Download New York State General Adjuster 17-70 | All Possible Questions with 100% Correct Answers and more Exams Law in PDF only on Docsity!
New York State General Adjuster 17- 70 |
All Possible Questions with 100% Correct
Answers | Latest Version 2024 | Verified
An employee has been asked to use his own personal vehicle to perform certain tasks on behalf of his employer. What coverage is used under the business auto policy to protect the employer for lawsuits when the employee has an accident that causes legal action against the employer? - ✔✔Employers non- ownership coverage. This coverage protects the employer and not the employee. The employee is covered under his own PAP policy. Replacement cost coverage is best defined as: - ✔✔Replacement without deduction for depreciation.With replacement cost coverage, the insured is permitted to replace old with new at today's cost without a deduction for depreciation. Which of the following would be considered a "supplementary payment" coverage under a business auto policy? 1)All post-judgment interest in a suit defended by the insurer 2)Payment for an insured employee's truck being used by the employee on a business-related trip 3)Costs for a private investigator hired by an employee to prove he was not involved in a hit and run accident of which he has been accused 4)Up to $2,000 for the cost of bail bonds for an employee involved in an accident while he was on a trip to Mexico that he won for exceeding sales goals set by the company - ✔✔1) All post-judgment interest in a suit defended by the insurer. Supplementary payments do not include physical damages, nor personal expenses of employees. The bail bonds would be covered except that Mexico is outside the coverage area. Which of the following professional liability policies would cover a dishonest, fraudulent or criminal act of the manager of a LLC? 1)Fiduciary Liability 2)Malpractice Liability 3)Errors and Omissions 4)None of the policies cover these acts - ✔✔4) None of the policies cover these acts. When securing a recorded statement over the telephone, an adjuster must: 1 Identify him or herself.
2 Advise he or she would like to record the statement and request and receive permission to do so. 3 State the time and date. 4 All responses listed are correct. - ✔✔4 All responses listed are correct. The adjuster must identify him or herself, state the date and time and get permission to record the statement. Uninsured Motorist coverage includes the named insured's: I. Medical bills and pain and suffering. II. Lost wages. - ✔✔Both I and II is correct. Coverage C (Uninsured Motorists) provides for payments to or on behalf of the named insured for injuries sustained through the negligence of an uninsured driver. Substitute services will provide: - ✔✔$25 per day for one year. Basic economic loss benefits will provide up to $25 per day for substitute services for a maximum of one year if the injured party is not gainfully employed. Which of the following is not a violation of the Unfair Trade Practices Act? 1 Not attempting in good faith to settle claims 2 Denying an uncovered claim 3 Failing to promptly settle claims under one portion of coverage in order to influence settlements under other portions of coverage 4 Not setting forth the coverage under which a claim payment is being made - ✔✔Denying a claim that is not covered is not a violation. In case of a total loss in an automobile accident, the adjuster can do the insured which of the following? I. Pay cost to replace the vehicle with like kind and quality if the vehicle is a current year model. II. Use the most recent publication of an "Official Used Car Guide." III. If not listed in the "Guide," obtain quotations from local automobile dealers. - ✔✔I, II and III depending on the circumstances All the responses listed can be options in settling a total loss claim. Personal umbrella liability policies usually cover liability as a result of:
The maximum payable for damage or loss to signs attached to the building covered under a BOP is: 1 $ 2 The building limit since it's attached to the building 3 $ 4 $5000 - ✔✔3 The correct answer is: $1000. Damage or loss to a sign attached to the building is limited to $1000 even though it is attached to the building and considered part of the building. Which of the following basic workers compensation benefits compensates a widow or other dependent family members of an employee whose death results from a work-related injury? 1 Disability income benefits 2 Medical benefits 3 Survivor benefits 4 Rehabilitation benefits - ✔✔3 Survivor benefits Survivor benefits compensate a widow or other dependent family members. Lawful economic interest in the preservation of the subject of insurance, free from loss or destruction or monetary impairment is the definition of: 1 Insurable Interest 2 Right of Ownership 3 An Amendatory Endorsement 4 Contractual Obligation - ✔✔1 Insurable Interest This is the definition of insurable interest. In property and casualty insurance, insurable interest must exist at the time of the loss. In a property loss the insured is required to do all of the following, EXCEPT: - ✔✔Repair the property within 20 days of notifying the insurer.
The insured should not repair the property until agreed upon by the insurer. The prefix "neo" refers to: 1 Old. 2 New. 3 Flat. 4 After. - ✔✔2 New "Neo" refers to something that is new. neo-: new or recent, or in a modern form: If a commercial building has been vacant for more than sixty days, which of the perils are affected as regards coverage? 1 Vandalism 2 Freezing 3 Fire 4 All of the perils are affected - ✔✔4 All of the perils are affected All of the perils listed are affected as a result of the vacancy. Some of the coverage for certain perils is voided and fire losses are reduced by 15%. Automobile Medical Payments covers: 1 The insured as an occupant of a car, an occupant of the insured vehicle and the insured as a pedestrian when hit by a car. 2 The insured as an occupant of a car only. 3 An occupant of the insured vehicle only. 4 The insured as a pedestrian only. - ✔✔1 The insured as an occupant of a car, an occupant of the insured vehicle and the insured as a pedestrian when hit by a car.
How many years must a business be operational in New York before it can qualify as a self-insurer for workers compensation? 1 Three years. 2 Four years. 3 Five years. 4 Two years. - ✔✔Three years A company must be in business for at least three years before it can make application with the state to become a qualified self-insurer. Which of the following would be covered under Coverage C of form HO-3? I. Property normally kept at the insured residence but in transit to a new principal residence II. Personal Property in Switzerland while the insured is on vacation - ✔✔Both I and II. Coverage C provides protection for personal property owned or used by the insured anywhere in the world - with some exceptions. One is personal property normally stored off the premises - although this can be added by endorsement. (Property of away-from-home students is not "stored".) 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: 1 $26, 2 $29, 3 $35, 4 $39,000 - ✔✔1 $26, Mr. Higgins' policy will pay a maximum of $26,000. The maximum per person limit that can be paid to anyone person as a result of Mr. Higgin's 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, plus the $5,000 is $26,000. If the insured is killed in an airplane accident, the accidental death benefit: 1 Applies if the plane is a regularly scheduled airline. 2 Does not apply under any circumstances. 3 Applies only if the aircraft is being flown by the insured. 4 Increases to triple indemnity. - ✔✔1 Applies if the plane is a regularly scheduled airline.. Accidental Death Benefits usually exclude payment if the insured was a pilot or crew member of a private aircraft. Which of the following would be covered under the mobile equipment endorsement? 1 Fork lift. 2 A motorcycle. 3 A company car. 4 A company truck with a snow removal plow attached. - ✔✔1 Fork lift Some types of mobile equipment that operates in a given state must be licensed, and evidence of liability insurance provided. Sometimes these are added to the commercial auto policy by using the mobile equipment endorsement. 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. 1 30 2 60 3 90 4 120 - ✔✔4 120
4 Consequential Loss Coverage - ✔✔3 Increased cost of loss and related expenses for "green" updates The increased cost of loss and related expenses for green updates will pay an extra 25% of the property loss for the increased cost to "go green" up to $100,000 maximum. The Superintendent of Insurance may issue a _____ temporary permit to an individual to adjust claims while an adjuster's application is pending. 6 - month 30 - day 1 - year 120 - day - ✔✔ 120 - day Anne has been diagnosed with a disease characterized by degenerative and sometimes hypertrophic changes in the bone and cartilage of the joints and a progressive wearing down of apposing joint surfaces. Anne has been diagnosed with: 1 Tachycardia 2 Atherosclerosis 3 Osteoarthritis 4 Diabetes - ✔✔3 Osteoarthritis Osteoarthritis is a degenerative joint disease with deep aching paid that is aggravated by exercise. If an employer does not qualify to obtain workers compensation coverage by self insuring or purchasing coverage from a private insurer, where can coverage be obtained? 1 The State Insurance Fund (SIF) 2 Assigned risk plan 3 Employers Mutual Risk Pool 4 Surplus lines market - ✔✔1 The State Insurance Fund (SIF) The State Insurance Fund (SIF) provides a market for those unable to obtain coverage in the standard workers compensation markets.
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? 1 The application for coverage requires a 30-day waiting period before coverage applies. 2 The agent can bind the coverage immediately. 3 There is a seven-day waiting period before the agent can bind coverage. 4 The agent can bind the coverage in 14 days. - ✔✔1 The application for coverage requires a 30-day waiting period before coverage applies 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. If an insured conceals a material fact, makes false statements or engages in a fraudulent act, he or she is guilty of: 1 Concealment. 2 Estoppel. 3 Representation. 4 Misrepresentation. - ✔✔1 Concealment This is a definition of concealment. An act such as this will void coverage. Under an Equipment Breakdown policy, all of the following are supplementary payments, except: 1 Expediting expenses. 2 Defense costs. 3 Interest on judgment. 4 Premiums on appeal bonds. - ✔✔1 Expediting expenses. Expediting expenses are covered in the limit of the coverage. The other items are part of the supplementary payments, which are in addition to the policy limit.
4 A home is damaged by flying rocks from a dynamite blast. - ✔✔1 Vandals spray grafitti over the siding on a home Damage by vandals is not considered an "accident" according to the policy definition. When is it allowed for a telemarketer to call to a person's home? 1 10:00 pm and 11:00 pm. 2 7:00 am and 7:45 am. 3 8:00 am and 9:00 pm. 4 7:00 am and 10:00 pm. - ✔✔3 8:00 am and 9:00 pm Unless a telemarketer has a person's consent to do otherwise, it is a violation to make outbound telemarketing calls to a person's home outside the hours of 8:00 am and 9:00 pm. No long-term care (LTC) policy may define preexisting conditions more restrictively than a condition for which medical advice or treatment was recommended by, or received from a provider of health services within _____ months before the effective date of coverage. 1 12 2 5 3 6 4 24 - ✔✔3 6 This is a part of the NAIC Model Bill adopted by all states Pre-existing Condition Limitation. A long-term care insurance policy may not define a pre-existing condition more restrictively than a condition for which medical advice was given or treatment was recommended by, or received from, a physician within six months before the effective date of coverage. Many companies will sell a policy to someone with a pre-existing condition; however, treatment for that condition will not be covered for the first six months after the effective date of coverage. For example, if treatment for a pre-existing condition begins within the first six months of coverage, the company may deny the claim during the six-month period after the effective date but then must begin to cover that expense at the end of the pre-existing period. Some companies have shorter pre-existing periods and others have none.
How many days does the liberalization clause provide for under the BOP prior to or during the policy? 1 55 days 2 30 days 3 45 days 4 35 days - ✔✔45 days is correct The policy reads, "If we adopt any revision that would broaden the coverage under this policy without additional premium within forty-five days prior to or during the policy period, the broadened coverage will immediately apply to this policy." James purchases an outboard motor boat. He will have automatic coverage for the boat under his homeowner policy under which of the following circumstances? I. He reports the purchase of the boat to his insurer within 60 days. II. The boat is in storage on his premises. III. He reports the purchase of the boat to his insurer within 45 days. - ✔✔II and III only The homeowner policy will cover a newly acquired boat as long as the insured reports it to the insurer within 45 days of the purchase or if it is in storage on his premises. However, be aware of the limitations on the hull value, horsepower limitations and size and use of the watercraft. A watercraft or yacht policy may be a better choice. Coverage F under the farm forms covers which of the following? - ✔✔Unscheduled personal property Coverage F covers unscheduled personal property on a blanket basis. One limit for all business personal property is stated. The items are not scheduled as they are under Coverage E. Diane is fined by the Superintendent for a violation of the insurance law of New York. The fine is not paid within 20 days. What action may the Superintendent take? 1 Put Diane in prison
3 Neither response is correct. 4 Both responses are correct. - ✔✔4 Both responses are correct Coverage applies in either situation. Under the commercial property condominium association form, coverage is based on: 1 The commercial property form 2 The association agreement and bylaws 3 The special cause of loss form 4 State and local ordinances - ✔✔2 The association agreement and bylaws The coverage provided by the form will be based on the condominium association agreement and by laws. A farmer has unintentionally libeled a neighboring farmer by stating that the neighbor's dairy products are inferior to his. This is an example of: 1 Advertising/personal injury. 2 Bodily injury. 3 Contractual liability. 4 Vicarious liability. - ✔✔1 Advertising/personal injury This is an example of personal/advertising injury. No bodily injury or property damage occurred Under the discovery clause in the loss sustained policy, which of the following is covered? 1 A loss discovered up to one year after the policy expired but that occurred during the policy period 2 A loss that is discovered two years after the policy has expired 3 A loss that occurred prior to the inception date of the policy 4 A loss that occurred during the policy period but was not discovered until five years after the expiration date - ✔✔1 A loss discovered up to one year after the policy expired but that occurred during the policy period.
The discovery clause in the loss sustained form states that losses that occur during the policy period, but are not discovered for up to one year after the policy has expired, can be covered under the expired policy. The discovery clause in the discovery form provides coverage during the policy period or within 60 days after the policy expires for coverage to apply. An unendorsed Homeowner Policy provides no coverage for liability arising out of business related exposures, other than for permitted incidental occupancies. The ______Endorsement provides liability coverage for a business conducted away from or on the residence premises. 1 Home Day Care 2 Home Business Pursuits 3 Personal Injury 4 Permitted Incidental Occupancies - ✔✔2 Home Business Pursuits The "business pursuits" endorsement should be added to the homeowner policy to cover "on or off premises" liability exposures as permitted by the insurance carrier. All of the following would be considered "bodily injury" under liability coverage, EXCEPT: 1 A dog owned by a customer is injured in the parking lot of the a store. 2 A caterer's customer is hospitalized with food poisoning. 3 A shopper trips over an exposed cable at a mall. 4 A clerk demonstrating a barbell drops it on a customer's foot. - ✔✔1 A dog owned by a customer is injured in the parking lot of the a store Which of the following statement is true of the jewelers block coverage form? 1 The form insures a package of property and liability coverage. 2 Coverage may be written for the stock for retail jewelers or the jewelry stock of department and discount stores. 3 Coverage may be written for pawnbrokers dealing in jewelry. 4 Customers' property is not covered under the form. - ✔✔2 Coverage may be written for the stock for retail jewelers or the jewelry stock of department and discount stores..
4 Businessowners policy - ✔✔1 Ocean marine Ocean marine pertains to import and export risk, including the cargo being shipped as well as the vessel transporting goods or people. An adjuster's report that contains all the facts, evidence and disposition of the claim and is considered to be the final report is known as the: 1 Full Report. 2 Field Report. 3 Interim Report. 4 Settlement Report. - ✔✔1 Full Report The "full report" is the third and final report containing all the information gathered. The final report containing all facts, evidence and disposition of the claim The Terrorism Risk Insurance Act excludes all of the following, EXCEPT 1 Commercial Auto 2 Farmowners 3 Commercial Property 4 Flood - ✔✔3 Commercial Property Commercial property losses would be covered by TRIA whereas the other three would be excluded. In New York, continuing education requirements for agents must be satisfied: 1 Annually 2 Biannually 3 Every three years 4 Every four years - ✔✔2 Biannually
Licensees(agents)must complete 15 credits of continuing education (CE) during each two year licensing period. All courses must be completed through a Provider Organization (Provider) approved by the New York State Insurance Department. Independent adjusters (resident or nonresident) are not subject to the continuing education requirements of New York. The claims made form of the CGL is designed to cover losses that are reported during the policy period. In order to limit the insurer's exposure to events that happened prior to the inception of the current policy, a ________is used to excldue coverage for anything that occurred prior to that point. 1 Pre-existing condition clause 2 Retro active date 3 Prior acts exclusion clause 4 None of the choices are correct - ✔✔2 Retro active date A retro active date is negotiated at the inception of the policy and would deny coverage for anything that occurred prior to that date even if the incident was reported during the current policy period. The DP-2 broadens which of the following extended coverage (EC) perils? 1 Explosion, Smoke and Vehicles 2 Explosion and Smoke Only 3 Smoke and Vehicles Only 4 Vehicles Only - ✔✔1 Explosion, Smoke and Vehicles. When the extended coverage (EC) endorsement is attached to the DP-1 form, explosion, smoke and vehicular damages are included. The DP-2 form broadens these perils. A valid contract must contain all of the following, EXCEPT: 1 Be a written instrument. 2 Competent parties. 3 Legal purpose. 4 Valuable consideration. - ✔✔1 Be a written instrument.
