New York Adjuster Exam Questions with 100% Correct Answers, Exams of Law

Download New York Adjuster Exam Questions with 100% Correct Answers and more Exams Law in PDF only on Docsity! New York Adjuster Exam Questions with 100% Correct Answers | Latest Version 2024 | Verified 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 $35,000 and a second occurrence, which 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.