NJ PSI Property and Casualty Exam 2024-2025: Questions & Correct Answers, Exams of Real Estate Management

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NJ PSI Property and Casualty

Exam 2024-2025. Questions &

Correct Answers. Graded A+

A scheduled Personal Property Endorsement is usually written on a ______ basis? A. Special Perils. B. Named Perils. C. Premises. D. Blanket. - ANSA. Special Perils. 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. D. Fire department service charges. - ANSC. Loss of use. 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. - ANSB. A farm owner. 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. - ANSC. Loss of Use Coverage. All of the following homeowners policies provide dwelling coverage except? A. HO-2 B. HO-3 C. HO-4 D. HO-1 - ANSC. HO-4 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. - ANSD. A non-relative resident over age 21. Dwelling coverage A includes all of the following except? A. The dwelling. B. The deck on the back of the dwelling. C. A Gazebo. D. Construction materials on the residence premises for use in the repair of the dwelling. - ANSC. A Gazebo. 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. - ANSA. Your Homeowners policy. In property insurance, insurable interest must exist at the/ A. Inception of the policy. B. Time of the premium payment. C. Time of the application. D. Time of the loss. - ANSD. Time of the loss. Loses to which of the following are not covered under Homeowners policies? A. Property of roomers or boarders. B. Articles separately described and specifically covered by other insurance. C. Animals, birds, and fish. D. All of the above. - ANSD. All of the above. 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. - ANSC. Anywhere in the world. The Mobile Home Endorsement of a Homeowners policy affords coverage to

mobile homes under the? A. HO-1 (Basic Form) B. HO-2 (Broad Form) C. HO-3 (Special Form) D. HO-2 or HO-3 (Broad and Special) - ANSD. HO-2 or HO-3 (Broad and Special) The National Flood Insurance Program (NFIP) is a ________ program? A. State. B. Municipal. C. Federal. D. Worldwide. - ANSC. Federal. 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) - ANSD. Federal Emergency Management Agency (FEMA) 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. - ANSB. Farm land. Under an NFIP Flood policy, flood is broadly defined as all of the following except? A. The overflow of inland or tidal waters. 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. - ANSC. Heavy, driving

sheets of wind blown rain. 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. - ANSC. 30 days. 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. - ANSB. 30 days. Under an NFIP Flood policy, producers may issue blinders to effect flood coverage for? A. $50,000. B. $100,000. C. $250,000. D. producers may not issue binders to effect flood coverage. - ANSD. Producers may not issue binders to effect flood coverage. 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. - ANSD. $250,000. under an NFIP Flood policy, the maximum amount of personal property coverage that can be written on a single family property is? A. $50,000. B. $75,000. C. $100,000. D. $150,000. - ANSC. $100,000. Under an NFIP Flood policy, there is coverage for? A. Both direct damage and loss of use. B. Direct damage only. C. Loss of use only. D. Consequential loss only. - ANSB. Direct damage only. 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. - ANSD. Actual Cash Value.

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. - ANSC. Replacement Cost minus depreciation. Under Homeowners policies, Medical Payments do not apply to bodily injury to? A. An insured. B. Any person eligible to receive Workers Compensation. C. Any person who regularly resides on the premises. D. All of the above. - ANSD. All of the above. Under Homeowners policies, Section II, the basic limit for Personal Liability Coverage is? A. $50,000. B. $75,000. C. $100,000. D. $150,000. - ANSC. $100,000. Under Homeowners policies, the base deductible applicable to property losses, Section I, is? A. $100 B. $250 C. $500 D. $1000 - ANSB. $ Under homeowners policies, theft coverage does not cover theft? A. Committed by the insured. B. Any person eligible to receive Workers Compensation. C. Any person who regularly resides on the premises. D. All of the above. - ANSD. All of the above. 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. - ANSD. All of the above. Under Section II Additional Coverage's of 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. - ANSD. All of the above. 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. C. A Fine arts Endorsement. D. Another policy. - ANSA. A Scheduled Personal Property Endorsement. 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. - ANSD. All of the above.