C. All personal property must be described and an amount of insurance must be shown
for each item.
D. All of the above. - ✔✔D. All of the above.
✔✔Under an NFIP Flood policy, in most cases the waiting period before an increase in
the coverage amount can be made effective is?
A. 15 days.
B. 30 days.
C. 45 days.
D. 60 days. - ✔✔B. 30 days.
✔✔All of the following are Additional Coverage's under Homeowners policies except?
A. Removal coverage for 30 days.
B. Debris removal expense.
