LATEST 2026 NEW YORK STATE PROPERTY
AND CASUALTY INSURANCE EXAM
QUESTIONS AND VERIFIED ANSWERS
$100,000 - CORRECT ANSWER: An insured with split liability limits of 100/300/100 is at fault in an
automobile accident and the other vehicle sustains $6,500 in property damages as well as two occupants
have bodily injury and are claiming $150,000 each. What is the most insurance will pay to each occupant?
$20,000 - CORRECT ANSWER: The insured carries underinsured motorists coverage limits of
250/500/250 on his automobile policy and his vehicle is struck by an at fault motorist who insures with the
State minimum for liability of 20/40/10. If the insured brings suit for bodily injury damages to himself of
$500,000, how much will he recover from at fault driver's policy?
a. arbitration - CORRECT ANSWER: Which policy condition is invoked when parties to an insured loss
cannot agree?
a. arbitration
b. assignment
c. liberalization
d. subrogation
a. carpet cleaning after a water main break - CORRECT ANSWER: Which of the following would trigger
coverage under business income form with extra expense coverage?
a. carpet cleaning after a water main break
b. Employee pay after a building structure is damaged
c. building inspectors feeds after a loss
d. unit rent when tenant is liable
a. certificate - CORRECT ANSWER: Which document would a lender ask an insured for as evidence that
a policy has been written?
a. certificate
b. declarations
c. endorsement
d. policy
a. compensate for actual financial losses - CORRECT ANSWER: Punitive damages are intended to do all
of the following except?
a. compensate for actual financial losses.
b. discourage others from doing wrong.
c. discipline the insured.
d. make an example of bad behavior
a. cost of bail bonds - CORRECT ANSWER: Under the commercial general liability which one of the
following is covered under supplementary payments?
a. cost of bail bonds
b. defense costs for the plaintiff
c. court costs taxed against a third party
d. loss of earnings expense of over $250 a day
a. disability - CORRECT ANSWER: Underwriters are permitted to use all of the following when
underwriting an application for insurance EXCEPT?
a. disability
b. inspection services
c. credit reports
, d. claim history
a. employer liability - CORRECT ANSWER: Which of the following provides insurance for employers
when workers not covered by workers' compensation insurance are injured on the job and sue for
compensation?
a. employer liability
b. no fault insurance
c. worker insurance
d. employee indemnity
a. indemnity - CORRECT ANSWER: which of the following characteristics of an insurance contract
expresses the principle that the policyholder is returned to the approximate financial condition as before the
loss?
a. indemnity
b. risk transfer
c. insurance
d. risk reduction
a. it provides coverage for claims made outside the policy term - CORRECT ANSWER: An extended
reporting period attached to a general liability policy provides coverage in which of the following ways?
a. it provides coverage for claims made outside the policy term
b. it gives an additional 30 days coverage beyond the policy term
c. it gives an additional 10 years coverage beyond the policy term
d. it covers any gap between the claims-made and occurrence forms
a. not driving a car to prevent getting in an accident - CORRECT ANSWER: Which of the following is an
example of risk avoidance?
a. not driving a car to prevent getting in an accident
b. providing comprehensive training on how to drive a car
c. making sure a car has airbags before purchasing it
d. purchasing a large amount of automobile insurance
a. temporary permanent - CORRECT ANSWER: The following are all types of disability categories under
workers' compensation insurance except?
a. temporary permanent
b. permanent total
c. permanent partial
d. temporary total
a. the fall - CORRECT ANSWER: A woman slips on icy steps and breaks her leg. Which of the following
is the peril in this situation?
a. the fall
b. the icy steps
c. the broken leg
d. the season of the year
a. the responsibilities and obligations of insured and insurer - CORRECT ANSWER: which of the
following best describes the policy conditions?
a. the responsibilities and obligations of insured and insurer
b. who is insured, location, risk and what is insured
c. the meanings of terms used in the policy
d. the losses for which the insured is NOT covered
a. unknowingly inflicting injury that violates the rights of another - CORRECT ANSWER: Liability
arising out of any of the following is excluded from the personal and advertising injury liability coverage
EXCEPT?
AND CASUALTY INSURANCE EXAM
QUESTIONS AND VERIFIED ANSWERS
$100,000 - CORRECT ANSWER: An insured with split liability limits of 100/300/100 is at fault in an
automobile accident and the other vehicle sustains $6,500 in property damages as well as two occupants
have bodily injury and are claiming $150,000 each. What is the most insurance will pay to each occupant?
$20,000 - CORRECT ANSWER: The insured carries underinsured motorists coverage limits of
250/500/250 on his automobile policy and his vehicle is struck by an at fault motorist who insures with the
State minimum for liability of 20/40/10. If the insured brings suit for bodily injury damages to himself of
$500,000, how much will he recover from at fault driver's policy?
a. arbitration - CORRECT ANSWER: Which policy condition is invoked when parties to an insured loss
cannot agree?
a. arbitration
b. assignment
c. liberalization
d. subrogation
a. carpet cleaning after a water main break - CORRECT ANSWER: Which of the following would trigger
coverage under business income form with extra expense coverage?
a. carpet cleaning after a water main break
b. Employee pay after a building structure is damaged
c. building inspectors feeds after a loss
d. unit rent when tenant is liable
a. certificate - CORRECT ANSWER: Which document would a lender ask an insured for as evidence that
a policy has been written?
a. certificate
b. declarations
c. endorsement
d. policy
a. compensate for actual financial losses - CORRECT ANSWER: Punitive damages are intended to do all
of the following except?
a. compensate for actual financial losses.
b. discourage others from doing wrong.
c. discipline the insured.
d. make an example of bad behavior
a. cost of bail bonds - CORRECT ANSWER: Under the commercial general liability which one of the
following is covered under supplementary payments?
a. cost of bail bonds
b. defense costs for the plaintiff
c. court costs taxed against a third party
d. loss of earnings expense of over $250 a day
a. disability - CORRECT ANSWER: Underwriters are permitted to use all of the following when
underwriting an application for insurance EXCEPT?
a. disability
b. inspection services
c. credit reports
, d. claim history
a. employer liability - CORRECT ANSWER: Which of the following provides insurance for employers
when workers not covered by workers' compensation insurance are injured on the job and sue for
compensation?
a. employer liability
b. no fault insurance
c. worker insurance
d. employee indemnity
a. indemnity - CORRECT ANSWER: which of the following characteristics of an insurance contract
expresses the principle that the policyholder is returned to the approximate financial condition as before the
loss?
a. indemnity
b. risk transfer
c. insurance
d. risk reduction
a. it provides coverage for claims made outside the policy term - CORRECT ANSWER: An extended
reporting period attached to a general liability policy provides coverage in which of the following ways?
a. it provides coverage for claims made outside the policy term
b. it gives an additional 30 days coverage beyond the policy term
c. it gives an additional 10 years coverage beyond the policy term
d. it covers any gap between the claims-made and occurrence forms
a. not driving a car to prevent getting in an accident - CORRECT ANSWER: Which of the following is an
example of risk avoidance?
a. not driving a car to prevent getting in an accident
b. providing comprehensive training on how to drive a car
c. making sure a car has airbags before purchasing it
d. purchasing a large amount of automobile insurance
a. temporary permanent - CORRECT ANSWER: The following are all types of disability categories under
workers' compensation insurance except?
a. temporary permanent
b. permanent total
c. permanent partial
d. temporary total
a. the fall - CORRECT ANSWER: A woman slips on icy steps and breaks her leg. Which of the following
is the peril in this situation?
a. the fall
b. the icy steps
c. the broken leg
d. the season of the year
a. the responsibilities and obligations of insured and insurer - CORRECT ANSWER: which of the
following best describes the policy conditions?
a. the responsibilities and obligations of insured and insurer
b. who is insured, location, risk and what is insured
c. the meanings of terms used in the policy
d. the losses for which the insured is NOT covered
a. unknowingly inflicting injury that violates the rights of another - CORRECT ANSWER: Liability
arising out of any of the following is excluded from the personal and advertising injury liability coverage
EXCEPT?
