Free New Jersey Property Casualty Practice Exam Online

Correct answer: A. Personal Injury Protection (PIP) medical expense and related no-fault benefits

Correct. N.J.S.A. 39:6A-4 requires every New Jersey auto policy to include PIP benefits, which pay medical expenses and related no-fault benefits regardless of who caused the accident.

• B: Incorrect. Comprehensive coverage is an optional first-party physical-damage coverage, not one of the compulsory no-fault benefits mandated by N.J.S.A. 39:6A-4.
• C: Incorrect. Gap insurance is a separate optional financing-related product and is not part of New Jersey's statutory no-fault PIP mandate.
• D: Incorrect. Mechanical breakdown insurance covers vehicle repairs unrelated to accidents and is not a required no-fault coverage under N.J.S.A. 39:6A-4.

Correct answer: B. $15,000

Correct. N.J.S.A. 39:6A-3.1 sets the Basic Policy's mandatory PIP medical expense benefit at $15,000 per person per accident, though a separate $250,000 benefit applies to defined catastrophic injuries.

• A: Incorrect. $50,000 is one of the reduced medical-expense options available under the Standard Policy, not the Basic Policy floor.
• C: Incorrect. $100,000 is not one of the New Jersey Basic or Standard Policy PIP benefit tiers.
• D: Incorrect. $250,000 is the catastrophic-injury override amount under the Basic Policy, not the base per-accident medical expense limit, and the Basic Policy is specifically the lower-cost, lower-limit option.

Correct answer: C. $5,000 property damage liability

Correct. N.J.S.A. 39:6A-3.1 requires the Basic Policy to include $5,000 of mandatory property damage liability coverage.

• A: Incorrect. $25,000 is the property damage liability limit under the 2026 Standard Policy minimums, not the Basic Policy.
• B: Incorrect. $15,000 is not the Basic Policy's property damage figure; that number corresponds to the Basic Policy's PIP medical benefit instead.
• D: Incorrect. Some liability coverage is mandatory even under the stripped-down Basic Policy; property damage liability of $5,000 is required, though bodily injury liability is only optional at $10,000.

Correct answer: D. Optional — the policyholder may elect to add it

Correct. N.J.S.A. 39:6A-3.1 allows the Basic Policy to be offered with or without an optional $10,000 bodily injury liability coverage, at the insured's election.

• A: Incorrect. Unlike the mandatory $5,000 property damage liability, bodily injury liability is not required under the Basic Policy.
• B: Incorrect. The coverage is expressly permitted as an add-on under N.J.S.A. 39:6A-3.1, just not required.
• C: Incorrect. Nothing in N.J.S.A. 39:6A-3.1 restricts this optional coverage to commercial vehicles; it is available to any Basic Policy holder who elects it.

Correct answer: A. $250,000

Correct. New Jersey Standard Policy PIP medical expense options top out at $250,000 per person per accident under N.J.S.A. 39:6A-4.

• B: Incorrect. $50,000 is one of the lower selectable tiers, not the maximum available.
• C: Incorrect. $15,000 is the lowest PIP tier (and the Basic Policy floor), not the highest Standard Policy option.
• D: Incorrect. $500,000 is not an available PIP medical expense tier under New Jersey's Standard Policy.