Download New York Insurance Adjuster 2025 Licensing Exam || Questions & Answers (100% Correct) and more Exams Insurance law in PDF only on Docsity!
New York Insurance Adjuster 2025
Licensing Exam || Questions & Answers
(100% Correct)
Waiver - ANSWER - The intentional relinquishment if a known right, or intentional conduct inconsistent with claiming a known right. Estoppel - ANSWER - A legal doctrine that prevents or "stops" a party from contradicting its own precious actions, if those actions have been reasonably relied upon by another party. Arbitration Clause - ANSWER - The process of bringing a contract dispute before an objective third party for resolution. Binder - ANSWER - Legal agreement that provides temporary evidence of insurance coverage until a policy can be issued. Deductible - ANSWER - Also known as self-insured retention. As the amount chosen by the insured increases the premium decreases. Pro-Rata Share - ANSWER - Each insurer pays its portion of the loss, proportional to the percentage of coverage provided by that policy. Admitted/Authorized - ANSWER - When an insurance company has received a certificate of authority, they are considered to be "admitted" companies that are authorized to conduct business in the state. Nonadmitted/Unauthorized - ANSWER - When an insurance company does not have a certificate of authority, they are "nonadmitted" companies that are "unauthorized" to conduct business in the state. Surplus Lines Companies - ANSWER - There are circumstances when a nonadmitted company without a certificate of authority is permitted to conduct business within a state. Bonding Requirement - ANSWER - No independent adjuster license will be issued or renewed in New York unless a bond in the amount of $1,000 is filed with the superintendent. Blanket Basis - ANSWER - one limit that applies to both building and contents, but the coverage usually applies, or "blankets" more than one location.
Appraisal Clause - ANSWER - This property insurance provision allows either the insured or the insurance company to demand a binding appraisal of the loss. Burglary - ANSWER - entering a building unlawfully with intent to commit a felony or to steal valuable property. Theft - ANSWER - Larceny, is the act of taking someone else's property without their consent. Insurance - ANSWER - A method of handling pure risk, by spreading it over a large number of similar individuals. Law of Large Numbers - ANSWER - Insurers can calculate their probable losses and establish premium rates that are accurate enough to cover claims, pay operating expenses, and make a profit. Principle of Indemnity - ANSWER - An insured who suffered a loss, should only be restored to the approximate financial condition that existed prior to the loss, no better and no worse. Insurance Interest - ANSWER - A person must have a lawful, substantial, and economic interest in the life, health, property, or object being covered under the insurance contract. Risk - ANSWER - The possibility that a loss might occur and is the reason that people buy insurance. Pure Risk - ANSWER - A situation where there is only the possibility of a loss, there is never the possibility of a profit or financial gain. Speculative Risk - ANSWER - A situation where either a profit or loss is possible. Peril - ANSWER - Actual cause of a loss, for example, fire, windstorm or hail. Hazard - ANSWER - A condition that increases the possibility, of severity of a loss. Moral Hazard - ANSWER - A condition that increases the probability that a person will intentionally cause, create, or inflate a loss. Morale Hazard - ANSWER - A condition of inattention to, or disregard for one's own life, health, property, or behavior, that increases the frequency or severity of a loss. Risk Avoidance - ANSWER - Avoiding the hazard. Transfer of Risk - ANSWER - A person can transfer their risk to an insurance company, in exchange for paying a premium.
Beach of Duty - ANSWER - A person or entity breaches the duty of care by failing to take reasonable care in fulfilling the duty. Actual or Direct Cause - ANSWER - Without the breach of duty, the person would not have suffered an injury. Proximate Cause - ANSWER - An unbroken chain of events from the breach of duty to the cause of the accident or injury. Contributory Negligence - ANSWER - A common law defense against negligence that states of an individual contributes to his or her own loss in any way, then another cannot be held liable for the loss. Comparative Negligence - ANSWER - allows the plaintiff to collect some damages, but it will be reduced by the amount by which the plaintiff contributed to his own injury. Pure Comparative Negligence - ANSWER - damages are divided between the parties in proportion to the degree of fault or negligence found against them. Modified Comparative Negligence - ANSWER - The plaintiff can not recover damages if he/she is found to be equally responsible, or more responsible for the injuries than the defendant. Gramm-Leach-Bliley Act - ANSWER - protects a borrower's privacy. The Financial Privacy Rule - ANSWER - Regulates the collection and disclosure of private financial information. The Safeguards Rule - ANSWER - Stipulates that financial institutions must implement security programs to protect such information. The Pretexting Provision - ANSWER - Prohibit the practice of pretexting (accessing private information using false pretenses). Terrorism Risk Insurance Act of 2002 - ANSWER - a United States law that after a certain deductible provides U.S. businesses government insurance coverage for the risk of terrorism. Terrorism Risk Insurance Extension Act - ANSWER - Has been extended for six years until December 31, 2020. Act of Terrorism - ANSWER - Must result in more than $5 million; must be perpetrated with the United States as a result of foreign or domestic terrorism.
Acts of War Exclusion - ANSWER - TRIA further stipulates that no act may be certified as an act of terrorism if the act is committed as part of the course of a war declared by Congress. Coverage A - ANSWER - Dwelling Coverage B - ANSWER - Other Structures Coverage C - ANSWER - Personal Property Coverage D - ANSWER - Fair Rental Value Coverage E - ANSWER - Additional Living Expenses DP-1 Basic Form - ANSWER - Fire, Lightning, Internal Explosion DP-2 Broad Form - ANSWER - BIG AFFECT: Burglary, Ice & Snow, Glass, Accidental Discharge, Falling Objects, Freezing of Pipes, Electrical Discharge, Collapse, Tearing Apart EC Perils - ANSWER - WC SHAVVER: Wind, Civil Commotion, Smoke, Hail, Aircraft, Vehicles, Volcanic Eruption, Explosion, Riot All three Dwelling forms states that there is no coverage for vandalism or malicious mischief if the dwelling has been vacant for more than - ANSWER - 60 days Volcanic Eruption - ANSWER - One or more volcanic eruptions that occur within a 72- hour period will be considered as one volcanic eruption. DP-3 Special Form - ANSWER - Open peril coverage on dwelling or other structures; named peril coverage on the personal property contents. Coverage A -Dwelling Building - ANSWER - The insured sets the amount of coverage based on the replacement cost of the dwelling for DP-2 and DP-3 forms. The DP-1 pays all losses on an actual cash value basis. Coverage B: Other Structures - ANSWER - 10% of Coverage A; does not cover any structure rented or held for rental to any person not a tenant of the dwelling, unless it is used solely as a private garage. Coverage C: Personal Property - ANSWER - Insured chooses the limit based on the actual cash value of the personal property. Coverage D - Fair Rental Value - ANSWER - available if a covered property loss to the dwelling or other structure makes the building uninhabitable and the insured cannot collect the rent he would have been able to receive if the loss had not occurred.
HO-2 - ANSWER - Broad Form; named peril form HO-3 - ANSWER - Special Form; most frequently used form to cover single family dwellings. Combination of named broad perils for coverage of personal property and open peril coverage of the dwelling and other structures. HO-4 - ANSWER - Contents Broad Form aka Tenants or Renters Form. Named broad perils. HO-5 - ANSWER - Comprehensive Form, provides open peril coverage for buildings and contents. HO-6 - ANSWER - Condominium Unit-Owners Form. Property is covered by broad perils. HO-8 - ANSWER - Modified Coverage provides basic peril coverage. Coverage for buildings and personal property (contents) on actual cash value. Coverage A - ANSWER - Dwelling Coverage B - ANSWER - Other Structures Coverage C - ANSWER - Personal Property Newly purchased primary residence personal property covered on a pro rata basis between locations for - ANSWER - 30 days Personal property at self-storage facilities is limited to - ANSWER - 10% or $1, Money, bank notes, bullion, gold & silver - ANSWER - $ Securities, accounts, deeds, evidences of debt, letters of credit - ANSWER - $1, Trailers & semi-trailers not used with watercraft - ANSWER - $1, Theft of firearms - ANSWER - $2, Coverage A -Dwelling - ANSWER - Full replacement cost coverage but only if the insured carries insurance equal to 80% Coverage B - Other Structures - ANSWER - 10% of coverage A for 1-2 family dwellings and 5% of coverage A for 3-4 family dwellings. Coverage C: Personal Property - ANSWER - 50% of Coverage A for 1-2 family dwellings, 30% for 3 family dwellings & 25% for 4 family dwellings.
Debris Removal - ANSWER - Limit of $1,000 regardless of the amount of trees. No more than $500 will be paid for any one tree. Trees, Shrubs & Other Plants - ANSWER - Covered up to 5% of the Coverage A limit and subject to a maximum limit of $500 for any one tree, shrub, or plant.
