Motor Vehicle No-Fault and Workers Compensation Health Services Adjuster, Exams of Commercial Law

Download Motor Vehicle No-Fault and Workers Compensation Health Services Adjuster and more Exams Commercial Law in PDF only on Docsity! New York Indep. Motor Vehicle No-Fault and Workers Compensation Health Services Adjuster (Series 17-72) An "uninsured motor vehicle" under a personal auto policy does not include: - ✔✔An abandoned car used as a residence. . Which of the following are exempt from certain sections of the New York cybersecurity regulation? - ✔✔All responses listed are correct.. Danny owns an auto body shop and he has received a request from a client to restore his 1964 Ford Mustang. The client has requested a custom mustang horse be painted on the hood of the car. Danny always selects the type of paint most suited for the job, so which of the following paint types will Danny most likely select to paint the horse? - ✔✔Lacquer The root word "glyc" refers to: - ✔✔Sugar. If any person engages in activities in violation of the Federal Insurance Fraud and False Statements regulation, he or she may be subject to which of the following? - ✔✔A civil penalty of not more than $50,000.. What commercial auto form is used to cover taxis and bus companies - ✔✔Motor carrier form. Tom has lost 30% of his hearing in both ears. His doctor has advised him that his hearing loss has been caused by exposure to noise at his workplace for the past 25 years. Tom's hearing loss can be catoragized as a: - ✔✔Cumulative Trauma Disorder. Tearing of a muscle results in an injury known as a: - ✔✔strain In commercial auto physical damage coverage, what "triggers" the coverage that applies to the vehicles? - ✔✔Symbols How would an insured's PAP coverage apply when renting a private passenger auto while on vacation when they have purchased insurance coverage from the rental company? - ✔✔The insured's PAP provides excess liability coverage when the insured drives non-owned autos. . Which of the following statements is true regarding the business auto policy - ✔✔One or more of ten symbols triggers coverage. Under the New York cybersecurity regulation, each covered entity must maintain documentation supporting certification of compliance with the regulation for: - ✔✔5 years The root word "stomat" refers to - ✔✔Mouth What is the purpose of "other states insurance" under a Workers Compensation policy? - ✔✔To provide coverage for exposures which develop in other states during the policy period . After receiving a blow to the head, Alex is released from the hospital after a few hours and told to rest and resume normal activity in 3-4 days. Alex has suffered a brain injury known as: - ✔✔Concussion When an insurer intends to non-renew a homeowners policy in New York, at least _____ advance notice of non-renewal must be sent to the insured - ✔✔45 days The type of auto body frame that is most often used in today's automobile and is a single molded unit, is known as: - ✔✔A unibody frame.. Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-fault accident and incurs the following expenses: $30,000 bodily injury judgment; $30,000 property damage judgment; $5,000 damage to traffic light; $6,000 attorney's fees for his defense; $300 in premiums for appeal bond; and $75 in bail bond premiums for related traffic violations. What is the maximum amount his insurance company will pay? - ✔✔$56,375. The policy cannot pay more than its limit of liability. Under supplemental coverages in the policy, the policy will pay the defense costs plus the cost of the premiums on appeal bonds and bail bonds. Which of the following losses would be paid under the "Other than Collision" coverage of the Personal Auto policy? Gradual corrosion of the grillwork on the insured automobile due to continuous exposure to salty air. The insured automobile was stolen and never recovered. The insured automobile skidded on icy pavement and overturned. The insured automobile was damaged when it was hit by another car that failed to stop at a red traffic light. - ✔✔The insured automobile was stolen and never recovered.. A New York adjuster commits an act of insurance fraud addressed by the Federal Insurance Fraud Act. The fraud does not affect the financial stability of the company. What is the maximum time the adjuster may be confined to prison? - ✔✔10 years During a baseball game, a player was struck in the frontal region of his cranium by a batted ball. This frontal region is known as the: - ✔✔Forehead. Which of the following events, arising out of the use of a covered auto, is covered under the personal auto policy? - ✔✔Damage to a private garage rented by the insured. . The workers compensation policy language is written by the: - ✔✔National Council on Compensation Insurance (NCCI) Cystic fibrosis is a serious and often fatal disease that affects the: - ✔✔Lungs. Vehicle glass, other than the windshield, is made of: - ✔✔Tempered glass. The insured is covered under a personal auto policy and carries liability coverage, other than collision (comprehensive) coverage and collision coverage. He has a large quantity of CDs in the vehicle. The vehicle is broken into and these items are stolen. How will the insurance company handle the claim for the CDs? Deny the claim in full. Pay the claim in full. Pay the claim minus depreciation. Pay the claim minus the deductible. - ✔✔Deny the claim in full. Which of the following insurance companies MUST participate in a state's automobile assigned risk plan All licensed insurance companies that sell auto insurance in the state. Only companies that sell more than 1,000 auto policies per year in the state. Only the ten largest auto insurance companies in the state. Only excess lines insurance companies that sell auto insurance in the state. - ✔✔All licensed insurance companies that sell auto insurance in the state. You are at home having your roof repaired. An employee of the roofing company needs to go to the hardware store to purchase supplies. Your car is blocking the driveway so you allow him to use your car to go to the store. While driving your car, he is at-fault in an auto accident. Your insurance policy will protect: All of the parties would be protected by your policy. Only you the insured will be protected. Only the employee will be protected. Both you and the insured will be protected - ✔✔All of the parties would be protected by your policy. The commercial auto policy form provides for "worldwide liability coverage" for private passenger autos that the insured: Hires, leases, rents or borrows without a driver. Purchases. Sells. Occupies. - ✔✔Hires, leases, rents or borrows without a driver. What limit of liability would be needed for a risk that transports radio active materials as required by the Motor Carrier Act under the MCS-90 endorsement? - ✔✔$5,000,000 The limit for medical expenses and rehabilitation expenses under the New York no-fault plan is: - ✔✔$50,000 When a claimant is represented by an attorney, which of the following is prohibited by the adjuster? - ✔✔Contact the claimant without the consent of the attorney Driver 1 and Driver 2 are in an accident. Driver 2 has the following damages: Property Damage - $1,000 Rental Car Expense - $500 Emergency Room Expense - $400 Lost Wages - $300 The extent of the bodily injury will not be known for six months. How should the adjuster on this claim pay damages for Driver 2? Pay all damage to date, provide a full and final release has been signed by Driver 2. Pay nothing until total of all damages has been determined. Pay the property damage and rental car expense and settle the bodily injury at a later time. None of the responses listed are correct - ✔✔Pay the property damage and rental car expense and settle the bodily injury at a later time. The named insured has a business auto policy issued by Company A and another auto policy issued by Company B. Company A's BAP has a limit of insurance for liability coverage of $100,000. Company B's policy provides $25,000 of liability coverage. If both policies apply to an accident on the same basis, how much of a $100,000 liability loss will Company A pay under its BAP? - ✔✔$80,000.. The two companies provide a combined limit of $125,000. Company A provides 80% of the limits in place. In case of a $100,000 loss, company A would pay $80,000. Which of the following is not a duty of an insurer in case of a loss? - ✔✔Separate the damaged property from the undamaged property and protect the property from further loss Which one of the following answer choices lists the components used in laminated safety glass? Two pieces of glass of equal thickness and a sheet of safety film. A sheet of safety film and two pieces of tempered glass. Two pieces of tempered glass and rubber caulking. Two sheets of safety film and two pieces of tempered glass - ✔✔Two pieces of glass of equal thickness and a sheet of safety film.. Amelia has suffered a covered collision loss to her vehicle. The insurer requires that her vehicle be repaired at a repair shop of the insurer's choice. The insurer: - ✔✔Is guilty of an unfair claims practice act The BAP uses Symbol 7 to cover "specifically described autos" identified in the declarations. An auto acquired during the policy period will only be covered: Answer If the insured insures all of their vehicles with the company or it replaces a covered auto. Only if it is a private passenger auto Only if it is other than a private passenger auto If reported to the company within 14 days of acquisition - ✔✔If the insured insures all of their vehicles with the company or it replaces a covered auto. . An "uninsured motor vehicle" under a personal auto policy does not include: An abandoned car used as a residence. A "hit and run" driver. A vehicle carrying liability insurance in an amount less than required by a state's financial responsibility law. A car whose bodily injury liability coverage has expired. - ✔✔An abandoned car used as a residence. The required standard deductible for auto physical damage coverage in New York is: - ✔✔$200.00 per occurrence A manufacturing company is sending two U.S. employees to Russia to discuss their products and visit a Russian plant. They have volunteered for the trip. What coverage would be needed for injuries they may occur in a work-related accident while abroad? - ✔✔Add the Foreign Coverage Endorsement to the company's workers compensation policy Under the Motor Carrier Act, how long are goods being transported covered for loss? - ✔✔Until they are unloaded and placed in a designated place.. Each of the following is true about work-related injury cases which fall outside the scope of the workers compensation law, EXCEPT: The employer cannot be held liable for such injuries. Common law defenses are retained by the employer. Damages may be paid if negligence or legal liability is established. Pain and suffering damages may be awarded in a court of law. - ✔✔The employer cannot be held liable for such injuries In the determination of damages, which of the following will the workers compensation adjuster not attempt to evaluate? - ✔✔The party at fault Which term best describes the word 'anterior' when used to denote a portion of the body? - ✔✔Front Under the Terrorism Risk Insurance Program Reauthorization Act of 2015, what is the "trigger limit" before claims are paid for the year 2018? - ✔✔$160 million. What is the penalty for an individual committing workers compensation fraud in New York? - ✔✔5,000 fine and four years imprisonment No act will be certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security, as an act of terrorism under the Terrorism Risk Reauthorization Act of 2015 unless: the losses relate to life and health insurance. the act is committed as part of the course of war declared by Congress. the losses that have occurred related to personal property insurance. the losses that occur relate to commercial property and specified casualty risks. - ✔✔the losses that occur relate to commercial property and specified casualty risks.. The medical term for high arterial blood pressure is: - ✔✔Hypertension A New York insurance licensee must advise the Insurance Department of a change of address within: - ✔✔30 days of the change. Which of the following pollution losses would be covered by garage policy liability coverage? Pollution of a stream caused by gasoline leaking from the ruptured fuel tank of a covered auto following a collision. Escape of toxic sludge from a dump site used by the named insured to store waste produced in its garage operations. The cost of a governmentally ordered clean-up of the pollution from a dump site used by the named insured. None of the losses described would be covered. - ✔✔Pollution of a stream caused by gasoline leaking from the ruptured fuel tank of a covered auto following a collision.. Tachycardia is a condition in which the heart contracts at a rate greater than ____ beats per minute. - ✔✔100 All of the following are included in an insurance property estimate of damages, EXCEPT: - ✔✔Depreciation When would the personal auto policy respond to a loss with a three wheeler - ✔✔When used in an emergency situation All of the following circumstances would be covered under workers compensation, EXCEPT: - ✔✔The worker was injured while violating a company rule at lunch break. Will pay the insured up to $200 per day for loss of earnings due to testifying at a trial concerning an accident caused by the insured Will not pay for loss of earnings while testifying at a trial Will pay the insured $100 per day for loss of earnings while testifying at trial None of the responses are correct. - ✔✔Will pay the insured up to $200 per day for loss of earnings due to testifying at a trial concerning an accident caused by the insured Supplementary payments under the liability section of a commercial auto policy include reasonable expenses incurred by the insured including loss of earnings up to ___ per day. $50 $150 $250 $500 - ✔✔$250 There are four people in the Smith family: Mr. Smith, Mrs. Smith, Susan Smith (Mr. and Mrs. Smith's daughter), and Mrs. Hillman (Mrs. Smith's mother). The Smiths own a family car which is covered by a personal auto policy. Mrs. Hillman also has a 1995 Chevy Impala on which she carries no insurance (it is not listed on the Smith's policy). Which of the following injuries would NOT be eligible for medical payments coverage under the Smith's personal auto policy? - ✔✔Injuries sustained by Mrs. Hillman when she is driving her own car. . All of the following are examples of a "door" in an automobile, EXCEPT: A panel that opens to allow access to the interior of the vehicle. The hood of the vehicle. The floor pan of the vehicle. The trunk lid of the vehicle. - ✔✔The floor pan of the vehicle. The suffix "somatic" refers to: Brain Body Tissue Muscle - ✔✔Body What name(s) can be used in the issuance of an adjuster license in New York? An assumed name A name of a business not approved by the Commissioner The licensee's own legal name A trademark with a slogan - ✔✔The licensee's own legal name The root word "pathos" means: Growth or formation Abnormal condition Sickness or disease Tumor or swelling - ✔✔Sickness or disease Under the Federal Insurance Fraud and False Statements Act, if someone is prohibited from doing business in a state, approval to resume transacting business must be granted by: - ✔✔Submitting a 1033 waiver form and having it approved by an insurance regulatory official in his or her state Which of the following items are advantages of enamel automobile paint over lacquer paint? I. Enamel is thicker than lacquer. II. Enamel does not attract insects. III. Enamel evaporates a much smaller portion of its chemistry into the atmosphere, making it less toxic than lacquer. IV. Enamel is better suited to custom automobile painting. - ✔✔I and III only. Joann, an adjuster who holds a resident adjuster license in New York, has had administrative action taken against her in another state where she holds a nonresident license. What are her responsibilities to the New York Department of Insurance? - ✔✔Once the administrative action has reached it final conclusion, she must report the final disposition of the matter to the New York Superintendent within 30 days. is a straightening movement allowed by certain joints of the skeleton that increases the angle between two adjoining bones. Flexion Rotation Extension Gliding - ✔✔Extension A vehicle rolled over exiting the interstate. The insured carries collision coverage with a $1,000 deductible and other than collision coverage with a $500 deductible. The damage to the vehicle is $2,000. What amount is the insurer responsible to pay? $2,000 $1,000 $1,500 Nothing - ✔✔$1,000 Under the liability coverage of the commercial auto policy, which of the following would NOT be covered? A third party claim occurred a week after products were finally delivered to a customer. A third party claim that occurred in a warehouse as an employee was using a hand truck to load a delivery truck. A third party claim that occurred while the truck was being loaded by the use of a mechanical device attached to the truck. A third party claim as a result of a truck being unloaded by hand. - ✔✔A third party claim occurred a week after products were finally delivered to a customer Under which of the following claims settlements are the claim invoices presented and paid with no attempt to obtain a separate release? A partial release A walk-away release An open-end release An insurance professional that is accused of dishonesty or breach of trust involving interstate commerce under the Federal Fraud and False Statement Regulation of the United States Code (USC 1033) will be prosecuted by: - ✔✔The U.S. Attorney general The insured owns a motor home that is not covered by the insured's personal auto policy. This vehicle can be added to the policy by using which of the following endorsements? - ✔✔Miscellaneous Type Vehicle endorsement. Duplicate recovery under New York No-Fault coverage is not permitted. If the employee is covered under the employer's auto policy what might be done to the employee's personal auto insurance coverage: - ✔✔Endorsement PP 05 92 can be added to the employees personal auto policy. For all but small employers, premiums in a Workers Compensation policy include an adjustment, upwards or downwards, based upon how the employer's actual loss experience compares to that expected of employers which do similar work. What is the name of the factor that accounts for this adjustment? - ✔✔The experience modification factor Workers compensation insurance is a contract between: - ✔✔Insurance company and the employer. A tornado blows over a wall of a barn which, in turn, knocks over a lamp and starts a fire. What is the proximate cause of loss? Tornado Smoke Fire Water Damage - ✔✔Tornado What is the first thing an insurance company staff adjuster must determine in handling a workers compensation injury claim? - ✔✔Whether coverage was in effect at the time of the injury The human respiratory system supplies oxygen and removes _____ from the body - ✔✔carbon dioxide An authorized insurer in the state of New York may use a report from any acceptable consumer reporting agencies as part of its underwriting process. Which of the following Acts was established to protect individuals from possible abuses of information contained in their credit files? - ✔✔The Fair Credit Reporting Act Sally Roe's vehicle is rear-ended by John Doe. Sally and John are good friends. Sally tells John not to worry about the damage. She says she has insurance and will tell her insurance company to pay for the damage. She will waive her subrogation right so that John won't have to pay anything. Her insurer will: Honor the waiver. Not honor the waiver. Proceed with subrogation against John Doe and will not honor the waiver. Refuse to pay the claim because of the waiver of subrogation. - ✔✔Proceed with subrogation against John Doe and will not honor the waiver Under the New York Comprehensive Automobile Insurance Reparations Act, (No Fault) coverages, what is paid for basic economic loss benefits for substitute services? - ✔✔$25 per day for one year. Paul's neighbor Pete gives Paul the keys to his uninsured pickup truck to use whenever Paul wants to. When would this vehicle NOT be considered a "covered auto" on Paul's auto policy? - ✔✔Paul's vehicle is out of gas New York residents securing any type of insurance adjuster license must meet all the following qualifications, EXCEPT The applicant must pass a state licensing examination. The applicant must be at least 21 years of age. The applicant must submit to fingerprinting. The applicant must not be a convicted felon - ✔✔The applicant must be at least 21 years of age.. Under the comprehensive coverage of a business auto policy, which of the following would not be a covered loss? After sliding on an icy pavement, a driver hits a guardrail. Electrical wiring in the vehicle catches fire when the ignition is turned on. All four tires are removed and a truck is put on blocks while it is parked over the weekend, even though there is no evidence of forcible entry into the company parking lot. A vehicle has its tires slashed by an undetermined person. - ✔✔After sliding on an icy pavement, a driver hits a guardrail. What is found in the Part VI - Conditions section of a Workers Compensation policy - ✔✔Cancellation clause Tom purchases a personal auto policy with limits of $25/50/25 and his wife Jane also purchases a policy with limits of $50/100/25. Both policies cover the same automobiles and both policies were purchased from the same insurance company. Neither Tom nor Jane is aware their spouse has purchased another personal auto policy. If an accident occurs and several people are injured, what is the most in liability coverage that will be available if Tom and Jane are both sued by the injured parties? - ✔✔If the policies are from the same company, Jane's limit of $100,000 would apply because it is the highest of the two limits Which of the following is the type of report indicating the initial results of the investigation of a claim? Field Report Interim Report Full Report Claims Report - ✔✔Field Report What is the purpose of the State Insurance Fund as it relates to workers compensation coverage? - ✔✔To provide employers with a market for coverage when coverage cannot be obtained elsewhere A person asserting a right to payment under an insurance policy is referred to as: - ✔✔A first party claimant. A monopolistic state in regards to Workers Compensation insurance is a state in which - ✔✔Coverage must be purchased from the state. In New York, anyone who violates a cease and desist order of the Superintendent may be subject of a fine of up to ____ for each violation. - ✔✔$5,000