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New York Indep. Motor Vehicle No-Fault
and Workers Compensation Health
Services Adjuster (Series 17-72) Test
2025 || Questions & Answers (100%
Verified)
When an insurer intends to non-renew a homeowners policy in New York, at least _____ advance notice of non-renewal must be sent to the insured - ANSWER - 45 days The type of auto body frame that is most often used in today's automobile and is a single molded unit, is known as: - ANSWER - A unibody frame.. Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-fault accident and incurs the following expenses: $30,000 bodily injury judgment; $30,000 property damage judgment; $5,000 damage to traffic light; $6,000 attorney's fees for his defense; $300 in premiums for appeal bond; and $75 in bail bond premiums for related traffic violations. What is the maximum amount his insurance company will pay? - ANSWER - $56,375. The policy cannot pay more than its limit of liability. Under supplemental coverages in the policy, the policy will pay the defense costs plus the cost of the premiums on appeal bonds and bail bonds. Before revoking or suspending a license, the Superintendent must first send _____ notice and give the accused an opportunity for a hearing. - ANSWER - 10 days. Mr. York had his pickup truck stolen while it was parked in a "no parking" zone outside his office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and hubcaps for the truck valued at $550 and a tarp worth $50 were in the truck. Mr. York has a collision deductible of $500 and a comprehensive deductible of $250. The insurance company will pay what amount - ANSWER - $18,800. The loss of the truck plus the extra tires and hubcaps would be considered in this claim. These total $19,050 less the deductible of $250 equals $18,800. Which of the following are covered by the Federal Employers' Liability Act (FELA)? - ANSWER - Employees of interstate railroads. Garagekeepers specified causes of loss coverage would apply to each of the following, EXCEPT: - ANSWER - Windstorm.
Which of the following lines of insurance are covered under the Terrorism Risk Insurance Act, now referred to as the Terrorism Risk Insurance Extension Act of 2015?
- ANSWER - Workers compensation The ____ glands produce hormones required by the body such as estrogen and progesterone and chemicals such as adrenalin. - ANSWER - Adrenal is a condition resulting from the lack of oxygen to the brain which can cause paralysis, speech problems or dementia. - ANSWER - A stroke Anyone who threatens, forces or corruptly influences, obstructs or impedes the due and proper administration of the fraud law relating to the insurance business may be fined and/or imprisoned up to: - ANSWER - 10 years An "uninsured motor vehicle" under a personal auto policy does not include: - ANSWER
- An abandoned car used as a residence.. Which of the following are exempt from certain sections of the New York cybersecurity regulation? - ANSWER - All responses listed are correct.. Danny owns an auto body shop and he has received a request from a client to restore his 1964 Ford Mustang. The client has requested a custom mustang horse be painted on the hood of the car. Danny always selects the type of paint most suited for the job, so which of the following paint types will Danny most likely select to paint the horse? - ANSWER - Lacquer The root word "glyc" refers to: - ANSWER - Sugar. 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? - ANSWER - A civil penalty of not more than $50,000.. What commercial auto form is used to cover taxis and bus companies - ANSWER - Motor carrier form. Tom has lost 30% of his hearing in both ears. His doctor has advised him that his hearing loss has been caused by exposure to noise at his workplace for the past 25 years. Tom's hearing loss can be catoragized as a: - ANSWER - Cumulative Trauma Disorder. Tearing of a muscle results in an injury known as a: - ANSWER - strain In commercial auto physical damage coverage, what "triggers" the coverage that applies to the vehicles? - ANSWER - Symbols
Which of the following is NOT a correct statement in determining the cost of a "comparable automobile" when a physical damage loss has a occurred? Select the Correct Answer When comparable automobiles are available or were available in the local market area in the last 90 days, the average cost of two or more comparable automobiles. The cost of a comparable automobile as determined by a computerized automobile valuation service that produces statistically valid fair market values within the United States market. When comparable automobiles are not available or were not available in the local market area in the last 90 days, the average of two or more quotations from two or more licensed dealers in the local market area. If not possible to determine the value using standard methods of value determination, the cost of a comparable automobile shall otherwise be supported by documentation and fully explained to - ANSWER - The cost of a comparable automobile as determined by a computerized automobile valuation service that produces statistically valid fair market values within the United States market.. Which of the following losses would be paid under the "Other than Collision" coverage of the Personal Auto policy? Gradual corrosion of the grillwork on the insured automobile due to continuous exposure to salty air. The insured automobile was stolen and never recovered. The insured automobile skidded on icy pavement and overturned. The insured automobile was damaged when it was hit by another car that failed to stop at a red traffic light. - ANSWER - The insured automobile was stolen and never recovered.. A New York adjuster commits an act of insurance fraud addressed by the Federal Insurance Fraud Act. The fraud does not affect the financial stability of the company. What is the maximum time the adjuster may be confined to prison? - ANSWER - 10 years During a baseball game, a player was struck in the frontal region of his cranium by a batted ball. This frontal region is known as the: - ANSWER - Forehead. Which of the following events, arising out of the use of a covered auto, is covered under the personal auto policy? - ANSWER - Damage to a private garage rented by the insured.. The workers compensation policy language is written by the: - ANSWER - National Council on Compensation Insurance (NCCI) Cystic fibrosis is a serious and often fatal disease that affects the: - ANSWER - Lungs.
Vehicle glass, other than the windshield, is made of: - ANSWER - Tempered glass. The insured is covered under a personal auto policy and carries liability coverage, other than collision (comprehensive) coverage and collision coverage. He has a large quantity of CDs in the vehicle. The vehicle is broken into and these items are stolen. How will the insurance company handle the claim for the CDs? Deny the claim in full. Pay the claim in full. Pay the claim minus depreciation. Pay the claim minus the deductible. - ANSWER - Deny the claim in full. Which of the following insurance companies MUST participate in a state's automobile assigned risk plan All licensed insurance companies that sell auto insurance in the state. Only companies that sell more than 1,000 auto policies per year in the state. Only the ten largest auto insurance companies in the state. Only excess lines insurance companies that sell auto insurance in the state. - ANSWER - All licensed insurance companies that sell auto insurance in the state. You are at home having your roof repaired. An employee of the roofing company needs to go to the hardware store to purchase supplies. Your car is blocking the driveway so you allow him to use your car to go to the store. While driving your car, he is at-fault in an auto accident. Your insurance policy will protect: All of the parties would be protected by your policy. Only you the insured will be protected. Only the employee will be protected. Both you and the insured will be protected - ANSWER - All of the parties would be protected by your policy. The commercial auto policy form provides for "worldwide liability coverage" for private passenger autos that the insured: Hires, leases, rents or borrows without a driver. Purchases. Sells. Occupies. - ANSWER - Hires, leases, rents or borrows without a driver. What limit of liability would be needed for a risk that transports radio active materials as required by the Motor Carrier Act under the MCS-90 endorsement? - ANSWER - $5,000, The limit for medical expenses and rehabilitation expenses under the New York no-fault plan is: - ANSWER - $50,
The insured carries auto insurance in New York and has purchased the Supplementary Uninsured Motorist Coverage (SUM). This coverage: - ANSWER - Replaces the statutory uninsured motorist coverage. Under the commercial auto policy providing physical damage, which of the following offers the broadest coverage Comprehensive. Specified cause of loss. Named perils. Broad named perils. - ANSWER - Comprehensive. 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. - ANSWER - I, II and III In New York, property damage to a rental car is paid under which of the following automobile coverage? The insured's property damage coverage. The insured's physical damage coverage. By the attachment of a special endorsement. Coverage can only be purchased and provided by the rental car company. - ANSWER - The insured's property damage coverage Which of the following is true regarding Independent Medical Examinations (IMEs) requested by an insurer while adjusting a workers compensation claim? The results found in an IME are confidential and cannot be shared with the insurer. The results of the IME are confidential and can only be shared with the insurer with the injured worker's consent. The results of an IME will only be shared with the insurer if the findings conflict with the findings of the treating physician. An IME does not create a doctor-patient relationship, therefore the findings of the IME are not confidential and can be shared with the adjuster and insurance company. - ANSWER - An IME does not create a doctor-patient relationship, therefore the findings of the IME are not confidential and can be shared with the adjuster and insurance company. The Terrorism Risk Insurance Program Reauthorization Act of 2015 excludes all of the following, EXCEPT: - ANSWER - Commercial Property In addition to the minimum auto limits, all auto policies written in New York must also include a limit for wrongful death. The limit is: - ANSWER - $50/100.
An insured auto dealer has purchased garage policy physical damage coverage against specified causes of loss. Which of the following losses will not be covered by the policy?
- ANSWER - Damage resulting from the collision of the truck carrying a covered auto with another vehicle. New York is one of a few states that mandates benefits for employees who suffer nonoccupational disabilities. To be eligible for benefits, an employee must have been in the employ of a covered employer for at least ______ before the disability. - ANSWER - 4 consecutive weeks Which one of the following answer choices lists the components used in laminated safety glass? Two pieces of glass of equal thickness and a sheet of safety film. A sheet of safety film and two pieces of tempered glass. Two pieces of tempered glass and rubber caulking. Two sheets of safety film and two pieces of tempered glass - ANSWER - Two pieces of glass of equal thickness and a sheet of safety film.. Amelia has suffered a covered collision loss to her vehicle. The insurer requires that her vehicle be repaired at a repair shop of the insurer's choice. The insurer: - ANSWER - Is guilty of an unfair claims practice act The BAP uses Symbol 7 to cover "specifically described autos" identified in the declarations. An auto acquired during the policy period will only be covered: Answer If the insured insures all of their vehicles with the company or it replaces a covered auto. Only if it is a private passenger auto Only if it is other than a private passenger auto If reported to the company within 14 days of acquisition - ANSWER - If the insured insures all of their vehicles with the company or it replaces a covered auto.. An "uninsured motor vehicle" under a personal auto policy does not include: An abandoned car used as a residence. A "hit and run" driver. A vehicle carrying liability insurance in an amount less than required by a state's financial responsibility law. A car whose bodily injury liability coverage has expired. - ANSWER - An abandoned car used as a residence. The required standard deductible for auto physical damage coverage in New York is: - ANSWER - $200.00 per occurrence
Pollution of a stream caused by gasoline leaking from the ruptured fuel tank of a covered auto following a collision. Escape of toxic sludge from a dump site used by the named insured to store waste produced in its garage operations. The cost of a governmentally ordered clean-up of the pollution from a dump site used by the named insured. None of the losses described would be covered. - ANSWER - Pollution of a stream caused by gasoline leaking from the ruptured fuel tank of a covered auto following a collision.. Tachycardia is a condition in which the heart contracts at a rate greater than ____ beats per minute. - ANSWER - 100 All of the following are included in an insurance property estimate of damages, EXCEPT: - ANSWER - Depreciation When would the personal auto policy respond to a loss with a three wheeler - ANSWER
- When used in an emergency situation All of the following circumstances would be covered under workers compensation, EXCEPT: - ANSWER - The worker was injured while violating a company rule at lunch break. All of the following are considered to be family members on the PAP, EXCEPT: - ANSWER - Insured's mother who doesn't live in the household What can happen when an independent contractor is injured while working and files a claim stating that they were actually an employee? The claim will be denied. The claim will be paid as if the insured is "self insured." Only a portion of the claim will be paid. The insurance carrier can charge an additional premium for the exposure. - ANSWER - The insurance carrier can charge an additional premium for the exposure. Which of the following is NOT a correct statement in determining the cost of a "comparable automobile" when a physical damage loss has a occurred? - ANSWER - The cost of a comparable automobile as determined by a computerized automobile valuation service that produces statistically valid fair market values within the United States market.. The named insured is an auto dealer with a single insured location. Physical damage coverage under the insured's garage policy is written on a reporting basis. On the date of the insured's last report, the value of covered autos at the insured's location was $400,000; the insured's report on that date showed values of $300,000. A covered loss occurs, with damage totaling $80,000. How much of this loss will the garage insurer pay?
$0 - ANSWER - $60,000 The insured will suffer a penalty equal to the percentage of the under reporting of the inventory bears to the actual inventory. The insured reported 25% less than the actual inventory and would be paid $60,000 instead of the $80, loss. Which of the following best describes an abnormal condition in which a clot develops within a blood vessel? - ANSWER - Thrombosis Commercial Auto insurance applies to accidents or losses in all of the following locations, EXCEPT: - ANSWER - Mexico. A person that has been found to be committing unfair or deceptive acts in the business of insurance can be fined up to ______ per day for each offence. - ANSWER - $ Cars driven by Sue Trent and Jim Higgins were involved in an automobile accident where Mr. Higgins was at fault. Sue Trent's car was a total loss and valued at $6,000, plus she sustained bodily injuries totaling $25,000. Scott Finley, Ms. Trent's passenger, was injured and incurred $6,000 in medical expenses. Mr. Higgins, the responsible party, carries bodily injury coverage with limits of $15,000 per person and $30,000 per accident, and property damage coverage of $5,000. His policy will pay a maximum of: $26, $29, $35, $39,000 - ANSWER - $26,000 Mr. Higgins' policy will pay a maximum of $26,000. The maximum per person limit that can be paid to any one person as a result of Mr. Higgins' negligence is $15,000. Therefore, Sue Trent will receive only $15,000 and Scott Finley will receive $6,000. This amounts to $21,000 in bodily injury payments. The property damage limit carried by Mr. Higgins is only $5,000. Therefore, the most that can be paid for the total loss to Sue Trent's vehicle is $5,000 even though her vehicle is worth $6,000. The total of $21,000 plus the $5,000 is $26, An employee of a metal fabricating employer was injured while moving metal sheeting an fractured his right ulna and radial bones, and his right tibia and fibula. What regions of this employee's body was injured? - ANSWER - This employee fractured his right forearm and his right lower leg. The insured is covered under a personal auto policy with collision coverage and a $500. deductible. He is involved in an at-fault accident. The loss involves $4,000 damage to the vehicle and a $45.00 storage fee. How much will the insurer pay $3, $4, $3,
Growth or formation Abnormal condition Sickness or disease Tumor or swelling - ANSWER - Sickness or disease Under the Federal Insurance Fraud and False Statements Act, if someone is prohibited from doing business in a state, approval to resume transacting business must be granted by: - ANSWER - Submitting a 1033 waiver form and having it approved by an insurance regulatory official in his or her state Which of the following items are advantages of enamel automobile paint over lacquer paint? I. Enamel is thicker than lacquer. II. Enamel does not attract insects. III. Enamel evaporates a much smaller portion of its chemistry into the atmosphere, making it less toxic than lacquer. IV. Enamel is better suited to custom automobile painting. - ANSWER - I and III only. Joann, an adjuster who holds a resident adjuster license in New York, has had administrative action taken against her in another state where she holds a nonresident license. What are her responsibilities to the New York Department of Insurance? - ANSWER - Once the administrative action has reached it final conclusion, she must report the final disposition of the matter to the New York Superintendent within 30 days. is a straightening movement allowed by certain joints of the skeleton that increases the angle between two adjoining bones. Flexion Rotation Extension Gliding - ANSWER - Extension A vehicle rolled over exiting the interstate. The insured carries collision coverage with a $1,000 deductible and other than collision coverage with a $500 deductible. The damage to the vehicle is $2,000. What amount is the insurer responsible to pay? $2, $1, $1, Nothing - ANSWER - $1, Under the liability coverage of the commercial auto policy, which of the following would NOT be covered? A third party claim occurred a week after products were finally delivered to a customer. A third party claim that occurred in a warehouse as an employee was using a hand truck to load a delivery truck.
A third party claim that occurred while the truck was being loaded by the use of a mechanical device attached to the truck. A third party claim as a result of a truck being unloaded by hand. - ANSWER - A third party claim occurred a week after products were finally delivered to a customer Under which of the following claims settlements are the claim invoices presented and paid with no attempt to obtain a separate release? A partial release A walk-away release An open-end release Structured Settlement - ANSWER - A walk-away release Premium costs for Workers Compensation insurance are paid by Employers only. Employees only. Employers and employees jointly. The workers compensation board. - ANSWER - Employers only.. Under the Terrorism Risk Insurance Reauthorization Act of 2015, the Secretary of the Treasury is charged with certifying that an act of terrorism has occurred and that it would be covered under the Act. However, before certification is complete the Secretary of the Treasury must consult with ______. The Secretary of Homeland Security The President The Vice President The Secretary of State - ANSWER - The Secretary of Homeland Security In what region of the human skeleton do most common back problems occur? - ANSWER - Most common back problems occur in the lumbar area of the spine.. Bill Berry was at-fault in an automobile accident. Which of the coverages listed would apply to the rental car expense incurred by the other driver while his damaged auto was being repaired? Property Damage Liability Bodily Injury Liability Additional (supplementary) payments Medical Payments - ANSWER - Property Damage Liability 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 in a homeowner policy for $150,000, is also a total loss. How will this claim most likely be paid? The insured is paid a total of $300,000. The mortgagee is paid $150,000. The insured is paid $150,000 for the personal property loss.
For all but small employers, premiums in a Workers Compensation policy include an adjustment, upwards or downwards, based upon how the employer's actual loss experience compares to that expected of employers which do similar work. What is the name of the factor that accounts for this adjustment? - ANSWER - The experience modification factor Workers compensation insurance is a contract between: - ANSWER - Insurance company and the employer. A tornado blows over a wall of a barn which, in turn, knocks over a lamp and starts a fire. What is the proximate cause of loss? Tornado Smoke Fire Water Damage - ANSWER - Tornado What is the first thing an insurance company staff adjuster must determine in handling a workers compensation injury claim? - ANSWER - Whether coverage was in effect at the time of the injury The human respiratory system supplies oxygen and removes _____ from the body - ANSWER - carbon dioxide An authorized insurer in the state of New York may use a report from any acceptable consumer reporting agencies as part of its underwriting process. Which of the following Acts was established to protect individuals from possible abuses of information contained in their credit files? - ANSWER - The Fair Credit Reporting Act Sally Roe's vehicle is rear-ended by John Doe. Sally and John are good friends. Sally tells John not to worry about the damage. She says she has insurance and will tell her insurance company to pay for the damage. She will waive her subrogation right so that John won't have to pay anything. Her insurer will: Honor the waiver. Not honor the waiver. Proceed with subrogation against John Doe and will not honor the waiver. Refuse to pay the claim because of the waiver of subrogation. - ANSWER - Proceed with subrogation against John Doe and will not honor the waiver Under the New York Comprehensive Automobile Insurance Reparations Act, (No Fault) coverages, what is paid for basic economic loss benefits for substitute services? - ANSWER - $25 per day for one year. Paul's neighbor Pete gives Paul the keys to his uninsured pickup truck to use whenever Paul wants to. When would this vehicle NOT be considered a "covered auto" on Paul's auto policy? - ANSWER - Paul's vehicle is out of gas
New York residents securing any type of insurance adjuster license must meet all the following qualifications, EXCEPT The applicant must pass a state licensing examination. The applicant must be at least 21 years of age. The applicant must submit to fingerprinting. The applicant must not be a convicted felon - ANSWER - The applicant must be at least 21 years of age.. Under the comprehensive coverage of a business auto policy, which of the following would not be a covered loss? After sliding on an icy pavement, a driver hits a guardrail. Electrical wiring in the vehicle catches fire when the ignition is turned on. All four tires are removed and a truck is put on blocks while it is parked over the weekend, even though there is no evidence of forcible entry into the company parking lot. A vehicle has its tires slashed by an undetermined person. - ANSWER - After sliding on an icy pavement, a driver hits a guardrail. What is found in the Part VI - Conditions section of a Workers Compensation policy - ANSWER - Cancellation clause Tom purchases a personal auto policy with limits of $25/50/25 and his wife Jane also purchases a policy with limits of $50/100/25. Both policies cover the same automobiles and both policies were purchased from the same insurance company. Neither Tom nor Jane is aware their spouse has purchased another personal auto policy. If an accident occurs and several people are injured, what is the most in liability coverage that will be available if Tom and Jane are both sued by the injured parties? - ANSWER - If the policies are from the same company, Jane's limit of $100,000 would apply because it is the highest of the two limits Which of the following is the type of report indicating the initial results of the investigation of a claim? Field Report Interim Report Full Report Claims Report - ANSWER - Field Report What is the purpose of the State Insurance Fund as it relates to workers compensation coverage? - ANSWER - To provide employers with a market for coverage when coverage cannot be obtained elsewhere A person asserting a right to payment under an insurance policy is referred to as: - ANSWER - A first party claimant. A monopolistic state in regards to Workers Compensation insurance is a state in which - ANSWER - Coverage must be purchased from the state.
On what date must an adjuster license be renewed in New York? - ANSWER - December 31 - even numbered years A non-waiver agreement allows the insurer to: - ANSWER - Investigate a loss without implying that it is covered Tearing of a ligament results in an injury known as a: - ANSWER - sprain In New York, what is the current burial benefit for a worker killed in a work related incident? - ANSWER - $6, What type of automobile coverage might a person need if he or she does not own a vehicle? - ANSWER - A named non-owner auto policy The premium charged for a standard Workers Compensation policy is based primarily on a company's: - ANSWER - Payroll. If a person suffered a burn that blistered the skin and required immediate medical attention, that person probably suffered what degree of burn? - ANSWER - A second degree burn. Ellen's automobile is stolen. The theft is properly reported to the police and the insurance company. She rents a car for two months. Which of the following would apply for the rental car? - ANSWER - After a waiting period of 48 hours, her policy will pay $20 per day up to a maximum of $600. Under the Motor Carrier Act of 1980, a vehicle hauling excess oil, explosives or nitrous gases is required to carry a minimum liability limit of: - ANSWER - $5,000, If a person is qualified to receive benefits from the Motor Vehicle Accident Indemnification Corporation and are injured by a "hit and run" driver, how many days do they have to file a claim? - ANSWER - 90 days What is the difference between arbitration and mediation in the adjusting of claims? - ANSWER - Mediation is not binding whereas with arbitration, the decision is final and binding on the parties.
