NJ PSI PROPERTY AND CASUALTY FINAL PAPER
2025/2026 ANSWERS AND QUESTIONS GRADED A+
✔✔In property insurance, insurable interest must exist at the/
A. Inception of the policy.
B. Time of the premium payment.
C. Time of the application.
D. Time of the loss. - ✔✔D. Time of the loss.
✔✔ The Mobile Home Endorsement of a Homeowners policy affords coverage to
mobile homes under the?
A. HO-1 (Basic Form)
B. HO-2 (Broad Form)
C. HO-3 (Special Form)
D. HO-2 or HO-3 (Broad and Special) - ✔✔D. HO-2 or HO-3 (Broad and Special)
✔✔All of the following are eligible for coverage under Homeowners policy except?
A. A condominium unit owner.
B. A farm owner.
C. A mobile home owner.
D. A tenant in an apartment building. - ✔✔B. A farm owner.
✔✔The term Insured Location under Section II of Homeowners policies refers to all of
the following except?
A. The insured premises.
B. Farm land.
C. A non-owned premises where an insured temporarily resides.
D. A newly-acquired premises. - ✔✔B. Farm land.
✔✔All of the following would be considered insured's under a Homeowner's policy
expect?
A. Resident relatives of the insured.
B. A non-relative resident under age 21 in the care of the insured.
C. The insured's spouse if the spouse lives in the household.
D. A non-relative resident over age 21. - ✔✔D. A non-relative resident over age 21.
✔✔All of the following homeowners policies provide dwelling coverage except?
A. HO-2
B. HO-3
C. HO-4
D. HO-1 - ✔✔C. HO-4
✔✔Dwelling coverage A includes all of the following except?
A. The dwelling.
, B. The deck on the back of the dwelling.
C. A Gazebo.
D. Construction materials on the residence premises for use in the repair of the
dwelling. - ✔✔C. A Gazebo.
✔✔Under Homeowners policies, the base deductible applicable to property losses,
Section I, is?
A. $100
B. $250
C. $500
D. $1000 - ✔✔B. $250
✔✔The National Flood Insurance Program (NFIP) is a ________ program?
A. State.
B. Municipal.
C. Federal.
D. Worldwide. - ✔✔C. Federal.
✔✔All of the following are optional coverage's under Homeowners policies except?
A. Personal Property Replacement Cost coverage.
B. Increased coverage limits from items suck as jewelry, furs, and silverware.
C. Loss of Use coverage.
D. Earthquake coverage. - ✔✔C. Loss of Use Coverage.
✔✔The National Flood Insurance Program (NFIP) standards are set by, and the
Program is administered by, the?
A. National Flood Management Association (NFMA)
B. National Emergency Standards Agency (NESA)
C. Federal Flood Coverage Association (FFCA)
D. Federal Emergency Management Agency (FEMA) - ✔✔D. Federal Emergency
Management Agency (FEMA)
✔✔Under Homeowners policies, which of the following is/are considered optional
property coverage endorsement(s)?
A. Earthquake.
B. Fine Arts.
C. Replacement Cost coverage on personal property.
D. All of the above. - ✔✔D. All of the above.
✔✔Under an NFIP Flood policy, flood is broadly defined as all of the following except?
A. The overflow of inland or tidal waters.
B. Mudflow, a river of liquid and flowing mud on the surfaces of normally dry land area,
as when earth is carried by a current of water.
C. Heavy, driving sheets of wind blown rain.
2025/2026 ANSWERS AND QUESTIONS GRADED A+
✔✔In property insurance, insurable interest must exist at the/
A. Inception of the policy.
B. Time of the premium payment.
C. Time of the application.
D. Time of the loss. - ✔✔D. Time of the loss.
✔✔ The Mobile Home Endorsement of a Homeowners policy affords coverage to
mobile homes under the?
A. HO-1 (Basic Form)
B. HO-2 (Broad Form)
C. HO-3 (Special Form)
D. HO-2 or HO-3 (Broad and Special) - ✔✔D. HO-2 or HO-3 (Broad and Special)
✔✔All of the following are eligible for coverage under Homeowners policy except?
A. A condominium unit owner.
B. A farm owner.
C. A mobile home owner.
D. A tenant in an apartment building. - ✔✔B. A farm owner.
✔✔The term Insured Location under Section II of Homeowners policies refers to all of
the following except?
A. The insured premises.
B. Farm land.
C. A non-owned premises where an insured temporarily resides.
D. A newly-acquired premises. - ✔✔B. Farm land.
✔✔All of the following would be considered insured's under a Homeowner's policy
expect?
A. Resident relatives of the insured.
B. A non-relative resident under age 21 in the care of the insured.
C. The insured's spouse if the spouse lives in the household.
D. A non-relative resident over age 21. - ✔✔D. A non-relative resident over age 21.
✔✔All of the following homeowners policies provide dwelling coverage except?
A. HO-2
B. HO-3
C. HO-4
D. HO-1 - ✔✔C. HO-4
✔✔Dwelling coverage A includes all of the following except?
A. The dwelling.
, B. The deck on the back of the dwelling.
C. A Gazebo.
D. Construction materials on the residence premises for use in the repair of the
dwelling. - ✔✔C. A Gazebo.
✔✔Under Homeowners policies, the base deductible applicable to property losses,
Section I, is?
A. $100
B. $250
C. $500
D. $1000 - ✔✔B. $250
✔✔The National Flood Insurance Program (NFIP) is a ________ program?
A. State.
B. Municipal.
C. Federal.
D. Worldwide. - ✔✔C. Federal.
✔✔All of the following are optional coverage's under Homeowners policies except?
A. Personal Property Replacement Cost coverage.
B. Increased coverage limits from items suck as jewelry, furs, and silverware.
C. Loss of Use coverage.
D. Earthquake coverage. - ✔✔C. Loss of Use Coverage.
✔✔The National Flood Insurance Program (NFIP) standards are set by, and the
Program is administered by, the?
A. National Flood Management Association (NFMA)
B. National Emergency Standards Agency (NESA)
C. Federal Flood Coverage Association (FFCA)
D. Federal Emergency Management Agency (FEMA) - ✔✔D. Federal Emergency
Management Agency (FEMA)
✔✔Under Homeowners policies, which of the following is/are considered optional
property coverage endorsement(s)?
A. Earthquake.
B. Fine Arts.
C. Replacement Cost coverage on personal property.
D. All of the above. - ✔✔D. All of the above.
✔✔Under an NFIP Flood policy, flood is broadly defined as all of the following except?
A. The overflow of inland or tidal waters.
B. Mudflow, a river of liquid and flowing mud on the surfaces of normally dry land area,
as when earth is carried by a current of water.
C. Heavy, driving sheets of wind blown rain.
