NJ Property/ Casualty Insurance Exam Set Questions and Answers Already Passed

NJ Property/ Casualty Insurance Exam Set Questions and Answers Already Passed Why was the commercial Insurance Deregulation Act Created? 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? Commercial policies When must rate amendments & policy forms be filed with the commissioner? 30 days before What losses are excluded from flood insurance? -Landslides -Sewer backup -Windblown Rain -Snow -Sleet Who administers the NFIP? Federal Insurance Administration (FIA) What does the NFIP stand for? National Flood Insurance Program Why was the National Flood insurance Program constructed? to fill in gaps of flood coverage by the private sector What are the 3 NFIP requirements for coverage? -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? Building $250K, Contents $100K What is the NFIP max coverage for other residential? Building $250K, Contents $100K What is the NFIP max coverage for small business? Building $500K, Contents $500K What is the NFIP max coverage for Other Non-Residential? Building $500k, Contents $500K What is the NFIP subsidized rate for a single family? Building $35K, Contents $10K What is the NFIP subsidized rate for Other Residential? Building $100K , Contents $100K What is the NFIP subsidized rate for small businesses? Building $100K, Contents $100K What is the NFIP subsidized rate for other non-residential? Building $100K, Contents $100K What is the wait period before flood insurance can be effective? 30 days, no binders issued What are the exceptions to the 30 day NFIP wait period? -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