NJ Property & Casualty Insurance Exam Copy

Under the law of agency, all of the following are the types of authority an agent might have, EXCEPT:

In automobile insurance Supplementary Payments refer to which of the following?

Commercial auto insurance applies to accidents or losses in all of the following locations, EXCEPT:

A Pro Rata Liability Clause is included in an insurance policy to deal with the problem of:

In the event of a dispute between the insurer and insured concerning the value of a property settlement, which of the following conditions of the Homeowner’s policy would apply?

Property and Casualty Insurance can be utilized to handle: I. Pure risks. II. Speculative risks.

George Wilson has a personal auto policy. Select the coverage that would apply when a deer leaps onto Mr. Wilson’s car and causes extensive damage.

A producer who offers a prospect one-half of the commissions as an inducement to purchase insurance is guilty of:

Medical Payments coverage under a homeowner policy are available for expenses resulting from an injury to:

An insurance agent is:

An admitted insurer is:

It is illegal for an insurance agent to do all of the following EXCEPT:

The Fair Credit Reporting Act requires an insurer to do all of the following EXCEPT:

What is a peril?

Which of the following is not an unfair claim settlement practice?

What type of hazard is a deliberate creation of loss by an insured in order to collect insurance payment or benefits?

What prevents an insurance company from denying a fact because of a previous action?

Is a type of rate which uses a modification to class rates lowered for positive factors or raised for negative factors?

What part of the policy structure answers the following, “Who, what, when, where and what limits”?

Two policies written identically are

For a partial property loss to be paid at replacement cost, what percentage of the market value of the home has to be insured?

What is not an element of negligence?

What does Res Ipsa Loquitor mean?

What is the concept that a policy applies separately to each insured listed?

Which of the following basic perils is exclusion?

In a homeowner’s policy, what is Coverage D?

What is “losses are paid within 30 days after the insurer receives insured’s proof of loss”?

What coverage pays for damage to your auto when it collides with something or overturns?

What type of insurance coverage is used for strict liability?

Which of the following is excluded as money in a crime policy?

What type of bond is written to protect an employer from theft by employee?

What type of coverage protects a business for care, custody and control of a non-owned vehicle?

What is coverage that protects property movement on land?

A mutual insurance company

A nonexclusive agent

Solicitors may not

At DEF Insurance Company, agents are employees of the company who are paid a salary plus commissions. This is an example of what type of insurance marketing system?

Which insurance company department is responsible for accepting and rejecting applications based on company standards

Which insurance company department is responsible for paying insureds’ covered losses?

Who is responsible for licensing insurance agents?

Agent Blondell is offering a free television to every applicant who agrees to buy insurance through his agency. In most states, this is an illegal practice known as

J&M Industries does not have a group health insurance plan for its employees. Instead, it pays employees’ medical expenses out of a fund specifically created for this purpose. This is an example of

Which of the following statements concerning regulation of the insurance industry is correct?

Which of the following is not one of the duties of an agent?

The written agency contract between an insurer and an agent constitutes the agent’s

The Excel Insurance Company is incorporated in the state of Tennessee. It is also authorized to do business in Georgia. In Georgia, Excel is known as what type of company?

Can states require insurance companies to use certain forms or rates in connection with certain types of insurance?

Binder

Exclusive Agent

Brokers Bond

The authority that an insurance agent has is written in the contract. If it is NOT written in the contract, it is understood because as an agent you do have authority

Selling over phone, thanks to having advertising in place, you must have license

Producer

Determines whether the customer meets the insurance companies underwriting guidelines

Principle

Admitted or Authorized Insurance Company

Represents insurance company under a contract, self employed, on straight commission, own their own accounts

Someone who handles other people’s money

Manages local branch for major insurance company. Hire, train and sell insurance on behalf of company. Paid commission override on production. Must be licensed as a property, casualty or life agent.

License the insurance company receives from commissioner

Appeared Authority

Errors & Omissions Insurance

A person who, for compensation and on behalf of another person, transacts insurance other than life, disability, or health insurance with, but not on behalf of, an admitted insurer. There is no such thing as a broker in Life & Health.

Must be appointed by agent or broker. Must be an individual, cannot be a corporation. They cannot solicit life insurance.

WITH CROP INSURANCE, AT WHAT PERCENT CAN CROPS BE INSURED OF THEIR EXPECTED VALUE?

an aircraft, civil commotion, an explosion, hail, smoke, vehicles, and/or wind

agency contract

hazard (leaving the door unlocked)

additional insured

death within 24 hours of accident

HO-6 Unit Owner’s form

HO-5 Comprehensive form

Broad Theft Coverage

needs selling

making a factual but subjective comparison of two policies

15/30/5 $15000 per person bodily injury $30000 per accident for body injury $5000 per accident property damage

insurable interest

assignment provision

exclusions

60

An Earth Movement exclusion

the Commissioner and the producer

named insured

an additional named insured

Insurance marketplace Standards Association (IMSA)

fiduciary

a person selling insurance for the estate of a deceased producer

Pennsylvania Fair Trade Ace

abandonment provision

15

defamation

Pennsylvania Fair Plan Act

risk

liability

insurance