NJ PROPERTY/ CASUALTY INSURANCE
EXAM SET QUESTIONS AND ANSWERS
100% PASS 2026/2027
Why was the commercial Insurance Deregulation Act Created? - ANS 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?
- ANS Commercial policies
When must rate amendments & policy forms be filed with the commissioner? - ANS 30 days
before
What losses are excluded from flood insurance? - ANS -Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
Who administers the NFIP? - ANS Federal Insurance Administration (FIA)
2026/2027 ALLRIGHTS RESERVED 1
,What does the NFIP stand for? - ANS National Flood Insurance Program
Why was the National Flood insurance Program constructed? - ANS to fill in gaps of flood
coverage by the private sector
What are the 3 NFIP requirements for coverage? - ANS -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? - ANS Building $250K, Contents $100K
What is the NFIP max coverage for other residential? - ANS Building $250K, Contents $100K
What is the NFIP max coverage for small business? - ANS Building $500K, Contents $500K
What is the NFIP max coverage for Other Non-Residential? - ANS Building $500k, Contents
$500K
What is the NFIP subsidized rate for a single family? - ANS Building $35K, Contents $10K
What is the NFIP subsidized rate for Other Residential? - ANS Building $100K , Contents
$100K
2026/2027 ALLRIGHTS RESERVED 2
,What is the NFIP subsidized rate for small businesses? - ANS Building $100K, Contents $100K
What is the NFIP subsidized rate for other non-residential? - ANS Building $100K, Contents
$100K
What is the wait period before flood insurance can be effective? - ANS 30 days, no binders
issued
What are the exceptions to the 30 day NFIP wait period? - ANS -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? - ANS insurance
was NOT interstate commerce and could not be regulated by the federal govt.
Who heard the Paul v. Virginia case? - ANS Supreme Court
Who heard the US v Southeastern Underwriting Association case? - ANS Supreme Court
What was the decision in the US v Southeastern Underwriting Association Case? -
ANS Insurance is interstate commerce and should be subject to federal regulations (currently
in effect today)
2026/2027 ALLRIGHTS RESERVED 3
, What is the McCarran-Ferguson Act? - ANS The federal govt won't regulate insurance
business as long as states perform an adequate job of managing their own insurance industries.
When was the McCarran-Ferguson Act passed? - ANS March 9, 1945
To whom does the insurance commissioner have to provide a report? - ANS Governor &
Legislature
How often must the insurance Commissioner provide a report? - ANS Annually
How long before a disciplinary hearing must the insurance commissioner notify interested
parties? - ANS 10 days before
What is the fine for failing to comply with a court-ordered subpoena? - ANS $5000
If the commissioner decides one has violated the insurance code, what is the fine for
unintentional acts performed? - ANS $1000
If the commissioner decides one has violated the insurance code, what is the max fine? -
ANS 1st offense: $5K, 2nd offense $10K, each additional $15K
If the insurance commissioner decides one has violated the insurance code, what is the fine for
violating a cease & desist? - ANS $5k each violation
If the insurance commissioner decides one has violated the insurance code, what is the fine for
unlawful acts with intentional & material thought? - ANS $5k
2026/2027 ALLRIGHTS RESERVED 4
EXAM SET QUESTIONS AND ANSWERS
100% PASS 2026/2027
Why was the commercial Insurance Deregulation Act Created? - ANS 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?
- ANS Commercial policies
When must rate amendments & policy forms be filed with the commissioner? - ANS 30 days
before
What losses are excluded from flood insurance? - ANS -Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
Who administers the NFIP? - ANS Federal Insurance Administration (FIA)
2026/2027 ALLRIGHTS RESERVED 1
,What does the NFIP stand for? - ANS National Flood Insurance Program
Why was the National Flood insurance Program constructed? - ANS to fill in gaps of flood
coverage by the private sector
What are the 3 NFIP requirements for coverage? - ANS -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? - ANS Building $250K, Contents $100K
What is the NFIP max coverage for other residential? - ANS Building $250K, Contents $100K
What is the NFIP max coverage for small business? - ANS Building $500K, Contents $500K
What is the NFIP max coverage for Other Non-Residential? - ANS Building $500k, Contents
$500K
What is the NFIP subsidized rate for a single family? - ANS Building $35K, Contents $10K
What is the NFIP subsidized rate for Other Residential? - ANS Building $100K , Contents
$100K
2026/2027 ALLRIGHTS RESERVED 2
,What is the NFIP subsidized rate for small businesses? - ANS Building $100K, Contents $100K
What is the NFIP subsidized rate for other non-residential? - ANS Building $100K, Contents
$100K
What is the wait period before flood insurance can be effective? - ANS 30 days, no binders
issued
What are the exceptions to the 30 day NFIP wait period? - ANS -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? - ANS insurance
was NOT interstate commerce and could not be regulated by the federal govt.
Who heard the Paul v. Virginia case? - ANS Supreme Court
Who heard the US v Southeastern Underwriting Association case? - ANS Supreme Court
What was the decision in the US v Southeastern Underwriting Association Case? -
ANS Insurance is interstate commerce and should be subject to federal regulations (currently
in effect today)
2026/2027 ALLRIGHTS RESERVED 3
, What is the McCarran-Ferguson Act? - ANS The federal govt won't regulate insurance
business as long as states perform an adequate job of managing their own insurance industries.
When was the McCarran-Ferguson Act passed? - ANS March 9, 1945
To whom does the insurance commissioner have to provide a report? - ANS Governor &
Legislature
How often must the insurance Commissioner provide a report? - ANS Annually
How long before a disciplinary hearing must the insurance commissioner notify interested
parties? - ANS 10 days before
What is the fine for failing to comply with a court-ordered subpoena? - ANS $5000
If the commissioner decides one has violated the insurance code, what is the fine for
unintentional acts performed? - ANS $1000
If the commissioner decides one has violated the insurance code, what is the max fine? -
ANS 1st offense: $5K, 2nd offense $10K, each additional $15K
If the insurance commissioner decides one has violated the insurance code, what is the fine for
violating a cease & desist? - ANS $5k each violation
If the insurance commissioner decides one has violated the insurance code, what is the fine for
unlawful acts with intentional & material thought? - ANS $5k
2026/2027 ALLRIGHTS RESERVED 4
