Exam (elaborations)
NJ property insurance Questions and Answers 2024
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NJ property insurance
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NJ property insuranceAbandonment - answer the abdication of insured property into the hands of another, or
into the possession of no one in particular
accident - answer an unfortunate incident that happens unexpectedly and
unintentionally, typically resulting in damage or injury.
ACV. actual cash value - answer the required amount to pay damages for property loss,
which is calculated based on the property's current replacement value minus
depreciation
additional coverage - answerA provision in an insurance policy that allows for more
coverage for specific loss expense without increase in premium.
additional insureds - answer Individuals or business that are not named as insured on
the declaration page, but are protected by the policy, usually in regard to a specific
interest.
Adhesion - answera contract offered on a take it or leave it basis by an insurer, in which
the insured only option is to accept or reject the contract. Any ambiguities in the contract
will be settled in favor of the insured
Admitted Insurer - answerAn insurance company authorized and licensed to transact
business in a particular state.
Adverse Selection - answerThe tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present lower
probability.
agent - answerAn individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer.
Agreed Value - answerA property policy with a provision agreed upon by the insurer and
insured as to the amount of insurance that represents a fair valuation for the property at
the time the insurance is written.
aleatory - answerA contract in which participating parties exchange unequal amounts.
Insurance contracts are aleatory in that the amount the insured will pay in premiums is
unequal to the amount the insurer will pay in the event of a loss.
Alien Insurer - answerAn insurance company that is incorporated outside the United
States.
, Apparent Authority - answerThe appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
Apparent Authority - answerThe appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
appraisal - answerAn assessment of property to determine either the correct amount of
insurance to be written or the amount of loss to be paid.
Arbitration - answerMethod of claim settlement used when the insured and insurer
cannot agree upon the amount of the loss.
assingment - answerthe transfer of legal right or interest in an insurance policy. In
property and casualty insurance, assignments of policies are usually valid only with the
prior written consent of the insurer
auto - answerA land motor vehicle, trailer or semi-trailer designed for use on public
roads, including attached machinery or equipment; auto does not include mobile
equipment.
Avoidance - answerA method of dealing with risk by deliberately keeping away from it
(e.g. if a person wanted to avoid the risk of being killed in an airplane crash, he/she
might choose never to fly in a plane).
Bailee - answerA person or entity that has possession of personal property entrusted to
him/her by the owner. For example, a television repair person that has possession of a
customer's television would be a bailee.
beneficiary - answera person who receives the proceeds from the insurance policy
binder - answerA temporary written or oral agreement to provide insurance coverage
until a formal written policy is issued.
blanket bond - answerA type of bond that covers losses caused by dishonest
employees.
Blanket Insurance - answerA single property insurance policy that provides coverage for
multiple classes of property at one location, or provides coverage for one or more
classes of property at multiple locations.
Boycott - answera unfair trade practice in which one person refuses to do business with
another until he or she agrees to certain conditions
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