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NJ CASUALTY TEST EXAM NEWEST, ACTUAL
LATEST UPDATED EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS |ALREADY GRADED A+
On a CGL, the ____1____ limits apply separately for each claim, but the ____2____ limit applies to all claims turned in during the policy period. - ......answer.....1. Occurrence.
- Aggregate. The CGL always contains 3 coverage sections: Part A, Part B, and Part C. There is NO ______________. - ......answer.....Part A - Liability Part B - Personal/Advertising Injury Part C - Medical Payments to Others.
- THERE IS NO DEDUCTIBLES. On a CGL Policy, the "Medical to Others" coverage applies on a __________ basis. - ......answer.....Per- person Basis. On a CGL, the fire legal coverage applies on a ___________ basis. - ......answer.....Per-occurrence Basis. Products Liability applies ONLY _______. - ......answer.....After the product is out of control of the insured.
Page | 2 Product Liability does NOT cover _________. - ......answer.....The cost of a recall or resulting lost income. An occurrence basis liability policy covers claims that occur in ____1____, even if turned in ____2____.
- ......answer.....1. The Policy Period.
- After the Expiration Date. The retroactive date on a claims-made CGL only applies to _____. - ......answer.....Coverage A (BI and PD). All claims-made CGL Policies contain a basic extended reporting period (ERP), which allow someone with a pending claim ______ after expiration to notify the insurer. - ......answer.....60 Additional Days. If the claimant notifies the insurer within 1 of the 2, he has up to 3 to turn in the claim. - ......answer.....1. 60 Days.
- Pending Claim.
- 5 Years. The basic ERP is _____. - ......answer.....Free. The CGL Policy excludes coverage for ____________ liability, although this coverage may be added by optional endorsements for an additional premium. - ......answer.....Pollution. A claims made liability policy requires that the claim occur ______1______, and be turned in ______2______ or ______3______. - ......answer.....1. After the
Page | 4 The Medical Payment section of the PAP pays necessary _______ caused by an accident and sustained by an insured. - ......answer.....Medical and Funeral Expenses. The Medical Payments coverage found in th ePAP will NOT pay for _____. - ......answer.....Lost Wages. Auto Medical on a PAP protects the 1 in the car. It is an 2. It is not supplementary payment and it is 3. - ......answer.....1. Insured and Passengers.
- Optional Coverage.
- No-Fault. On a PAP, an at-fault driver's injuries would be covered by _______. - ......answer.....Medical. Coverage D on a PAP is called 1 and is optional. It is Divided into 2 and 3. - ......answer.....1. Coverage for Damage to an Insured's Car.
- Collision.
- Other than Collision. Other than Collision is also known as ____. - ......answer.....Comprehensive Coverage.
Page | 5 Coverage D is written on an 1 basis and HAS a 2. Collision coverage on the PAP covers colliding with 3. Everything else is covered by the Other than Collision. - ......answer.....1. ACV.
- Deductible.
- Another Object, Rollover, and Upset. Hitting a pole is an example of a(n) _____. - ......answer.....Collision. If a bird were to hit the insured's windshield, then the windshield is covered under ______ on a PAP. - ......answer.....Other than Collision. Towing and Labor is an ____ on the PAP and costs extra. - ......answer.....Optional Coverage. The optional coverage limit for towing and labor pays on a(n) _____. - ......answer.....Per Event/Occurrence Basis. In an accident, the _____ is always the primary policy; the Driver's PAP, if different, is always the excess policy. - ......answer.....Vehicle's Owner's PAP. Insured purchase _______ because of their concern of being in an accident with someone who has no insurance and is at-fault. - ......answer.....UNinsured Motorist Coverage. Included in the definition of an uninsured motorist is a 1, 2, and
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- Mechanical Breakdown. The PAP DOES NOT COVER autos used as _____, but carpools are covered. - ......answer.....Taxis or Livery. Business Auto Coverage does not cover an employee injured while driving a ____. - ......answer.....Company Car. On a Business Auto Policy (BAP), damage t an insured vehicle caused by a falling object would be covered under ____. - ......answer.....Other than Collision, or "Comprehensive Coverage." On a BAP is the employer's partner drives his/her car on company business, the partner would need to add ___. - ......answer.....Owned Auto Coverage. If an employer wants coverage while their employees are driving their own cars on company business, the employer needs to add ____. - ......answer.....Hired and Nonowned Auto Coverage. On garage insurance, car dealers who have fluctuating inventories should utilize ____. - ......answer.....Reporting Forms. Garage Liability covers 1, but does not cover the cost of a 2. - ......answer.....1. Products Liability.
- Recall.
Page | 8 The garage coverage form was created for 1, 2, 3, 4, and similar risks. - ......answer.....1. Auto Dealers.
- Repair Shops.
- Service Stations.
- Parking Garages. In a garage form it is the ____ that provides coverage for property in the care, custody, and control of the insured. - ......answer.....Garagekeepers Coverage. When WC may be purchased from either the state fund or from any other authorized insured, it is known as ____. - ......answer.....Competitive. WC Statutory Coverages are set by the ____. - ......answer.....State. WC covers both _____. - ......answer.....Occupational Injury and Disease. WC cannot be added to a package policy. It always stands ____. - ......answer.....Alone. Under WC, the term ____ refers to the inability to perform job related functions as a result of injury or disease. - ......answer.....Permanent Partial Disability. If the employee cannot currently fulfill his/her job duties but will be able to do so after recovering the employee is considered ______. - ......answer.....Temporary Disability. Medical Expenses are covered by workers compensation on an ____. -
Page | 10 What is the purpose of the Commercial Insurance Deregulation Act? - ......answer.....To protect the public against excessing and unfair rates. The insurer is granted rights to audit books and records for up to ____ years. The insurer is automatically granted the right to make any inspections, surveys, and such relating to insurance. - ......answer...... Only the _______ insured may make any requests for any changes in the policy. - ......answer.....First Named. The ______ insured may cancel the policy at any time by giving written notice to the insurer. - ......answer.....First Named. In New Jersey, diligent effort in placing a risk in an authorized insurer before insuring with a surplus lines insurer requires that the risk be ____. - ......answer.....Submitted and declined by 3 authorized insurers. When would a misrepresentation on the insurance application be considered fraud? - ......answer.....If it is intentional and material. Professional liability coverage protects the insured against legal liability resulting from ____. - ......answer.....Errors and Omissions. What would happen if an insured failed to maintain the underlying limits as required by a personal umbrella policy? - ......answer.....The insured would be responsible for the amount required as underlying limits in the event of a claim.
Page | 11 If an insured needs protection on property other than money and securities inside the premises from losses caused by breaking and entering after business hours, which of the following Crime Coverage forms should be purchased? - ......answer.....Inside Premises - Robbery or Burglary of Other Property. In New Jersey, in the event of cancellation for nonpayment of the premium on an Auto Policy, the insured must be given how many days' notice? - ......answer..... Days. What is the purpose of the Claims Made form? - ......answer.....To allow insurers to determine adequate rates for unknown losses claimed in the future. Presenting any written or oral statement in support of or in opposition to a claim payment, while knowing that the statement contains false or misleading information material to the claim, would be best considered ___. - ......answer.....A violation of the New Jersey Insurance Fraud Prevention Act. What is the deductible of a commercial liability umbrella policy called? - ......answer.....The Self-Insured Retention (SIR), is an initial part of a loss the insured pays before the umbrella policy pays if no other policy covers the loss. Under the professional liability loss settlement provision, what must an insurer do before offering to pay a claimant to settle a claim? - ......answer.....Get the insured's consent. Under the professional liability loss settlement provision, if the insured's professional reputation is at risk, and the insured feels he/she is not negligent, the insured can require the insurer to ____. - ......answer.....Defend the Action in Court.
Page | 13 Who administers the New Jersey Personal Automobile Insurance Plan? - ......answer..... When Personal Injury Protection benefits are paid in excess of $75,000 to any one person, the excess will be paid by the insurer in consultation with - ......answer..... The designation symbols used in commercial auto policies can be found in which policy section? - ......answer..... Super Value Store has a commercial general liability policy written with a general aggregate limit of $300,000 and an occurrence limit of $100,000. A customer injured on the premises was awarded $45, for medical expenses and loss of earnings, and $60,000 for pain and suffering. The court costs and attorney fees were $15,000. How much will the CGL policy pay? - ......answer..... Which of the following statements concerning the Automobile Insurance UEZ Program is correct? (Choose from the following options)1. The program covers vehicles that are found solely in urban areas, such as vehicles of public transportation and patrol cars.2. Insurers participating in program must submit projected numbers of in-force policies biannually.3. The program was established to increase the availability of insurance in urban areas.4. Any domestic insurer may participate in the program. - ......answer..... Who is responsible for filling out a notice of claim form? - ......answer..... Which of the following is NOT considered an insured contract under the commercial general liability policy? - ......answer..... D. HO-2 or HO-3 (Broad and Special) - ......answer.....The Mobile Home Endorsement of a Homeowners policy affords coverage to mobile homes under the? A. HO-1 (Basic Form)
Page | 14 B. HO-2 (Broad Form) C. HO-3 (Special Form) D. HO-2 or HO-3 (Broad and Special) B. A farm owner. - ......answer.....All of the following are eligible for coverage under Homeowners policy except? A. A condominium unit owner. B. A farm owner. C. A mobile home owner. D. A tenant in an apartment building. B. Farm land. - ......answer.....The term Insured Location under Section II of Homeowners policies refers to all of the following except? A. The insured premises. B. Farm land. C. A non-owned premises where an insured temporarily resides. D. A newly-acquired premises. D. A non-relative resident over age 21. - ......answer.....All of the following would be considered insured's under a Homeowner's policy expect? A. Resident relatives of the insured. B. A non-relative resident under age 21 in the care of the insured. C. The insured's spouse if the spouse lives in the household. D. A non-relative resident over age 21. C. HO- 4 - ......answer.....All of the following homeowners policies provide dwelling coverage except?
Page | 16 D. Worldwide. C. Loss of Use Coverage. - ......answer.....All of the following are optional coverage's under Homeowners policies except? A. Personal Property Replacement Cost coverage. B. Increased coverage limits from items suck as jewelry, furs, and silverware. C. Loss of Use coverage. D. Earthquake coverage. D. Federal Emergency Management Agency (FEMA) - ......answer.....The National Flood Insurance Program (NFIP) standards are set by, and the Program is administered by, the? A. National Flood Management Association (NFMA) B. National Emergency Standards Agency (NESA) C. Federal Flood Coverage Association (FFCA) D. Federal Emergency Management Agency (FEMA) D. All of the above. - ......answer.....Under Homeowners policies, which of the following is/are considered optional property coverage endorsement(s)? A. Earthquake. B. Fine Arts. C. Replacement Cost coverage on personal property. D. All of the above. C. Heavy, driving sheets of wind blown rain. - ......answer.....Under an NFIP Flood policy, flood is broadly defined as all of the following except? A. The overflow of inland or tidal waters.
Page | 17 B. Mudflow, a river of liquid and flowing mud on the surfaces of normally dry land area, as when earth is carried by a current of water. C. Heavy, driving sheets of wind blown rain. D. The collapse of subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood. C. 30 days. - ......answer.....Under an NFIP Flood policy, in most cases the waiting period before a new policy can be made effective is? A. 10 days. B. 20 days. C. 30 days. D. 60 days. A. Your Homeowners policy. - ......answer.....If your baby sitter falls down the stairs in your home and breaks her leg, her injury will be covered by? A. Your Homeowners policy. B. Your Medical Insurance policy. C. The babysitter's Homeowners policy. D. The babysitter's Medical Insurance policy. C. Anywhere in the world. - ......answer.....On Homeowners policies, the full limit on personal property (Coverage C) applies to personal property while it is? A. In the state of residence only. B. In the United States only. C. Anywhere in the world. D. In the United States and Canada only. B. Direct damage only. - ......answer.....Under an NFIP Flood policy, there is coverage for?
Page | 19 Homeowners policies, the insurer agrees to pay? A. The costs of defending a claim. B. Premiums on bonds required in a suit. C. Court costs. D. All of the above. D. Actual Cash Value. - ......answer.....Under Homeowners and other policies, ACV is the abbreviation for which property insurance valuation? A. Approved Coverage Valuation. B. Approximate Cash Value. C. Actual Coverage Valuation. D. Actual Cash Value. C. Replacement Cost minus depreciation. - ......answer.....Under Homeowners and other policies, the definition of the property insurance valuation known as Actual Cash Value (ACV) is? A. Replacement Cost plus a cash payment. B. Replacement Cost minus the cost of new material. C. Replacement Cost minus depreciation. D. Replacement Cost plus market value. A. A Scheduled Personal Property Endorsement. - ......answer.....When dealing with jewelry, furs, or silverware, which carry special limits, a producer should advise a client that if the value exceeds the limits specified in the policy, the client should purchase? A. A Scheduled Personal Property Endorsement. B. Less Jewelry.
Page | 20 C. A Fine arts Endorsement. D. Another policy. D. $250,000. - ......answer.....Under an NFIP Flood policy, the maximum amount of building coverage that can be written on a single family property is? A. $100,000. B. $150,000. C. $200,000. D. $250,000. D. All of the above. - ......answer.....Which of the following applies as regards either a Scheduled Personal Property Endorsement or a Personal Articles Floater? A. Fine arts can be covered on either a named perils or a special perils basis. B. The personal property insured on either form is not subject to the policy deductible. C. All personal property must be described and an amount of insurance must be shown for each item. D. All of the above. B. 30 days. - ......answer.....Under an NFIP Flood policy, in most cases the waiting period before an increase in the coverage amount can be made effective is? A. 15 days. B. 30 days. C. 45 days. D. 60 days. C. Loss of use. - ......answer.....All of the following are Additional Coverage's under Homeowners policies except? A. Removal coverage for 30 days. B. Debris removal expense. C. Loss of use.
