New York Adjuster Exam

The first effort to provide insurance for land transportation risks involved an extension of ocean marine coverage known as the:

"Warehouse to warehouse" clause.

What is the amount of bond that must be posted with the state of New York to obtain an adjuster's license?

$1,000

A farmer purchases a crop hail policy with a limit of $10,000 on 5000 acres that sustains a 30% loss. Coverage is written with a 5% minimum loss before the policy will pay. How much will the farmer receive?

$3,000

Under the "emergency program" the National Flood Insurance Program will insure a single family residence for up to:

$35,000

Richard has been advised by the New York Superintendent of Insurance to cease and desist in the performance of certain infractions of the Insurance Code. He has had a hearing and been issued a cease and desist order. He continues to violate the cease and desist order. He can be fined a penalty of up to:

$5,000 per violation

The standard ISO Identity Fraud Expense endorsement requires a deductible of:

$500

The unfair claim settlement laws and regulations in New York provide that a violation in each instance will be treated as a separate violation. A fine in the amount of _____ will be imposed against the insurance company for each violation.

$500

In lieu of suspending or revoking a New York adjuster license for a violation of insurance laws, the Superintendent may order the licensee to pay a monetary penalty of up to:

$500 for each offense up to an aggregate penalty of $2,500.

An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under the pair or set clause the insurance company will pay a maximum of which of the following amounts?

$7,000

After receiving an inquiry from the New York Department of Insurance regarding a claim, an insurer must respond within:

10 business days.

The Superintendent of Insurance may issue a _____ temporary permit to an individual to adjust claims while an adjuster's application is pending.

120 day

The mandatory recoupment of the federal share through policyholder surcharges under Terrorism Risk Insurance Program Reauthorization Act of 2015 was increased from 133% to

140%

Under the New York Cybersecurity Regulation, an exempt covered entity that ceases to qualify for an exemption will have _____ to comply with the requirements of the regulation.

180 days

Personal property that is covered under the Personal Property Replacement Cost Endorsement is damaged and a claim has been filed. The replacement cost of the property at the time of the loss is $2,500. The full cost to repair the property is $2,000. The Coverage C limit of the Homeowners policy is $8,000. No special limits apply to this property and there is no limit applied to the type of property being claimed. Which of the following is the amount that will be paid under the endorsement?

2,000. The endorsement will pay the smallest amount of the replacement cost at the time of the loss, the full repair cost, the Coverage C limit, any applicable special limits, or the limit that applies to the type of property being claimed.

When a New York Homeowners policy is still in the 60-day underwriting period, the insurer may cancel it for any reason by providing a ______ notice.

30 day

A New York licensee subject to an administrative action in another jurisdiction or governmental agency must report such action to the Superintendent within:

30 days

The Dwelling endorsement for Broad Theft Coverage excludes losses to dwellings that have been vacant for more than _____ days immediately prior to the loss.

30 days

The insured has moved into a dwelling that was being build and was covered by the "Dwelling Under Construction" endorsement. How long does the insured have to report his / her occupancy to the insurance company?

30 days

Under the New York Cyber Security Regulation, each covered entity must maintain documentation supporting certification of compliance with the regulation for:

5 years

The Earthquake Endorsement will provide coverage to the dwelling and/or personal property with the deductible stated as:

5% of the limit that applies to all Section I coverages

Under the standard ISO Farm insurance Special Cause of Loss form, coverage for vandalism or breakage of glass is excluded if the premises has been vacant for _____ days or more.

60

Which of the following time periods is ordinary payroll coverage limited to in case of a business income loss under the BOP?

60 days

In order to receive full replacement cost recovery on a covered loss under a BOP, the named insured must maintain insurance limits equal to at least what percentage of the covered property's full replacement value?

80% of the property value

Time Element coverage under the Home Business Insurance endorsement of a Homeowners policy is subject to:

A 72-hour time deductible.

Under the Multi-Peril Crop Insurance program, the policy providing the lowest amount of protection available is:

A Catastrophe Policy.

If an insured would like to purchase additional amounts of coverage, above the "Special Limits" provided under his Homeowners policy for jewelry or firearms, it can be obtained through the use of:

A Scheduled Personal Property endorsement.

Which of the following events would require a change on a homeowner policy?

A change in mailing address

If any person engages in activities in violation of the Federal Insurance Fraud and False Statements regulation, he or she may be subject to which of the following?

A civil penalty of not more than $50,000.

Which of the following would be considered vacant on an unendorsed Commercial Property policy?

A leased building in which less than 31% of the building is occupied.

Coverage A of the Homeowners policy would provide coverage for all of the following, EXCEPT:

A storage shed connected to the dwelling by a utility line

Under which of the following claims settlements are the claim invoices presented and paid with no attempt to obtain a separate release?

A walk-away release.

An insured's loss payment is reduced by depreciation. Which of the following best describes this situation?

ACV

How is personal property of a dwelling covered under a farm policy?

ACV

Loss settlement for unscheduled personal property that is covered under a standard ISO Homeowners policy is on a:

ACV basis

Which of the following would NOT be covered under the Identity Fraud Expense endorsement when attached to a Homeowners policy?

Additional living expenses

Which type of Crop Insurance Policy covers the entire farm instead of an individual crop?

Adjusted Gross Revenue

In situations where the insured and the insurer may disagree on the value of an item, it would be best to insure that item as:

Agreed value

With a "full release settlement" of an insurance claim:

All damages are paid immediately in one lump sum.

If you have the Agreed Value Option on your policy and it is not renewed, at expiration your policy reverts:

Back to the coinsurance clause

The Terrorism Risk Insurance Act and all of its extensions and reauthorizations is actually an agreement between:

Between the Federal Government and the insurance companies.

Which part of an insurance policy sets the rules of conduct, duties, and obligations of the insured and insurer under the terms of the insurance contract?

Conditions

When a claimant is represented by an attorney, which of the following is prohibited by the adjuster?

Contact the claimant without the consent of the attorney

Which of the following statements describes an action that the adjuster cannot take after a claimant has hired an attorney to represent him/her in handing a claim?

Contact the claimant without the consent of the attorney.

Traditionally, the most common type of crop insurance sold prior to the creation of the Multi-Peril Crop Insurance Program was:

Coverage for hail damage.

The Terrorism Risk Insurance Program Reauthorization Act of 2015 covers all of the following, EXCEPT:

Crop Insurance

A building is insured by three insurance companies to spread coverage on a particular type of hazardous risk. In case of a loss under a Commercial Property policy, the payment of the claim would invoke the pro-rata liability clause which means:

Each insurer pays in accordance to the percentage its coverage bears to the total amount of insurance in force.

Kelly would like to obtain an Independent Adjuster license in New York, however, she has been convicted of a felony involving dishonesty or breach of trust. Kelly plans to submit a 1033 Waiver from the Department of Financial Services so that she can begin looking for a job. Which of the following is NOT a requirement for the Superintendent to grant this waiver?

Evidence must be submitted to show that restitution was made to the people of the state of New York for the felony in which Kelly was convicted.

Under the New York Cybersecurity Regulation (23 NYCRR 500) each covered entity, including insurance companies, must submit a written statement by _____ of each year certifying that it is in compliance.

February 15

Which of the following causes more property damage in the United States than any other natural disaster?

Floods

An intentional act designed to deceive and induce another party to part with something of value is known as:

Fraud

An adjuster's report that contains all the facts, evidence and disposition of the claim and is considered to be the final report is known as the:

Full report.

A Building and Personal Property Coverage form provides coverage for all of the following types of property, EXCEPT:

Growing crops and lawns.

The insured is a CPA and has his office in his home. He needs business personal property coverage with a limit of $50,000. He has valuable papers and records on the premises that belong to others. He often visits his clients off the premises. What endorsement would he need to cover his exposures under his Homeowners policy?

Home Business Insurance Endorsement

Property and casualty insurance can be utilized to handle: I. Pure risks. II. Speculative risks.

I only

The New York Superintendent of Insurance may refuse to renew, suspend or revoke a license as a result of which of the following? I. A violation of any provision of the New York Insurance Code. II. A licensee making a material misstatement in application for license. III. A licensee being found guilty of fraud or dishonest practices.

I, II and III

An insurance policy is a contract. If any part of the policy language is ambiguous, the court will generally rule:

In favor of the insured

Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya accidentally leaves the oven on all day while she is out, her Lasagna catches fire, burning Jack's house to the ground, along with all the contents located inside. Which of the following items would be covered under Coverage C of Jack's DP-3 policy?

Jack's appliances

Kelly would like to obtain an Independent Adjuster license in New York, however, she has been convicted of a felony involving dishonesty or breach of trust. Kelly plans to submit a 1033 Waiver from the Department of Financial Services so that she can begin looking for a job. Which of the following is NOT a requirement for the Superintendent to grant this waiver?

Kelly is not required to submit evidence of restitution to the people of the state of New York.

All of the following are EXCLUDED under the Earthquake Endorsement to a Homeowners policy, EXCEPT:

Land shock waves

The insured owns a two family dwelling and is covered under a Homeowner policy. One of the units is rented. The insured also maintains a small incidental business in the structure. In case of a covered loss, which of the following would NOT be paid under Coverage D - Loss of Use?

Loss of income from the incidental business.

The insurance company does not pay for certain damaged property under an Equipment Breakdown policy. Identify the property.

Obsolete property.

An earthquake and landslide has occurred and soon after a house insured on an unendorsed HO-3 is damaged by fire and then an explosion. What would be covered in this scenario?

Only the resulting fire and explosion damage would be covered

All of the following would be covered under a Builders Risk Policy, EXCEPT:

Prospective buyer.

The term "undamaged stock", as defined in an Equipment Breakdown policy, applies to which of the following situations?

Refers to the reduction in the value of the stock as a result of damage to other stock..

No insurer may issue checks or drafts or partial settlement of a loss or claim that is still being negotiated that:

Releases the insurer from additional liability.

Replacement cost coverage is best defined as:

Replacement without deduction for depreciation..

If an insured would like to purchase broader coverage than is already provided under the Homeowners forms for camera equipment, this coverage can be obtained through:

Scheduled Personal Property endorsement

If an insured fails to report a claim in a timely fashion, the adjuster will immediately:

Send a ROR

Which of the following is not a duty of an insurer in case of a loss?

Separate the damaged property from the undamaged property and protect the property from further loss

Which of the following statements defines a "bailee"?

Someone, other than the insured, to whom the insured property is entrusted temporarily.

An insured is covered under a BOP policy. He insures a piece of equipment separately under a floater policy. In case of a loss what coverage will apply under the BOP policy?

The BOP will be excess over the floater policy

What does "Transfer Of Your Rights And Duties Under This Policy" refer to in the BOP?

The Subrogation Clause

In order for a "full release settlement" to become closed, what MUST occur?

The claim check must be cashed by the claimant

The endorsement to the homeowner policy for water that backs up through a sewer or drain including mechanical breakdown of a sump pump contains which of the following?

The endorsement will set a limit of coverage per occurrence for these losses and also impose a stated deductible, which could be less than or greater than the standard deductible for property losses stated on the declarations page. Both the coverage limit and the deductible vary based on each insurer's underwriting guidelines.

An insured has a HO-5 Homeowner Policy; they have insured the wife's diamond ring and the husband's guns on a personal articles floater. All of the items are stolen. What policy and deductibles would apply?

The homeowner policy would not pay and the personal articles floater would pay without a deductible..

After a claim has been paid, any recovery rights applying to the amount paid by the insurance company belong to:

The insurance company.

When an insured suffers a property loss, he or she is obligated by the terms of the policy to do all of the following, EXCEPT:

The insured is not obligated to employ a 'public adjuster" to assist in the claim against the insurance company. It is an option on the part of the insured.

No act will be certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security, as an act of terrorism under the Terrorism Risk Reauthorization Act of 2015 unless:

The losses that occur relate to commercial property and specified casualty risks

The insured sets a fire to his home and is found to be guilty of arson. There is a lien on the burned property by a mortgage company in the amount of $150,000. The property is insured for $300,000 and is a total loss. The personal property of the insured, covered separately by a Homeowners policy for $150,000, is also a total loss. How will this claim most likely be paid?

The mortgagee is paid $150,000.

Which of the following should be insured by an HO-6?

The owners of condominiums and townhouses

The adjuster bond required in New York is payable to:

The state of New York.

The term "time element coverage" is used when the amount of loss depends on:

The time it takes to repair, rebuild or restore damaged property.

In order to avoid problems with underinsurance and overinsurance, a business which has fluctuating inventory values during the year should consider coverage written on:

The value reporting form.

Isaac owns a home with an older furnace in need of repair. He leaves his home for a month to avoid the cold weather. He returns to find that the furnace had stopped working. Water pipes have frozen and burst and his property has been damaged. Since the water ran for almost a month, his water bill is extremely high. What will the adjuster pay?

The water damage.

Which of the following best describes the purpose of an "insuring agreement"?

To describe the promises of the insurer and the insured and the coverages provided

The first step that any adjuster must take when commencing a claims investigation is:

To verify the coverage under the policy.

When Todd, an adjuster, shows up to a claimant's property to adjust a claim, he finds that the claimant has an attorney with him. From this point on:

Todd should deal directly with the attorney, not the claimant.

The insured carries an HO-3 homeowner policy. He has complied with the 80% to value provision for replacement cost dwelling coverage. He suffers a fire loss. Which of the following property is NOT covered on a replacement cost basis?

Wall to wall carpeting . The carpeting is not covered on a replacement cost basis. This coverage can be obtained by attaching the "personal property replacement cost" endorsement.

A typical boatowners policy includes all of the following coverages EXCEPT:

When used to carry cargo for others for a fee .

The Terrorism Risk Insurance Program Reauthorization Act of 2015 excludes all acts of terrorism if the act is committed as part of the course of a war declared by Congress with the exception of one line of insurance. Which of the following is the only line of insurance that would still be covered in case of a war?

Workers compensation

The crew of a ship is guilty of fraud with the intention of reaping gains at the expense of the owner. In ocean marine coverage, what is this called?

barratry

Which of the following is not covered by an unendorsed HO policy?

flood

Faulty wiring causes a fire that destroys an insured's home. In insurance terms, the faulty wiring is called a:

hazard

The New York Workers Compensation Residence Employees Endorsement to the Homeowners policy, covers residence employees of the insured who are engaged in regular employment:

less than 40 hours

An insured carries a Personal Property Replacement Cost endorsement attached to his Homeowners policy. He has suffered a loss to his personal property. He submits a claim for actual cash value (ACV) at the time of the loss, but notifies the insurer that he intends to make a claim for replacement cost later. The insurer will honor the insured's request, but only if the cost to repair or replace the property is:

more than $500

Which of the following is NOT a claim settlement option in a property loss?

pay market value only

What part of the policy contains the promises made by the insurance company to the insured?

the insuring agreement

The insured has an HO-3 homeowner policy. During the night, a water line in the wall to the upstairs bathroom burst and water ruined the walls, floor and furniture. In this situation all of the damages will be covered, EXCEPT:

the pipe

Which of the following is considered to be a guarantee of truth throughout the duration of the policy?

warranty