NJ Property Casualty Insurance Exam (15)

STATE: Which of the following statements regarding homeowner's insurance is true? A. The listing agent should advise the seller to cancel homeowner's insurance immediately after by the seller's standard homeowner's going under contract B. Vacant properties are always covered insurance police C. A seller that retains possession after closing may not be covered under their homeowner's insurance policy D. Homeowner's insurance policy premiums are not affected by previous claims

Which of the following statements is correct about perils in property insurance policies?   An (HO-2) form provides coverage for more perils than a (HO-3) Form.  a Peril is defined as the cause of a loss  A peril  increases the chance of a loss  a property insurance policy must contain a list of all cover perils

The PRIMARY function of an umbrella liability insurance policy is to provide coverage for   • A. personal property damage caused by inclement weather.   B. legal claims that exceed the policyholder's primary liability insurance limits.   C. multiple dwellings and vehicles under a single insurance policy.   D. vehicles that are either rented or borrowed by the policyholder.

uge to or loss of a dwelling and personal property of of g protects the beneficiary against the financial aspects of a traffic accident. TUSS, damage, or injury. May result in either financial gain or financial loss. 24. Financial service used to protect against loss. 25. Completion Amount of money or other services to which you are entitled under the terms of your insurance policy. Complete each statement. 26. A(n) endorsement 27. The Premium is an attachment to existing insurance coverage. is the amount the insured pays for insurance coverage. 28. The amount the insured is responsible for paying when a claim is made is the deductible 29. The process of documenting a loss against an insurance policy is called filing a(n) Claim 30. depreciation is a decrease in the value of property as a result of age or wear and tear. 31. The replacement cost minus depreciation is known as actual cash value 32. All 50 states have financial responsibility laws that require drivers to show proof of…

. A __________  __________ is a part of a fire insurance policy that requires the policyholder to purchase coverage at least equal to a specified percentage of the replacement cost of the property to obtain full reimbursement for losses.

What does the insurer agree to pay for in addition to covering losses in an insurance policy? Services such as investigating claims and defending the insured The entire policy limit Premium costs for the policy period Only losses below the deductible

C. Claim form D. Policy form 20. The written insurance document that may include all clauses, exception and conditions is called O A. endorsement O B. claim form O C. certificate of insurance O D. policy form 21. What is the form that filled out by insured if a loss is suffered? *

Name a peril that is often excluded from an home or auto insurance policy.  Why is the peril included in an insurance policy

Which of the following factors cannot be used to determine an insurer's limit of liability on property coverage? O A. Actual cash value Replacement cost Salvage value Policy limits OB. O C. D. Whiteboard

One purpose of casualty policy’s condition section is to list the property that is to be covered list the perils that are to be insured against provide for extension of coverage specify the insured responsibilities in the event of loss

1. S1: Insurance service result is recognized in other comprehensive income. S2: Principle of Subrogation is the legal principle that precludes you from obtaining fire insurance on your neighbor’s house with you as the beneficiary. A.Both statements are correct B. Both statements are incorrect C. Only S1 is incorrect D. Only S1 is correct   2. which of the following is not one of the groupings of insurance contracts under pfrs 17? A. those that are onerous at initial recognition B. those that pay premiums at initial recognition which are to be measured using the simplified approach C. those that, at initial recognition, have no significant possibility of becoming onerous in subsequent periods D. those that are not onerous at initial recognition but can become onerous in subsequent periods

Renter's insurance would include coverage for: OA) earthquake damage. OB) flood damage. OC) personal property. OD) umbrella liability. OE) house and other structures.

If the owners of building insured under commercial general liability policy purchase another building in the same risk class, how soon will coverage on the second building go into effect? Immediately after the closing of the purchase of the second building When the owners notify their insurance producer of the purchase When the owners notify their insurance company of the purchase When the owners pay the required additional premium

State Farm State Farm Fire and Casualty Company 11350 Johns Creek Parkway Duluth, GA 30098-0001 AT2 Matt & Sarah Justice 123 GetTheW St. Atlanta, GA 30306 YEAR 2007 NAMED INSURED SYMBOLS A DO NOT PAY PREMIUMS SHOWN ON THIS PAGE. IF AN AMOUNT IS DUE, THEN A SEPARATE STATEMENT IS ENCLOSED. YOUR CAR C D G H JINA M R1 U MAKE TOYOTA MODEL CAMRY COVERAGE & LIMITS 11-2097-4 P Liability Coverage Bodily Injury Limits Each Person, Each Accident A $100,000 $300,000 Property Damage Limit Each Accident $100,000 Medical Payments Coverage Limit- Each Person $1.000 BODY STYLE 4DR Comprehensive Coverage - $200 Deductible Collision Coverage - $1,000 Deductible Emergency Road Service Coverage Car Rental and Travel Expenses Coverage Limit- Car Rental Expense Each Day. Each Loss 80% menntunar $1.000 Uninsured Motor Vehicle Coverage (Difference-In-Limits) Bodily Injury Limits Each Person, Each Accident $50,000 $100,000 Property Damage Limit ($250 Deductible) Each Accident $50.000 Total premium for JUL 21…

Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C?A. using the modified version of the general model applicable for onerous insurance contractsB. using the general modelC. using a modified version of (a) or (b) applicable to reinsurance contracts heldD. using the premium allocation approach

R9

The Insuring clause in an Accident & Health policy states which of the following information? A. The insured's obligations B. The insurance company's obligations C. The risks excluded from coverage D. The cost of the coverage

The insurance Commissioner must approve which of the following types of insurance rates prior to their use: A. Fire B. Title C. Inland marine D. Workers Compensation Loss Cost