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Nj Property/ Casualty Insurance
Exam Set | Actual Questions And
Answers 2026
Why was the commercial Insurance Deregulation Act Created? - correct-answer -
To protect the public from the adverse effects of excessive, inadequate, & unfair
discriminatory rates & marketing practices
Which policies issued must follow the provisions of the Commercial Insurance
Deregulation Act? - correct-answer -Commercial policies
When must rate amendments & policy forms be filed with the commissioner? -
correct-answer -30 days before
What losses are excluded from flood insurance? - correct-answer --Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
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Who administers the NFIP? - correct-answer -Federal Insurance Administration
(FIA)
What does the NFIP stand for? - correct-answer -National Flood Insurance
Program
Why was the National Flood insurance Program constructed? - correct-answer -to
fill in gaps of flood coverage by the private sector
What are the 3 NFIP requirements for coverage? - correct-answer --community
land management & flood control programs must reduce flood losses in the future
-Flood insurance required in specific flood prone areas as a condition for receiving
loans through/ backed by the federal government
-Property owners that fail to purchase flood insurance within 1 year after it is
available will not be eligible for full disaster relief funding. It will be reduced by an
amount of insurance that could have been purchased
What is the NFIP max coverage for a single family? - correct-answer -Building
$250K, Contents $100K
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What is the NFIP max coverage for other residential? - correct-answer -Building
$250K, Contents $100K
What is the NFIP max coverage for small business? - correct-answer -Building
$500K, Contents $500K
What is the NFIP max coverage for Other Non-Residential? - correct-answer -
Building $500k, Contents $500K
What is the NFIP subsidized rate for a single family? - correct-answer -Building
$35K, Contents $10K
What is the NFIP subsidized rate for Other Residential? - correct-answer -Building
$100K , Contents $100K
What is the NFIP subsidized rate for small businesses? - correct-answer -Building
$100K, Contents $100K
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What is the NFIP subsidized rate for other non-residential? - correct-answer -
Building $100K, Contents $100K
What is the wait period before flood insurance can be effective? - correct-answer
-30 days, no binders issued
What are the exceptions to the 30 day NFIP wait period? - correct-answer --1st 30
days after coverage, community enters standard or emergency program, coverage
will begin at 12:01 am the date after application and premium were mailed
-When an existing policy was assigned to a property purchaser
-At 12:01 am on the 5th day after an endorsement request & premium has been
mailed for existing policy
What was the Supreme Court's decision regarding the Paul v. Virginia case? -
correct-answer -insurance was NOT interstate commerce and could not be
regulated by the federal govt.
Who heard the Paul v. Virginia case? - correct-answer -Supreme Court
Who heard the US v Southeastern Underwriting Association case? - correct-
answer -Supreme Court
Nj Property/ Casualty Insurance
Exam Set | Actual Questions And
Answers 2026
Why was the commercial Insurance Deregulation Act Created? - correct-answer -
To protect the public from the adverse effects of excessive, inadequate, & unfair
discriminatory rates & marketing practices
Which policies issued must follow the provisions of the Commercial Insurance
Deregulation Act? - correct-answer -Commercial policies
When must rate amendments & policy forms be filed with the commissioner? -
correct-answer -30 days before
What losses are excluded from flood insurance? - correct-answer --Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
,2|Page
Who administers the NFIP? - correct-answer -Federal Insurance Administration
(FIA)
What does the NFIP stand for? - correct-answer -National Flood Insurance
Program
Why was the National Flood insurance Program constructed? - correct-answer -to
fill in gaps of flood coverage by the private sector
What are the 3 NFIP requirements for coverage? - correct-answer --community
land management & flood control programs must reduce flood losses in the future
-Flood insurance required in specific flood prone areas as a condition for receiving
loans through/ backed by the federal government
-Property owners that fail to purchase flood insurance within 1 year after it is
available will not be eligible for full disaster relief funding. It will be reduced by an
amount of insurance that could have been purchased
What is the NFIP max coverage for a single family? - correct-answer -Building
$250K, Contents $100K
,3|Page
What is the NFIP max coverage for other residential? - correct-answer -Building
$250K, Contents $100K
What is the NFIP max coverage for small business? - correct-answer -Building
$500K, Contents $500K
What is the NFIP max coverage for Other Non-Residential? - correct-answer -
Building $500k, Contents $500K
What is the NFIP subsidized rate for a single family? - correct-answer -Building
$35K, Contents $10K
What is the NFIP subsidized rate for Other Residential? - correct-answer -Building
$100K , Contents $100K
What is the NFIP subsidized rate for small businesses? - correct-answer -Building
$100K, Contents $100K
, 4|Page
What is the NFIP subsidized rate for other non-residential? - correct-answer -
Building $100K, Contents $100K
What is the wait period before flood insurance can be effective? - correct-answer
-30 days, no binders issued
What are the exceptions to the 30 day NFIP wait period? - correct-answer --1st 30
days after coverage, community enters standard or emergency program, coverage
will begin at 12:01 am the date after application and premium were mailed
-When an existing policy was assigned to a property purchaser
-At 12:01 am on the 5th day after an endorsement request & premium has been
mailed for existing policy
What was the Supreme Court's decision regarding the Paul v. Virginia case? -
correct-answer -insurance was NOT interstate commerce and could not be
regulated by the federal govt.
Who heard the Paul v. Virginia case? - correct-answer -Supreme Court
Who heard the US v Southeastern Underwriting Association case? - correct-
answer -Supreme Court
