New York auto exam 17-66 Questions and Answers Graded A

New York auto exam 17-66 Questions and Answers Graded A In New York, insurers must maintain records pertaining to claims, rating, underwriting, marketing and other pertinent information for a period of: The law requires that these records be maintained for inspection and/or review for at least six years. Which of the following relieves the financial burden on the claimant by making certain payments to the claimant even before the claim is negotiated? Advance Payment. EXPLANATION: Most adjusters are given the authority to make advance payments when liability is clear. This relieves the financial burden on the claimant when funds are needed immediately. The remainder of the claim is negotiated and settled at a later date In the insurance industry, which of the following terms refers to continuous or repeated exposure to conditions that may result in bodily injury or property damage neither expected nor intended? An occurrence. EXPLANATION: The definition of "occurrence" includes accident which is bodily injury and/or property damage that is sudden and unforeseen. 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: A directed verdict. . EXPLANATION: Lacking establishment of a prima facie case, the court may enter a directed verdict for either the plaintiff or the defendant. Which of the following is NOT a correct statement in determining the cost of a "comparable automobile" when a physical damage loss has a occurred? The cost of a comparable automobile as determined by a computerized automobile valuation service that produces statistically valid fair market values within the United States market. . EXPLANATION: The computerized method must use values that are fair market values in the local market areas and does not include markets in other parts of the United States. 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: $1,000. EXPLANATION: In NY the limit of insurance under the credit card, electronic fund transfer card or access device, forgery and counterfeit money additional coverage was increased from $500 to $1,000. Under the Motor Carrier Act of 1980, a vehicle hauling excess oil, explosives or nitrous gases is required to carry a minimum liability limit of: $5,000,000. EXPLANATION: Although oil haulers are only required to carry $1,000,000, the key word here is "excess oil" and when followed up with "explosives" makes this freight hazardous requiring the $5,000,000 limit. In New York, the insurer is required to provide claim forms to the insured within _____ of being notified of the loss. 5 days. EXPLANATION: Claim forms must be provided within 15 days after notification of the loss. Which of the following coverages would apply to a rental car used by an insured executive while on vacation? Coverage for nonowned autos. . EXPLANATION: The personal auto policy covers the use of a non-owned auto whether it be a rental car or a vehicle belonging to a friend. In New York, a lawsuit against an insurance company must be commenced within _______ after the claim. 24 months. EXPLANATION: No suit or action on a policy for the recovery of any claim will be sustainable in any court of law or equity unless all the requirements of the policy have been complied with, unless commenced within 24 months next after inception of the loss. 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: Submitting a 1033 waiver form and having it approved by an insurance regulatory official in his or her state.. EXPLANATION: Only an insurance regulatory official, such as the Insurance Commissioner, can grant permission to resume business. The BAP uses Symbol 7 to cover "specifically described autos" identified in the declarations. An auto acquired during the policy period will only be covered: If the insured insures all of their vehicles with the company or it replaces a covered auto. . EXPLANATION: First the insured must insure all of their vehicles they own, or the auto replaces a covered auto. In either case the insured must notify the insurance company of the change. An insurer in New York is required to acknowledge receipt of notice of a claim within: 5 working days.. EXPLANATION: Every insurer, upon notification of a claim, must, within 15 working days, acknowledge the receipt of the notice. The acknowledgment may be in writing. If an acknowledgment is made by other means, an appropriate notation must be made in the claim file of the insurer. Which of the following would NOT be covered under coverage C, the Uninsured and Underinsured Motorist Coverage? Vehicles. EXPLANATION: This coverage does not apply to physical damage to other vehicles. In some states the insured can elect to purchase uninsured motorist property damage coverage that would apply to the insured's vehicle. Special damages are those that the adjuster can assign a dollar amount such as medical expenses and loss of wages. General damages deal with soft tissue injuries or pain and suffering where the damages are usually determined at a later date and negotiated with the insured. What type of liability is specifically addressed by statute? Strict Liability. EXPLANATION: Strict liability is specifically addressed by statute. Basically there is little if any defense on the part of the negligent party. Products liability is often the subject of strict liability claims. Liability coverage under the personal auto policy includes: The correct answer is: Both bodily injury and property damage coverage. EXPLANATION: The policy provides both bodily injury and property damage liability coverage. It does not cover the insured's personal property or personal property of others in the insured's vehicle. All of the following statements regarding the Motor Carrier Act of 1980 are correct, EXCEPT: It requires truckers to certify that they are able to meet financial obligations arising from physical damages of their trucking operations. . EXPLANATION: 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. The supplementary payments under the personal auto policy: Will pay the insured up to $200 per day for loss of earnings due to testifying at a trial concerning an accident caused by the insured. EXPLANATION: The policy will pay up to $200 per day for loss of earnings, but not other income, because of attendance at hearings or trials at the company's request. Which of the following best describes the purpose of an "insuring agreement"? To describe the promises of the insurer and the insured and the coverages provided. EXPLANATION: Insuring agreements are the promises or obligations of the insurer and the insured. In property insurance, it also contains the coverage the insured has purchased. A non-waiver agreement allows the insurer to: Investigate a loss without implying that it is covered. EXPLANATION: A non-waiver agreement is a signed agreement in which the policyholder stipulates that the continuance of a loss investigation and adjustment process by the insurer will not be construed as an admission of coverage by the insurer. This form is used when there are substantial questions as to the amount of the claim or whether the policy affords coverage. A release becomes settled when: A release is settled when the settlement check is cashed. "Hired car" liability coverage under the business auto policy will cover all of the following for liability, EXCEPT: A new SUV owned by an employee, that he is using until the insured company can make a purchase of an SUV to be used in the department of the employee. . EXPLANATION: Hired car coverage does not apply to employees using their own vehicles on company business. This would be an employers non-owned auto coverage and would only protect the employer in case the employee had an at-fault accident while using the vehicle for company business. Which of the following is not included under the Optional Basic Economic Loss (OBEL) coverage? Pain and suffering are not included under Optional Basic Economic Loss coverage. A weather report would be considered what type of evidence? Documentary New York has a modified form of "no-fault" insurance. The injured party cannot sue the negligent driver, EXCEPT: Where serious injury has occurred. . EXPLANATION: Where serious injury has occurred, a covered person does have the right to sue the other covered person for non-economic loss like pain and suffering. Which of the following is most likely to be uninsurable? The purchaser of a new home wants to protect herself from a possible drop in housing prices. . EXPLANATION: Investing in real estate is an example of a speculative risk. The other choices are pure risks. Speculative risks are not uninsurable while many pure risks are insurable. Uninsured motorist coverage would not pay if: Other liability coverage applies. EXPLANATION: If there is other collectable liability coverage the uninsured motorist coverage would not pay the claim. What type of liability is imposed by law without regard to fault on those participating in certain activities or owning certain things that are considered especially hazardous? Absolute. EXPLANATION: Absolute or strict liability is liability without fault. It is occasionally imposed by statute on those participating in specified activities that are considered especially hazardous. For example, in some states, ownership of certain dog breeds places strict liability upon the owners in case of any damage or injury to others. 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 the loss. 24 There are four people in the Smith family: Mr. Smith, Mrs. Smith, Susan Smith (Mr. and Mrs. Smith's daughter), and Mrs. Hillman (Mrs. Smith's mother). The Smiths own a family car which is covered by a personal auto policy. Mrs. Hillman also has a 1995 Chevy Impala on which she carries no insurance (it is not listed on the Smith's policy). Which of the following injuries would NOT be eligible for medical payments coverage under the Smith's personal auto policy? Injuries sustained by Mrs. Hillman when she is driving her own car. . EXPLANATION: Mrs. Hillman's vehicle is not insured and she is driving her own car when she sustains an injury. She is not covered. Other family members in her car would be covered by the other insurance carried by the Smith's.