New York 17-65: Practice Test - Wrong Answers

In New York, the limit under the Homeowner policy for credit card, electronic fund transfer card or access device, forgery and counterfeit money additional coverage is: Answer Choices: Select the Correct Answer $500 $1,000 $1,500 $2,000

$1,000 In NY the limit of insurance under the credit card, electronic fund transfer card or access device, forgery and counterfeit money additional coverage was increased from $500 to $1,000.

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 such as this for _____ days. Answer Choices: Select the Correct Answer 30 60 90 120

120 The Superintendent can issue a temporary emergency adjuster permit for a period of 120 days to assist in the adjustment of claims arising from a common catastrophe. No fee is involved and the person merely completes the necessary paper work.

Under a watercraft or yacht policy how are claims settled? Answer Choices: Select the Correct Answer Actual cash value Replacement cost Functional replacement cost Agreed amount basis

Actual cash value Like physical damage coverage on an auto policy, the watercraft and yacht policies provide for the adjusting of physical damage losses to covered property on an actual cash value basis.

In which of the following situations should a non-waiver agreement be used? Answer Choices: Select the Correct Answer An insured's picture window was broken by a neighbor throwing a baseball An insured's house burned to the ground An insured's house shows rot damage, and it appears there is a long-term plumbing leak An insured's roof blew off in a tornado

An insured's house shows rot damage, and it appears there is a long-term plumbing leak

The "occurrence" form of a CGL policy provides coverage for bodily injury and property damage that: Answer Choices: Select the Correct Answer Occurs during the policy period regardless of when the claim is made. Occurs during the policy period as long as the claim is made during the policy period. Is claimed during the policy period with no regard to when the bodily injury or property damage occurred. Occurs after the policy period and the claim is made after the policy period.

Occurs during the policy period regardless of when the claim is made. The occurrence form provides coverage for claims that occur during the policy period regardless of when the claim is filed.

Which of the following is not an "additional coverage" under homeowner's liability Section II coverage? Answer Choices: Select the Correct Answer Interest accruing after a legal judgment is entered Damage to property of others Payments made by the insurer to settle a claim Insurer's costs in investigating a claim

Payments made by the insurer to settle a claim Settlements paid by the insurer come from the limits of liability shown on the declarations page and are not an additional coverage.

A professional liability policy can be: Answer Choices: Select the Correct Answer Covered automatically under a Commercial General Liability policy Added by endorsement to a Commercial Liability policy Purchased separately for an additional premium Added to an umbrella policy

Purchased separately for an additional premium The professional liability policy is a "stand alone" separate policy that can be purchased for an additional premium.

The "when more than one coverage applies" condition in Commercial Crime insurance is designed to: Answer Choices: Select the Correct Answer Specify how a claim would be allocated among the different insurers. Allow the insured to choose the company that will pay the claim. Provide for subrogation of a claim. Avoid overpayment of a claim.

Specify how a claim would be allocated among the different insurers.

A risk where both profit and loss are possible is known as: Answer Choices: Select the Correct Answer Speculative. Fundamental. Pure. Dynamic.

Speculative Speculative risks involve the possibility of both gain and loss, such as investing in the stock market. Speculative risks are common to business.

In insurance terms, the phrase severability of insurance means: Answer Choices: Select the Correct Answer Several insured's are covered by the policy. The insurance applies separately to each insured. Each accident will be treated as a separate occurrence. The insurer may dissolve its relationship with the insured after a loss.

The insurance applies separately to each insured. This means that the insurance applies separately to each insured. However, if more than one insured is involved in the same loss the limits are not increased.

Loss of wages as a result of an auto accident, are paid under the New York no fault law on the basis of ___ of the wages. Answer Choices: Select the Correct Answer 80% 50% 100% 20%

The loss of wage benefit is based on 80% of the lost wages subject to a maximum of $2,000 per month for up to three years.

In ocean marine insurance, what is the purpose of the IVEL clause? to require the insured to take all reasonable steps to protect the property from further loss. To provide excess hull and collision liability coverage..

The purpose of the IVEL clause is to provide excess hull and collision liability coverage.

New York has a modified form of "no-fault" insurance. The injured party cannot sue the negligent driver, EXCEPT: Answer Choices: Select the Correct Answer Where serious injury has occurred. When the insured's underinsured motorist coverage has been exhausted. When the insured's health insurance coverage has been exhausted. The insured can never sue due to the no-fault laws.

Where serious injury has occurred.