NJ PROPERTY AND CASUALTY EXAM
PRACTICE CERTIFICATION PREPARATION
GUIDE
◉ Which policies issued must follow the provisions of the
Commercial Insurance Deregulation Act?
Answer: Commercial policies
◉ When must rate amendments & policy forms be filed with the
commissioner?
Answer: 30 days before
◉ What losses are excluded from flood insurance?
Answer: -Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
◉ Who administers the NFIP?
Answer: Federal Insurance Administration (FIA)
,◉ What does the NFIP stand for?
Answer: National Flood Insurance Program
◉ Why was the National Flood insurance Program constructed?
Answer: to fill in gaps of flood coverage by the private sector
◉ What are the 3 NFIP requirements for coverage?
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?
Answer: Building $250K, Contents $100K
◉ What is the NFIP max coverage for other residential?
Answer: Building $250K, Contents $100K
,◉ What is the NFIP max coverage for small business?
Answer: Building $500K, Contents $500K
◉ What is the NFIP max coverage for Other Non-Residential?
Answer: Building $500k, Contents $500K
◉ What is the NFIP subsidized rate for a single family?
Answer: Building $35K, Contents $10K
◉ What is the NFIP subsidized rate for Other Residential?
Answer: Building $100K , Contents $100K
◉ What is the NFIP subsidized rate for small businesses?
Answer: Building $100K, Contents $100K
◉ What is the NFIP subsidized rate for other non-residential?
Answer: Building $100K, Contents $100K
◉ What is the wait period before flood insurance can be effective?
Answer: 30 days, no binders issued
◉ What are the exceptions to the 30 day NFIP wait period?
, 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?
Answer: insurance was NOT interstate commerce and could not be
regulated by the federal govt.
◉ Who heard the Paul v. Virginia case?
Answer: Supreme Court
◉ Who heard the US v Southeastern Underwriting Association case?
Answer: Supreme Court
◉ What was the decision in the US v Southeastern Underwriting
Association Case?
Answer: Insurance is interstate commerce and should be subject to
federal regulations (currently in effect today)
◉ What is the McCarran-Ferguson Act?
PRACTICE CERTIFICATION PREPARATION
GUIDE
◉ Which policies issued must follow the provisions of the
Commercial Insurance Deregulation Act?
Answer: Commercial policies
◉ When must rate amendments & policy forms be filed with the
commissioner?
Answer: 30 days before
◉ What losses are excluded from flood insurance?
Answer: -Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
◉ Who administers the NFIP?
Answer: Federal Insurance Administration (FIA)
,◉ What does the NFIP stand for?
Answer: National Flood Insurance Program
◉ Why was the National Flood insurance Program constructed?
Answer: to fill in gaps of flood coverage by the private sector
◉ What are the 3 NFIP requirements for coverage?
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?
Answer: Building $250K, Contents $100K
◉ What is the NFIP max coverage for other residential?
Answer: Building $250K, Contents $100K
,◉ What is the NFIP max coverage for small business?
Answer: Building $500K, Contents $500K
◉ What is the NFIP max coverage for Other Non-Residential?
Answer: Building $500k, Contents $500K
◉ What is the NFIP subsidized rate for a single family?
Answer: Building $35K, Contents $10K
◉ What is the NFIP subsidized rate for Other Residential?
Answer: Building $100K , Contents $100K
◉ What is the NFIP subsidized rate for small businesses?
Answer: Building $100K, Contents $100K
◉ What is the NFIP subsidized rate for other non-residential?
Answer: Building $100K, Contents $100K
◉ What is the wait period before flood insurance can be effective?
Answer: 30 days, no binders issued
◉ What are the exceptions to the 30 day NFIP wait period?
, 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?
Answer: insurance was NOT interstate commerce and could not be
regulated by the federal govt.
◉ Who heard the Paul v. Virginia case?
Answer: Supreme Court
◉ Who heard the US v Southeastern Underwriting Association case?
Answer: Supreme Court
◉ What was the decision in the US v Southeastern Underwriting
Association Case?
Answer: Insurance is interstate commerce and should be subject to
federal regulations (currently in effect today)
◉ What is the McCarran-Ferguson Act?
