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NYS 17-70 Independent General Adjuster
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An insured purchases a $1 million umbrella policy with a $1,000 self-insured retention (SIR) and agrees to maintain the following underlying limits: auto liability - $100/300/50 and personal liability limits of $300,000. The insured is involved in an at-fault auto accident and the claimant is awarded $200,000 for his bodily injuries. What will the umbrella pay if the insured only carries $50/100/ auto limits? ---------CORRECT ANSWER-----------------$100,000. The umbrella policy still pays but the insured would have to pay the difference. If no endorsements apply, how are property losses adjusted on a Businessowners Policy? ---------CORRECT ANSWER-----------------Replacement Cost Basis Property and casualty insurance can be utilized to handle what kind of risk? --------
- CORRECT ANSWER-----------------Pure Risks. Tammy Smith is helping out at the church Swiss Steak dinner and is injured when hot coffee spills on her. What is the result of this injury under New York workers compensation coverage? ---------CORRECT ANSWER-----------------Tammy is a volunteer and will be covered if the policy contains the proper endorsement..
Low Yields and Poor Quality Crops are covered under a: ---------CORRECT ANSWER-----------------Multi-Peril Crop Policy Who do uniform mandatory provisions tend to benefit? ---------CORRECT ANSWER-----------------They tend to benefit the insurer. What can happen when an independent contractor is injured while working and files a claim stating that they were actually an employee? ---------CORRECT ANSWER-----------------The insurance carrier can charge an additional premium for the exposure. A customer has eaten seafood in a restaurant and became very ill. What type of CGL claim is this? ---------CORRECT ANSWER-----------------Premises Liability. What is the fundamental trade-off in workers compensation laws? --------- CORRECT ANSWER-----------------Employees are provided no-fault benefits for most work-related injuries in exchange for the loss of the right to sue the employer for damages.
What kind of health insurance policy would be issued to indemnify the owner when a critical employee of a business becomes disabled due to injury or illness? - --------CORRECT ANSWER-----------------Key man disability. Mary is a newly hired and unlicensed employee of an insurance agency. She is being trained by the other staff members. A customer comes in to pay their premiums and Mary collects the money. What are the consequences? --------- CORRECT ANSWER-----------------None - Mary is not guilty of doing anything. Would a claim under Employer's Liability Insurance for an employee on business temporarily in France be covered? ---------CORRECT ANSWER-----------------Yes, since the employee was outside the coverage territory temporarily. According to the commercial auto policy definitions, an "accident": --------- CORRECT ANSWER-----------------Includes continuous or repeated exposure to the same conditions. In cases of comparative negligence, the proportional share of each party in the entire liability will be based on: ---------CORRECT ANSWER-----------------Relative degree of fault.
With workers compensation, a monopolistic state is a state in which: --------- CORRECT ANSWER-----------------Coverage must be purchased from the state.. The selling of insurance products through the use of captive agents, independent agents, or insurance company employees in a call center are examples of: --------- CORRECT ANSWER-----------------Marketing distribution systems. The National Flood Insurance Program will pay which of the following amounts to assist with moving of property to safety when there is imminent flood danger? ---- -----CORRECT ANSWER-----------------$1,000. Which of the following types of property may be insured under a furriers block policy? ---------CORRECT ANSWER-----------------Stocks of furs owned by the insured furrier. After receiving an inquiry from the Insurance Department regarding a claim, an insurer must respond within: ---------CORRECT ANSWER-----------------10 days. You purchase a new car and, as the terms of your auto policy require, you contact your agent and notify him of the purchase. He states to you "No problem, you're covered." Two months later you are involved in an accident. When you report the claim to your agent he says "Oh no, I forgot to notify the company! I'm afraid
of his inactions may be denied because of what clause in the policy? --------- CORRECT ANSWER-----------------Neglect. To be eligible for the New York assigned risk auto plan a person must: --------- CORRECT ANSWER-----------------Hold a valid driver's license. Any insurance adjuster whose license has been revoked for cause will not be entitled to apply for any other insurance license in New York until at least: --------- CORRECT ANSWER-----------------One Year. A typical benefit design for a long term care policy does not include a: --------- CORRECT ANSWER-----------------Conditionally or optionally renewability feature. In New York the workers compensation program is administered by the Workers Compensation Board which establishes guidelines for the program. Notice of injury or death to a worker is required to be submitted to the employer within what period of time? ---------CORRECT ANSWER-----------------30 Days. A common carrier is not held liable for the loss of a shipper's goods when the loss results from: ---------CORRECT ANSWER-----------------An Act of God.
If one is found guilty of federal insurance fraud, who can permit the guilty individual to return to the insurance business? ---------CORRECT ANSWER------------ -----Only an insurance regulatory official. When is a passenger first covered under an aircraft policy? ---------CORRECT ANSWER-----------------When Entering the Aircraft. If an insured takes precautionary measures to protect property from flood damage such as creating a retaining wall of sand bags, how much coverage if any, will be provided by a flood policy? ---------CORRECT ANSWER-----------------$1,000 if the flood is imminent and the property is in danger of flooding. Which Commercial Forms would cover sinkhole collapse? ---------CORRECT ANSWER-----------------Basic, Broad, and Special. ______ is a movement allowed by certain joints of the skeleton that decreases the angle between two adjoining bones. ---------CORRECT ANSWER----------------- Flexion The listing of the perils covered is found in which part of a homeowner policy? ---- -----CORRECT ANSWER-----------------Insuring Agreement.
Under the dwelling policy, DP2 or D3, what is the maximum amount of Coverage A that would be paid for additional living expenses? ---------CORRECT ANSWER----- ------------20% Workers compensation policies also include employer's liability coverage. If any employer fails to maintain the equipment and an employee is injured, would it be covered under this coverage? ---------CORRECT ANSWER-----------------Yes. Fidelity bonds are typically written to be effective for a: ---------CORRECT ANSWER- ----------------Continuous term without an expiration date. One purpose of a deductible is to: ---------CORRECT ANSWER-----------------Eliminate small claims. If the insured has failed to pay the premium for a worker compensation policy issued in New York, how many days notice of cancellation must be sent to the insured? ---------CORRECT ANSWER-----------------A 10 day notice. A ship owner wanting coverage in case crew members bring liability suits for injuries sustained while working would purchase: ---------CORRECT ANSWER--------- --------Protection and Indemnity
Under workers compensation in New York, which of the following does not raise the premium based on it being a proportion of the charged premium? --------- CORRECT ANSWER-----------------Premium Discount. What is an example of a moral hazard? ---------CORRECT ANSWER----------------- Embezzlement If an insured is responsible for damaging a client's million dollar shipment of products, would this coverage be covered by the commercial umbrella liability coverage under BI and PD coverage? ---------CORRECT ANSWER-----------------Yes. A homeowner with personal property insured for $60,000 had a fire which destroyed everything. The total value of the personal property at the time of the loss was only $50,000. What principle would be violated if her insurer paid her more than $50,000? ---------CORRECT ANSWER-----------------Principle of Indemnity. What is the appropriate manner in which to sign a "release of all claims?" --------- CORRECT ANSWER-----------------Must use full legal name. Jane becomes injured in an auto accident caused when she took her eyes off the road to send a text message on her cell phone. This is an example of a: --------- CORRECT ANSWER-----------------Morale Hazard.
With crop insurance policies, the coverage period is usually: ---------CORRECT ANSWER-----------------Limited to the growing period for the particular crop being insured. What does an employer's non-ownership coverage under the BAP cover? --------- CORRECT ANSWER-----------------Covers the employer when the employee is using their vehicle on company business. To collect under uninsured motorist coverage in New York, the insured must prove: ---------CORRECT ANSWER-----------------There was a hit and run driver and physical contact made. The health insurance provision that permits the insurer to pay limited death benefits to a relative of the insured is known as: ---------CORRECT ANSWER---------- -------Facility of Payment. What is Demurrage? ---------CORRECT ANSWER-----------------Compensation for the delaying of a vessel carrying freight. How would two insurance companies pay a claim under the "Contribution by Equal Shares" clause? ---------CORRECT ANSWER-----------------Each would pay the same until its limits are exhausted.
What does Coverage G under the Farm Forms cover? ---------CORRECT ANSWER---- -------------Barns, Silos, and Fences. MIG welding on a rocker panel creates a heat- affected area. What concerns should a technician be aware of when performing this procedure? --------- CORRECT ANSWER-----------------Destruction of the factory coating on the interior of the panel. A licensee must report to the Superintendent of Insurance any administrative action taken against the licensee in another jurisdiction or by another governmental agency in this state within _____ of the final disposition of the matter. ---------CORRECT ANSWER-----------------30 Days. Is damage to a covered auto while being used as part of a car pool covered under the PD coverage of a PAP? ---------CORRECT ANSWER-----------------Yes. Does the National Flood Insurance Program provide coverage for losses caused by water-main breakage? ---------CORRECT ANSWER-----------------No.
Which type of Crop Insurance Policy covers the entire farm instead of an individual crop? ---------CORRECT ANSWER-----------------Adjusted Gross Revenue (AGR) Under the CGL Policy, tangible property other than "your property" or "your work" that cannot be used or is less useful due to your faulty work or your work not completed on time is called: ---------CORRECT ANSWER-----------------Impaired Property. What type of coverage would a heating and cooling contractor need when work has been done on a newly renovated building but not yet accepted by the owner? ---------CORRECT ANSWER-----------------Installation Floater. In a standard workers compensation policy, when would employer's liability coverage apply? ---------CORRECT ANSWER-----------------For employee-injury claims that are outside the scope of the workers compensation law. Which of the following is not an "additional coverage" under homeowners liability Section II coverage? ---------CORRECT ANSWER-----------------Payments made by the insurer to settle a claim.
Symbol 2 is entered for one of the physical damage coverages in the declarations of the BAP. The insured buys an additional auto after the policy begins. The newly acquired auto will become a covered auto: ---------CORRECT ANSWER----------------- Automatically. What is a requirement that a professional association must meet to obtain group insurance? ---------CORRECT ANSWER-----------------It must have been in existence for at least two years. Third-party provisions allow for an entity that lends money to an insured to purchase property, to be named on the insurance for that property. In property insurance, this is known as a "standard mortgage clause." In auto insurance, it is known as: ---------CORRECT ANSWER-----------------Loss payable clause. Technician A says that when acoustical foam is removed during the repair, it is not necessary to replace it. Technician B says the acoustical materials should be replaced with structural foam to maintain structural sound requirements. Who is right? ---------CORRECT ANSWER-----------------Neither. The insured carries auto insurance in New York and has purchased the Supplementary Uninsured Motorist Coverage (SUM). This coverage: --------- CORRECT ANSWER-----------------Replaces the statutory uninsured motorist coverage.
A company has been hired to determine the extent of pollution damage and recommend methods of its removal. However, it fails to identify some of the pollutants. What coverage might this company need to cover their liability exposures? ---------CORRECT ANSWER-----------------Environmental Errors and Omissions Coverage. Convenience stores selling gasoline must have a minimum of ______ square feet in total floor area in order to qualify for the BOP? ---------CORRECT ANSWER--------- --------3,000. Under homeowner policies personal property used for business purposes is covered for what limits on and off the premises? ---------CORRECT ANSWER---------- -------$2,500 on premises and $1,500 off premises. The insured carries an Equipment Breakdown policy with a limit of $300,000. A boiler has exploded and caused extensive damage to the building and its contents. As a result of the explosion a fire ensues causing $100,000 in damages. How much will the Equipment Breakdown policy pay for the fire damage? --------- CORRECT ANSWER-----------------$0. The Equipment Breakdown policy excludes fire damage. Under Coverage E - Scheduled Farm Property, how is the property covered? ------- --CORRECT ANSWER-----------------For the limit shown in the policy declarations.
If a person is found guilty of violating USC Section 1033 regarding Federal Fraud and False Statements, what can the Attorney General do? ---------CORRECT ANSWER-----------------Assess a civil penalty in the amount the person received or offered for the prohibited conduct or $5,000 whichever is greater. Under a commercial Building and Personal Property Coverage form with no optional coverages selected, loss valuation/settlement is based on: --------- CORRECT ANSWER-----------------Actual Cash Value. Who signs the declaration page on the Equipment Breakdown policy? --------- CORRECT ANSWER-----------------An Authorized Representative. A contract between a public adjuster and an insured must be: ---------CORRECT ANSWER-----------------In Written Form. A sudden and unexpected event is known as: ---------CORRECT ANSWER-------------- ---An Accident. Mr. Wilson purchases property insurance on a building and fails to advise the agent that he only owns 50% of the building. This is an example of: --------- CORRECT ANSWER-----------------Misrepresentation.
