Download NY Insurance Adjuster Licensing Exam 2025 || Questions & Answers (Rated A+) and more Exams Insurance law in PDF only on Docsity!
NY Insurance Adjuster Licensing Exam
2025 || Questions & Answers (Rated A+)
A loss due to order of Civil Authority: - ANSWER - is excluded unless the loss occurs because of an order by Civil Authorities for the purpose of controlling a fire The term "unoccupancy" refers to the absence of : - ANSWER - persons from a building Suppose a fire occurs on February 26th. On April 30th, the insurance company notifies the mortgagee the insured has not filed a proof of loss. To protect their interest, the mortgagee must file a proof of loss within _________ days after what date? - ANSWER
- 60 days after April 30th For recovery under the Standard Fire policy, a party must: - ANSWER - be named in the policy and show an insurable interest in the property at the time the loss occurs What is the requirement on how much experience one must have to be elected the insurance commissioner in Georgia? - ANSWER - None Once elected, how long is the insurance commissioner's term? - ANSWER - 4 years Is there a limit on the number of terms an insurance commissioner can serve? - ANSWER - No Who is Georgia's current insurance commissioner? - ANSWER - Ralph Hudgens What two capacities does Georgia's insurance commissioner serve? - ANSWER - 1. Chief Officer of Insurance Dept.
- Chief Fire Marshall What happens if the Insurance Commissioner has to resign early? - ANSWER - No election; the Chief Deputy will take over What is the requirement to serve as Chief Deputy in Georgia? - ANSWER - must have a bond in the amount of $15, If you are a domestic insurer in Georgia, how often does code say your financials must be examined? - ANSWER - once every 5 years Only one court in Georgia has the right to overturn the decision of the Insurance Commissioner. Which is it? - ANSWER - Superior Court of Fulton County
What certificate is required for a company to be an authorized insurer in Georgia? - ANSWER - Certificate of Authority Which kind of losses are covered under a standard fire policy? - ANSWER - Direct All fires are not covered by the Standard Fire policies, only those that: - ANSWER - are hostile and have a flame or glow At what time does a fire policy go into affect? - ANSWER - 12:01am standard time at the location of the insured's property A property is insured under two Standard Fire policies for $25,000 each. A fire causes $10,000 worth of damage. What is the maximum amount the insured may collect under each policy? - ANSWER - $5, A fire burning in the middle of the living room would be considered: - ANSWER - a hostile fire An insured's house is damaged by fire caused by a neighbor's negligence. The insurance company will attempt to recover damage from the neighbor. This is called: - ANSWER - subrogation Which of the following statements are true concerning requirements of the standard fire policy? - ANSWER - The insured must separate damaged from undamaged property in the event there is a loss AND If a loss occurs, the insured normally has 60 days to file a proof of loss with the insurer Which types of property are excluded from coverage under the basic fire policy? - ANSWER - accounts, currency, deeds, and securities Who is insured under the Standard Fire policy? - ANSWER - the named insured and his legal representatives An agreement which affords temporary insurance protection until the policy is issued is called: - ANSWER - a binder as a general rule, a complete fire insurance policy would be made up of: - ANSWER - the Standard Fire policy with one or more forms attached The one condition listed below which will not void a fire policy: a) false swearing b) misrepresentation c) over-insurance d) concealment - ANSWER - over-insurance replacement cost minus depreciation: - ANSWER - Actual Cash Value (ACV)
Actual cash value= - ANSWER - replacement cost minus depreciation an insurance policy is an aleatory contract, which means: - ANSWER - performance depends on the occurrence of an uncertain event an insured's right to seek damages from someone at-fault may be may be transferred to the insurer under the policy's: - ANSWER - subrogation clause the Law of Large Numbers states that: - ANSWER - the more examples used to develop a statistic, the more reliable the statistic will be Which of the following about insurance policies are true? - ANSWER - policies are usually personal contracts The concept of restoring the insured to approximately the same economic position occupied before the loss is called: - ANSWER - indemnity which of the following is used to modify an insurance policy from its original form? - ANSWER - Endorsements an insurer formed under the law of a state of the United States other than the state where it is licensed, domiciled and chartered is: - ANSWER - a Foreign insurer careless driving because the driver knows he or she is insured is a: - ANSWER - Morale hazard oily rags left to accumulate in the garage is a: - ANSWER - physical hazard insurance policies are contracts of adhesion, which means: - ANSWER - terms of the contract are drawn up by the insurer and the insured simply adheres to the terms It is assumed that any oral agreements made before contract formation were incorporated into the written contract. Once formed, earlier oral evidence will not be admitted in court to change or contradict the contract. This is known as: - ANSWER - Parol Evidence Rule The two major types of insurers in the private sector are: - ANSWER - Stock and Mutual companies temporary contract of insurance that commits the insurer before before a policy is issued is called a: - ANSWER - binder a term that blocks all attempts to change conduct or reassert a right previously waived, and it usually applies after the other party has begun to rely on the conduct or waiver is known as: - ANSWER - estoppel
property and liability insurers use different marketing methods. Which of the following are features of the independent agency system? - ANSWER - Agents can represent one or more insurers AND Agent owns renewal rights to policies Concealment is failure of the insurance applicant to reveal a material fact to the insurer. Which of the following statements must be proved before the insurer can deny a claim on the basis of concealment? - ANSWER - a concealed fact was known to be material by the insured AND the insured intended to defraud the insurer who is considered the first party to an insurance contract? - ANSWER - the Insured the insuring agreement summarizes the insurers obligations and conditions for loss payment. Which of the following is/are types of insuring agreements? - ANSWER - open peril policy when a person installs burglar bars and a fire alarm system, what method of managing risks has been undertaken? - ANSWER - Reduction All of the following could be covered under a named insured's personal auto policy, except: - ANSWER - A private passenger vehicle owned by the named insured's spouse who moved to a separate residence 5 months ago (b/c policy only covers up to 90 days; she's been gone 5 months) The physical damage section of the personal auto policy excludes losses arising from: a) flood b) earthquake c) animals d) mechanical breakdowns - ANSWER - d) mechanical breakdowns Which of the following causes of loss is covered by Other-Than-Collision Coverage written under a Personal Auto Policy? a) freezing b) electrical breakdown c) vandalism damage to tires d) upset - ANSWER - vandalism damage to tires Which of the following losses would be covered by Other-Than-Collision Coverage under an automobile policy? a) mechanical breakdown b) hail c) wear and tear d) upset - ANSWER - b) Hail What is the principle coverage under the Personal Auto Policy coverage Part D? a) liability coverage
a remedy is available when the insured and the insurer cannot agree on whether the insured is entitled to collect damages or on the amount of damages to be awarded in uninsured motorist cases. This remedy is: a) subrogation b) settling out of court c) no benefit to liable d) arbitration - ANSWER - d) arbitration What is a temporary substitute automobile? - ANSWER - an auto not owned by an insured and used with the owner's permission while the insured's auto is withdrawn from use because of its loss, destruction, breakdown, or servicing Auto liability insurance is divided into coverage for two types of damage one person may cause another. They are: - ANSWER - bodily injury and property damage Which of the following is covered by an insured's auto property damage liability insurance? a) damage to the insured's car by collision b) breakage of the insured's windshield c) damage to property of others caused by insured's negligence d) theft of the insured's car - ANSWER - c) damage to the property of others caused by the insured's negligence All policies covering private passenger vehicles must be issued for a minimum term of: - ANSWER - 6 months What is the maximum amount payable for bail bonds under supplementary payments in the Personal Auto Policy? - ANSWER - $ Part C- Uninsured coverage, is: - ANSWER - required to be offered by insurance companies, but the insured can reject it which of the following is true with respect to automobile medical payments? - ANSWER
- coverage applies to reasonable expenses incurred within 3 years from the date of accident for necessary medical and related services All of the following would be included in the definition of your covered auto on a personal auto policy, except: a) a vehicle shown in the declarations b) a $350 trailer owned by the named insured c) a non-owned vehicle used by the insured when their covered auto is being serviced d) a vehicle furnished for regular use of the named insured by the insured's employer - ANSWER - d) a vehicle furnished for regular use of the named insured by the insured's employer
Under Uninsured Motorists Coverage, an insured can collect from his own liability insurer: - ANSWER - bodily injury and property damage he would be legally entitled to collect from an uninsured motorist An insured's auto is stolen and recovered 5 days later. If the insured claims transportation expenses $32.50 per day, how much will be paid under the covered peril? - ANSWER - $60.00, b/c there is a 48 hour waiting period, so they are eligible to receive payment after the first two days, making 3 days. You can get up to $20.00 per day. 3x20= Which of the following is not included in the policy conditions? a) the name of the parties to the contract b) amplification of definitions c) certain duties, responsibilities, rights and privileges of the parties to the contract d) agreed procedures under specified circumstances - ANSWER - a) the name of the parties to the contract If the named insured allows his son to use one of the vehicles covered under the personal auto policy (PAP), is the son an insured under the PAP even though he does not reside in the insured's household? - ANSWER - Yes, because the definition of "insured" includes any person using the named insured's covered auto Coverage A-Dwelling covers which of the following? - ANSWER - Materials located next to the residence for use in the construction of the dwelling when a loss is settled on a replacement cost basis, the insured receives: - ANSWER - the replacement cost of the property with no deduction for depreciation The condominium form HO-6 provides no dwelling coverage but provides the same coverage as what other form for personal property? - ANSWER - HO-2 (they're both Broad Form named perils) Which is excluded under a homeowner's policy? a) earthquake b) a dwelling insured under the HO-5 form and damage in a flood c) accidental and sudden discharge of water from plumbing system d) meat which spoils when refrigerator motor breaks down after many years of service - ANSWER - a, b, and d Coverage E of the Homeowner's Policy has a minimum limit of: - ANSWER - $100, How much coverage is applied to contents away from the premises under the dwelling building and contents broad form? - ANSWER - 10% of contents coverage
How many employees must an employer have to be required to carry workers compensation coverage? - ANSWER - 3 or more What loss of income payment can employees awarded workers comp receive? - ANSWER - loss of wages payable up to 66 2/3 of wages What is the waiting period to receive income benefits for workers compensation? - ANSWER - 7 days If employee dies from injury in workplace accident, will cover funeral costs up to: - ANSWER - $ What is the first page of the Workers Comp Policy called? - ANSWER - Information Page Attached to the Information Page of the Workers Comp Policy are two sections. What are they called? - ANSWER - Section 1: Statutory Benefits Section 2: Employers Liability What are Statutory Benefits? - ANSWER - medical, income, death, and rehab What is required for an agent to share commission with another agent when selling a policy? - ANSWER - a P&C license Reasons houses can't qualify for Homeowners Policy: - ANSWER - -low value -old, un-renovated (must be updated within last 25 years) -houses in undesirable locations -rental houses -must be owner-occupied to qualify Which Dwelling Fire Policy is the best? - ANSWER - DP-3 Special, because it is all risk coverage DP-2 Dwelling Fire Policy: - ANSWER - 2nd best, has the most named perils How often must you renew an insurance license? - ANSWER - once every 2 years (on the last day of your birth month) --> must fulfill 24-hour credits What is the purpose of a Dwelling Fire Policy? - ANSWER - to cover a residence Residence: - ANSWER - can only contain up to 4 family units If a structure contains more than 4 family units, it is a: - ANSWER - commercial building
Mobile homes can qualify as a residence; however, they: - ANSWER - can't be on wheels, they must have a location with an address Does a house on a farm qualify as a residence? - ANSWER - No- must get a Farm Owners Policy, which covers both residential and farmer activities If your name is on the insurance policy, you are the: - ANSWER - Named Insured A spouse can be covered under a policy even if her name isn't on it, as long as: - ANSWER - she is a resident of the household Must be a full-time student under the age of ____ for policy to cover child when away from household - ANSWER - 24 What does Dwelling Coverage E cover? - ANSWER - additional living expenses What does Dwelling Coverage D cover? - ANSWER - loss of rental value What does Coverage C of the Dwelling Policy cover? - ANSWER - personal property What does Coverage B of the Dwelling Policy cover? - ANSWER - other structures that are unattached/disconnected structures, like a shed or pool What does Coverage A of Dwelling Policy cover? - ANSWER - the residence and anything attached By default, the limit for Coverage B of Dwelling Policy is automatically ____% of the Coverage A limit - ANSWER - 10% What are the minimum and maximum time frames for a temporary adjuster's license? - ANSWER - minimum: 6 months maximum: 15 months If an insured owns and occupies house, they qualify to have their contents insured as personal property under which coverage? - ANSWER - Coverage C Does Coverage C of Dwelling Policy have a default limit? - ANSWER - no, it does not have a default limit Coverage D (rental loss) of Dwelling Policy limit is automatically _____% of Coverage A? - ANSWER - 20% Coverage E (additional living expenses) of Dwelling Policy limit is automatically ____% of Coverage A? - ANSWER - 20%
Do dwelling policies include liability coverage? - ANSWER - no How much will Fire Department Policy reimburse for charges? - ANSWER - up to $ Is the Homeowners Policy a package policy? - ANSWER - Yes- it includes property coverages and liability coverages Is the Homeowners Policy or Dwelling Policy better? - ANSWER - Homeowners, b/c it is more efficient and has fewer gaps in coverage To qualify for Homeowners Policy: - ANSWER - house must be owner-occupied, can contain up to 4 family units If you get the endorsement for motor home coverage on the Homeowners Policy, it covers collision damage for moving home, and transportation costs up to: - ANSWER - $ What are the requirements for a mobile home to qualify for Homeowners Insurance? - ANSWER - must be at least 40 feet in length, and 10 feet wide _________ is the only homeowners policy that lets you insure property for Market Value
- ANSWER - HO-8 Basic Why is HO-5 Comprehensive the best form for house coverage? - ANSWER - B/c it has all risk for everything HO-4 Tenant Form - ANSWER - covers contents for renters; does not have Coverage A or Coverage B HO-6 Condo Broad Form - ANSWER - covers contents of people who own condo units Additions and Alterations - ANSWER - part of HO-6 Condo Broad Form; any upgrades you make to your condo would be covered under this policy which homeowners policy covers any renovations or upgrades a homeowner makes to their condo? - ANSWER - HO-6 Condo Broad Form--> Additions and Alterations To be negligent, one must: - ANSWER - be able to control the circumstances leading to other persons loss Coverage E of homeowners policy - ANSWER - basic limit for coverage is $100,000 per occurrence; works both on and off premises , follows you when you leave your house Coverage F homeowners policy covers medical expenses up to: - ANSWER - $1, per person, per occurrence
Twisting - ANSWER - illegal in Georgia; when you are trying to sell insurance to someone who already has a policy, you must be trying to sell an equal or better policy than the one they already have Special limitations to contents loss under Coverage C (personal property): - ANSWER - -money $ -accounts, deeds, evidence of debt $ -watercraft $ -trailers $ -jewelry theft $ -silverware theft $ -gun theft $ -business property $2500 (on premises) -business property $500 (off premises) 2 Property Endorsements under homeowners policy: - ANSWER - 1. Earthquake Coverage- the first 72 hours of earthquake damage counts as one occurrence
- Replacement Cost Contents Coverage- makes contents covered for replacement value, so no depreciation (w/out this endorsement, would be covered w/ Actual Cash Value) if you're charging money for alcohol you are serving, you must get: - ANSWER - liquor liability coverage Section 2 Property Damage Coverage homeowner policy - ANSWER - ONLY covers property damage of OTHERS; any property the insured owns that is damaged is not covered Your property damage is covered under which section of Property Damage homeowners policy? - ANSWER - Section 1 covers your property damages; Section 2 covers OTHER people's property damage If insured is getting sued and must miss work that week and not able to get paid, insurance will cover loss of wages up to: - ANSWER - $ Section 2 of Property Damage HO policy covers damage to OTHERS property up to: - ANSWER - $1, Which sections of the HO Policy have deductibles - ANSWER - Section 1 has a deductible ($250). Section 2 does NOT have a deductible An insured child under age _____ who intentionally damages others' property, that damage WILL be covered. - ANSWER - age 13. Do homeowners policies cover auto accidents? - ANSWER - NO
Does a personal auto policy insure owned and leased vehicles? - ANSWER - Yes- personal auto policy insures BOTH owned and leased vehicles When driving a car as a sales person, the policy gets charged a ______ Rate - ANSWER - Business Use Rate Pleasure Rate - ANSWER - auto policy for retirees or people who work at home; has the lowest rate Can trucks ever qualify for personal auto insurance? - ANSWER - yes- if they weigh under 10,000lbs; BUT even if it does weigh less than 10,000lbs, if it is being used for business, MUST get commercial policy Can business-owned vehicles qualify for personal auto insurance? - ANSWER - NO To qualify for auto insurance, vehicle must: - ANSWER - must have at least 4 wheels; motorcycles are NOT eligible for auto insurance b/c only have two wheels Auto policies cover the insured in the U.S. and ________ - ANSWER - Canada If a spouse leaves his/her partner and takes the named vehicle with them, they will remain covered under the same auto policy for _____ days before the policy is terminated (grace period) - ANSWER - 90 days If you give someone permission to drive your car and they get in an accident, is this covered by your policy? - ANSWER - yes Occupying - ANSWER - While in, on, upon, entering onto, or exiting from the vehicle trailer - ANSWER - vehicle that can only move once connected to the automobile; trailer
- car = one vehicle Newly Acquired Additional Vehicle: - ANSWER - got new vehicle but haven't yet told agent; reason for vehicle is to add to current policy; you have up to 14 days of automatic coverage from the date you got new vehicle to register it Newly Acquired Replacement Vehicle - ANSWER - insured acquired new vehicle and has not yet told insurance agent; reason for new vehicle is to replace another one; automatic coverage for 14 days from when you get new vehicle for physical damage; over coverages extend to end of policy date Coverage ___ is the only insurance policy required to have in GA - ANSWER - Coverage A (for damages caused to other persons)
