Download 17-70 NY Independent General Adjuster Exam - (Series 17-70) New Update!! and more Exams Advanced Education in PDF only on Docsity!
17 - 70 NY Independent General Adjuster Exam -
(Series 17-70) New Update!!
A person who procures an investigative consumer report on the consumer upon request made by the consumer shall make a complete and accurate disclosure to the consumer of the nature of the report and investigation within: - ANSWER>>in writing and mailed to the consumer within 5 days of the request.
Which of the following best describes a pathological condition wherein a clot forms within a blood vessel? - ANSWER>>Thrombosis
What can be added by endorsement to an Equipment Breakdown Policy? - ANSWER>>Business Income.
Under the Farm Forms, which of the following is known as Coverage F? - ANSWER>>Unscheduled personal property.
Which of the following is NOT covered under employee dishonesty coverage? - ANSWER>>Robbery of an employee.
What does Employee Dishonesty Coverage cover? - ANSWER>>Pays losses resulting from dishonest acts committed by employees.
Which of the following has the capability of binding an insurance coverage through an oral or written agreement? - ANSWER>>Property and Casualty Producer.
What is Drive Other Car Coverage? - ANSWER>>Owner of business does not own an auto - gives coverage to owner.
Attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of, the insured - is an example of: - ANSWER>>An unfair claims practice act.
How is property covered under an unendorsed BOP form? - ANSWER>>Open Peril.
What 2 additional coverages can be found on the DP2 and DP3 that are not found on the DP1? - ANSWER>>Collapse and Lawns/Plants/Trees/Shrubs
If an insurer requires an application for reinstatement and it takes no action on that application for ____, the policy is: - ANSWER>>45 days/reinstated.
In a bond that has been in place and renewed for several years with the same carrier, under the "loss sustained under previous insurance condition" which would respond to a claim that was just discovered but which actually happened two years ago? - ANSWER>>The current bond.
An insurer is required to acknowledge receipt of notice of a claim within: - ANSWER>>15 working days.
A building construction firm would have how much of a violation if the flood wall was made with defective materials and after it collapses and it causes five homes to get destroyed? - ANSWER>>Civil Violation.
An endorsement is the name given to: - ANSWER>>A written amendment to an insurance policy.
A commercial inland marine condition that defines the insurer's subrogation rights: - ANSWER>> The insurer may recover from a third party who is responsible for a covered loss.
Phil Smith, in helping his friend Tim Jones apply for a New York Casualty Insurance license, attests to Tim's honesty on the application and competence to handle the duties
mutual companies.
A "residual disability benefit" provides an income benefit if an insured: - ANSWER>>becomes residually disabled.
The suffix "osis" refers to: - ANSWER>>An abnormal condition.
The common definition of theft in commercial crime forms: - ANSWER>>Excludes mysterious disappearance
A business auto policy has a $100,000 limit of insurance for liability coverage.
Two people are injured as a result of an automobile accident involving a covered auto.
The first injured party sues the named insured and wins a $150,000 judgment against the insured. The insurer pays its limit of insurance. If the other injured party later sues the insured, the insurer will: - ANSWER>>Deny further obligations to the insured as a result of the other injured party. Who is a manager under a commercial crime insurance policy? ANSWER>>Director of a limited liability company.
Dram Shop Liability refers to: - ANSWER>>Liquor Law Liability.
The insured has suffered an covered loss under his DP-3 dwelling form. He fails to protect the property from further loss. The additional loss that occurs as a result of his inactions may be denied because of what clause in the policy? - ANSWER>>Neglect.
To be eligible for the New York assigned risk auto plan an individual must: - ANSWER>>Have a valid driver's license.
Any insurance adjuster whose license has been revoked for cause shall not be entitled to apply for any other insurance license in this state until at least: - ANSWER>>One
Year.
A typical benefit design for a long term care policy does not include a: - 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? - ANSWER>>30 Days.
A common carrier is not liable for loss to a shipper of the goods being shipped if the loss results from: - ANSWER>>An Act of God.
If someone is convicted of federal insurance fraud, who may allow the guilty party to get back into the insurance business? - ANSWER>>Only an insurance regulatory official.
When does the aircraft policy first provide coverage to a passenger? - 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? - ANSWER>>$1,000 if the flood is imminent and the property is in danger of flooding.
Which Commercial Forms would cover sinkhole collapse? - ANSWER>>Basic, Broad, and Special.
______ is the movement allowed by some joints of the skeleton which reduces the angle between two contiguous bones. - ANSWER>>Flexion
The specific perils listed as covered, appear in the part of homeowner policy known as the - ANSWER>>Insuring Agreement.
New York, how many days notice of cancellation must be sent to the insured? - ANSWER>>A 10 day notice.
A ship owner wanting coverage in case crew members bring liability suits for injuries sustained while working would purchase: - 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? - ANSWER>>Premium Discount.
What is an example of a moral hazard? - 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? - ANSWER>>Yes.
A homeowner has $60,000 of personal property that was insured, and then had a fire that 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? - ANSWER>>Principle of Indemnity.
What is the proper way to sign a "release of all claims?" - 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: - ANSWER>>Morale Hazard.
The deductible on the Equipment Breakdown form can be stated in what 3 ways? - ANSWER>>Fixed Dollar Amount, Time Deductible, and Percentage of Loss.
A car has had the front sheet metal replaced. The fender-to-door gap is wider on the passenger side than on the driver side and the hood appears out of alignment.
Technician A says that only the hood latch is misaligned. Technician B says the front structure of the vehicle is not dimensionally correct. Who is correct? - ANSWER>>Technician B only.
A tenant rents a building. The interior of the building that the tenant occupies is damaged by fire. When will the commercial Property Policy pay for the damage? - ANSWER>>When the owner of the building submits proof of loss for the damage.
Dwelling forms provide how much coverage for grave markers and mausoleums? - ANSWER>>Nothing. Homeowners form provide a limit of $5,000.
Does a flat deductible apply to basic scheduled dental plans? - ANSWER>>No.
When referring to crop insurance policies, the insurance period is normally: - ANSWER>>Confined to the growing season for the crop involved in that insurance policy.
Under the BAP, for what would an employer be insured under a non-owned coverage part? - ANSWER>>Covers the employer in case of his employee using their private vehicle on company business.
For New York, to collect under uninsured motorist coverage, the insured must prove: - ANSWER>>There was a hit and run driver and physical contact made.
The health insurance provision that allows the insurer to pay limited death benefits to a relative of the insured is called: - ANSWER>>Facility of Payment.
What is Demurrage? - ANSWER>>Payment for delaying a vessel carrying freight.
How would two insurance companies pay a claim under the "Contribution by Equal Shares" clause? - ANSWER>>Each would pay the same until its limits are exhausted.
The following rider protects against erosion of purchasing power for fixed disability benefits: - ANSWER>>Cost of Living Adjustment rider (COLA)
Which of the following Crop Insurance Policy form covers a whole farm rather than an individual crop? - 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: - 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? - ANSWER>>Installation Floater.
In a standard workers compensation policy, when would employer's liability coverage apply? - 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? - ANSWER>>Payments by the insurer to settle a claim.
Symbol 2 is listed for one of the physical damage coverages in the declarations of the BAP. The insured purchases an additional auto during the policy term. The newly acquired auto becomes a covered auto: - ANSWER>>Automatically.
What must a professional association meet to be granted group insurance? - ANSWER>>It must have been in existence for at least two years.
Third-party provisions allow an entity that lends money to an insured to buy 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: - ANSWER>>Loss payable clause.
Technician A: When acoustical foam is removed to gain access to a repair area, it is not required to replace it. Technician B: The acoustical materials must be replaced with structural foam to meet the structural sound requirements. Who is correct? - ANSWER>>Neither.
The insured has auto insurance in New York and has purchased the SUM. This provides:
- ANSWER>>Replaces statutory uninsured motorist coverage.
Substitute services will pay: - ANSWER>>$25 a day for one year.
Agreeing to any contract to commit, or by any concerted action committing, any act resulting in or tending to result in unreasonable restraint of the business of insurance is an example of: - ANSWER>>Coercion.
An employee has been asked to use his own personal vehicle to perform certain tasks on behalf of his employer. What coverage is used under the business auto policy to protect the employer for lawsuits when the employee has an accident that causes legal action against the employer? - ANSWER>>Employers non-ownership coverage.
What is not, per se, an unfair trade practice under the insurance code of most states? - ANSWER>>Appointment of producers by unauthorized insurers.
Are expenses to recall products that may be defective considered "your product" under the CGL policy? - ANSWER>>No.
Would injury or damage caused by the operation of mobile equipment be covered under the BOP? - ANSWER>>Yes.
A company is hired to establish 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? - ANSWER>>Environmental Errors and Omissions Coverage.
Mr. Wilson purchases an insurance policy on a building and fails to disclose to the agent that he has only 50% ownership of the building. This would be considered: - ANSWER>>Misrepresentation.
The "other insurance clause" is utilized in insurance policies to deal with: - ANSWER>>Duplicate Policies.
Under the farm property form with replacement cost coverage, if the damage is over the $1,000 deductible, what is the manner of claim payment? ANSWER ACV until repairs are completed and then the full replacement cost is paid.
An insured has a personal watercraft policy with 300,000 dollars in liability limits and 5,000 dollars in medical coverage. The boat accidentally flips over and both the insured and a friend are injured. Who would be covered under the medical payments coverage?
- ANSWER>>The insured and the friend.
Some policies of disability income are designed such that there is a period during which no benefits will be paid for either an illness or an accident. Others may be written/designed where benefits are paid immediately for disabilities caused by accidents, and no benefits paid for an illness disability for a specific period of time. The term that describes this interim period is the: - ANSWER>>Elimination Period.
What workers compensation coverage would apply if the injured employee's spouse brings a wrongful death suit against the employer? - ANSWER>>Employers liability.
Under D, "Coverage For Damage To Your Auto", temporary substitute vehicles under the Personal Auto Policy are considered to be: - ANSWER>>Your covered auto.
For a "release of all claims" to be valid, what MUST happen? - ANSWER>>The check must be cashed.
Richard Lanham has been issued a cease and desist order by the Superintendent of Insurance based upon specific violations of the insurance code. He was granted a hearing and a cease and desist order was issued. He continues to act in violation of the
cease and desist order. He is subject to a penalty of up to: - ANSWER>>$5,000 per violation.
Telemarketers calling consumers who do not consent to being called, and playing a prerecorded message, must pay up to: - ANSWER>>$16,000 per call.
The adjuster has made an actual cash value payment to the insured for a covered loss and at the time he is satisfied with the payment. Later, he changes his mind and wants the full replacement value. How many days does he have in which to submit the receipts to get the replacement cost payment under a HO-3 form? ANSWER>>180 days.
The homeowner personal property replacement cost endorsement would pay replacement cost on a claim for what type of property? - ANSWER>>Used Clothing.
The policy provision that prohibits an insurance company from altering its agreement with a policyowner by referring to documents or other items not contained in the policy is known as the: - ANSWER>>Entire Contract Provision.
True or False - Current long term care insurance policies are more apt to pay benefits regardless of the level of care required by the insured. - ANSWER>>True.
Roger has his golf clubs stolen out of the trunk of Sam's car. Which policy will pay? - ANSWER>>Roger's homeowner policy.
An insured purchases a $1 million umbrella policy with a $1,000 self-insured retention and agrees to carry the following underlying limits: auto liability - $100/300/50 and personal liability limits of $300,000. The insured is negligent in an auto accident and the claimant is awarded $200,000 for his bodily injuries. How much will the umbrella pay if the insured carries only $50/100/50 auto limits? - 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? - ANSWER>>Replacement Cost Basis
A trailer borrowed by the named insured from another business is an insured auto under the insured's BAP. While the trailer is attached to a covered truck-tractor owned by the insured, the BAP provides: - ANSWER>>Primarily liability coverage on the trailer.
What does the CAN-SPAM act of 2003 require? - ANSWER>>Senders of commercial electronic mail may not mislead recipients as to the source or content of such mail.
The commercial property general property flood coverage form will settle claims on the basis of: - ANSWER>>Actual Cash Value.
Virtually all inland marine named perils forms include coverage for: - ANSWER>>Fire and Lightening.
What type 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? - ANSWER>>Key man disability.
Mary is a newly hired, unlicensed employee of an insurance agency. The other staff members are training her. A customer comes in to pay their premiums and Mary collects the money. What are the consequences? - 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 payable? - ANSWER>>Yes, because the employee was out of the territory covered for temporary periods only.
Under the commercial auto policy definitions, an "accident": - 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 upon: - ANSWER>>Relative degree of fault.
With workers compensation, a monopolistic state is a state in which: -
ANSWER>>Coverage must be purchased from the state.
Distribution through captive agents, independent agents or employees of an insurance company that sell in a call center is an example of: - ANSWER>>Marketing distribution systems.
The amount the National Flood Insurance Program pays to help property owners move covered property to a safe location if there is immediate danger of flooding is: - ANSWER>>$1,000.
Which of the following types of property may be insured under a furriers block policy? - ANSWER>>Stocks of furs owned by the insured furrier.
After the Insurance Department has inquired about a claim, an insurer must respond within: - ANSWER>>10 days.
You buy a new car and, as the terms of your auto policy require, you contact your agent and notify him of the purchase. He says 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 you're not covered." You can: - ANSWER>>File a claim against the auto insurer and the agent.
Under the dwelling form, liberalization must be provided within how many days? - ANSWER>>60 days.
What does extra expense insurance cover? - ANSWER>>The additional cost of continuing a business after a direct loss.
Which of the following would cover a farmer for income protection for his farm crops? - ANSWER>>Crop Revenue Insurance.
What is the limit of insurance that applies to property in transit in the BOP? - ANSWER>>$10,000.
Under the "basic economic loss" coverage required in auto insurance in New York, the maximum limit for loss of wages is: - ANSWER>>80% of claimants wages, subject to a maximum of $2,000 per month
Universal Foods purchases the Chewy Cereal Company. Following the date of the purchase, a well known actress files a lawsuit against Universal, alleging that her picture was used without permission in a Chewy advertisement. The date of the advertisement was some time prior to the date of Universal's acquisition of Chewy. Will Universal's Commercial General Liability policy respond to this suit? - ANSWER>>No. Personal injury coverage with respect to newly acquired organizations does not apply to offenses committed prior to the date of acquisition.
The policy term of a flood insurance policy is: - ANSWER>>One year term only.
Under the loss sustained form of a crime insurance, how many years is the discovery period to find an employee crime after the bond has expired? - ANSWER>>One year.
For inland marine insurance, does the cargo in the long-haul trucks classify as "instrumentalities of communication and transportation"? - ANSWER>>No.
Johnny did not disclose, when he applied for a life policy, that he had rheumatic fever when he was younger. For the insurance company to void this policy, the insurer must find that he made this omission: - ANSWER>>intentional and fraudulent.
Jack is helping a friend move a pool table when he strains his back enough to create a disability. The insurer denies his claim because the injury is not an accident as defined under the terms of Jack's policy. Jack's policy must include; - ANSWER>>an accidental means definition of an accident.
For an agent to issue a written binder for a commercial property policy, what is the minimum consideration he must obtain from an applicant? - ANSWER>>A promise to pay the premium.
Does an aircraft policy pay for a loss involving an unapproved pilot operating an insured
aircraft? - ANSWER>>No, a loss involving an unapproved pilot is excluded.
Under a business owners policy, the hired non-owner coverage would apply to: - ANSWER>>Vehicles borrowed by the insured.
An insured has a $2 million limit of insurance under a personal umbrella liability policy with a $2,000 self-insured retention limit. The insured is sued for $1 million in personal injury damages and $1.5 million in property damages arising from the same occurrence. The damages exceed the amount of the insured's underlying liability policies. In this case the umbrella policy will pay: - ANSWER>>$1,998,000 of the damages. Because the underlying does not apply the insured must pay the $2,000 self-retained limit and the umbrella insurer pays the rest of the claim.
Which dwelling forms provide broad perils coverage for personal property? - ANSWER>>DP2 and DP3.
In ocean marine insurance, what is the purpose of the IVEL clause? - ANSWER>>To provide excess hull and collision liability coverage.
An employee suffered a severe injury while operating a piece of machinery known to be in need of repair. Unfamiliar with the workers compensation law, the spouse sued the employer, claiming loss of consortium. What coverage if any in a standard workers compensation policy would respond to this lawsuit? - ANSWER>>Employer's Liability Coverage.
What is the limit available under the Businessowners Policy for pollution clean up? - ANSWER>>A maximum of $10,000.
How are losses settled under the Watercraft and Yacht policies? - ANSWER>>Actual cash value at the time of loss.
Henry is the first named insured on a $1 million umbrella liability policy. His wife, Dorothy, is also an insured. Summary: Both Henry and Dorothy were sued in separate, unrelated suits by separate third parties for $1 million dollars each. Both insureds lost
