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NJ Property- Casualty Insurance Exam Set Questions and Answers 100% Solved
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NJ Property- Casualty Insurance Exam Set
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NJ Property- Casualty Insurance ExamSet
Why was the commercial Insurance Deregulation Act Created? - answer 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? - answer Commercial policies
When must rate amendments & policy forms be filed with the commissioner? -
answer30 days before
What losses are excluded from flood insurance? - answer-Landslides
-Sewer backup
-Windblown Rain
-Snow
-Sleet
Who administers the NFIP? - answerFederal Insurance Administration (FIA)
What does the NFIP stand for? - answerNational Flood Insurance Program
Why was the National Flood insurance Program constructed? - answerto 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? - answerBuilding $250K, Contents
$100K
What is the NFIP max coverage for other residential? - answerBuilding $250K, Contents
$100K
What is the NFIP max coverage for small business? - answerBuilding $500K, Contents
$500K
,What is the NFIP max coverage for Other Non-Residential? - answerBuilding $500k,
Contents $500K
What is the NFIP subsidized rate for a single family? - answerBuilding $35K, Contents
$10K
What is the NFIP subsidized rate for Other Residential? - answerBuilding $100K ,
Contents $100K
What is the NFIP subsidized rate for small businesses? - answerBuilding $100K,
Contents $100K
What is the NFIP subsidized rate for other non-residential? - answerBuilding $100K,
Contents $100K
What is the wait period before flood insurance can be effective? - answer30 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? -
answerinsurance was NOT interstate commerce and could not be regulated by the
federal govt.
Who heard the Paul v. Virginia case? - answerSupreme Court
Who heard the US v Southeastern Underwriting Association case? - answerSupreme
Court
What was the decision in the US v Southeastern Underwriting Association Case? -
answerInsurance is interstate commerce and should be subject to federal regulations
(currently in effect today)
What is the McCarran-Ferguson Act? - answerThe 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? - answerMarch 9, 1945
,To whom does the insurance commissioner have to provide a report? - answerGovernor
& Legislature
How often must the insurance Commissioner provide a report? - answerAnnually
How long before a disciplinary hearing must the insurance commissioner notify
interested parties? - answer10 days before
What is the fine for failing to comply with a court-ordered subpoena? - answer$5000
If the commissioner decides one has violated the insurance code, what is the fine for
unintentional acts performed? - answer$1000
If the commissioner decides one has violated the insurance code, what is the max fine?
- answer1st 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? - answer$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? - answer$5k
What is the fine for not contacting the dept with an address or name change within 30
days? - answer$250 max if over 60 days
What is the fine for if a license fee check is returned for insufficient funds? - answer$500
What is the fine for if you do not contact the department regarding a change in partners,
owners, officers, or directors? - answer$250
What is the fine for not returning a license to a producer? - answer$500
What is the fine for not maintaining an office address or employment contracts on file
with the department? - answer$100 for each contract
What document is required before an insurance company may transact business in a
state? - answerCertificate of Authority
What is a domestic insurer? - answerAn insurer that conducts business in the state in
which it was incorporated
A producer who is appointed with more than one insurer is considered to be... -
answerA Licensed Solicitor
Implied authority is defined as... - answerAbility to act outside the authority specifically
granted in an agency agreement & extends company's liability
, What kind of clause relates to this statement: E&N Company issued a policy in
consideration of the representations on an application & the payment of the 1st
premium? - answerConsideration
An insured's representations and warranties are incorrectly stated in which of the
following statements?
a. Statements made by an applicant that are guaranteed true are considered to be
warranties
b. Statements that an applicant believes to be true, but does not guarantee to be true,
are considered to be representations
c. An applicant's statements on an application are considered warranties
d. An applicant's statements on an application are considered representations -
answerc. An applicant's statements on an application are considered warranties
What term relates to an agreement without legal effect? - answerVoid
An authorized but non-admitted insurer can be represented in this state only by which of
the following? - answerSurplus lines broker
In franchise groups, how many master policies will be issued? - answerNone
Self-insurance is an example of what kind of risk management? - answerretention
What kind of plan is a Stock life insurance company conducting when it issues
participating and non-participating policies? - answerMixed
What is the fine for if you do not contact the department regarding a change in partners,
owners, officers, or directors? - answer$250
What is this an example of: Doctors pooling their funds to cover their malpractice
exposures? - answerrisk sharing
Which entity makes an enforceable promise in a unilateral contract? - answerInsurer
In a court of law, any ambiguity found in a policy will go in favor of the insured because
an insurance policy is what kind of contract? - answercontract of adhesion
In regard to an informal contract, when will it become binding? - answerWhen one party
makes an offer and the other party accepts the offer
When a risk is insurable, what must be calculable? - answerchance of loss
What is a non-profit provider of insurance that is covered by a unique section of the
insurance code called? - answerFraternal Life Insurance Organization
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