NJ P&C Insurance Exam 2023 Questions with Verified
Answers (Graded A)
A flood damages a single-family dwelling that is in a community in the early
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participation in the NFIP, but they are not yet considered participating. What is the
maximum a resident may receive for damages to their personal property? - Correct
Answer-$10,000
Under the Dwelling Broad Form, losses to an unattached garage are paid on which
basis? - Correct Answer-Replacement Cost
Which of the following is false regarding the Building and Personal Property Coverage
Form? - Correct Answer-The policy covers vehicles licensed for road use
In which type of system does an employer have the choice to provide Workers'
Compensation benefits at its own option? - Correct Answer-Elective
When coverage applies to losses from all perils except those specifically excluded, the
policy is said to be written on which of the following basis? - Correct Answer-Open
Perils
A manufacturer is held liable if a product caused an injury whether the product was or
was not defective. This describes what type of liability? - Correct Answer-Strict
Which of the following perils is not covered by Crop/Hail insurance? - Correct AnswerFailure to harvest
Which of the following is not true concerning Section II of the Homeowners Policy? -
Correct Answer-The Damage to Property of Others duplicates coverage that is included
in Section I
Who among the following may place business with the Association? - Correct AnswerAll producers licensed to do business in the state
Which of the following losses would be covered under all dwelling forms? - Correct
Answer-Fire damage to building materials and supplies that are located on the insured
premises
All of the following are false about Damage to Your Auto, except: - Correct Answer-In
the event of total loss, adjustment will be made for the physical condition of the vehicle
NJ P&C Insurance Exam 2023 Questions with Verified
Answers (Graded A)
Which of the following statements is not true about a claim payment for a collision loss
under the PAP? - Correct Answer-If the insurer recovers and returns stolen property to
the insured, no further payment is due
Choose the physical damage claim that would be covered under the Personal Auto
Policy. - Correct Answer-Malicious mischief to the tires
A building valued at $200,000 is insured for $150,000 with an 80% coinsurance
requirement and a $1,000 deductible. After the building is totally destroyed, incurring
debris removal expenses of $10,000, how much will the Building and Personal Property
Coverage Form pay? - Correct Answer-$159,000
Which of the following would not be covered under Coverage C of the Special Dwelling
Form? - Correct Answer-The insured's golden retriever
Fine arts and antiques are classes of property insured on a: - Correct Answer-Valued
basis
Flood is a specified cause of loss under which section of the Garage Coverage Form? -
Correct Answer-Section IV
A hazard is best defined as: - Correct Answer-Something that [Show Less]