Insurance exam questions
That has met the minimum floodplain management guidelines
#13. To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities? a) That is surrounded by water b) That has met the minimum population requirements c) That gets flooded at least annually d) That has met the minimum floodplain management guidelines
All reasonable costs
#15. How much is covered for debris removal under the HO property additional coverages? a) Nothing, unless added by an endorsement b) All reasonable costs c) 90% of the total cost of clean-up d) Everything after a $200 deductible
May not be held liable
#16. Under contributory negligence, when an individual is found to have contributed to his or her own loss in any way, another party a) May be held liable for full damages despite the other party's negligence. b) May be held liable only in the case of vicarious liability. c) May not be held liable. d) May be held liable, but to a reduced extent.
Surplus lines insurer-
A nonadmitted insurer who provides unique insurance coverage that is not available from an admitted insurer is called a.
Certificate of authority
A state issued document empowering an insurance company to become an admitted insurer is called
Material misrepresentation-
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company.
No, as long as the act is reported in good faith
According to the Insurance Frauds Prevention Act, will the person who suspects a fraudulent transaction be penalized for reporting it to the Superintendent?
Personal injury
All of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT AClaims expenses. BDamage to the property of others. CLoss assessment coverage. DPersonal injruy
The applicant has been shown to be a poor personal credit risk.
All of the following are cause for the insurance superintendent to suspend or impose conditions upon the continuance of an agents license
$500 for business personal property on the insured premises.
All of the following are special personal property limits under a homeowners policy EXCEPT A$1,500 for trailers not used with watercraft. B$2,500 for theft of firearms. C$500 for business personal property on the insured premises . D$1,500 for securities, accounts, deeds, and evidences of debt.
Every insurer must file a fraud prevention plan within 150 days.
All of the following are true about the Insurance Frauds Prevention Act EXCEPT
It must be added by endorsement to a homeowners policy.
All of the following are true of Coverage B - Other Structures EXCEPT AThe amount of coverage provided by Coverage B is an amount equal to 10% of Coverage A. BLand where the other structures are located is not covered. CIt must be added by endorsement to a homeowners policy. DThis coverage is not applicable on the HO-4 policy form.
2
Chapter: Homeowners Policy Question 11 of 15 What is the maximum number of boarders per unit that would be allowed in the homeowners policy? A2 B3 C4 D5
The amount of coverage on the dwelling
Chapter: Homeowners Policy Question 13 of 15 The amount an insurer will pay under Coverage D (Loss of Use) depends on AIf the dwelling is owner-occupied or rented out. BThe length of time the dwelling is uninhabitable. CThe amount of coverage on the dwelling. DHow long a dwelling has been occupied.
The difference in the actual cash value as a pair and as a single
Chapter: Homeowners Policy Question 4 of 15 The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks? AThe replacement cost of the pair BThe actual cash value of the pair CNothing DThe difference in the actual cash value as a pair and as a single
A residence employee who is injured on the job.
Coverage F (medical payments) under a homeowners policy would cover AA tenant who is injured while on the premises. BA family member who is injured while residing in the insured premises. CThe insured for injuries sustained while working at home. DA residence employee who is injured on the job
An affidavit
#18. For every excess lines policy or policy renewal procured from an unauthorized insurer, producers must file which of the following? a) An affidavit b) A disclosure c) A certificate of coverage d) A binder
Property damage claims
#21. Under the New York No-Fault Law, which of the following claims would NOT be restricted from tort action? a) Medical expense claims b) Property damage claims c) Bodily Injury claims d) Loss of income claims
500 for business personal property on the insured premises
#25. All of the following are special personal property limits under a homeowners policy EXCEPT a) $2,500 for theft of firearms b) $500 for business personal property on the insured premises. c) $1,500 for securities, accounts, deeds, and evidences of debt. d) $1,500 for trailers not used with watercraft.
Manual rates
#26. Rates that are established based on the similarities of the risk with other risks are known as a) "A" rates. b) Merit rates. c) Manual rates. d) Experience rates.
The actual cash value of what was stolen, with limits for certain classes of property
#27. Theft coverage under an HO-8 is restricted to a) The larger of 10% of the personal property limit or $1,000. b) There is no theft coverage under an HO-8. c) $250. d) The actual cash value of what was stolen, with limits for certain classes of property.
Oral statements cannot be considered fraud
#29. Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? a) Omissions of material fact on insurance applications are fraud. b) False statements about the financial condition of an insurer are unlawful. c) Statements made with the intent to deceive are unlawful. d) Oral statements cannot be considered fraud.
Liability coverage
#31. Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss? a) Medical payments b) Comprehensive coverage Collision coverage d) Liability coverage
To pre-establish the amount of coverage available for property items that are difficult to value
#32. Which of the following best expresses the purpose of a stated value contract? a) To provide a maximum limit for which the insurance company may become liable in casualty losses b) To pre-establish the amount of coverage available for property items that are difficult to value c) To ensure that the principle of indemnification applies d) To establish the value of property subject to loss by theft or robbery
Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident.
#33. All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT a) Up to $200 a day for loss of earnings due to attendance at hearings or trials. b) Premiums on appeal bonds in any suit the insurer defends. c) Up to $250 for bail bonds required because of a covered accident. d) Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident.
Provisions
#34. All of the following are considered parts of the policy structure EXCEPT a) Conditions. b) Provisions. c) Exclusions. d) Insuring clause.
up to 1,000
#35. An insured is a member of the neighborhood association, and has become liable for damage to a third party. Each member of the association has been assessed a portion of the loss equal to $2,000. How much will the Loss Assessment additional coverage of the insured's homeowners liability policy pay? a) Up to $1,000 b) $2,000 c) Nothing d) Up to $500
An applicant who owns and lives on a commercial farm
#4. Which of the following risks would NOT be eligible for coverage under a homeowners policy? a) An applicant who owns and lives on a commercial farm b) An applicant who lives in a duplex that she does not own c) An applicant who owns and lives in a duplex d) An applicant who owns and lives on a commercial farm
$20 per day, for a maximum of $600
#46. Transportation expenses are covered under a personal auto policy for a) $50 per day, for a maximum of $500. b) $50 per day, for a maximum of $750. c) $20 per day, for a maximum of $600. d) $25 per day, for a maximum of $500.
landlord furnishings in an on premise apartment
#80. Which of the following types of property would be covered in homeowners coverage forms? a) Animals, birds, or fish b) Landlord furnishings in an on-premises apartment c) Structures used for business purposes d) Structures rented to others who are not tenants of the dwelling
Loss of income
#82. All of the following are major coverages included in the homeowners policy EXCEPT a) Loss of income. b) Personal property. c) Dwelling d) Loss of use.
Is from another state.
The Superintendent may refuse to issue a license in all of the following situations EXCEPT if the proposed licensee
15% of the agent's annual commission is from business sold to the agent's family.
The Superintendent will not renew an agent or broker's license upon finding that the license has been used to write controlled business. Which of the following would be a violation of controlled business practices?
The amount negotiated by the insured
Under a dwelling policy, which of the following is NOT a factor in determining a loss? AThe amount negotiated by the insured BThe policy limit CThe amount reflecting the insured's interest in the property at the time of loss DThe amount necessary to repair or replace the property
Limited to covering a servant's property while at the insured location.
Under the dwelling policy, Coverage C - Personal Property is
$5,000
What is the maximum fine for violating a cease and desist order
$80,000
What is the minimum amount of coverage that should be carried on an HO-2 on a home that was purchased four years ago for $75,000, which today has a replacement value of $100,000? A$100,000 B$60,000 C$75,000 D$80,000
Coverage A
What special form dwelling policy is for all risk perils
Coverage C
What special form dwelling policy is for broad form perils
All of the following are examples of risk retention except Copayments, Self-insurance premiums, deductibles
premiums
aleatory
small premium for a lot of risk
Coverage D
what is the coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss?
It does not protect the individual owner from loss to personal property owned exclusively by the unit owner
#48. The Residential Condominium Building Association Policy (RCBAP) is used for residential condominium building associations to cover the entire building under one policy. Which of the following statements about RCBAP is true? a) This policy form is not approved for use in the states of New York or New Jersey. b) It does not protect the individual owner from loss to personal property owned exclusively by the unit owner. c) It provides limited coverage for personal property owned exclusively by the unit owner d) It is designed to provide exclusive coverage for the individual owner and provides not coverage for the unit owner.
Immediately report to an emergency room for medical examination
#49. With regards to the personal auto policy, in the event of a claim or loss, the insured is required to do all of the following EXCEPT a) Promptly contact the police if the accident was a hit-and-run. b) Immediately report to an emergency room for medical examination. c) Notify the insurer as soon as possible with a description of the accident. d) Protect the insured auto from further damage
Part A
#51. In a watercraft policy, which coverage part will respond to a claim for damages for bodily injury or property damage for which the insured becomes legally liable because of a watercraft accident? a) Part A b) Part B c) Part D d) Part E
To be an insurance policy and is not protected by the new york state securities funds
#54. An insurance contract made between an insured and an excess line insurer is NOT considered a) A substandard form of coverage by the New york state department of financial services since the excess line insurer is a member of the ELANY b) To be valid in the state of New York regardless of capital reserves on deposit. c) To be an insurance policy and is not protected by the New York State Securities Funds. d) To be a standard form of coverage, but is protected by the New York State Securities Funds.
Sudden and accidental rupture of a heating system
#56. Which of the following perils is covered by the HO-2 and HO-3? a) Flood b) War c) Sudden and accidental rupture of a heating system d) Loss due to power interruption that occurs off the premises
Permitted Incidental Occupancies
#57. Which of the following homeowners endorsements covers liability exposures arising from an incidental business conducted within a building on the residence premises? a) Professional liability b) Business income - report of values c) Permitted incidental occupancies d) Special limit of liability
Rebating
#6. An agent who gives special favors or advantages in dividends or other benefits is guilty of a) Rebating. b) Twisting. c) Defamation d) Misrepresentation.
Accidental insurance, because it pays medical expense regardless of fault
#60. In a personal auto policy, the medical payments coverage is similar to a) Accident insurance, because it has the same limits. b) Bodily injury coverage, because it pays the insured's doctor bills. c) Bodily injury coverage, because it provides legal protection if the insured causes injuries to others. d) Accident insurance, because it pays medical expenses regardless of fault.
The plan is not permitted to reject any applicant for any reason
#63. All of the following statements concerning the New York Automobile Insurance Plan are correct EXCEPT a) In addition to the minimum limits required to meet the financial responsibility laws, the Plan must offer specified excess limits. b) Each insurer participating in the plan must maintain an office in the state of new york c) The Plan is not permitted to reject any applicant for any reason. d) All insurance companies writing motor vehicle insurance must participate in the Plan.
A misdemeanor with a $500-$2500 fine or 30 day imprisonment
#66. The penalty for supplying false information to the Motor Vehicle Accident Indemnification Corporation is a) A misdemeanor with a $5,000 fine or 6-month imprisonment. b) A felony with a $1,000 fine or 6-month imprisonment. c) A misdemeanor with a $500-$2,500 fine or 30-day imprisonment. d) A felony with a $5,000 fine or 1-year imprisonment
$25
#71. What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement? a) $25 b) $50 c) $75 d) $100
30 days
#73. How long is a waiting period upon purchase of flood coverage through NFIP? a) 10 days b) 30 days c) 60 days d) There is no waiting period.
Renewal dates
#75. What type of information would be found in a policy's insuring agreement? a) Policy limits b) Insurer's address c) Renewal dates d) Location of premises
Only when the other party is legally liable but has no insurance
#76. When would uninsured motorist coverage apply? a) Only when the insured drives an uninsured car b) Any time the insured is involved in an accident with an uninsured driver c) Only when the insured is legally liable d) Only when the other party is legally liable but has no insurance
The loss is payable to the insured and the mortgagee
#77. A mortgage company is named as a loss payee on the insured's homeowners policy, under the standard mortgage clause. If the insured suffers a loss due to a fire, which of the following is true? a) The loss is payable to the insured and the mortgagee. b) The mortgagee should submit a claim to its insurer, and the insured should submit a claim to the HO policy. c) The entire loss is payable to the mortgagee. d) The entire loss is payable to the insured.
A drivers own vehicle
#79. When a Transportation Network Company arranges a ride for a customer, which of the following vehicles would be used? a) A company vehicle b) A driver's own vehicle c) A taxi d) A limousine
Yes, because the endorsement may be provided without existing coverage.
#8. An individual without existing collision coverage or comprehensive coverage rented a car in New York, only to total it in Illinois. Will his rental vehicle coverage endorsement cover this loss? a) No, because the loss occurred in another state b) Yes, as long as the driver had existing collision coverage. c) Yes, because the endorsement may be provided without existing coverage. d) No, because the endorsement cannot be provided without existing coverage.
Which services are associated with standard & poor's and Am best?
Answer is Rating the financial strength of insurance companies.
Inform the Department within 30 days
An agent has recently changed his email address. What must the agent do to comply with the regulation for change of address?
Reinsurance-
An agreement between a ceding insurer an assuming insurer
Fair Credit Reporting Act
An applicant is denled insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of th consumer reporting company?
Fair Credit Reporting Act
An applicant is denled insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of th e consumer reporting company?
A firm who acts on behalf of the insurer
An independent adjuster may include which of the following?
Captive agent-
An insurance producer who by contract is bound to write insurance for only one company is classified as a.
1,000
An insured has a homeowners policy and is required to be a member of the homeowners association in her neighborhood. The association's community house has burned down, and the insured has been assessed $1200 for her share of the rebuilding cost. How much of the assessment will her homeowners policy pay? a) None b) $500 c) $1,000 d) 1,200
1,000
An insured suffers a windstorm loss in which the insured's driveway is blocked by two of the insured's trees and two of the neighbor's trees. The total amount of the removal adds up to the following: three trees at $300 per tree, and one tree at $600. How much will the insurer pay for the loss? A$1,500 B$1,400 C$1,000 D$900
Apparent authority-
Because an agent is using a stationary with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?
In writing and signed by the Superintendent.
Before an order by the Superintendent can be considered effective, it must be
Policyowners.
For the protection of public interest, the Superintendent may examine the books and records of any of the following EXCEPT
Every 2 years
How often must an insurance agent licensed in the state of New York renew the license?
45 days
If an insurer intends to nonrenew a dwelling policy, it must alert the insured of the nonrenewal at least how many days before the effective date?
Cease and desist order.
If the Superintendent finds a licensee in violation of an unfair method or unfair practice he or she will issue a
5 years.
In addition to examinations that are specifically authorized by the Insurance Code, the Superintendent may examine each domestic life insurer as often as it is deemed necessary for the protection of the consumers. The Code requires examination of domestic life insurers every
Unilateral-
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?
Apply within 90 days of becoming a resident.
In order for a nonresident licensee to become a resident producer in New York, the licensee must
The entity must be part of the New York Labor Union.
In order to qualify for a certificate of authority, every person, firm, association, corporation or joint-stock company must meet all of the following requirements EXCEPT
Express authority-
The authority granted to an agent through the agent's contract is referred to as.
The difference in the actual cash value as a pair and as a single
The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks? aThe actual cash value of the pair bNothing cThe difference in the actual cash value as a pair and as a single dThe replacement cost of the pair
Annually on or before march 1st
The new york state superintendent has the responsibility to make sure each entity transacting insurance in this state remains solvent. Insurers are required to file a statement with the superintendent.
$2,000 silver tea set stolen
Which loss listed below would be fully covered by a homeowners policy? A$5,000 firearm collection stolen B$2,000 silver tea set stolen C$1,200 pedigreed golden retriever stolen D$24,000 bass boat destroyed in a tornado
Forgery
Which of the following acts committed by an agent would be sufficient violation to warrant revocation or suspension of the agent's license?
Damage to the dwelling caused by lava or dust from a volcanic eruption
Which of the following examples of losses paid under an HO-3 also would be paid under an HO-2 homeowners policy? ADamage to the dwelling caused by the insured when moving furniture BAccidental scorching caused when a hot iron is placed upon a built-in counter top CInterior damage caused by water seeping under the shingles on the roof DDamage to the dwelling caused by lava or dust from a volcanic eruption
A producer previously licensed in New Jersey who is applying for a New York license 120 days after becoming a resident of this state
Which of the following individuals must pass the written examination to be licensed as an insurance agent?
Land on which the property is located
Which of the following is the type of property NOT covered by the homeowners policy? Aland on which the property is located BDwellings CMaterials and supplies DAttached structures
Applicants must be at least 18 years old.
Which of the following is true regarding licensing in the state of New York?
That its policies are covered by a state Guaranty Association
Which of the following may NOT be included in an insurance company's advertisement?
Sudden and accidental rupture of a heating system
Which of the following perils is covered by the HO-2 and HO-3? ALoss due to power interruption that occurs off the premises BFlood CWar DSudden and accidental rupture of a heating system
A person who negotiates insurance contracts
Which of the following persons is required to hold a producer license?
The applicant must have two letters of recommendation attesting to trustworthiness, rellability and good reputation.
Which of the following qualifications for obtaining a resident insurance agent's license in the state of New York is FALSE?
Consumer report
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
Apparent-
Which of the following types of agent authority is also called" perceived authority"
Severability of insurance
Which policy condition in HO policies states that insurance applies separately to each insured? ALimit of liability BPayment of claim CSeverability of insurance DAppraisal
The insurer
Who does the agent represent?
3 days
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
2 years
Within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?
adhesion
a contract is prepared by the carrier and only option is to accept or reject the policy as it is written