NEW YORK ADJUSTER EXAM

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NEW YORK ADJUSTER EXAM

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -48 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Which of the following are additional coverages under a Businessowners policy with the named peril form attached?

• Debris removal.

II. Pollutant cleanup and removal.III. Exterior glass.IV. Collapse.All are additional coverages, but collapse and water or other liquid, powder or molten materials are available only under the BOP Special form. The named peril form endorsement which coverts open peril coverage to named peril coverage does not include collapse as an additional coverage.

Answer Choices: Select the Correct Answer

I, II, III and IV I, II, and III only I and II only III and IV only

Answer:

I, II, and III only

Question 2: When may an insured sue an insurance company?

Answer:

Not until the insured has complied with all policy provisions and within the time limit specified in the state laws

Question 3: Liability without fault

Answer:

12.5%.

Question 4: All of the following statements are false regarding an insured's right to cancel an

automobile policy, EXCEPT:

Answer:

The named insured may cancel an auto policy at any time. is correct.

Question 5: What is the reason for the New York financial responsibility law?

Answer:

To provide some form of compulsory insurance to make drivers financially responsible for at-fault accidents..Question 6: An insured has an occurrence-type CGL policy with a $100,000 aggregate limit and a $25,000 per occurrence limit. The insured had one occurrence settled for $35,000 and a second occurrence, which took place during the same policy period, was settled for $20,000. If a third occurrence took place in this same term, what is the maximum amount the insurer would be obligated to pay as damages?

Answer:

Explanation:

The policy can only pay up to its per occurrence limit on any one occurrence. The insurer will pay $25,000 for the first occurrence, and will pay all of the $20,000 settlement for the second occurrence.The aggregate limit has thus been reduced by a total of $45,000, leaving just $55,000 for any other occurrences during that policy period.Question 7: Who signs the declarations page on most property and casualty policies?

Answer:

An Authorized Representative of the Insurer Question 8: Medical payments coverage under the farmowner policy covers which of the following?

Answer:

Medical payments coverage under the farmowner policy covers which of the following?

Question 9: A non-waiver agreement would allow the insurance company to do which of the following?

Answer:

Investigate the loss without verifying that the loss is covered is correct.Question 10: The minimum coverage required in New York for uninsured motorists bodily injury

is:

Answer:

The correct answer is: $25,000 per person, $50,000 per accident. .

Explanation:

New York state law established the minimum coverage limits of $25,000 per person, $50,000 per accident and up to $50,000 per person, and $100,000 per accident for death.Question 11: The court awards a judgment against the insured for $300,000 plus $10,000 of accrued interest and the legal fees amount to an additional $35,000. Our insured has a $300,000 liability limit on the policy. How much will be paid by the policy?

Answer:

The correct answer is: $345,000.

Explanation:

The $10,000 of accrued pre judgment interest and the $35,000 cost of the defense are all payable as additional coverage on the policy. These amounts have no affect on the limit of liability available in a judgment against the insured. So the entire amount of $345,000 is payable in this case.Question 12: The workers compensation policy language is written by the:

Answer:

National Council on Compensation Insurance (NCCI) Question 13: Under a watercraft or yacht policy how claims are settled:

Answer:

Actual cash value Question 14: Which of the following is not an endorsement under a Homeowners Policy?

Answer:

Flood Coverage.

Question 15: The application for an adjuster's license must be submitted with affidavits signed

by five reputable citizens of the state. The affidavits must:

Answer:

Be affirmed under penalty of perjury .Question 16: A person who violates a cease and desist order issued by the Superintendent of Insurance is subject to a penalty of up to _____ for each violation.

Answer:

$5,000

Question 17: The insured is covered under a BOP policy. Contents coverage is included. If the insured buys a separate piece of machinery and insures it separately, how will the BOP policy respond to a loss to this machinery?The BOP will only pay on an excess basis if the other coverage does not provide adequate limits of coverage.

Answer Choices: Select the Correct Answer

The equipment policy will be primary and the BOP will be excess if the separate policy does provide adequate limits of coverage.The BOP would be primary and the separate policy would be excess.The BOP policy will not pay since the equipment is separately insured.Both will share in the loss on a pro/rata basis.

Answer:

The equipment policy will be primary and the BOP will be excess if the separate policy does provide adequate limits of coverage. is correct.Question 18: Which of the following commercial crime insuring agreements would cover theft of currency?

Answer:

Employee Theft.Question 19: A professional liability policy can be:

Answer:

Purchased separately for an additional premium Question 20: 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:

Answer:

A large loss has occurred