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NJ PROPERTY/ CASUALT Y INSURANCE
EXAM 2024 WITH 100% CORRECT
ANSWERS
Question :Why was the commercial Insurance Deregulation Act
Created?
Correct answer:To protect the public from the adverse effects of
excessive, inadequate, & unfair discriminatory rates & marketing practices
Question :Which policies issued must follow the provisions of
the Commercial Insurance Deregulation Act?
Correct answer:Commercial policies
Question :When must rate amendments & policy forms be filed
with the commissioner?
Correct answer:30 days before
Question :What losses are excluded from flood insurance?
Correct answer:-Landslides
-Sewer backup -Windblown Rain
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-Snow -Sleet
Question :Who administers the NFIP?
Correct answer:Federal Insurance Administration (FIA)
Question :What does the NFIP stand for?
Correct answer:National Flood Insurance Program
Question :Why was the National Flood insurance Program
constructed?
Correct answer:to fill in gaps of flood coverage by the private
sector
Question :What are the 3 NFIP requirements for coverage?
Correct answer:-community land management & flood control
programs must reduce flood losses in the future -Flood insurance required in specific flood prone areas as a condition for receiving loans through/ backed by the federal government
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-Property owners that fail to purchase flood insurance within 1 year after it is available will not be eligible for full disaster relief funding. It will be reduced by an amount of insurance that could have been purchased
Question :What is the NFIP max coverage for a single family?
Correct answer:Building $250K, Contents $100K
Question :What is the NFIP max coverage for other residential?
Correct answer:Building $250K, Contents $100K
Question :What is the NFIP max coverage for small business?
Correct answer:Building $500K, Contents $500K
Question :What is the NFIP max coverage for Other Non-
Residential?
Correct answer:Building $500k, Contents $500K
Question :What is the NFIP subsidized rate for a single family?
Correct answer:Building $35K, Contents $10K
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Question :What is the NFIP subsidized rate for Other
Residential?
Correct answer:Building $100K , Contents $100K
Question :What is the NFIP subsidized rate for small
businesses?
Correct answer:Building $100K, Contents $100K
Question :What is the NFIP subsidized rate for other non-
residential?
Correct answer:Building $100K, Contents $100K
Question :What is the wait period before flood insurance can be
effective?
Correct answer:30 days, no binders issued
Question :What are the exceptions to the 30 day NFIP wait
period?
Correct answer:-1st 30 days after coverage, community enters
standard or emergency program, coverage will begin at 12:01
am the date after application and premium were mailed
