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NEW YORK INDEPENDENT GENERAL
ADJUSTER EXAM SIMULATOR - SERIES
17-70 2025|| Complete Questions &
Answers (100% Verified)
The insured owns a motorhome that is not covered by the insured's Personal Auto policy. This vehicle can be added to the policy by using which of the following endorsements? Miscellaneous Type Vehicle endorsement Special Type Vehicle endorsement Recreational Vehicle endorsement Motorhome endorsement - ANSWER - The correct answer is: Miscellaneous Type Vehicle endorsement. EXPLANATION: The Miscellaneous Type Vehicle endorsement can be used to cover motorhomes, motorcycles, etc. Insurers must maintain a complaint record for _________ after all elements of the complaint are resolved and the file is closed. five years three calendar years one year six calendar years - ANSWER - The correct answer is: six calendar years. EXPLANATION: Insurers are required to maintain complaint records for six calendar years. A BOP policy has a $500,000 occurrence limit for liability and a $1,000,000 aggregate limit. If claims for $600,000 and $400,000 have been filed in two separate incidents, how much coverage remains, if any, for any future claims submitted during the policy term? Answer Choices: $500, -0- $100, $1,000,000 - ANSWER - The correct answer is: $100,000.
EXPLANATION:
The most the policy will pay for any one single occurrence is $500,000. So that amount would be payable for the first loss. Once paid that amount must be subtracted from the Aggregate limit (the most available for all claims in the policy year) leaving $500, remaining in the aggregate. The second claim is within the occurrence limit and since there is enough left in the aggregate, the entire $400,000 is payable. After subtracting the $400,000 loss from the remaining aggregate, $100,000 is left to pay any and all future claims for the remainder of the policy term. Which of the following would NOT be found in the conditions section of a homeowners insurance policy? Subrogation rights Duties of the insured Insurance premium Mortgagee clause - ANSWER - The insurance premium is not shown in the conditions section of the homeowner policy. Which of the following is true regarding dealers physical damage coverage under a garage policy? It is a blanket limit for covered autos. It extends coverage to customers' autos. It is an annual maximum limit for comprehensive and collision losses. It is a maximum limit per auto. - ANSWER - It is a blanket limit for covered autos. EXPLANATION: The dealer's physical damage limit would be done on a blanket limit basis. This would apply to comprehensive and collision losses to the auto inventory of the dealer. This is done because it is simply not practical to schedule each dealer owned vehicle for physical damage. This is generally accomplished by the use of a monthly reporting form. Which of the following would not be considered an occupational disease? Black lung. Mesothelioma. Pulmonary fibrosis. Bending over to pick up a box and hurting your back. - ANSWER - Bending over to pick up a box and hurting your back. is correct. EXPLANATION: Bending over to pick up a box and causing an injury is a work related injury and not a disease. Which of the following is correct in order for the additional coverage of "collapse" to be available under special BOP?
endorses the policy to cover losses on an Actual Cash value bases. If replacement cost coverage applies, then the 24-month period is a factor if the insured is to receive replacement cost coverage for the loss. Concurrent policies are: Separate types of policies issued to an insured by an insurer Separate policies that insure the same interest and the identical property in the same loss Not illegal Also known as co-insurance - ANSWER - EXPLANATION: Concurrent policies are separate policies that insure the same insured and the same property in the same loss. In order for coverage to apply under an occurrence commercial umbrella liability policy: A claim for actual damages must be made before the retroactive date. The occurrence causing the injury or damage must take place during the policy period. First notice of the claim must be made during the policy period. The injury must take place before the policy period. - ANSWER - EXPLANATION: The occurrence causing the injury must take place during the policy period. The insured carries an Equipment Breakdown policy with a limit of $300,000. A boiler has exploded and caused extensive damage to the building and its contents. As a result of the explosion a fire ensues causing $100,000 in damages. How much will the Equipment Breakdown policy pay for the fire damage? $50, $25, $100, $0 - ANSWER - EXPLANATION: The Equipment Breakdown policy excludes fire damage. The loss would be covered under a commercial property form. Which of the following is not a consideration when underwriting an aircraft hull policy? Qualifications and experience of the pilot Age and gender of the pilot Size of the aircraft Type and age of the aircraft - ANSWER - EXPLANATION: When underwriting an aircraft hull policy the age or gender of the pilot is not a consideration. Surety bonds deal with which of the following? The performance by another party of an obligation or undertaking.
On-premises Employee Dishonesty The theft of a third party's goods by an employee. Loss as a result of an inventory shortage. - ANSWER - The performance by another party of an obligation or undertaking. is correct. EXPLANATION: Surety bonds are issued to guarantee the obligee for the performance of the principal under the bond. Who are the three parties to the "appraisal clause"? Answer Choices: Select the Correct Answer The insured, the insurer, and the appraiser The two appraisers and the Insurer The two appraisers and the umpire The two appraisers and the insured - ANSWER - EXPLANATION: The three parties are the two appraisers and the umpire. Which of the following would be covered under a Business Auto Symbol number 7? Answer Choices: Select the Correct Answer Hired auto only Non owned auto Specifically described auto only Any auto - ANSWER - The correct answer is: Specifically described auto only. EXPLANATION: The purpose of Symbol 7 in commercial auto is to cover only specifically described vehicles as opposed to covering all the insured's. This occurs when an insurer may agree to cover all of the owner's vehicles except certain types. A vehicle used to transport pollutants or explosives is an example. The burden of proof is normally a duty of: Answer Choices: Select the Correct Answer The insurance company The adjuster The insured The contractor - ANSWER - Your answer: The insured is correct. The burden of proof is the responsibility of the insured. 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 Choices: Select the Correct Answer 45 days 60 days 90 days 30 days - ANSWER - 45 days is correct. EXPLANATION:
The bills are paid and no attempt to obtain a separate release is made. The insurer agrees to waive its right to subrogation against a third party who caused the damage. - ANSWER - he bills are paid and no attempt to obtain a separate release is made. is correct. EXPLANATION: The bills presented are paid with no attempt to obtain a separate release, although the wording on the draft or check may also serve as a form of release. After a certain amount of time has passed with no further contact with the claimant, the file is considered closed. Who is responsible for the legal fees in a lawsuit covered by Employer's Liability in a standard workers compensation policy? The insurer The insured The employer if found negligent The party bringing the lawsuit - ANSWER - The correct answer is: The insurer. EXPLANATION: Under Employer's Liability Insurance of a standard workers compensation policy, the insurer promises to pay, at its own expense and without limit, the costs of investigating claims against an insured and the costs of defending the insured for such claims. Which of the following represents an indirect loss? A tree fell on a house, causing a hole in the roof, which later allowed rain to enter Rain entered a house after a tree fell onto it, later causing mold to develop Mold developed in a house, later causing the occupants to become very ill A kitchen fire made a house untenable, causing the occupants to incur hotel charges - ANSWER - The correct answer is: A kitchen fire made a house untenable, causing the occupants to incur hotel charges. EXPLANATION: An indirect loss is the temporary loss of use caused by a direct property loss. A kitchen fire is a direct loss. If that loss is severe enough to make the house unfit to be used, the insured will need to temporarily find an alternative place to live in until repairs to the house are completed. The cost of that temporary replacement - the hotel charge - is the indirect loss. If an insured carries Coverage C under a dwelling form, how much coverage applies on a worldwide basis? 10% of the Coverage C limit 20% of the Coverage C limit 40% of the Coverage C limit 50% of the Coverage C limit - ANSWER - 10% of the Coverage C limit is correct. EXPLANATION:
Whereas homeowners forms provide the FULL limit of personal property coverage anywhere in the world, dwelling forms cover only 10% of the personal property limit on a worldwide basis. The remainder of the personal property is covered only while on the designated premises. Insurers can refuse to renew a health insurance policy for all of the following reasons, EXCEPT: Answer Choices: Select the Correct Answer nonpayment of premium. deterioration of the insured's health status. fraud or misrepresentation of a material fact in the policy application. discontinuance of a class of policies. - ANSWER - deterioration of the insured's health status. is correct. EXPLANATION: When deterioration of health occurs, insureds have every expectation to anticipate claims to be paid within the coverage parameters of the policy. An insurer whose place of incorporation is Toronto, Canada would be identified as a/an: Answer Choices: Select the Correct Answer Alien insurer. Non-admitted insurer. Foreign insurer. Domestic insurer. - ANSWER - Alien insurer. is correct. EXPLANATION: Insurance companies located outside the borders of the United States are known as alien insurance companies. An act of terrorism under the Terrorism Risk Insurance Act (TRIA) is defined as: All of the responses listed are correct. Any act certified by the Secretary of Treasury, in concurrence with the Secretary of State and the Attorney General. To be a violent act or an act that is dangerous to human life. To be a violent act or an act that is dangerous to property or infrastructure. - ANSWER - All of the responses listed are correct.. EXPLANATION: All of the responses are correct and are considered to be terrorism as defined by the Act. Note: The Act was again extended in 2015 and is due to expire on December 31,2020. Please check the outline from the testing vendor in your state to determine the version of the Act on which it is testing. Under the 2015 amendment, an act of terrorism must now be certified by the Secretary of Treasury in concurrence with the Secretary of Homeland Security (formerly in concurrence with the Secretary of State) and the Attorney General. The stomach is responsible for:
The conditions of employment An industrial injury Conditions that also exist directly outside the workplace Bodily injury by disease is not covered. - ANSWER - The conditions of employment is correct. EXPLANATION: To be covered, a disease contracted by an employee must arise from the conditions of employment and in the course of employment. This means the disease must be identified with the occupation or place of employment the employee was working in, at the time of exposure. In the ocean marine insurance, which of the following is considered to be the most important implied warranty? I. Seaworthiness. II. Condition of the cargo. III. Legality. I only. I and II only. II and III only. I and III only. - ANSWER - I only. is correct. EXPLANATION: All of the responses are implied warranties in ocean marine insurance. The most important is considered to be the seaworthiness of the vessel. Which of the following statements is true regarding the purpose of Umbrella policies? Answer Choices: Select the Correct Answer All of these statements are correct To provide higher limits of liability To expand coverage beyond primary policies To provide coverage when primary limits are exhausted - ANSWER - All of these statements are correct is correct. EXPLANATION: Umbrella policies provide higher limits over primary coverages, provide broader coverage than underlying policies, and they also provide primary insurance in some cases where the underlying policies leave gaps. When the Umbrella policy provides coverage not provided by the underlying coverage there is a SIR (self-insured retention) otherwise considered to be a deductible. Which of the following is NOT provided by the farm employers liability and farm employees medical payments insurance endorsement? Answer Choices: Select the Correct Answer Payment of statutory workers compensation benefits Pays medical payments to an injured farm employee
Provides employers legal liability coverage where a bodily injury has occurred to an employee Provides defense coverage to the farm owner as a result of an injured employee who brings a legal action - ANSWER - Payment of statutory workers compensation benefits is correct. EXPLANATION: This endorsement offers farm employers liability coverage and farm employee medical payments insurance. This endorsement does not provide statutory workers compensation benefits. Which section of the spine is comprised of five fused vertebra? Answer Choices: Select the Correct Answer Lumbar vertebrae Cervical vertebrae Thoracic Sacral - ANSWER - Your answer: Sacral is correct. EXPLANATION: Below the lumbar area are five sacral vertebrae. These comprise the sacrum. These five vertebrae fuse into one bone. Under the property coverage offered by the HO-3 form, which would not be covered? Answer Choices: Select the Correct Answer The property of a teenage friend of the insured's son who is temporarily residing with the insured and whose property is stolen. A business associate who suffers damage to his clothing from the insured's fireplace when a log rolled out. Property that belongs to a friend of the insured and which the insured borrowed and is temporarily using. The dog owned by a guest that is stolen while he is visiting the insured. - ANSWER - The dog owned by a guest that is stolen while he is visiting the insured. is correct. EXPLANATION: The policy excludes animals as covered property. What does the term "comparative negligence" refer to? The percentage of fault is shared by each driver in an accident in which both contribute to causing the accident. The one who is most negligent receives no payment when the claim is settled. The one who is the least negligent receives no payment when the claim is settled. If both parties have contributed to causing the accident, neither party receives any payment when the claim is settled. - ANSWER - The percentage of fault is shared by each driver in an accident in which both contribute to causing the accident. is correct. EXPLANATION: Comparative negligence establishes the percentage of fault shared by each driver in an accident in which both contribute to causing the accident. Comparative negligence laws vary by state.
EXPLANATION:
Similar to the loss of use coverage on the homeowner policy, Coverage D on the farm policy will pay both the additional living expenses of the owner occupant and any loss of rental income if a tenant is also unable to live there after a covered loss. An insured has a BOP and desires to add the endorsement that provides Utility Servises-Direct Damage coverage. What types of property must be listed for coverage to apply? Answer Choices: Select the Correct Answer Overhead transmission lines Water Supply Services Wastewater Removal Property All of the responses are correct - ANSWER - All of the responses are correct is correct. EXPLANATION: All of the responses are correct. The form must indicate that overhead transmission lines are to be included. In addition to the items listed in this question, Communication Supply Services and Power Supply Services can be included. Note: This is a possible test question. 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? Answer Choices: Select the Correct Answer Liability coverage Medical payments Uninsured boater's coverage and hull insurance Uninsured boater's coverage - ANSWER - Uninsured boater's coverage and hull insurance is correct. EXPLANATION: The standard watercraft policy provides uninsured boaters coverage. This coverage only pays for the bodily injuries of the insured and his family. The damage to the insured's boat must be covered under the hull insurance. Mr. Vickers lives close to a river that has, on occasion, flooded. On Friday morning he is watching the weather station and notes that there is a flood warning in his area. He calls his agent and asks the agent to bind flood coverage immediately. Which of the following is true? The application for coverage requires a 30-day waiting period before coverage applies. The agent can bind the coverage immediately. There is a seven-day waiting period before the agent can bind coverage. The agent can bind the coverage in 14 days. - ANSWER - The application for coverage requires a 30-day waiting period before coverage applies. is correct. EXPLANATION:
Flood insurance requires a 30-day waiting period. The exception to this rule is when the insured is required to provide coverage required by a mortgagee. Which of the following would be covered under a dwelling policy? Fire and lightning Fire and liability Fire and personal property Fire, lightning and removal - ANSWER - Fire, lightning and removal. EXPLANATION: A basic dwelling policy covers the dwelling for fire, lightning and the removal of property from the premises. The purpose of the removal clause is to protect the property from additional damage from these perils or other perils that may be covered by the policy. The removal clause appears in all property policies. When an insured does not take action to protect and preserve the property from further damage, he or she is considered to be guilty of neglect and this absence of care could affect the adjusting of a claim. The term neglect is found in the conditions of the policy, which specifies the duties of the insured in case of a loss. Which of the following types of crops would a "small grain" crop policy cover? Barley Corn Sorghum Potatoes - ANSWER - The correct answer is: Barley. EXPLANATION: Small grain consists of wheat, barley, as well as oats. There are two main types of control for multi-port systems. The fuel injectors can all open at the same time, or each one can open just before the intake valve for its cylinder opens. What is this called? throttle body fuel injection sequential multi-port fuel injection central fuel injection carburetor spray injection - ANSWER - sequential multi-port fuel injection is correct. There are two main types of control for multi-port systems: The fuel injectors can all open at the same time, or each one can open just before the intake valve for its cylinder opens (this is called sequential multi-port fuel injection). The advantage of sequential fuel injection is that if the driver makes a sudden change, the system can respond more quickly because from the time the change is made, it only has to wait until the next intake valve opens, not for the next complete revolution of the engine.
Hitting a pot hole and causing damage to the vehicle (other than the tires) would be a collision peril. The other perils are covered under "other than collision" coverage. A building with an actual cash value of $240,000 is insured for $200,000. The policy has an 80% coinsurance requirement. If there are no deductibles, how much would be paid for a $60,000 loss? $60, $48, $57, $62,500 - ANSWER - The correct answer is: $60,000. EXPLANATION: The insured needs to be covered for at least 80% x $240,000 or $192,000 to avoid a penalty in case of a partial loss. In this case, the insured carries more than is required, and therefore, all the loss is covered. Mary intentionally trips her neighbor while the neighbor is trespassing on the insured's property. Although the neighbor is not injured, Mary gives the neighbor $500 in cash to settle any potential liability claim. How will Mary's insurance company most likely respond in this situation? The insurer will reimburse Mary for the entire $500. The insurer will reimburse Mary for $500, less any applicable deductible. The insurer will sue the neighbor for the return of the $500 because the neighbor was not injured. The insurer will deny liability coverage because Mary's action was intentional. - ANSWER - EXPLANATION: Intentional acts are excluded and the company will deny the claim. The only exception to this exclusion is when the insured is attempting to use reasonable force to protect themselves or their property. Six months after a new employee is hired, the insured learns that the employee was fired from a previous job for stealing company property. How will this discovery affect the insured's crime coverage? Answer Choices: Select the Correct Answer Coverage for this employee will be cancelled at the end of the policy period It will have no effect on coverage because the dishonest act occurred before the employee was hired Coverage for this employee will be cancelled after 30 days Coverage for this employee will be cancelled immediately - ANSWER - EXPLANATION: Coverage for this employee will be cancelled immediately. This happens immediately due to the discovery of the past dishonest acts by that employee. Another example, an employee was caught in May 2011 falsifying documents. The policy in question becomes effective August 2011. In November, the same employee is caught stealing. Since the insured knew of the employee's dishonest act prior to the policy period, any loss is excluded from coverage.
Vision care insurance policies most often cover: The cost of lenses and frames. Replacement lenses and/or frames due to breakage. Sunglasses and safety glasses. Eye surgery. - ANSWER - The cost of lenses and frames. is correct. EXPLANATION: Most vision policies cover corrective lenses and frames as well as contact lenses but do not cover replacement lenses, specialty lenses such as sunglasses or surgery. When a homeowners policy has been in effect for 60 days in New York, an insurer can cancel at anytime for any of the following reasons, EXCEPT: A large loss has occurred. Acts that increase the risk. Physical changes in the insured property that make it uninsurable. Non payment of premium. - ANSWER - A large loss has occurred. is correct. EXPLANATION: The homeowners policy was purchased to indemnify against the occurrence of a large loss, therefore, this would not represent a reason for policy cancellation. Under the BOP, which of the following is not automatic coverage? Hired and Non-owned Automobile Coverage Loss of earnings after a covered fire Limited Sign Coverage Replacement cost settlement on building losses - ANSWER - Hired and Non-owned Automobile Coverage is correct. EXPLANATION: Hired and non-owned automobile coverage is an elective coverage. The insurance industry in the United States is regulated primarily by: The U.S. Congress The President The states The Supreme Court - ANSWER - EXPLANATION: For the most part the regulation of insurance rests with the states. Under New York no fault automobile coverage, when may an insured sue? Serious injury Personal injury When bodily injury damages exceeds $50,
Written sidetrack agreements Lease of premises agreements The exclusion does not apply to any of the responses - ANSWER - The contractual exclusion does not apply to any of the responses. A standard ISO homeowner policy is best described as a: Answer Choices: Select the Correct Answer Property policy that offers optional liability insurance. Package policy that provides property and liability insurance. Personal insurance policy for anyone who owns property. Personal insurance contract between the insured and the agent. - ANSWER - Package policy that provides property and liability insurance. is correct. EXPLANATION: The Homeowner policy provides both property and liability coverage. Under the commercial auto policy providing physical damage, which of the following offers the broadest coverage? Answer Choices: Select the Correct Answer Comprehensive. Specified cause of loss. Named perils. Broad named perils. - ANSWER - Your answer: Comprehensive. is correct. EXPLANATION: Comprehensive coverage would be the broadest because it covers anything that is not defined as collision. The specified cause of loss is a named peril form and thus, is more limited. When is the "difference in conditions" clause used? Gaps in flood coverage Gaps in earthquake coverage Some perils like "war" might be excluded All responses listed are correct. - ANSWER - Your answer: All responses listed are correct. is correct. EXPLANATION: Difference in conditions insurance is written to cover certain perils that may otherwise be excluded by the homeowner policy, commercial insurance forms or a commercial package policy. An example would be flood and earthquake insurance usually with large deductibles. In cases of comparative negligence, the proportional share of each party in the entire liability will be based on: Relative degree of fault. Last clear chance rule. Intervening cause.
Contributory negligence. - ANSWER - Relative degree of fault. is correct. EXPLANATION: With comparative negligence, liability will be based on the relative degree of fault or responsibility. The law allows an injured party to collect from another party for a loss, even when the injured party contributed to his or her own loss. Damages are reduced to the extent of the injured party's negligence. 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 consumer under "Let the Buyer Beware" doctrine. The ABC Insurance Company as Jones' liability carrier. The XYZ Insurance Company as Jones' liability carrier. A pro-rata agreement will have to be reached between the ABC and XYZ insurance companies. - ANSWER - The correct answer is: The XYZ Insurance Company as Jones' liability carrier.. EXPLANATION: Though the faulty product was actually manufactured during the time that ABC was the insurer, the damages did not occur until XYZ had taken over the liability coverage. The entity responsibility for a liability or injury claim is the carrier providing coverage at the time of the injury. An insured is covered under an HO-3 form. If the insured hits his own house and also damages the garage and the attached fence with his vehicle, what coverage would apply? The house and garage only The fence only Nothing because the insured's vehicle caused the damage The house, garage and the fence - ANSWER - The correct answer is: The house, garage and the fence. EXPLANATION: All of the items are covered under the HO-3 if the insured damages his own property with his vehicle. This is also true of the HO-5 form. These two forms provide open peril coverage and do not exclude this kind of loss. The maximum seating capacity and total floor space for a fine dining restaurant covered under a BOP is? Answer Choices: Select the Correct Answer 75 150 75 seats with 7,500 total square feet
