EXAMFX NJ Property & Casualty Q&A

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EXAMFX NJ Property & Casualty Q&A For the purpose of insurance, risk is defined as ✔✔ The uncertainty or chance of loss What significance did Paul vs. Virginia have on the insurance industry... ? ✔✔ It was decided that insurance was not interstate commerce and could not be regulated by the federal government The War, Military Act, and Terrorism Exclusion will only apply to an incident of terrorism in which the total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds what amount? ✔✔ $25,000,000 If a producer has been convicted of a crime, he or she must notify the Commissioner within ✔✔ 30 days Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses? ✔✔ Additional coverage The removal coverage included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long? ✔✔ 30 days The part of a property policy that shows the amount of insurance, premium, and policy term is the ✔✔ Declarations Insurers that are authorized to write basic property insurance in New Jersey must impose a ___ surcharge on basic property insurance policies. ✔✔ 5% Which of the following homeowners forms is designed to provide named peril coverage for personal property to individuals who rent an apartment? ✔✔ HO-4 If a person violates a cease and desist order, the Commissioner can turn the matter over to the New Jersey Superior Court for further legal action and can assess a fine for each violation of up to ✔✔ $5,000 The New Jersey Commercial Insurance Deregulation Act requires insurers to file rates and any changes or amendments with the Commissioner no later than ✔✔ 30 days before becoming effective The amount an insurer will pay under Coverage D (Loss of Use) depends on ✔✔ The amount of coverage on the dwelling What is the fine for violating the Commissioner's cease and desist order? ✔✔ $5,000 A commercial property special form covers property in transit up to ✔✔ $5,000 Equipment breakdown coverage is written with a single limit of insurance per accident. However, what is the sublimit for hazardous substance cleanup, or repair or replacement of contaminated property? ✔✔ $25,000 When an insurance producer negotiates for an insurance contract on behalf of a client, the producer is acting as a(n) ✔✔ Broker A producer was found guilty of a 3rd violation of the Insurance Code. What would be the monetary penalty he will have to pay? ✔✔ $10,000 A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of ✔✔ Coercion An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of ✔✔ Concealment Which authority has the power to deny someone an insurance producer's license? ✔✔ Commissioner According to the businessowners policy (BOP) definitions, which of the following does NOT mean valuable papers and records? ✔✔ Securities Under the commercial property coverage program, the basic causes of loss form insures against loss caused by ✔✔ Sprinkler leakage [Show More]

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