Download NY Independent General Adjuster Exam - Series 17-70 2025|| All Questions & 100% Verified A and more Exams Insurance law in PDF only on Docsity!
NY Independent General Adjuster Exam -
Series 17-70 2025|| All Questions & 100%
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The Superintendent of Insurance may approve the employment, appointment or participation of any person whose license has been revoked. Karen Jones had her license revoked and filed an application for relicensing and has waited over 120 days without a response from the Insurance Department. What should or can she do? - ANSWER - Assume the relicensing is approved. Mr. Vickers was in a hurry to catch a plane. He parks his car in the parking garage at the airport and leaves the keys in the ignition. When he returns he finds that his car has been stolen. Later the car was discovered with severe collision damage. The airport carries Garagekeeper's Legal Liability coverage and Mr. Vickers carries Liability and Comprehensive coverage on his auto. What coverage would apply? - ANSWER - Mr. Vickers comprehensive coverage. An automobile is polluting the environment. What engine component could be the primary cause? - ANSWER - Catalytic Converter Malfunction. Under the dwelling policy, DP2 or D3, what is the maximum amount of Coverage A that would be paid for additional living expenses? - ANSWER - 20% Workers compensation policies also include employer's liability coverage. If any employer fails to maintain the equipment and an employee is injured, would it be covered under this coverage? - ANSWER - Yes. Fidelity bonds are typically written to be effective for a: - ANSWER - Continuous term without an expiration date. One purpose of a deductible is to: - ANSWER - Eliminate small claims. If the insured has failed to pay the premium for a worker compensation policy issued in New York, how many days notice of cancellation must be sent to the insured? - ANSWER - A 10 day notice. A ship owner wanting coverage in case crew members bring liability suits for injuries sustained while working would purchase: - ANSWER - Protection and Indemnity
Under workers compensation in New York, which of the following does not raise the premium based on it being a proportion of the charged premium? - ANSWER - Premium Discount. What is an example of a moral hazard? - ANSWER – Embezzlement Dram Shop Liability refers to: - ANSWER - Liquor Law Liability. The insured has suffered a covered loss under his DP-3 dwelling form. He fails to protect the property from further loss. The additional loss that occurs as a result of his inactions may be denied because of what clause in the policy? - ANSWER - Neglect. To be eligible for the New York assigned risk auto plan a person must: - ANSWER - Hold a valid driver's license. Any insurance adjuster whose license has been revoked for cause will not be entitled to apply for any other insurance license in New York until at least: - ANSWER - One Year. A typical benefit design for a long term care policy does not include a: - ANSWER - Conditionally or optionally renewability feature. In New York the workers compensation program is administered by the Workers Compensation Board which establishes guidelines for the program. Notice of injury or death to a worker is required to be submitted to the employer within what period of time? - ANSWER - 30 Days. A common carrier is not held liable for the loss of a shipper's goods when the loss results from: - ANSWER - An Act of God. If one is found guilty of federal insurance fraud, who can permit the guilty individual to return to the insurance business? - ANSWER - Only an insurance regulatory official. When is a passenger first covered under an aircraft policy? - ANSWER - When Entering the Aircraft. If an insured takes precautionary measures to protect property from flood damage such as creating a retaining wall of sand bags, how much coverage if any, will be provided by a flood policy? - ANSWER - $1,000 if the flood is imminent and the property is in danger of flooding. Which Commercial Forms would cover sinkhole collapse? - ANSWER - Basic, Broad, and Special. ______ is a movement allowed by certain joints of the skeleton that decreases the angle between two adjoining bones. - ANSWER - Flexion
To collect under uninsured motorist coverage in New York, the insured must prove: - ANSWER - There was a hit and run driver and physical contact made. The health insurance provision that permits the insurer to pay limited death benefits to a relative of the insured is known as: - ANSWER - Facility of Payment. What is Demurrage? - ANSWER - Compensation for the delaying of a vessel carrying freight. How would two insurance companies pay a claim under the "Contribution by Equal Shares" clause? - ANSWER - Each would pay the same until its limits are exhausted. What does Coverage G under the Farm Forms cover? - ANSWER - Barns, Silos, and Fences. MIG welding on a rocker panel creates a heat- affected area. What concerns should a technician be aware of when performing this procedure? - ANSWER - Destruction of the factory coating on the interior of the panel. A licensee must report to the Superintendent of Insurance any administrative action taken against the licensee in another jurisdiction or by another governmental agency in this state within _____ of the final disposition of the matter. - ANSWER - 30 Days. Is damage to a covered auto while being used as part of a car pool covered under the PD coverage of a PAP? - ANSWER - Yes. Does the National Flood Insurance Program provide coverage for losses caused by water-main breakage? - ANSWER - No. Which of the following is not required to obtain an adjuster license in New York? A licensed NY attorney, adjuster of maritime losses, or CEO? - ANSWER - None. How many years must a business be operational in New York before it can qualify as a self-insurer for workers compensation? - ANSWER - 3 Years. What coverage does the Difference in Conditions form provide? - ANSWER - Gaps left by other property insurance forms. What would most likely be the effect of an insured's breach of warranty? - ANSWER - The insurer might void the entire policy. Can coverage on a Commercial Property Insurance plan be written on a replacement cost basis for building, personal property of the insured and property of others? - ANSWER - Yes.
The disability income rider which protects against the erosion of purchasing power for fixed disability benefits is known as the: - ANSWER - Cost of Living Adjustment rider (COLA) Which type of Crop Insurance Policy covers the entire farm instead of an individual crop? - ANSWER - Adjusted Gross Revenue (AGR) Under the CGL Policy, tangible property other than "your property" or "your work" that cannot be used or is less useful due to your faulty work or your work not completed on time is called: - ANSWER - Impaired Property. What type of coverage would a heating and cooling contractor need when work has been done on a newly renovated building but not yet accepted by the owner? - ANSWER - Installation Floater. In a standard workers compensation policy, when would employer's liability coverage apply? - ANSWER - For employee-injury claims that are outside the scope of the workers compensation law. Which of the following is not an "additional coverage" under homeowners liability Section II coverage? - ANSWER - Payments made by the insurer to settle a claim. Symbol 2 is entered for one of the physical damage coverages in the declarations of the BAP. The insured buys an additional auto after the policy begins. The newly acquired auto will become a covered auto: - ANSWER - Automatically. What is a requirement that a professional association must meet to obtain group insurance? - ANSWER - It must have been in existence for at least two years. Third-party provisions allow for an entity that lends money to an insured to purchase property, to be named on the insurance for that property. In property insurance, this is known as a "standard mortgage clause." In auto insurance, it is known as: - ANSWER - Loss payable clause. Technician A says that when acoustical foam is removed during the repair, it is not necessary to replace it. Technician B says the acoustical materials should be replaced with structural foam to maintain structural sound requirements. Who is right? - ANSWER - Neither. 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. Substitute services will provide: - ANSWER - $25 per day for one year.
Under a commercial Building and Personal Property Coverage form with no optional coverages selected, loss valuation/settlement is based on: - ANSWER - Actual Cash Value. Who signs the declaration page on the Equipment Breakdown policy? - ANSWER - An Authorized Representative. A contract between a public adjuster and an insured must be: - ANSWER - In Written Form. A sudden and unexpected event is known as: - ANSWER - An Accident. Mr. Wilson purchases property insurance on a building and fails to advise the agent that he only owns 50% of the building. This is an example of: - ANSWER - Misrepresentation. The "other insurance clause" is included in insurance policies to deal with: - ANSWER - Duplicate Policies. Under the farm property form with replacement cost coverage, after the first $1,000 how is the claim paid? - ANSWER - ACV until repairs are completed and then the full replacement cost is paid. An insured has purchased a personal watercraft policy with liability limits of $300, and medical coverage in the amount of $5,000. The boat accidentally tips over and both the insured and a friend are injured. Who would be covered under the medical payments coverage? - ANSWER - The insured and the friend. Some disability income policies are designed in a way that there is a period during which no benefits will be paid for either an illness or an accident. Others may be written / designed where benefits are paid immediately for disabilities caused by accidents, and no benefits paid for an illness disability for a specific period of time. The term that describes this interim period is the: - ANSWER - Elimination Period. What workers compensation coverage would apply if the injured employee's spouse brings a wrongful death suit against the employer? - ANSWER - Employers liability. Under D, "Coverage For Damage To Your Auto", temporary substitute vehicles under the Personal Auto Policy are considered to be: - ANSWER - Your covered auto. In order for a "release of all claims" to be valid, what MUST occur? - ANSWER - The check must be cashed. Richard Lanham has been advised by the Superintendent of Insurance to cease and desist in the performance of certain infractions of the insurance code. He has had a
hearing and been issued a cease and desist order. He continues to violate the cease and desist order. He can be fined a penalty of up to: - ANSWER - $5,000 per violation. Telemarketers who transmit prerecorded messages to consumers who have not agreed to accept such messages will be fined up to: - ANSWER - $16,000 per call. An insured has received actual cash value payment from the adjuster for a covered loss. At the time he is satisfied with the payment. He later changes his mind and wants the full replacement value. How many days does he have to submit the receipts to get the replacement cost payment under a HO-3 form? - ANSWER - 180 days. The homeowner personal property replacement cost endorsement would pay replacement cost on a claim for what type of property? - ANSWER - Used Clothing. The policy provision that prevents an insurance company from altering its agreement with a policyowner by referring to documents or other items not contained in the policy is called the: - ANSWER - Entire Contract Provision. True or False - Current long term care insurance policies are more likely to pay benefits regardless of the level of care required by the insured. - ANSWER - True. Roger has his golf clubs stolen out of the trunk of Sam's car. Which policy will pay? - ANSWER - Roger's homeowner policy. An insured purchases a $1 million umbrella policy with a $1,000 self-insured retention (SIR) and agrees to maintain the following underlying limits: auto liability - $100/300/ and personal liability limits of $300,000. The insured is involved in an at-fault auto accident and the claimant is awarded $200,000 for his bodily injuries. What will the umbrella pay if the insured only carries $50/100/50 auto limits? - ANSWER - $100,000. The umbrella policy still pays but the insured would have to pay the difference. If no endorsements apply, how are property losses adjusted on a Businessowners Policy? - ANSWER - Replacement Cost Basis Property and casualty insurance can be utilized to handle what kind of risk? - ANSWER
- Pure Risks. Tammy Smith is helping out at the church Swiss Steak dinner and is injured when hot coffee spills on her. What is the result of this injury under New York workers compensation coverage? - ANSWER - Tammy is a volunteer and will be covered if the policy contains the proper endorsement.. Low Yields and Poor Quality Crops are covered under a: - ANSWER - Multi-Peril Crop Policy
According to the commercial auto policy definitions, an "accident": - ANSWER - Includes continuous or repeated exposure to the same conditions. In cases of comparative negligence, the proportional share of each party in the entire liability will be based on: - ANSWER - Relative degree of fault. With workers compensation, a monopolistic state is a state in which: - ANSWER - Coverage must be purchased from the state.. The selling of insurance products through the use of captive agents, independent agents, or insurance company employees in a call center are examples of: - ANSWER - Marketing distribution systems. The National Flood Insurance Program will pay which of the following amounts to assist with moving of property to safety when there is imminent flood danger? - ANSWER - $1,000. Which of the following types of property may be insured under a furriers block policy? - ANSWER - Stocks of furs owned by the insured furrier. After receiving an inquiry from the Insurance Department regarding a claim, an insurer must respond within: - ANSWER - 10 days. You purchase a new car and, as the terms of your auto policy require, you contact your agent and notify him of the purchase. He states to you "No problem, you're covered." Two months later you are involved in an accident. When you report the claim to your agent he says "Oh no, I forgot to notify the company! I'm afraid you're not covered." You can: - ANSWER - File a claim against the auto insurer and the agent. Under the dwelling form, liberalization must be provided within how many days? - ANSWER - 60 days. What does extra expense insurance cover? - ANSWER - The additional cost of continuing a business after a direct loss. Which of the following would cover a farmer for income protection for his farm crops? - ANSWER - Crop Revenue Insurance. What is the limit of insurance that applies to property in transit in the BOP? - ANSWER - $10,000. The insured is covered under a Businessowners Policy. He owns a hardware store that suffers a loss from a covered peril. His loss of income is $50,000. How will the loss be paid under the BOP? - ANSWER - On an actual loss sustained basis ($50,000).
If there were other existing insurance, coverage under crime insurance would be: - ANSWER - Pro rated. Does a dental plan cover instruction of oral hygiene? - ANSWER - No. Is the BOP designed to cover a gas station? - ANSWER - No. In an application for marine insurance, a yacht owner states that the yacht will only be sailed on inland waters. If the insured subsequently sails the yacht on the seas, coverage may be denied because the insured has breached: - ANSWER - A warranty. If a kitchen fire made a house untenable, causing the occupants to incur hotel charges - is that a direct or indirect loss? - ANSWER - Indirect Loss. Dan insures a home for adequate limits under a DP-2. If a flood causes $1,000 in damage, what is the maximum the insurer will pay, disregarding deductibles? - ANSWER - Flood is excluded on all dwelling forms unless a fire ensures Tom Newman is the sole owner of his small corporation. He purchases an auto in the company name but also has to sign for the loan on the car personally. He does not have a personal auto policy. Which of the following would be necessary to cover Tom personally if sued in a lawsuit while driving the company car? - ANSWER - Individual Named Insured Do dwelling forms cover earth movement? - ANSWER - The dwelling forms exclude virtually all forms of earth movement. Earthquake coverage can be added by endorsement. Under the "basic economic loss" coverage required in auto insurance in New York, the maximum limit for loss of wages is: - ANSWER - 80% of claimants wages, subject to a maximum of $2,000 per month Universal Foods buys the Chewy Cereal Company. After the purchase is completed, a well known actress sues Universal, claiming that her picture was used without her permission in a Chewy advertisement. The advertisement appeared some time before Universal acquired Chewy. Will Universal's Commercial General Liability policy cover this claim? - ANSWER - No. Personal injury coverage with respect to newly acquired organizations does not apply to offenses committed before the acquisition.. The policy term of a flood insurance policy is: - ANSWER - One year term only. In crime insurance under the loss sustained form, what is the length of the discovery period after the bond has expired to discover an employee crime? - ANSWER - One year.
How are losses evaluated for payment under the Watercraft and Yacht policies? - ANSWER - Actual cash value at the time of the loss. Henry is the first named insured on a $1 million umbrella liability policy. His wife, Dorothy, is also an insured. Both Henry and Dorothy were sued for $1 million in separate, unrelated suits by separate third parties. Both insureds lost their suits on the same day. In this possible but rare situation, if the umbrella policy is applicable and the self-insured retention is not applicable: - ANSWER - Henry will not receive more protection than Dorothy and the policy could pay a total of the $2 million amount for the two awards, subject to the "aggregate limit".. The requirements of the Employment Retirement Income Security Act compel employers to cover their professional liability exposure for honest errors and omissions regarding employee benefit plans by purchasing: - ANSWER - Fiduciary Liability. How long is payroll coverage limited to in case of a business income loss under the BOP? - ANSWER - 60 days. Is coverage under the Terrorism Risk Insurance Act mandatory? - ANSWER - No. The most comprehensive coverage provided by the Dwelling Property program is found in the: - ANSWER - DP3. An insurance policy is issued as a policy having two unequal parts, the liability assumed by the insurer and the premium paid by the insured. Therefore, an insurance policy is referred to as: - ANSWER - An aleatory contract. A typical directors and officers liability policy does not cover: - ANSWER - The corporation for suits brought against it because of the actions of the officers and directors. Who uses the State Insurance Fund workers compensation coverage? - ANSWER - The fund is for both those employers unable to obtain coverage and those purchasing coverage in the competitive market. Upon request made by the consumer, a person who procures an investigative consumer report on the consumer must make a complete and accurate disclosure to the consumer of the nature of the report and investigation within: - ANSWER - in writing and mailed to the consumer within 5 days of the request.. Which of the following best describes an abnormal condition in which a clot develops within a blood vessel? - ANSWER - Thrombosis What can be added by endorsement to an Equipment Breakdown Policy? - ANSWER - Business Income.
What does Coverage F under the Farm Forms refer to? - ANSWER - Unscheduled personal property. Employee dishonesty coverage does not include: - ANSWER - Robbery of an employee. What does Employee Dishonesty Coverage provide? - ANSWER - Covers losses caused by the dishonest acts of employees. Who can bind an insurance coverage by oral or written agreement? - ANSWER - Property and Casualty Producer. What is Drive Other Car Coverage? - ANSWER - Provides coverage for the owner of a business that does not own an auto. Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of, the insured is an example of: - ANSWER - An unfair claims practice act. How is property covered under an unendorsed BOP form? - ANSWER - Open Peril. What 2 additional coverages can be found on the DP2 and DP3 that are not found on the DP1? - ANSWER - Collapse and Lawns/Plants/Trees/Shrubs If an insurer requires an application for reinstatement and it takes no action on that application for ____, the policy is: - ANSWER - 45 days/reinstated. In a bond that has been in place and renewed for several years with the same carrier, under the "loss sustained under previous insurance condition" which would respond to a claim that was just discovered but which actually happened two years ago? - ANSWER
- The current bond. An insurer is required to acknowledge receipt of notice of a claim within: - ANSWER - 15 working days. What kind of violation has a construction company made if they have faulty materials in a flood wall that collapses and results in the destruction of five homes? - ANSWER - Civil Violation. A written modification of an insurance policy is known as: - ANSWER - Endorsement A commercial inland marine condition defining the insurer's subrogation rights: - ANSWER - Guarantees the insurer's ability to recover from a third party who is responsible for a covered loss..
A business auto policy has a $100,000 limit of insurance for liability coverage. As a result of an automobile accident involving a covered auto, two people are injured. The first injured party sues the named insured and wins a $150,000 judgment. The insurer pays its limit of insurance. If the other injured party later sues the insured, the insurer will: - ANSWER - Deny further obligations to the insured as a result of the other injured party.. Who is a manager under a commercial crime insurance policy? - ANSWER - Directory of a limited liability company.
