New York Adjuster Exam 48 Questions and correct Answers 2023 with explanations, Exams of Automobile Engineering

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New York Adjuster Exam 48 Questions

and correct Answers 2023 with

explanations

Offering any return of premium, valuable consideration or inducement when purchasing an insurance policy is an example of: - ✔️✔️ I. Illegal Inducement II. Rebating Under a watercraft or yacht policy how claims are settled: - ✔️✔️ Actual cash value When may an insured sue an insurance company? - ✔️✔️ Not until the insured has complied with all policy provisions and within the time limit specified in the state laws What is the definition of a non-resident agent? - ✔️✔️ Someone licensed in their state and obtains a license in another state to solicit insurance business in that state. is correct. 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? - ✔️✔️ 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. The minimum coverage required in New York for uninsured motorists bodily injury is:

✔️✔️ 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. If an insured wishes to cover the mobile home while it is being transported from one location to another would: - ✔️✔️ Purchase the Mobile Home Transportation Coverage Endorsement on the homeowner policy The workers compensation policy language is written by the: - ✔️✔️ National Council on Compensation Insurance (NCCI)

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: - ✔️✔️ A large loss has occurred Under the underinsured motorist limit, how much will be paid on a claim providing the insured can prove his or her claim for damages? - ✔️✔️ The difference between the negligent driver's coverage and the insured's underinsured motorist coverage Who signs the declarations page on most property and casualty policies? - ✔️✔️ An Authorized Representative of the Insurer Which of the following commercial crime insuring agreements would cover theft of currency? - ✔️✔️ Employee Theft. Once the adjuster is appointed by the insurer to represent the insurer, the adjuster has the power to do all of the following, EXCEPT: - ✔️✔️ Bind additional coverage. The giving up of a known right is known as: - ✔️✔️ Waiver What is the definition of custom farming? - ✔️✔️ Farming for Others. Explanation: Custom farming is farming for others for a fee under a contract or agreement. A special endorsement is required if the receipts are in excess of $5,000 per year. 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, 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? - ✔️✔️ 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, 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. The insured owns a home with a swimming pool. The pool is not fenced. If a child were to drown in the pool, which of the following liability doctrines would most likely apply? - ✔️✔️ Attractive Nuisance. Explanation: In law, one who maintains a dangerous instrumentality on their premises which is likely to attract children is under a duty to reasonably protect those children from the dangers of that attraction

The insured maintains a business where workers compensation coverage can be written by private insurance companies. If he has employees going to a state that is monopolistic for this coverage, what must he do to cover his employees for workers compensation coverage? - ✔️✔️ Purchase coverage for the employees from the state. The Terrorism Act of 2002 and its extension is an agreement between: - ✔️✔️ The Terrorism Act of 2002 and its extension is an agreement between: Which of the following is not essential in determining if a salvage award is to be made? - ✔️✔️ Life-saving efforts Unfair settlement practices include all of the following, except: - ✔️✔️ Failing to pay a claim that is not covered under the terms and conditions of the contract. If an employer does not qualify to obtain Workers Compensation by self insuring or purchasing coverage from a private insurer, where may coverage be purchased? - ✔️✔️ The State Insurance Fund (SIF) In crime insurance, which of the following individuals is NOT considered to be a custodian? - ✔️✔️ Janitor Question: An insurance adjuster is allowed to enter a privately owned building when: Whenever he/she so desires If the adjuster has the consent of the owner If the owner of the building carries insurance If the adjuster has a loss to inspect - ✔️✔️ Question: An insurance adjuster is allowed to enter a privately owned building when: The adjuster should have the consent of the owner of the property before entering the building. Answer Choices: Select the Correct Answer Whenever he/she so desires If the adjuster has the consent of the owner If the owner of the building carries insurance If the adjuster has a loss to inspect Strict liability is best described as: Strict liability is liability without fault.

Strict liability is found in cases involving ultra-hazardous undertakings wherein the entity undertaking the ultra-hazardous activity or enterprise is, without the necessity of showing negligence, liable for any injuries resulting there from. Liability without fault. Liability with complete fault. Liability with measured fault. Liability regardless of comparative issues. - ✔️✔️ Liability without fault Liability without fault - ✔️✔️ 12.5%. Under the terrorism risk insurance act of 2002, which of the following would be considered a certified act of terrorism? - ✔️✔️ An act committed by a foreign national causing more then 5 million in damages meant to intimidate and scare the citizens of the United States. Which of the following is eligible for a Businessowners Policy? A six story office building would be eligible for a BOP provided the square footage does not exceed 100,000. The BOP is designed for certain types of risks. The number of stories is a factor and also the square footage of a risk is also a factor in eligibility. A six story office building Bank Stockbroker Credit Union - ✔️✔️ A six story office building A non-waiver agreement would allow the insurance company to do which of the following? - ✔️✔️ Investigate the loss without verifying that the loss is covered is correct. What is the reason for the New York financial responsibility law? - ✔️✔️ To provide some form of compulsory insurance to make drivers financially responsible for at-fault accidents.. Property damage to the dwelling and other structures by pranksters is typically covered under the peril of: - ✔️✔️ Property damage to the dwelling and other structures by pranksters is typically covered under the peril of: 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. - ✔️✔️ The equipment policy will be primary and the BOP will be excess if the separate policy does provide adequate limits of coverage. is correct. All of the following statements regarding the Motor Carrier Act of 1980 are correct, except: The Motor Carrier Act applies to liability only. The MCS-90 form is used to indicate that the vehicle in question has coverage including pollution liability for specifies limits being defined by what is being hauled. Answer Choices: Select the Correct Answer It requires truckers to certify that they are able to meet financial obligations arising from liabilities of their trucking operations. Commercial Inland Marine Motor Truck Cargo insurance is used to cover the liability for hauled cargo. The MCS-90 endorsement must be attached to a truckers policy to show that insurance is being used as proof of financial responsibility. It requires truckers to certify that they are able to meet financial obligations arising from physical damages of their trucking operations. - ✔️✔️ It requires truckers to certify that they are able to meet financial obligations arising from physical damages of their trucking operations.. If Smith Construction Company does not properly protect a job site, the public could be injured. This is an example of: - ✔️✔️ Negligence Under the Jones Act, how would a crew member's own negligence affect his own claim for injuries sustained on the job? - ✔️✔️ The claim would be unaffected.. A professional liability policy can be: - ✔️✔️ Purchased separately for an additional premium Medical payments coverage under the farmowner policy covers which of the following? - ✔️✔️ Medical payments coverage under the farmowner policy covers which of the following? Which of the following is not an endorsement under a Homeowners Policy? - ✔️✔️ Flood Coverage. In every state, some employees or employments are exempt from workers compensation laws. Which of the following is most true about workers compensation benefits to these employees? - ✔️✔️ Coverage may be made available voluntarily by the employe

The application for an adjuster's license must be submitted with affidavits signed by five reputable citizens of the state. The affidavits must: - ✔️✔️ Be affirmed under penalty of perjury. Question: According to the BAP definition, which of the following are "accidents"? All of the responses are correct. These are all considered to be "accidents" as defined by the policy definitions. Answer Choices: Select the Correct Answer Ground vibration caused by the operation of heavy dump trucks result over a period of weeks in structural damage to nearby buildings. A car fails to negotiate a sharp curve and crashes into a guard rail. The insured's truck hits a rock causing a collision with another vehicle. All of the responses are correct. - ✔️✔️ Question: According to the BAP definition, which of the following are "accidents"? All of the responses are correct. These are all considered to be "accidents" as defined by the policy definitions. Answer Choices: Select the Correct Answer Ground vibration caused by the operation of heavy dump trucks result over a period of weeks in structural damage to nearby buildings. A car fails to negotiate a sharp curve and crashes into a guard rail. The insured's truck hits a rock causing a collision with another vehicle. All of the responses are correct. Which of the following situations would be covered by liability insurance under a Personal Auto Policy - ✔️✔️ An insured who rents a private garage, backs his car in and damages the garage.. 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. - ✔️✔️ $5, Under Section II of the Homeowners Policy which of the following would be covered under Medical Payments Coverage? - ✔️✔️ A neighbor helping the insured to lay carpet A ship has negligently collided with another ship and caused severe damage. What coverage would apply to cover this claim? - ✔️✔️ Hull insurance with the "running down clause Which of the following are additional coverages under a Businessowners policy with the named peril form attached? I. 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 - ✔️✔️ I, II, and III only All of the following statements are false regarding an insured's right to cancel an automobile policy, EXCEPT: - ✔️✔️ The named insured may cancel an auto policy at any time. is correct. The insured's homeowner policy provides $100,000 on his one family dwelling. In the event of a burglary at the insured's residence, other than his residence premises, how much coverage would be available for the loss of personal property? - ✔️✔️ The correct answer is: $5,000. Explanation: The question implies that the location of the loss belongs to the insured but that it is not his insured dwelling. The homeowner policy automatically provides personal property coverage in an amount equal to 50% of the dwelling coverage. In this instance there would be $50,000 coverage for the insured's personal property. However, as this loss did not occur at the insured location (not listed on the declarations page for which a premium was paid), the personal property coverage at this location is reduced to 10% of $50,000 which amounts to $5,000.