New York State General Adjuster 17-70: Questions
With Correct Solutions
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? Right Ans -
Employers non-ownership coverage. This coverage protects the employer and
not the employee. The employee is covered under his own PAP policy.
Replacement cost coverage is best defined as: Right Ans - Replacement
without deduction for depreciation.With replacement cost coverage, the
insured is permitted to replace old with new at today's cost without a
deduction for depreciation.
Which of the following would be considered a "supplementary payment"
coverage under a business auto policy? 1)All post-judgment interest in a suit
defended by the insurer 2)Payment for an insured employee's truck being
used by the employee on a business-related trip 3)Costs for a private
investigator hired by an employee to prove he was not involved in a hit and
run accident of which he has been accused 4)Up to $2,000 for the cost of bail
bonds for an employee involved in an accident while he was on a trip to
Mexico that he won for exceeding sales goals set by the company Right Ans
- 1) All post-judgment interest in a suit defended by the insurer.
Supplementary payments do not include physical damages, nor personal
expenses of employees. The bail bonds would be covered except that Mexico is
outside the coverage area.
Which of the following professional liability policies would cover a dishonest,
fraudulent or criminal act of the manager of a LLC?
1)Fiduciary Liability
2)Malpractice Liability
3)Errors and Omissions
4)None of the policies cover these acts Right Ans - 4) None of the policies
cover these acts.
When securing a recorded statement over the telephone, an adjuster must:
1 Identify him or herself.
,2 Advise he or she would like to record the statement and request and receive
permission to do so.
3 State the time and date.
4 All responses listed are correct. Right Ans - 4 All responses listed are
correct. The adjuster must identify him or herself, state the date and time and
get permission to record the statement.
Uninsured Motorist coverage includes the named insured's:
I. Medical bills and pain and suffering.
II. Lost wages. Right Ans - Both I and II is correct.
Coverage C (Uninsured Motorists) provides for payments to or on behalf of
the named insured for injuries sustained through the negligence of an
uninsured driver.
Substitute services will provide: Right Ans - $25 per day for one year.
Basic economic loss benefits will provide up to $25 per day for substitute
services for a maximum of one year if the injured party is not gainfully
employed.
Which of the following is not a violation of the Unfair Trade Practices Act?
1 Not attempting in good faith to settle claims
2 Denying an uncovered claim
3 Failing to promptly settle claims under one portion of coverage in order to
influence settlements under other portions of coverage
4 Not setting forth the coverage under which a claim payment is being made
Right Ans - Denying a claim that is not covered is not a violation.
In case of a total loss in an automobile accident, the adjuster can do the
insured which of the following?
I. Pay cost to replace the vehicle with like kind and quality if the vehicle is a
current year model.
II. Use the most recent publication of an "Official Used Car Guide."
III. If not listed in the "Guide," obtain quotations from local automobile
dealers. Right Ans - I, II and III depending on the circumstances
All the responses listed can be options in settling a total loss claim.
Personal umbrella liability policies usually cover liability as a result of:
1 Performing a professional service.
2 Serving as an officer or director of a nonprofit corporation or association.
,3 For a work related activity
4 None of the activities are covered Right Ans - 2 Serving as an officer or
director of a nonprofit corporation or association..
Coverage is included while serving as an officer or director of a nonprofit
corporation or association.
The Now Company carries a special BOP policy with a liability limit of
$500,000. The company is involved in an accident causing $200,000 bodily
injury damage and $200,000 property damage. The total amount collectible
under the policy is:
1 $500,000
2 $400,000
3 $200,000
4 $100,000 Right Ans - 2 $400,000
BOP policies provide a single limit of liability. Both bodily injury and property
damage coverage is provided. Since the amounts for bodily injury and
property damage combined do not exceed the 500,000 occurrence limit, the
total amount of the claim would be covered.
A tram, tape and centering gauges are being used to quick reference a unibody
vehicle. Technician A says the tram gauge is used to determine vehicle
centerline. Technician B says that centering gauges should be used to
determine vehicle centerline. Who is right?
1 Technician A only
2 Technician B only
3 Both technicians are correct
4 Neither technician is correct Right Ans - 2 Technician B only
Technician B is correct. Centering gauges use centering pins to locate
centerline. A tram is used to make point-to-point measurements.
The maximum payable for damage or loss to signs attached to the building
covered under a BOP is:
1 $2500
2 The building limit since it's attached to the building
3 $1000
4 $5000 Right Ans - 3 The correct answer is: $1000.
, Damage or loss to a sign attached to the building is limited to $1000 even
though it is attached to the building and considered part of the building.
Which of the following basic workers compensation benefits compensates a
widow or other dependent family members of an employee whose death
results from a work-related injury?
1 Disability income benefits
2 Medical benefits
3 Survivor benefits
4 Rehabilitation benefits Right Ans - 3 Survivor benefits
Survivor benefits compensate a widow or other dependent family members.
Lawful economic interest in the preservation of the subject of insurance, free
from loss or destruction or monetary impairment is the definition of:
1 Insurable Interest
2 Right of Ownership
3 An Amendatory Endorsement
4 Contractual Obligation Right Ans - 1 Insurable Interest
This is the definition of insurable interest. In property and casualty insurance,
insurable interest must exist at the time of the loss.
In a property loss the insured is required to do all of the following, EXCEPT:
Right Ans - Repair the property within 20 days of notifying the insurer.
The insured should not repair the property until agreed upon by the insurer.
The prefix "neo" refers to:
1 Old.
2 New.
3 Flat.
4 After. Right Ans - 2 New
"Neo" refers to something that is new.
neo-: new or recent, or in a modern form:
If a commercial building has been vacant for more than sixty days, which of
the perils are affected as regards coverage?
With Correct Solutions
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? Right Ans -
Employers non-ownership coverage. This coverage protects the employer and
not the employee. The employee is covered under his own PAP policy.
Replacement cost coverage is best defined as: Right Ans - Replacement
without deduction for depreciation.With replacement cost coverage, the
insured is permitted to replace old with new at today's cost without a
deduction for depreciation.
Which of the following would be considered a "supplementary payment"
coverage under a business auto policy? 1)All post-judgment interest in a suit
defended by the insurer 2)Payment for an insured employee's truck being
used by the employee on a business-related trip 3)Costs for a private
investigator hired by an employee to prove he was not involved in a hit and
run accident of which he has been accused 4)Up to $2,000 for the cost of bail
bonds for an employee involved in an accident while he was on a trip to
Mexico that he won for exceeding sales goals set by the company Right Ans
- 1) All post-judgment interest in a suit defended by the insurer.
Supplementary payments do not include physical damages, nor personal
expenses of employees. The bail bonds would be covered except that Mexico is
outside the coverage area.
Which of the following professional liability policies would cover a dishonest,
fraudulent or criminal act of the manager of a LLC?
1)Fiduciary Liability
2)Malpractice Liability
3)Errors and Omissions
4)None of the policies cover these acts Right Ans - 4) None of the policies
cover these acts.
When securing a recorded statement over the telephone, an adjuster must:
1 Identify him or herself.
,2 Advise he or she would like to record the statement and request and receive
permission to do so.
3 State the time and date.
4 All responses listed are correct. Right Ans - 4 All responses listed are
correct. The adjuster must identify him or herself, state the date and time and
get permission to record the statement.
Uninsured Motorist coverage includes the named insured's:
I. Medical bills and pain and suffering.
II. Lost wages. Right Ans - Both I and II is correct.
Coverage C (Uninsured Motorists) provides for payments to or on behalf of
the named insured for injuries sustained through the negligence of an
uninsured driver.
Substitute services will provide: Right Ans - $25 per day for one year.
Basic economic loss benefits will provide up to $25 per day for substitute
services for a maximum of one year if the injured party is not gainfully
employed.
Which of the following is not a violation of the Unfair Trade Practices Act?
1 Not attempting in good faith to settle claims
2 Denying an uncovered claim
3 Failing to promptly settle claims under one portion of coverage in order to
influence settlements under other portions of coverage
4 Not setting forth the coverage under which a claim payment is being made
Right Ans - Denying a claim that is not covered is not a violation.
In case of a total loss in an automobile accident, the adjuster can do the
insured which of the following?
I. Pay cost to replace the vehicle with like kind and quality if the vehicle is a
current year model.
II. Use the most recent publication of an "Official Used Car Guide."
III. If not listed in the "Guide," obtain quotations from local automobile
dealers. Right Ans - I, II and III depending on the circumstances
All the responses listed can be options in settling a total loss claim.
Personal umbrella liability policies usually cover liability as a result of:
1 Performing a professional service.
2 Serving as an officer or director of a nonprofit corporation or association.
,3 For a work related activity
4 None of the activities are covered Right Ans - 2 Serving as an officer or
director of a nonprofit corporation or association..
Coverage is included while serving as an officer or director of a nonprofit
corporation or association.
The Now Company carries a special BOP policy with a liability limit of
$500,000. The company is involved in an accident causing $200,000 bodily
injury damage and $200,000 property damage. The total amount collectible
under the policy is:
1 $500,000
2 $400,000
3 $200,000
4 $100,000 Right Ans - 2 $400,000
BOP policies provide a single limit of liability. Both bodily injury and property
damage coverage is provided. Since the amounts for bodily injury and
property damage combined do not exceed the 500,000 occurrence limit, the
total amount of the claim would be covered.
A tram, tape and centering gauges are being used to quick reference a unibody
vehicle. Technician A says the tram gauge is used to determine vehicle
centerline. Technician B says that centering gauges should be used to
determine vehicle centerline. Who is right?
1 Technician A only
2 Technician B only
3 Both technicians are correct
4 Neither technician is correct Right Ans - 2 Technician B only
Technician B is correct. Centering gauges use centering pins to locate
centerline. A tram is used to make point-to-point measurements.
The maximum payable for damage or loss to signs attached to the building
covered under a BOP is:
1 $2500
2 The building limit since it's attached to the building
3 $1000
4 $5000 Right Ans - 3 The correct answer is: $1000.
, Damage or loss to a sign attached to the building is limited to $1000 even
though it is attached to the building and considered part of the building.
Which of the following basic workers compensation benefits compensates a
widow or other dependent family members of an employee whose death
results from a work-related injury?
1 Disability income benefits
2 Medical benefits
3 Survivor benefits
4 Rehabilitation benefits Right Ans - 3 Survivor benefits
Survivor benefits compensate a widow or other dependent family members.
Lawful economic interest in the preservation of the subject of insurance, free
from loss or destruction or monetary impairment is the definition of:
1 Insurable Interest
2 Right of Ownership
3 An Amendatory Endorsement
4 Contractual Obligation Right Ans - 1 Insurable Interest
This is the definition of insurable interest. In property and casualty insurance,
insurable interest must exist at the time of the loss.
In a property loss the insured is required to do all of the following, EXCEPT:
Right Ans - Repair the property within 20 days of notifying the insurer.
The insured should not repair the property until agreed upon by the insurer.
The prefix "neo" refers to:
1 Old.
2 New.
3 Flat.
4 After. Right Ans - 2 New
"Neo" refers to something that is new.
neo-: new or recent, or in a modern form:
If a commercial building has been vacant for more than sixty days, which of
the perils are affected as regards coverage?
