NEW YORK INDEPENDENT GENERAL ADJUSTER EXAM SIMULATOR - SERIES 17-70
Terms in this set (85)
Which of the following The insurance premium is not shown in the conditions
would NOT be found in section of the homeowner policy.
the conditions section of
a homeowners insurance
policy?
Subrogation
rights Duties
of the insured
Insurance
premium
Mortgagee
clause
Which of the following is true It is a blanket limit for covered
regarding autos. EXPLANATION:
dealers physical damage The dealer's physical damage limit would be done on a
coverage under a garage blanket limit basis. This would apply to comprehensive
policy? and collision losses to the auto inventory of the dealer.
This is done because it is simply not practical to
It is a blanket limit for covered
schedule each dealer owned vehicle for physical
autos.
It extends coverage to damage. This is generally accomplished by the use
customers' autos. of a monthly reporting form.
It is an annual maximum limit
for
comprehensive and
collision losses. It is a
maximum limit per
auto.
Which of the following Bending over to pick up a box and hurting
would not be considered your back. is correct. EXPLANATION:
an occupational disease? Bending over to pick up a box and causing an injury is a
work related injury and not a disease.
Black lung.
Mesothelioma.
Pulmonary fibrosis.
Bending over to pick up a
box and hurting your back.
,Which of the following is The correct answer is: The collapse must be such that
correct in order for the the building can not be used as intended.
additional coverage of EXPLANATION:
"collapse" to be available The definition of collapse in the policy is the "abrupt
under special BOP? falling down or caving in of the structure or part of the
structure" and it must render the building as unusable
The collapse must be such as
intended.
that the building can not be
used as intended
The remaining part of the
structure standing must be
demolished
The remaining part of the
structure must be judged
unsound to rebuild on
The building must be
leaning, settling or in
danger of collapsing
Which of the following EXPLANATION:
would not be eligible Poultry is not eligible property under the livestock floater.
for coverage under a
livestock floater?
Poultry
Cattle
Sheep
Swine
The insured owns a The correct answer is: Miscellaneous Type
motorhome that is not Vehicle endorsement. EXPLANATION:
covered by the insured's The Miscellaneous Type Vehicle endorsement can be
Personal Auto used to cover motorhomes, motorcycles, etc.
policy. This vehicle can be
added to the policy by
using which of the
following endorsements?
Miscellaneous Type Vehicle
endorsement Special Type
,Vehicle endorsement
Recreational Vehicle
endorsement Motorhome
endorsement
Insurers must maintain a The correct answer is: six
complaint record for calendar years.
_______after all elements EXPLANATION:
of the Insurers are required to maintain complaint records for six
calendar years.
complaint are resolved and
the file is closed.
five years
three
calendar
years one
year
six calendar years
A BOP policy has a $500,000 The correct answer is:
occurrence
limit for liability and a $100,000. EXPLANATION:
$1,000,000 aggregate limit. If
claims for $600,000 and The most the policy will pay for any one single
$400,000 occurrence is $500,000. So that amount would be
have been filed in two payable for the first loss. Once paid that amount
separate incidents, how must be
much coverage remains, if subtracted from the Aggregate limit (the most available
any, for any future claims for all claims in the policy year) leaving $500,000
submitted during the remaining in the aggregate. The second claim is within
policy term? the
occurrence limit and since there is enough left in the
aggregate, the entire $400,000 is payable. After
Answer Choices:
subtracting the $400,000 loss from the remaining
$500,000
aggregate,
-0-
$100,000 is left to pay any and all future claims for the
$100,000 remainder of the policy term.
$1,000,000
, All of the following are The correct answer is:
uniform mandatory policy cancellation provision..
provisions, except the: EXPLANATION:
The cancellation provision is an optional provision giving
entire contract insurers the ability to determine how the renewability
provision. grace of a health policy will be renewed.
period
provision.
reinstatement
provision.
cancellation
provision.
The correct answer is: Replacement cost if the repair
or replacement is made within 24 months.
With an Equipment
Breakdown policy, the loss EXPLANATION:
settlement is:
The insured must repair or replace the damaged
ACV all of the time property within 24 months after the date of the
Replacement cost all of breakdown (unless the time period is extended by the
the time Replacement cost insurer in writing), or recovery of the loss is limited
if the repair or to the lesser of the cost it would have taken to
replacement is made within repair the damaged property or the actual cash value
18 months Replacement of the property at the time of the breakdown. Usually
cost if the repair or coverage is on a replacement cost basis unless the
replacement is made within insured or company endorses the policy to cover
24 months
losses on an Actual Cash value bases. If
replacement cost coverage applies, then the 24-
month period is a factor if the
insured is to receive replacement cost coverage for the loss.
Concurrent policies are: EXPLANATION:
Concurrent policies are separate policies that insure the
Separate types of policies same insured and the same property in the same
issued to an insured by an loss.
insurer
Separate policies that insure
the same
interest and the identical
property in the same loss
Not illegal
Also known as co-insurance
Terms in this set (85)
Which of the following The insurance premium is not shown in the conditions
would NOT be found in section of the homeowner policy.
the conditions section of
a homeowners insurance
policy?
Subrogation
rights Duties
of the insured
Insurance
premium
Mortgagee
clause
Which of the following is true It is a blanket limit for covered
regarding autos. EXPLANATION:
dealers physical damage The dealer's physical damage limit would be done on a
coverage under a garage blanket limit basis. This would apply to comprehensive
policy? and collision losses to the auto inventory of the dealer.
This is done because it is simply not practical to
It is a blanket limit for covered
schedule each dealer owned vehicle for physical
autos.
It extends coverage to damage. This is generally accomplished by the use
customers' autos. of a monthly reporting form.
It is an annual maximum limit
for
comprehensive and
collision losses. It is a
maximum limit per
auto.
Which of the following Bending over to pick up a box and hurting
would not be considered your back. is correct. EXPLANATION:
an occupational disease? Bending over to pick up a box and causing an injury is a
work related injury and not a disease.
Black lung.
Mesothelioma.
Pulmonary fibrosis.
Bending over to pick up a
box and hurting your back.
,Which of the following is The correct answer is: The collapse must be such that
correct in order for the the building can not be used as intended.
additional coverage of EXPLANATION:
"collapse" to be available The definition of collapse in the policy is the "abrupt
under special BOP? falling down or caving in of the structure or part of the
structure" and it must render the building as unusable
The collapse must be such as
intended.
that the building can not be
used as intended
The remaining part of the
structure standing must be
demolished
The remaining part of the
structure must be judged
unsound to rebuild on
The building must be
leaning, settling or in
danger of collapsing
Which of the following EXPLANATION:
would not be eligible Poultry is not eligible property under the livestock floater.
for coverage under a
livestock floater?
Poultry
Cattle
Sheep
Swine
The insured owns a The correct answer is: Miscellaneous Type
motorhome that is not Vehicle endorsement. EXPLANATION:
covered by the insured's The Miscellaneous Type Vehicle endorsement can be
Personal Auto used to cover motorhomes, motorcycles, etc.
policy. This vehicle can be
added to the policy by
using which of the
following endorsements?
Miscellaneous Type Vehicle
endorsement Special Type
,Vehicle endorsement
Recreational Vehicle
endorsement Motorhome
endorsement
Insurers must maintain a The correct answer is: six
complaint record for calendar years.
_______after all elements EXPLANATION:
of the Insurers are required to maintain complaint records for six
calendar years.
complaint are resolved and
the file is closed.
five years
three
calendar
years one
year
six calendar years
A BOP policy has a $500,000 The correct answer is:
occurrence
limit for liability and a $100,000. EXPLANATION:
$1,000,000 aggregate limit. If
claims for $600,000 and The most the policy will pay for any one single
$400,000 occurrence is $500,000. So that amount would be
have been filed in two payable for the first loss. Once paid that amount
separate incidents, how must be
much coverage remains, if subtracted from the Aggregate limit (the most available
any, for any future claims for all claims in the policy year) leaving $500,000
submitted during the remaining in the aggregate. The second claim is within
policy term? the
occurrence limit and since there is enough left in the
aggregate, the entire $400,000 is payable. After
Answer Choices:
subtracting the $400,000 loss from the remaining
$500,000
aggregate,
-0-
$100,000 is left to pay any and all future claims for the
$100,000 remainder of the policy term.
$1,000,000
, All of the following are The correct answer is:
uniform mandatory policy cancellation provision..
provisions, except the: EXPLANATION:
The cancellation provision is an optional provision giving
entire contract insurers the ability to determine how the renewability
provision. grace of a health policy will be renewed.
period
provision.
reinstatement
provision.
cancellation
provision.
The correct answer is: Replacement cost if the repair
or replacement is made within 24 months.
With an Equipment
Breakdown policy, the loss EXPLANATION:
settlement is:
The insured must repair or replace the damaged
ACV all of the time property within 24 months after the date of the
Replacement cost all of breakdown (unless the time period is extended by the
the time Replacement cost insurer in writing), or recovery of the loss is limited
if the repair or to the lesser of the cost it would have taken to
replacement is made within repair the damaged property or the actual cash value
18 months Replacement of the property at the time of the breakdown. Usually
cost if the repair or coverage is on a replacement cost basis unless the
replacement is made within insured or company endorses the policy to cover
24 months
losses on an Actual Cash value bases. If
replacement cost coverage applies, then the 24-
month period is a factor if the
insured is to receive replacement cost coverage for the loss.
Concurrent policies are: EXPLANATION:
Concurrent policies are separate policies that insure the
Separate types of policies same insured and the same property in the same
issued to an insured by an loss.
insurer
Separate policies that insure
the same
interest and the identical
property in the same loss
Not illegal
Also known as co-insurance
