NJ Property, Casualty, and Auto Licensing Exam Questions and Answers (Solved Papers) Insuring Agreement - Correct Answers ✅company's obligation to pay, includes the perils and coverage for specific or named peril policies Exclusions - Correct Answers ✅what the policy will not pay for Definitions - Correct Answers ✅names of the persons insured in addition to the named insured are listed here, along with any other (blank) of terms in the policy Additional Coverage - Correct Answers ✅coverages under a policy that are provided by the insurer at no extra cost Casualty Policies - Correct Answers ✅defense costs over and above liability limits, post-judgement interest, bail bonds and appeal bonds Property Policies - Correct Answers ✅debris removal, falls within the insured dwelling limit and cannot exceed the limit Binder - Correct Answers ✅temporary proof of coverage before policy is issued (oral is good for 10 days, written for 60 days) 1 / 4
NJ Property, Casualty, and Auto Licensing Exam Questions and Answers (Solved Papers) Bodily Injury and Property Damage Coverage Amounts -
Correct Answers ✅Minimum: 15k per person/30k per
accident/5k for property; Max is $500k Auto - Personal Assigned Risk Policy - Correct Answers ✅PAIP; standard risk 0 points, non-standard risk 1-8 points, assigned risk 9 points. (blank) classification runs for 3 years Auto - Commercial Assigned Risk Policy - Correct Answers ✅CAIP; assigned risk policy for commercial vehicles, including private vehicles owned by the business Personal Injury Protection - Correct Answers ✅PIP or No- Fault, NJ Representations Act; mandatory, encourage the insured to recover under his/her own policy, tries to reduce premiums and hasten settlements through avoidance of lengthy litigation that would normally be the case. The benefits of the standard policy are statutory and therefor minimal Fire - Correct Answers ✅A named peril policy. (blank) policies must be filed with the DOBI commissioner before use and must provide a fairly uniform look, and provide ample space for coverage, limits, rates, policy inception, and expiration dates 2 / 4
NJ Property, Casualty, and Auto Licensing Exam Questions and Answers (Solved Papers) Friendly Fire - Correct Answers ✅fire is within it's intended confines (not covered) Hostile Fire - Correct Answers ✅fire is outside it's intended confines Covered Fire Perils - Correct Answers ✅fire - hostile, lightening, debris removal, theft within first 5 days Excluded Fire Perils - Correct Answers ✅theft (after first 5 days of fire), neglect that gives rise to proximate cause of fire, war, government action, fire - friendly Fair Plan - Correct Answers ✅(blank) policies are designed
to prevent redlining in urban areas: improve property
conditions from an availability standpoint, stabilize the property insurance market, provide coverage for risks which insurance cannot be obtained in the open market $1.5 million - Correct Answers ✅FAIR Plan max limit
Covered FAIR Plan Perils - Correct Answers ✅FAIR: fire,
lightening, debris removal 3 / 4
NJ Property, Casualty, and Auto Licensing Exam Questions and Answers (Solved Papers)
Excluded FAIR Plan Perils - Correct Answers ✅FAIR:
burglary damage, flood, farms (farms are not urban) Dwelling Policy - Correct Answers ✅1st party coverage only, not necessary to be owner-occupied, no more than 4 families or 5 roomers Basic Peril Coverage - DP1 - Correct Answers ✅basic peril coverage - named perils - most basic dwelling policy Broad Peril Coverage - DP2 - Correct Answers ✅named perils, but more perils than DP1 Special Peril Coverage - DP3 - Correct Answers ✅ALL-RISK on dwelling unless specifically excluded and BROAD on contents or personal property Coverage A - Correct Answers ✅dwelling + attached structures - no co-insurance requirement unlike homeowners policy Coverage B - Correct Answers ✅detached structures - limited to 10% of coverage A amount
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