Protect the property from further loss
Which of the following is an obligation of the insured involving a covered property insurance loss?
10 years.
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?
$50,000.
If the New York Superintendent levies five civil penalties against a licensed person within five years, an additional civil penalty of up to _____ may be levied against the licensed person.
Estopped
Jerry Jones has suffered a property loss to his home. The adjuster, Anthony, has stated that the loss is covered when it actually is not. Jerry is relying on the statement made by Anthony. Therefore, the insurer may be _____ from denying the claim.
Residence premises.
According to the definitions section of the homeowner policy, "one family dwelling, other structures or grounds" also means the:
I, II, and III only.
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,
Provide a free copy
If an adjuster takes a statement from a claimant, witness or insured who requests a copy of the report, what is required of the adjuster?
A public adjuster
An "independent adjuster" may also be known as all of the following, EXCEPT:
Actual cash value
How are household personal property claims settled under the farm policy?
30
After proof of loss has been received, a New York insurance company has how many days to pay the claim?
Explosion
Which of the following perils is included in the basic dwelling policy but not in the Standard Fire Policy?
Theft of outside lighting attached to the building
Under the special dwelling policy (DP-3), which of the following would be covered?
Only a portion of a partial loss will be paid
The penalty for failure to satisfy a coinsurance requirement of a property insurance policy is:
Actual cash value
Under an unendorsed commercial building and personal property form, loss valuation is based on:
Between the Federal Government and the insurance companies
The Terrorism Risk Insurance Act and all of its extensions and reauthorizations is actually an agreement between:
Poultry
Which of the following would not be eligible for coverage under a livestock floater?
30 days
Businessowners policies provide "Preservation of Property" coverage when property is removed from the premises to protect it from a covered cause of loss. The coverage will apply at other locations for up to:
Underground
The full replacement cost of an insured building does not include the value of any:
Smoke from a factory discolors the paint, a little bit each year, on the homes that are located near the factory.
Which of the following would be considered an "occurrence"?
The insurer can cancel the policy
The insured carries a Businessowners Policy (BOP). If the premises become 69% or more vacant, what can the insurer do?
Encourage the insured to insure property for most if not all of its value
One of the purposes of coinsurance is to:
Fire, lightning and removal.
Which of the following basic coverages are provided under a Standard Fire policy?
Farming for others
What is the definition of custom farming?
A large loss has occurred
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:
Yacht Policy
A 36 foot ocean sailing vessel with auxiliary power would best be covered under what type of policy?
The plaintiff
In case of a suit brought against a defendant, the burden of proof must be shown by the:
180 days
In case of a loss, how many days notice does the insured have after notification of a claim to submit the claim to the underwriters of the ocean marine coverage?
Physical
A dead tree beside Jerry's home is best described as which of the following types of hazards?
A specific offer by one party and acceptance by the other
What constitutes an "agreement" to enter into a valid contract?
The policy pays replacement only if the repairs are made within twenty four months of the accident
The Equipment Breakdown policy (formerly called Boiler & Machinery) provides for replacement cost coverage in case of a covered claim. Under what conditions would the insurer only pay actual cash value in case of a loss?
A funeral
Which of the following would be eligible for the Businessowners Policy?
Tobacco
Some items covered under the Businessowners Policy have a theft limit. Which of the following does not have a specific theft limitation?
Releases the insurer from additional liability
No insurer may issue checks or drafts or partial settlement of a loss or claim that is still being negotiated that:
$5,000 per violation
Richard has been advised by the New York Superintendent of Insurance to cease and desist in the performance of certain infractions of the Insurance Code. He has had a hearing and been issued a cease and desist order. He continues to violate the cease and
The perils
How are the HO-2, HO-4 and HO-6 forms similar?
for each flood loss occurrence
The $1,000 coverage for reasonable expenses incurred to remove property to another location to protect it from flood damage is available on flood insurance:
Number of acres
How are crop insurance premiums calculated?
The insurer
An independent adjuster acts on behalf of his or her principal. Which of the following is the principal for an independent adjuster?
One year
Under the provisions of the Standard Fire Policy, an insured may file a suit to recover for a loss only if all of the policy requirements have been complied with. The suit must be brought within:
A mobile home must be designed for year-round living and be at least 10 feet wide and 40 feet long
Which of the following is true about a mobile home endorsement in terms of eligibility?
Not be covered because it is excluded because it is used for business
A home is insured under an HO-3 policy. One of the "other structures" on the same property is used by the insured for his business. The building burns in a fire. It would
Home Business Insurance Endorsement
The insured is a CPA and has his office in his home. He needs business contents coverage with a limit of $50,000. He has valuable papers and records on the premises that belong to others. He often visits his clients off the premises. What endorsement woul
To pay for repairs or replacement in a timely manner
The purpose of expediting expenses under the Equipment Breakdown policy is:
All of the loss is covered except the house
Plumbing under the kitchen sink of an insured's condominium comes loose and leaks water all over the floor. The repair person has to tear out the floor under the sink to repair the hose. The cabinet is also damaged. What would the insured's HO-6 cover?
Either on an actual cash value basis or replacement cost
The Businessowners Policy provides coverage on the buildings and contents. How is the coverage provided?
No coverage would apply
Mr. Cato carries a watercraft policy covering his 25 foot pontoon boat. The boat is powered by a 150 h.p. motor. He transports it to the Florida Keys and operates the craft 20 miles out to sea. The boat capsizes and is destroyed. What coverage would apply
Having been convicted of a felony
An adjuster's license will usually be revoked for which of the following reasons:
90 days
The Equipment Breakdown policy provides automatic coverage to equipment in use or connected for use at newly acquired or existing locations for ____ if the insured reports to the insurer in writing.
The witness must sign each page and have his or her signature witnessed
An adjuster has just completed taking the statement of a witness. Which of the following must be done?
Homeowner policies require that the named insured reside at the described premises while dwelling policies do not
How do eligibility requirements of homeowner and dwelling policies differ?
$500 per offense
The New York Insurance Code provides for a "general penalty." The general penalty is:
Both of the responses listed are correct (Common Policy Conditions and Common Policy Declarations)
The Commercial Package Policy always includes:
45 days
Policies issued under the National Flood Insurance Program provide removal coverage for property which is moved to another location to protect it from a flood. This coverage applies for up to:
I, II, and III only
What are the automatic perils covered under every dwelling policy form? I. Fire, II. Lightning, III. Internal explosion, IV. Flood.
10 years
Anyone who threatens, forces or corruptly influences, obstructs or impedes the due and proper administration of the fraud law relating to the insurance business may be fined and/or imprisoned up to:
The value of the salvage
What is not included with the calculations of a property loss negotiation?
Low yields
Which of the following would be covered under a multi-peril crop policy?
I only
A tort is: I. A civil wrong, II. A legal obligation.
Floods
Which of the following causes more property damage in the United States than any other natural disaster?
The insured suffers a total loss of the property.
Coinsurance does not apply when:
Endorsement
A written modification of an insurance policy is known as:
The perils insured against
What is the main difference between the DP-1 and DP-2 forms?
Voids coverage on the part of the insured
Under a Standard Fire Policy, intentional misrepresentation of material facts (fraud) on the part of the insured:
Refers to the reduction in the value of the stock as a result of damage to other stock.
The term "undamaged stock", as defined in an Equipment Breakdown policy, applies to which of the following situations?
The policy will pay $700.00.
An insured is covered under a DP-2 broad form dwelling policy. A water pipe has burst and the insured has suffered floor and ceiling damage in his two-story home. The cost to remove and replace the walls to get to the pipe is $300.00. The cost to repair t
Adjusted Gross Revenue.
Which type of Crop Insurance Policy insures the entire acreage rather than an individual crop?
$12,000.
Under a dwelling broad or special form, what is the maximum that would be paid for "loss of use" if Coverage A was $60,000?
Actual cash value
How are household personal property claims settled under the farm policy?
Pay a reasonable and fair proportion of the total value of the pair or set or fix, repair or replace the one that is damaged.
If the insured suffers the loss of an article that is part of a pair or set, how will the insurance company typically settle the loss?
Unclear provisions in the contract will be resolved in favor of the non-writing party's reasonable interpretation of those provisions.
In a contract of adhesion, how are disputes between the parties generally resolved in court?
Under one year of age and the most coverage that will be paid for that animal under the policy is $1,000.
Under the farm forms, a "half a head" of livestock is an animal that is:
Full Report.
An adjuster's report that contains all the facts, evidence and disposition of the claim and is considered to be the final report is known as the:
Only the damage to the yacht and trailer.
The insured is transporting his yacht on its trailer and pulling it with his truck. The trailer separates from the truck hitch and the boat strikes another vehicle. There is property damage and bodily injury to a third party. The yacht and trailer are a t
A civil penalty of not more than $50,000.
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?
Two or more perils cause a single loss.
Which of the following would meet the definition of "concurrent causation"?
45 days
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.
All responses listed are correct.
Which of the following are exempt from certain sections of the New York cybersecurity regulation? I. Those with fewer than 10 employees, including any independent contractors, of the covered entity or its affiliates located in New York.
II. Those with les
All covered claims must be honored.
An insured covered under a homeowner policy is in the process of declaring bankruptcy. What are the insurer's obligations if the insured has a covered claim?
Theft of outside lighting attached to the building
Under the special dwelling policy (DP-3), which of the following would be covered?
$500
How much is covered under a Homeowner Policy for charges made as a result of a stolen credit card?
Note: This question does not apply to New York where the limit is different than the standard HO forms.
Commercial Automobile.
All of the following are covered by the Terrorism Risk Insurance Program Reauthorization Act of 2015, EXCEPT:
Poultry
Under the farm policy, which of the following is not considered livestock?
: I, II, III, and IV
Which of the following watercraft losses are excluded under a homeowner policy?
I. Theft off the residence premises
II. Windstorm damage while the insured's boat is docked at the marina
III. Fading of the canvas tarp which covers a boat
IV. Earthquake dam
Appraisal
Under the Commercial Building and Personal Property Form, all of the following are extensions of coverage, EXCEPT:
Real Property.
What does the phrase "improvements and betterments" apply to?
The insurance company
An insured has her property covered under an "open peril" cause of loss form. She experiences a loss. The burden of proof that the peril that was the actual cause of loss in the claim, lies with:
$60,000.
A building with an actual cash value of $240,000 is insured for $200,000. The policy has an 80% coinsurance requirement. If there are no deductibles, how much would be paid for a $60,000 loss?
The names of the releasee and releasor
A "Full Release Settlement" when properly prepared, should include:
Reservation of Rights Letter
A communication sent to a claimant stating that the insurance company is reserving it's rights to deny a claim while the investigation is on-going is called:
Both I and II.
An interline endorsement used in a Commercial Package Policy (CPP):
I. May be mandatory or optional.
II. Is an endorsement that applies to more than one line of insurance.
Special damages.
All of the following are additional coverages under a Homeowners policy, EXCEPT:
I, II and IV only.
Which of the following components MUST be included in the definition of a hostile fire:
I. Rapid oxidation accompanied by a flame or at least a glow.
II. Must be sudden and unexpected.
III. Must have been intentionally set by the insured.
IV. Must spread
Assess a civil penalty in the amount the person received or offered for the prohibited conduct or $5,000 whichever is greater.
If a person is found guilty of violating USC Section 1033 regarding Federal Fraud and False Statements, the Attorney General may do which of the following?
Any property that the insured owns or is in the insured's care.
Which of the following best describes "covered property" under the Equipment Breakdown coverage form?
Any licensed property agent.
Flood insurance can be purchased from:
Open Peril Coverage.
The insured is covered under an HO-5 policy. What coverage does the insured have for contents coverage?
At the full value, or at least 80% to value of the property.
The coinsurance clause in commercial property policies encourages the insured to carry insurance:
$10,000
The insured is covered under a Business-owners Policy. He has several computers and the electronic data is corrupted as a result of lightning. The loss is $20,000. How much will the policy pay for the damaged data?
10 years.
Anyone who threatens, forces or corruptly influences, obstructs or impedes the due and proper administration of the fraud law relating to the insurance business may be fined and/or imprisoned up to:
One year term only
The policy term of a flood insurance policy is:
The BOP will be excess over the floater policy
An insured is covered under a BOP policy. He insures a piece of equipment separately under a floater policy. In case of a loss what coverage will apply under the BOP policy?
All of the responses are covered glass.
The only glass covered under the Commercial Building Property coverage is:
On the night of the accident, were you drinking alcohol?
All of the following describe "open ended" questions an adjuster might ask an interviewee, EXCEPT:
December 31 - even numbered years
On what date must an adjuster license be renewed in New York?
$140 million
Under the Terrorism Risk Insurance Program Reauthorization Act of 2015, what is the "trigger limit" before claims are paid for the year 2017?
Value as established by the insurer.
All of the following are claim settlement options for property, EXCEPT:
: 80% of the property value.
In order to receive full replacement cost recovery on a covered loss under a BOP, the named insured must maintain insurance limits equal to at least what percentage of the covered property's full replacement value?
All of the responses are correct
Which of the following would be covered under the Commercial Property Builders Risk Coverage Form?
Buildings under construction
Foundation of a building under construction
Fixtures, machinery and equipment used to service the building if they become a per
The policy pays for up to twelve months after the loss.
The insured is covered under a BOP and sustains a direct loss to his building and contents. What is the period of time the policy provides coverage for the loss of income?
Television sets
An HO-2 form sets special coverage limits on all of the following items, EXCEPT:
24
In New York, no suit or action against the insurer for the recovery of any claim will be sustainable in any court of law unless all of the requirements of the policy have been complied with, unless commenced within ______ months next after inception of th
Aleatory
The promise by one party that is conditioned on an uncertain event and where the value given by each party is unequal is called:
$10,000
A boat damaged out of the water and at a lake would be covered under the Homeowners Policy for:
Barley
Which of the following types of crops would a "small grain" crop policy cover?
The insurer can cancel the policy.
The insured carries a Business-owners Policy (BOP). If the premises become 69% or more vacant, what can the insurer do?
Not until the goods are delivered to the buyer in accordance with the contract terms.
A common carrier has signed a contract to deliver goods of the seller. The goods are to be shipped "Free on Board Destination". When does the responsibility of the seller end?
Photographs used to determine the extent of damage.
Which of the following does not have to be included in the record of claims of an adjuster concerning claims adjusted on behalf of an insured?
Gas stations.
The BOP is designed to cover all of the following, EXCEPT:
Assume the relicensing is approved.
The Superintendent of Insurance may approve the employment, appointment or participation of any person whose license has been revoked. Karen Jones had her license revoked and filed an application for relicensing and has waited over 120 days without a resp
Investigate the loss without verifying that the loss is covered
A non-waiver agreement would allow the insurance company to do which of the following?
The interest an individual has in the property her parents will someday leave to her.
All of the following are examples of insurable interest, EXCEPT:
Personal Property Coverage
Which of the following is found in Section I of the homeowner form?
Crop Revenue Insurance
Which of the following would cover a farmer for income protection for his farm crops?
72-hour/four weeks
A main street business has suffered an explosion loss from a hot water heating boiler. The civil authorities have blocked off the street and the insured's customers cannot get to his store, causing a loss of income. The insured carries a Businessowners Po
Request a separate replacement cost endorsement on the Personal Property of Others coverage on the policy
In commercial property insurance, how would the insured receive replacement cost lost settlement on damage (as a result of a covered peril) to the personal property of others left in the insured's care custody and control?
Fire Damage
Identify the coverage NOT included for a $25,000 limit of insurance under the ISO Equipment Breakdown policy.
Earthquake endorsement
Under the HO-3 form there is no coverage for loss resulting from "earth movement" except when endorsed by which of the following?
For a maximum of four weeks
A business adjacent to an insured's business is damaged by fire. Because of the damage to the adjoining property, the insured is denied access to his business by the fire department. If the insured's Commercial Property policy contains a Business Income c
$1,500
The limit for the theft of jewelry under the Homeowners policy is:
When an insurance company buys insurance for some of the risks for which it has issued coverage
Which of the following most accurately describes reinsurance?
Submitting a 1033 waiver form and having it approved by an insurance regulatory official in his or her state.
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:
acts of riot and civil commotion
All of the following events are considered acts of terrorism, EXCEPT:
All of the responses are correct
Which of the following would be covered under the Commercial Property Builders Risk Coverage Form?
Water used to put out a fire
Under the basic dwelling form DP-1, which of the following water damages would be covered?
A coverage issue
A non-waiver agreement issued by an insurance company is:
3 years
Medical payments coverage of a boatowners policy covers all necessary medical expenses incurred by a covered person up to ______ following a covered accident.
5 years
Under the New York cybersecurity regulation, each covered entity must maintain documentation supporting certification of compliance with the regulation for:
5 years
Wheat
In crop insurance, what is NOT considered to be a "coarse grain" crop?
25%
The insured owns a four family dwelling insured on a HO-5 Form. The dwelling is insured for $500,000. What is the percentage of Coverage A for contents?
Not until a hearing is held
When can the New York Superintendent of Insurance revoke an adjuster's license?
80% of the property value
In order to receive full replacement cost recovery on a covered loss under a BOP, the named insured must maintain insurance limits equal to at least what percentage of the covered property's full replacement value?
$200
The insured has an HO-3 policy. He is robbed and the thief stole $500 in cash. What amount, if any, can the insured collect under his Homeowner policy disregarding any deductibles?
II and III only
The increased cost of compliance coverage on flood insurance provides:
I. Policy limit coverage for ordinance and law changes.
II. Coverage for flood plain management ordinance or law changes.
III. $30,000 of coverage per building.
Two or more perils cause a single loss
Which of the following would meet the definition of "concurrent causation"?
All of the responses are correct
The deductible on the form can be stated as a fixed dollar amount per accident, or a time deductible such as five days. The deductible could also be stated as a percentage of the loss. This deductible could also be subject
The deductible on the Equipment Breakdown form can be stated in which of the following ways?
Ledgers and journals
Books of original entry" refers to:
Loss or damage
In the ocean marine insurance policy, the term "average" means:
HO-8 covers the same named perils as the HO-2
The HO-8 Form provides named perils coverage in Section I. The perils are the basic perils. The HO-2 includes broad form perils which makes the HO-2 Form broader than the HO-8 Form.
All of the following statements about HO-8 are correct, EXCEPT:
Consideration
In a contract, something of value exchanged between the parties is referred to as:
An accident
A sudden an unexpected event that is normally identifiable as to time and place is best described as:
DP-1
Which one of the following is not a homeowner policy form?
No Benefit to Bailee
An insured's television set is damaged while at a repair shop. The interest of the repair shop is not covered because of which of the following clauses?
A recorded statement under oath
An attorney will provide notice of deposition to an individual when the attorney wishes to secure from that individual:
I and IV only
Which of the following losses would be covered under the HO-3 form? I. The husband's shotgun is stolen from a hotel room while he is traveling to a skeet shoot. II. The wife's money roll is lost at an unknown location. III. An individual demands a reward
$20,000
The insured has a one family dwelling with a detached garage. The dwelling is insured for $200,000. How much coverage applies to the garage?
To limit coverage of nonfortuitous events
Which of the following is a reason that insurance companies include exclusions in the homeowner forms?
The loss is not covered
If an employee accidentally turns off the restaurant's freezer and the entire inventory of ice cream is ruined, does the Businessowners Coverage Form cover the loss?
The Secretary of Homeland Security
Under the Terrorism Risk Insurance Reauthorization Act of 2015, the Secretary of the Treasury is charged with certifying that an act of terrorism has occurred and that it would be covered under the Act. However, before certification is complete the Secret
Assess a civil penalty in the amount the person received or offered for the prohibited conduct or $5,000 whichever is greater.
If a person is found guilty of violating USC Section 1033 regarding Federal Fraud and False Statements, the Attorney General may do which of the following?
The Condo Association policy is primary
If a Condo Association policy and a Condominium Unit Owners Policy are in force on the same property, how would the claim be handled?
I
Under an Ocean Marine policy, which of the following is considered to be the most important implied warranty?
I. Seaworthiness.
II. Condition of the cargo.
III. Legality.
Contact the claimant with the permission of the attorney
Which of the following is legal for an adjuster to do when adjusting a claim?
The court
Who makes a declaratory judgment?
Photographs used to determine the extent of damage
Which of the following does not have to be included in the record of claims of an adjuster concerning claims adjusted on behalf of an insured?
Real Property
The property insurance term "improvements and betterment" applies to:
The value of the salvage
What is not included with the calculations of a property loss negotiation?
Workers compensation
Which of the following lines of insurance are covered under the Terrorism Risk Insurance Act, now referred to as the Terrorism Risk Insurance Extension Act of 2015?
February 15
Under the New York cybersecurity regulation each covered entity, including insurance companies, must submit a written statement by _____ of each year certifying that it is in compliance.
$250 per day
If an insured has to take time off work to help assist in the investigation of a claim, the Businessowner's policy will pay for actual loss of earnings up to:
Informs the policyholder that the insurance company will defend him/her in a lawsuit but that certain aspects of the lawsuit may not be indemnified (covered).
A reservation of rights letter:
Appliances
The New York Standard Fire Policy covers which of the following types of personal property?
Insurance premium
Which of the following would NOT be found in the conditions section of a homeowner insurance policy?
3 stories
Motels insured under the BOP may not exceed how many stories?
Debris removal
Additional Coverages" in a Homeowner Policy would cover:
$3,000
Under the farm forms, theft of certain types of property has a theft coverage limitation. The theft limitation on firearms and other related equipment is:
The insurer can cancel the policy
The insured carries a Businessowners Policy (BOP). If the premises become 69% or more vacant, what can the insurer do?
The licensee's own legal name
What name(s) can be used in the issuance of an adjuster license in New York?
The names of the releasee and releasor
A "Full Release Settlement" when properly prepared, should include:
Actual cash value at the time of the loss
How are losses evaluated for payment under the Watercraft and Yacht policies?
$1,000
In New York, the limit under the Homeowner policy for credit card, electronic fund transfer card or access device, forgery and counterfeit money additional coverage is:
To provide a proof of loss statement following a loss if requested by the
company
A commercial property policy specifies which of the following responsibilities as a duty
of the insured?
Collapse (other than sinkhole collapse).
Which of the following perils is not covered under the Commercial Property Basic Cause
of Loss form:
ACV until repairs are completed and then the full replacement cost is paid .
Under the farm property form with replacement cost coverage, after the first $1,000 how
is the claim paid?
Furniture and
fixtures.
All of the following are excluded under the Commercial Building and Personal Property
Form, EXCEPT:
Furniture and fixtures.
Petty cash and IOUs.
A watch dog.
The insured's panel truck.
An arsonist applying for property insurance
Which of the following describes a moral hazard?
Faulty wiring
An arsonist applying for property insurance
Laziness and apathy
Twelve appliances plugged into one electrical outlet
Documentary
A weather report would be considered what type of evidence?
Covers
shipper fees
What is the purpose of freight insurance?
I, II, and III only
What are the automatic perils covered under every dwelling policy form?
I. Fire.
II. Lightning.
III. Internal explosion.
IV. Flood.
The insured must attempt to protect the property from further damage
Which of the following is correct regarding the duties and responsibilities of the insured
following a loss under a Homeowners policy?
The insured must prepare an inventory of the damaged property which includes the
dollar amount of its replacement cost.
Charge the adjuster with an unfair claims act
Mr. Jamison owns a summer home in the woods that he rents to others. During his
absence bears enter the home and do considerable damage. The insured reports the
claim to his insurance company. The adjuster advises Mr. Jamison to report the claim
as vandal
Actual cash value
The amount it would cost to repair or replace property minus depreciation is the
definition of:
The cost of the value of the damaged property plus 10%
An insured carries an unendorsed HO-2 policy. He has suffered a partial loss to his
dwelling and the authorities have advised him that the property cannot be repaired and
must be demolished. What will the insurer pay?
Liability coverage
The deductible under a homeowner policy does not apply to which of the following?
Liability coverage
Theft coverage
Glass coverage
Vandalism coverage
Commercial Property
The Terrorism Risk Insurance Program Reauthorization Act of 2015 excludes all of the
following, EXCEPT:
Commercial Auto
Farmowners
Commercial Property
Flood
The insured and the
friend
An insured has purchased a personal watercraft policy with liability limits of $300,000
and medical coverage in the amount of $5,000. The boat accidentally tips over and both
the insured and a friend are injured. Who would be covered under the medical
pay
Earthquake Coverage
Businessowners policies provide several extensions of coverage without additional
premium charge. Which of the following would require an additional premium charge?
Pollution Cleanup and Removal
Earthquake Coverage
Business Income
Seasonal Increase in Con
The policy deductible does not apply
What deductible applies to the Additional Coverage "fire department service charge"?
$10,000
If the insured carries a DP-2 dwelling form and insures the dwelling for 80% of its
replacement cost value, what will he be paid if his 30 year old roof sustains $10,000 in
damages (disregarding any deductible)?
the losses that occur relate to commercial property and
specified casualty risks
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:
Depreciation
All of the following are included in an insurance property estimate of damages,
EXCEPT:
Cost of materials
Overhead and profit
Cost of labor
Depreciation
All of the
responses listed are correct
The dwelling form on flood insurance will cover:
Single family residence
Two family residences
Up to three family residences
All of the responses listed are correct.
$1,000
In New York, the limit under the Homeowner policy for credit card, electronic fund
transfer card or access device, forgery and counterfeit money additional coverage is:
All responses listed are correct
Which of the following are exempt from certain sections of the New York cybersecurity
regulation?
I. Those with fewer than 10 employees, including any independent contractors, of the
covered entity or its affiliates located in New York.
II. Those with les
Warranty
A statement of fact given by an applicant at the inception of a policy is a:
A directed verdict
If, during a legal proceeding, the court determines that the facts brought forth, together
with the applicable law, fail to make a prima facie case, the court may, without
consideration by the jury, administer:
Coverage can be voided by the insurer under any circumstance involving
a mistake
Which of the following is NOT true regarding the legal effect of a mistake in an
insurance contract?
Coverage can be voided by the insurer under any circumstance involving a mistake
Coverage is not necessarily voided by a mistake
A mistake does not consti
I, II, III, and IV
Which of the following businesses would be eligible for a businessowners policy?
I. Doughnut shop.
II. Wholesale florist.
III. Barber shop.
IV. Taxidermist.
Adjusted Gross Revenue
Which type of Crop Insurance Policy insures the entire acreage rather than an individual
crop?
Only if the insurance company is notified within 10 days of the emergency
use.
The insured is covered under a Watercraft policy and asks the agent about a lay-up
period credit to get a reduction in the premium. The dates of the lay-up period are
specified in the policy. There is an emergency and the insured must use his boat in a
li
All of the
responses are correct.
In ocean marine, what is covered by protection and indemnity coverage?
All of the responses are correct.
Loss of life, injury and illness.
Crew member burial expense.
Damage to docks, buoys and other structures not owned, leased, or hired by the insured.
Actual Cash Value Basis
How is personal property of a dwelling covered under a farm policy?
Send the insured a reservation of rights letter
If an insured fail to report a claim in a timely fashion the adjuster will usually:
Pro rata basis
An insured purchases two homeowner policies from two different insurance companies.
If a covered loss occurs, on what basis will the loss be settled by each of the insurers?
10 years
An insurance professional has willfully embezzled or misappropriated money, premiums
or other property of an insurer. Under the Federal Insurance Fraud and False
Statements Act, the violator is subject to imprisonment for up to:
To determine if a claim falls within the insuring agreement of a policy
Why do insurers file declaratory judgment actions with the courts?
Actions of war
Which of the following is not a covered peril under a Standard Fire policy?
I. Actions of war.
II. Removal from premises property endangered by covered perils.
III. Lightning.
IV. Fire.
Settling
The HO-3 form insures for direct physical loss to covered property involving collapse of
a building caused by all of the following, EXCEPT:
Hidden decay
Settling
Weight of contents
Use of defective materials
Funeral Home
Which of the following risks is eligible for the BOP?
Funeral Home
Auto Repair Shop
Amusement Parks
Tavern
Theft of outside lighting attached to the building
Under the special dwelling policy (DP-3), which of the following would be covered?
I. Earthquake
II. Theft of outside lighting attached to the building
III. Vandalism in a building vacant for 89 days
IV. Frozen plumbing in a dwelling with a disconnected f
An HO-3 Policy
Which of the following policies does not include coverage for flood?
I. An HO-3 Policy
II. A Personal Auto policy with "other than collision" coverage
III. A Personal Articles Floater
A floater covering fine arts
Vandals have destroyed a boiler
Equipment Breakdown coverage does not apply to which of the following losses?
I. Vandals have destroyed a boiler
II. A boiler safety relief valve has malfunctioned and caused the boiler to crack
III. A boiler has exploded due to a water flow problem
IV. A
The coinsurance clause is not applicable
If a loss is valued using functional replacement cost, which of the following would apply?
I. Market value of the loss is paid
II. Deductibles are suspended
III. The coinsurance clause is not applicable
IV. Replacement cost up to an agreed amount is payab
I, II, and III only
Which of the following may be included in the Commercial Package Policy?
I. Commercial Auto.
II. Commercial Inland Marine.
III. Equipment Breakdown coverage.
IV. Aviation.
$100 billion
Under the Terrorism Risk Insurance Program Reauthorization Act of 2015, the
maximum limit for the Act for total claims paid under the Act by either private insurers or
the government is still limited to:
180 days
Under the New York cybersecurity regulation, an exempt covered entity that ceases to
qualify for an exemption will have _____ to comply with the requirements of the
regulation.
The dog owned by a guest that is stolen while he is visiting the insured.
Under the property coverage offered by the HO-3 form, which would not be covered?
I. The property of a teenage friend of the insured's son who is temporarily residing with the
insured and whose property is stolen.
II. A business associate who suffers dama
The policy will pay the loss less the deductible
An insured's wife is wearing a diamond ring while on vacation in Europe. The ring
valued at $1,500 is stolen. What coverage would apply under their Homeowner Policy?
$500
The unfair claim settlement laws and regulations in New York provide that a violation in
each instance will be treated as a separate violation. A fine in the amount of _____ will
be imposed against the insurance company for each violation.
Crop Revenue Insurance
Which of the following would cover a farmer for income protection for his farm crops?
Multi-peril Crop Insurance
Crop Revenue Insurance
Crop-hail Coverage
Farmowners Policy
Flood damage to a home
The following losses would be covered under the HO-2 and the HO-3 homeowners
forms, EXCEPT:
I. Theft of clothing in England
II. Flood damage to a home
III. Accidental and sudden discharge of water from a plumbing system
IV. A power failure caused by light
The Hired and Non-owned Auto Liability endorsement
If the named insured's employees use their own vehicles to run errands, and the named
insured does not have commercial auto coverage, what coverage should be added to
the Businessowners Coverage Form?
Additional Living Expense and Fair Rental Value
Under the HO Policy, loss of use would cover which of the following?
Additional Living Expense and Fair Rental Value
Personal Property
The Insured's Liability
Other Structures
Accidental shooting of livestock
Which of the following is covered under the broad form farmowners policy that is not
covered under the basic form farmowners policy?
Accidental shooting of livestock
Flood damage to structures
Collision
Earthquake
Mediation is not binding whereas with arbitration, the decision is final and binding on the parties .
What is the difference between arbitration and mediation in the adjusting of claims?
Appointed by the Governor with the consent of the New York State Senate
The Superintendent of Insurance in New York is:
Demonstrative evidence
Evidence presented in court that can be seen and felt is known as:
II and III only
The conditions section of an insurance contract specifies which of the following?
I. The property location.
II. The insurance company's responsibilities.
III. The insured's responsibilities.
IV. The policy duration.
$25,000
What is the additional limit under the BOP for debris removal in case the basic coverage
is inadequate?
Provides replacement cost coverage on contents
Which of the following is not true of the 1943 New York Standard Fire policy?
Covers direct loss claims
Pays for a hostile fire loss
Provides replacement cost coverage on contents
Provides only named peril coverage
I, II and III only
The Superintendent of Insurance:
I. Must be a resident of New York
II. Is appointed by the Governor
III. Holds office at the pleasure of the governor
IV. Must annually examine the books and records of insurers operating in New York