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