NJ P & C Exam - Insurance
Terms and Related Concepts
Questions and Answers 100%
PASS
Untrue statements on the application unintentionally made by the insureds
that, if discovered, would alter the underwriting decision of the insurance
company, are called
A. Common errors
B. Material misrepresentations
C. Fraudulent statements
D. Warranties—ANSWER-B. Material misrepresentations
A material misrepresentation is a statement that, if discovered, would alter
the underwriting decision of the insurance company.
Peril is most easily defined as
A. Something that increases the chance of loss
, B. The cause of loss insured against
C. An unhealthy attitude about safety
D. The chance of a loss occurring—ANSWER-B. The cause of a loss insured
against
Perils are the causes of loss insured against in an insurance policy.
Which of the following best describes negligence?
A. The inability to meet the burden of proof
B. The failure to use reasonable and prudent care
C. A situation that creates a probability of loss
D. A latent defect or fault in property—ANSWER-B. The failure to use
reasonable and prudent care
Negligence is defined as the failure to use care that a reasonable, prudent
person would have in a similar situation or circumstance.
A situation in which a person can only lose or have no change represents
A. Speculative risk
B. Adverse selection
C. Hazard
D. Pure risk—ANSWER-D. Pure risk
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
Terms and Related Concepts
Questions and Answers 100%
PASS
Untrue statements on the application unintentionally made by the insureds
that, if discovered, would alter the underwriting decision of the insurance
company, are called
A. Common errors
B. Material misrepresentations
C. Fraudulent statements
D. Warranties—ANSWER-B. Material misrepresentations
A material misrepresentation is a statement that, if discovered, would alter
the underwriting decision of the insurance company.
Peril is most easily defined as
A. Something that increases the chance of loss
, B. The cause of loss insured against
C. An unhealthy attitude about safety
D. The chance of a loss occurring—ANSWER-B. The cause of a loss insured
against
Perils are the causes of loss insured against in an insurance policy.
Which of the following best describes negligence?
A. The inability to meet the burden of proof
B. The failure to use reasonable and prudent care
C. A situation that creates a probability of loss
D. A latent defect or fault in property—ANSWER-B. The failure to use
reasonable and prudent care
Negligence is defined as the failure to use care that a reasonable, prudent
person would have in a similar situation or circumstance.
A situation in which a person can only lose or have no change represents
A. Speculative risk
B. Adverse selection
C. Hazard
D. Pure risk—ANSWER-D. Pure risk
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Katelyn Whitman
