NEW YORK TEST
Reva is covered by the New York Automobile Insurance Plan and is driving with her friend Marla in the passenger seat. If Marla is injured while she is in Reva's car and her medical bills for those injuries total $1,200, how much of this claim will be covered under the Medical Payments section of Reva's automobile policy?
$1,000 because that is the policy limit for medical payments under the NY Automobile Insurance Plan.
The Builders' Risk coverage form includes an additional coverage that provides a limited amount of coverage for lawns, trees, shrubs, or plants when located outside of buildings. This limit is:
$1,000, but $250 for any one tree, shrub, or plant..
Jones Construction Company has a CGL policy with coverage dates of 03/01/17 to 03/01/18. The per occurrence limit is $500,000 and the general aggregate limit of $1,000,000. The maximum that can be paid out on the insured's behalf is:
$1,000,000
Blake is covered by a Homeowners policy with a $50,000 Coverage C limit. Disregarding any deductibles, what is the most Blake can collect if his $1,500 boat is stolen from the insured premises?
$1,500
Under the Farm Dwellings, Appurtenant Structures, and Household Personal Property coverage from, there is a special limit that applies to loss or damage to outdoor radios and TV antennas and satellite dishes. This limit is part of not in addition to Coverage A limit and is:
$1000 per occurrence
The minimum coverage amounts required in New York for UM / UIM bodily injury is:
$25,000 per person, $50,000 per accident.
The "triggering event threshold" for the Terrorism Risk Insurance Act of 2002 was:
$5 million
Each of the following is a comprehensive loss under the physical damage coverage of a Business Auto policy, EXCEPT:
$500
Anyone who threatens, forces or corruptly influences, obstructs or impedes the due and proper administration of the Federal Insurance Fraud and False Statements law relating to the insurance business may be fined and/or imprisoned up to:
10 years..
New York has been struck with a catastrophe and adjusters are desperately needed. The Superintendent of Insurance can issue a temporary adjuster permit in an emergency situation for ____ days.
120
Under the Dwelling insurance program, an endorsement may be attached to the policy to cover dwellings during the course of construction. The insurance company must be advised when construction is completed, and within ______ after the insured takes occupancy of the dwelling.
30 days
The Earthquake Endorsement to a Homeowners policy 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.
Which of the following is the laboratory test a medical professional would order to determine blood sugar levels?
A basic metabolic panel..
The term "inherent vice" is used in Inland Marine insurance to refer to:
A characteristic of some cargo to destroy itself..
An "insured" under an unendorsed Homeowners policy can be all of the following, EXCEPT:
A childhood friend of the named insured who is visiting for a month from England.
The NFIP Dwelling form provides coverage for all of the following, EXCEPT:
A five-unit apartment building.
Which of the following losses would be covered by Part D of a standard Personal Auto policy providing both "Other Than Collision" (Comprehensive) and "Collision" coverage?
A front tire blows out in a high-speed head-on collision, which also causes extensive damage to the vehicle. .
Which of the following buildings is considered to be vacant?
A house with no furnishings or occupants for over 60 days..
Which of the following could be considered a "covered auto" under a standard ISO Personal Auto policy?
A newly acquired car reported to the insurer.
All of the following would be eligible for coverage under the New York "Joint Ownership Coverage Endorsement" to a Personal Auto policy in New York, EXCEPT:
A non-resident employee who is driving an insured vehicle to deliver baskets that were hand-made for sale by the insured.
What does the term "unvalued basis" mean as it relates to ocean marine hull insurance?
A policy where the value is not declared until after the loss.
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?
A separate stated limit of coverage and a separate stated deductible for covered losses.
Under the Farm property coverage form with replacement cost coverage, after the first $1,000 how is the claim paid?
ACV until repairs are completed and the full replacement cost is paid.
Which of the following is covered under the Farm Broad Cause of Loss form, that is NOT covered under the Farm Basic Cause of Loss form?
Accidental shooting of livestock
The farmer has committed libel against a neighboring farmer by stating that his diary products are inferior to his own. This is an example of
Advertising/personal injury
Adverse selection occurs when:
Applicants are accepted by the insurer with little or no attention given to underwriting. .
An alternative dispute resolution (ADR) method by which disputing parties use a neutral outside party to examine the issues and develop a settlement, which is a final binding decision is known as:
Arbitration
Which of the following professional liability policies would also cover bodily injury damages?
Architects and Engineers E&O
When the Personal Liability Supplement is purchased as a monoline policy, all of the following are required conditions, EXCEPT:
Bankruptcy
The Part B - Medical Payments coverage under a standard Personal Auto policy will cover the insured if he/she is injured while a passenger on a:
Bus
Under the "Inside the Premises - Theft of Money and Securities" insuring agreement of a crime policy, which of the following situations would NOT be covered:
Cash that is stolen by employees.
On a standard BOP policy, all of the following items have a limitation on the coverage amount if the cause of loss is theft, EXCEPT:
Computers
Pete's business is covered by a standard Businessowners policy. He has been accused by a customer of displaying inaccurate pricing on his website. Which of the following statements best describes how this claim would be handled by the BOP?
Coverage for any claim caused by a wrong description of the price of goods, products or services is excluded by the personal and advertising injury coverage of the BOP..
Ocean marine protection and indemnity (P&I) coverage usually insures the ship owner against liability for all of the following EXCEPT:
Damage to or loss of another ship caused by a negligent collision.
An adjuster has procured a photograph of the scene of an accident on a claim that he/she is adjusting. This photograph is placed into the claims file as which of the following types of evidence?
Documentary
All of the following would be included on the proof of loss statement of a property loss claim, EXCEPT:
Documentation of the pain and suffering the insured has experienced due to the property loss.
What is the definition of custom farming?
Farm for others
Under "Coverage E - Scheduled Farm Property", on what basis is the property covered?
For the agreed amount shown on the policy Declarations page.
Which of the following Crime form insuring agreements pays defense costs for the insured?
Forgery or Alteration
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 or formal report.
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
Which of the following is not a true statement regarding the use of non-original equipment manufactured replacement parts for vehicles?
Insurers specifying the use of non-original equipment manufacture replacement crash parts shall not be required to pay the cost of any modifications to the parts which may become necessary to affect the repair..
All the following are covered under Section II of a Homeowners policy, EXCEPT:
Intentional bodily injury to others by the insured..
Which of the following is an example of a public health insurance program that is administered by individual states?
Medicaid
The New York Unfair Claim Practice statutes classifies the actions of an adjuster who has been found guilty of advising a person on matters of law as having committed:
Misrepresentation
Claims that are paid under a CGL policy coverage, are charged against the aggregate policy limits, and reduce the amount of insurance remaining to pay future claims under the current policy. When will the limits be reinstated?
On the effective date of the next policy renewal.
Anne has been diagnosed with a disease characterized by degenerative and sometimes hypertrophic changes in the bone and cartilage of the joints and a progressive wearing down of apposing joint surfaces. Anne has been diagnosed with:
Osteoarthritis
Farm Liability Coverage includes each of the following:
Personal Injury and Advertising Injury, Bodily Injury and Property Damage, Medical Payments to others,
Which of the following is NOT covered under aircraft physical damage (hull) insurance?
Personal effects.
Underground gasoline tanks on an insured's property leak damaging the property next door. Which policy would pay for clean up?
Pollution Liability endorsement.
Which of the following would NOT be eligible for coverage under a Livestock floater?
Poultry
Farm Liability Coverage includes each of the following, EXCEPT:
Professional Liability
Which of the following coverage parts would be eligible for inclusion in a Commercial Package policy?
Professional liability coverage.
Which of the following would be covered by the NFIP?
Reasonable expenses to protect the property when endangered by flood.
Which of the following statements is NOT TRUE of a fidelity bond written on a "scheduled basis"?
Schedules a single amount to cover all employees..
Which of the following is NOT defined as "covered property" under an Equipment Breakdown policy?
Spare equipment parts.
Which of the following is the first duty of the insured after suffering a property loss?
Take steps to protect the property from further loss..
Which of the following Commercial Automobile forms would be used to cover a limousine for hire?
The Motor Carrier Coverage form.
Which of the following statements is TRUE regarding nonwaiver agreements and reservation of rights letters?
The are used only with first-party claimants to protect the rights of insureds and insurers.
Which of the following would be covered under the extended perils of windstorm or hail?
The beef stored in a freezer that spoiled because power was knockout for an extended period of time due to a tornado.
In a trial, the duty of a party to prove that the facts it claims are true is known as:
The burden of proof.
Which of the following would be covered under the extended coverage peril of volcanic eruption?
The cracks in the ceiling of the dwelling due to the shaking of the earthquake preceding the volcanic eruption.
All of the following statements are TRUE regarding the extended period to discover loss condition of a Crime policy, EXCEPT:
The extended period is terminated 30 days following the cancellation of the policy whether or not the insured has obtained other coverage..
Which of the following statements is NOT TRUE regarding the New York Motor Vehicle Accident Indemnification Corporation?
The injured party must submit all medical bills along with the claim forms within 30 days of the accident that caused the injury. .
Adrianna owns a dwelling that is covered under a DP-3 form and located in a rural area close to a small wooded area. While grazing outside of Adrianna's picture window one day, a deer sees its own reflection and jumps through the picture window to scare off the "other" deer. Once inside the dwelling, the deer realizes he is trapped and causes significant damage to the walls, floor and furniture. Adrianna is covered for $100,000 under Coverage A and for $50,000 under Coverage C. Which of the following statements is TRUE regarding this loss?
The insurer would deny the claim for the personal property and pay the loss to the dwelling on an RCV basis..
When the triggering event threshold has been met under the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA), the insurer's deductible amount:
The insurer's deductible is calculated at 20% of the insurer's direct earned premiums for commercial insurance.
Under the "Business Income from Dependent Properties -- Broad Form", to qualify as a "manufacturing location":
The location must be under contract with the insured's business to provide components that are essential to the insured's business production.
Which of the following is generally not considered to be a legal defense against claims of negligence?
The loss to the plaintiff was caused intentionally by the defendant.
The form requesting a 1033 waiver that must be submitted to the New York Department for consideration includes all of the following information, EXCEPT:
The names of other individuals who participated in the felony along with the waiver applicant.
Carson is working in his employer's warehouse, when a large heavy box falls off the shelf and he is forced to quickly jump out of the way to avoid being struck in the head. Which of the following body systems is responsible for Carson's rapid heart beat after he was very nearly injured?
The sympathetic nervous system as part of peripheral nervous system. .
Which of the following describes a "verbal threshold" as it is used in the New York Comprehensive Motor Vehicle Insurance Reparations Act (No-Fault / PIP)?
The threshold of injury that must be exceeded before an injured person may bring a lawsuit for "non-economic" losses.
Jamie has submitted a claim against Ron's insurance policy for a loss he has legitimately suffered. This claim is a:
Third-party liability claim.
Which of the following lines of insurance are covered under the Terrorism Risk Insurance Program Reauthorization Act of 2015?
Workers compensation.
Which of the following statements concerning the New York Superintendent is NOT TRUE?
he Superintendent may advise the state legislature on writing and passing laws affecting the insurance and financial services industry in the state.
Under the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA), the maximum limit (cap) for claims paid by either private insurers or the government in a single program year is:
$100 billion.
Tasha is an adjuster who is working on a New York automobile total loss claim. Tasha has calculated the average of the retail values of substantially similar vehicles using the manuals approved by the New York Department, which is $17,500. The insured has a $500 deductible, therefore, Tasha was prepared to offer a settlement of $17,000. While attempting to locate an actual "substantially similar vehicle" at a dealership, Tasha determines that to purchase one of those vehicles, it would actually require $18,750. To be in compliance with New York law, which of the following amounts should Tasha offer to actually settle the claim?
$18,250
Dwelling forms may be used to insure all of the following except:
A farm house
The Special Cause of Loss form for Farm insurance provides coverage for which of the following?
A farmer's cow that was riding in a railer when it was struck by a truck and the cow was killed
The chief deputy of the county auditor steals $2.5 million from the county and gambles it away. What bond if any would the county need to have in place in order to try and recoup this loss?
Blanket Public Official Bond
All of the following are excluded under CGL coverage for bodily injury and property damage liability, EXCEPT:
Bodily Injury or Property Damage caused by the operation of mobile equipment..
A claim is brought against the named insured under a CGL policy. Before settlement is made the insured files for bankruptcy. This action:
Does not relieve the insurance company from paying the claim.
All of the following are perils covered under the Farm Property Basic Cause of Loss form EXCEPT:
Earthquake damage to the dwelling.
Which of the following would be considered "compensatory" or "special damages" paid to an injured party when the insured is negligent and causes the injury?
Lost wages
Willie's Widgets is eligible to receive an experience rating to bring down their workers' compensation premium rates. Willie's is granted this eligibility on May 1st, 2018. Which of the following best defines the "experience period" the NCCI will use to calculate Willie's experience rating?
May 1st, 2013 to May 1st, 2017.
All of the following may serve as proof of financial responsibility as defined by New York automobile laws, EXCEPT:
Proof of $100,000 or more in the named insured's checking account..
The primary cause of insurance agent's errors and omissions losses is the failure to:
Provide the proper coverage.
Jones Manufacturing produces a product for resale. They sell all of the items during the 2014 calendar year. During the year 2014 they are insured by ABC Insurance Company. In 2015 they change coverage to XYZ Insurance Company. Late in 2015, a consumer is injured because of a defect in the insured's product. Who is responsible for the claim?
The XYZ Insurance Company as Jones' liability carrier.
All of the following statements are TRUE regarding eligibility to file a claim with the New York Motor Vehicle Accident Indemnification Corporation, EXCEPT:
The injured person may collect no-fault benefits under their own policy and file a claim with the New York MVAIC if they have suffered a defined serious injury..
The purpose of licensing surplus lines brokers in a given state is:
To allow them to place business with nonadmitted insurers. .
Tobias is a New York resident and is injured in a car accident. He is severely injured, spends months in the hospital and ultimately dies from his injuries. Tobias' "No-Fault coverage pays for "basic economic loss" with no endorsements. His economic losses for wages, medical expenses, and substitution services total $60,000 and his funeral expenses totaled $5,000. Which of the following statements is correct regarding how Tobias' claim would be paid according to New York's No-Fault law?
Tobias' basic economic losses would be paid up to the limit of $50,000 and his funeral expenses would be paid up to the limit of $2,000, leaving $13,000 of the claim unpaid.
An insured's boat is struck by another boat. He and his family are injured. His boat sinks because of the damage. An investigation determines that the party that caused the accident is not insured. If the insured carries a watercraft policy, what coverages would apply?
Uninsured boater's coverage and hull insurance.
Under the definitions section of the CGL policy, the term "your product" does not include:
Vending machines rented to or located for use by others
The cost of defense is paid without limitation and does not affect the limit of liability for damages. When does the insurer's duty to defend and pay these defense costs end?
When the cost of defense and the requested demands reach the policy limit.
Under a Crime Insurance discovery form, a loss is "discovered"?
When the insured first becomes aware that a loss has occurred or gives notice of an actual claim of a covered loss
In New York, when is it permissible for an automobile insurer to require an insured to have repairs to her automobile made at a specific repair shop?
When the repairs are being made to window glass.
Under "pollution cleanup and removal" coverage under the standard ISO BOP form, when must a loss be reported?
Within 180 days
