NY PERSONAL LINES INSURANCE PRACTICE EXAM QUESTIONS
WITH CORRECT ANSWERS 2025/2026
All of the following are correct for excess lines carriers EXCEPT - CORRECT ANSWER -they offer
better contracts at lower rates.
Which of the following is one of the ways the Gramm-Leach Bliley Act affects the insurance
industry? - CORRECT ANSWER -It establishes which insurance products banks and bank
subsidiaries may provide as principal.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of 2002? -
CORRECT ANSWER -It limits the exposure of individual insurers and the insurance industry as a
whole.
Which of the following ways did the Violent Crime Control and Law Enforcement Act expand
federal laws? - CORRECT ANSWER -It prohibited anyone in insurance convicted on a state or
federal felony involving dishonesty or breach of trust without a consent waiver from the
Commissioner.
What does the abandonment condition state? - CORRECT ANSWER -It prevents the insured from
abandoning property before being reimbursed.
The following is true regarding deductibles EXCEPT - CORRECT ANSWER -the benefit can exceed
the policy limitations when the deductible is paid.
All of the following elements are necessary for an insurance contract to be valid and
enforceable EXCEPT - CORRECT ANSWER -the contract must be signed and notarized to be valid.
The description of the insured will be found in which part of an insurance policy? - CORRECT
ANSWER -definitions
, Which of the following does Homeowners Special form (HO-3) cover that Homeowners Broad
form (HO-2) does not? - CORRECT ANSWER -structures other than the dwelling
Which of the following is the special limit of coverage on the homeowners policy form for
property damage to personal watercraft? - CORRECT ANSWER -$1,500
Which of the following would be covered perils under the DP-1 Basic policy form? - CORRECT
ANSWER -riot or civil commotion
All of the following are TRUE for the hired auto liability policy EXCEPT - CORRECT ANSWER -the
endorsement is available with other commercial auto insurance.
All the following are TRUE regarding assigned risk plans EXCEPT - CORRECT ANSWER -the insurer
participation in the assigned risk program is mandatory.
In accordance with the Fair Credit Reporting Act, in what way must a consumer be informed
that an investigative report has been ordered by an insurer? - CORRECT ANSWER -They must be
informed in writing before or soon after the report has been ordered and be allowed more
information upon written request about the report.
All of the following are TRUE of the emergency type of flood insurance under the National Flood
Insurance Program EXCEPT - CORRECT ANSWER -the insured may buy limited amounts of flood
insurance coverage at subsidized rates for buildings only
Which of the following methods of risk management have an insured practicing actions to
control risk? - CORRECT ANSWER -reduction
WITH CORRECT ANSWERS 2025/2026
All of the following are correct for excess lines carriers EXCEPT - CORRECT ANSWER -they offer
better contracts at lower rates.
Which of the following is one of the ways the Gramm-Leach Bliley Act affects the insurance
industry? - CORRECT ANSWER -It establishes which insurance products banks and bank
subsidiaries may provide as principal.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of 2002? -
CORRECT ANSWER -It limits the exposure of individual insurers and the insurance industry as a
whole.
Which of the following ways did the Violent Crime Control and Law Enforcement Act expand
federal laws? - CORRECT ANSWER -It prohibited anyone in insurance convicted on a state or
federal felony involving dishonesty or breach of trust without a consent waiver from the
Commissioner.
What does the abandonment condition state? - CORRECT ANSWER -It prevents the insured from
abandoning property before being reimbursed.
The following is true regarding deductibles EXCEPT - CORRECT ANSWER -the benefit can exceed
the policy limitations when the deductible is paid.
All of the following elements are necessary for an insurance contract to be valid and
enforceable EXCEPT - CORRECT ANSWER -the contract must be signed and notarized to be valid.
The description of the insured will be found in which part of an insurance policy? - CORRECT
ANSWER -definitions
, Which of the following does Homeowners Special form (HO-3) cover that Homeowners Broad
form (HO-2) does not? - CORRECT ANSWER -structures other than the dwelling
Which of the following is the special limit of coverage on the homeowners policy form for
property damage to personal watercraft? - CORRECT ANSWER -$1,500
Which of the following would be covered perils under the DP-1 Basic policy form? - CORRECT
ANSWER -riot or civil commotion
All of the following are TRUE for the hired auto liability policy EXCEPT - CORRECT ANSWER -the
endorsement is available with other commercial auto insurance.
All the following are TRUE regarding assigned risk plans EXCEPT - CORRECT ANSWER -the insurer
participation in the assigned risk program is mandatory.
In accordance with the Fair Credit Reporting Act, in what way must a consumer be informed
that an investigative report has been ordered by an insurer? - CORRECT ANSWER -They must be
informed in writing before or soon after the report has been ordered and be allowed more
information upon written request about the report.
All of the following are TRUE of the emergency type of flood insurance under the National Flood
Insurance Program EXCEPT - CORRECT ANSWER -the insured may buy limited amounts of flood
insurance coverage at subsidized rates for buildings only
Which of the following methods of risk management have an insured practicing actions to
control risk? - CORRECT ANSWER -reduction
