NEW YORK ADJUSTER EXAM
QUESTIONS & ANSWERS(RATED A+)
Offering any return of premium, valuable consideration or inducement when purchasing
an insurance policy is an example of: - ANSWERI. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - ANSWERActual cash value
When may an insured sue an insurance company? - ANSWERNot until the insured has
complied with all policy provisions and within the time limit specified in the state laws
What is the definition of a non-resident agent? - ANSWERSomeone licensed in their
state and obtains a license in another state to solicit insurance business in that state. is
correct.
The court awards a judgment against the insured for $300,000 plus $10,000 of accrued
interest and the legal fees amount to an additional $35,000. Our insured has a $300,000
liability limit on the policy. How much will be paid by the policy? - ANSWERThe correct
answer is: $345,000.
Explanation:
The $10,000 of accrued pre judgment interest and the $35,000 cost of the defense are
all payable as additional coverage on the policy. These amounts have no affect on the
limit of liability available in a judgment against the insured. So the entire amount of
$345,000 is payable in this case.
The minimum coverage required in New York for uninsured motorists bodily injury is: -
ANSWERThe correct answer is: $25,000 per person, $50,000 per accident. .
Explanation:
New York state law established the minimum coverage limits of $25,000 per person,
$50,000 per accident and up to $50,000 per person, and $100,000 per accident for
death.
If an insured wishes to cover the mobile home while it is being transported from one
location to another would: - ANSWERPurchase the Mobile Home Transportation
Coverage Endorsement on the homeowner policy
The workers compensation policy language is written by the: - ANSWERNational
Council on Compensation Insurance (NCCI)
When a homeowners policy has been in effect for 60 days in New York, an insurer can
cancel at anytime for any of the following reasons, EXCEPT: - ANSWERA large loss
has occurred
, Under the underinsured motorist limit, how much will be paid on a claim providing the
insured can prove his or her claim for damages? - ANSWERThe difference between the
negligent driver's coverage and the insured's underinsured motorist coverage
Who signs the declarations page on most property and casualty policies? - ANSWERAn
Authorized Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of
currency? - ANSWEREmployee Theft.
Once the adjuster is appointed by the insurer to represent the insurer, the adjuster has
the power to do all of the following, EXCEPT: - ANSWERBind additional coverage.
The giving up of a known right is known as: - ANSWERWaiver
What is the definition of custom farming? - ANSWERFarming for Others.
Explanation:
Custom farming is farming for others for a fee under a contract or agreement. A special
endorsement is required if the receipts are in excess of $5,000 per year.
In crime insurance, which of the following individuals is NOT considered to be a
custodian? - ANSWERJanitor
Question:
An insurance adjuster is allowed to enter a privately owned building when:
Whenever he/she so desires
If the adjuster has the consent of the
owner
If the owner of the building carries insurance
If the adjuster has a loss to inspect - ANSWERQuestion:
An insurance adjuster is allowed to enter a privately owned building when:
The adjuster should have the consent of the owner of the property before entering the
building.
Answer Choices: Select the Correct Answer
Whenever he/she so desires
If the adjuster has the consent of the owner
If the owner of the building carries insurance
If the adjuster has a loss to inspect
Strict liability is best described as:
Strict liability is liability without fault.
QUESTIONS & ANSWERS(RATED A+)
Offering any return of premium, valuable consideration or inducement when purchasing
an insurance policy is an example of: - ANSWERI. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - ANSWERActual cash value
When may an insured sue an insurance company? - ANSWERNot until the insured has
complied with all policy provisions and within the time limit specified in the state laws
What is the definition of a non-resident agent? - ANSWERSomeone licensed in their
state and obtains a license in another state to solicit insurance business in that state. is
correct.
The court awards a judgment against the insured for $300,000 plus $10,000 of accrued
interest and the legal fees amount to an additional $35,000. Our insured has a $300,000
liability limit on the policy. How much will be paid by the policy? - ANSWERThe correct
answer is: $345,000.
Explanation:
The $10,000 of accrued pre judgment interest and the $35,000 cost of the defense are
all payable as additional coverage on the policy. These amounts have no affect on the
limit of liability available in a judgment against the insured. So the entire amount of
$345,000 is payable in this case.
The minimum coverage required in New York for uninsured motorists bodily injury is: -
ANSWERThe correct answer is: $25,000 per person, $50,000 per accident. .
Explanation:
New York state law established the minimum coverage limits of $25,000 per person,
$50,000 per accident and up to $50,000 per person, and $100,000 per accident for
death.
If an insured wishes to cover the mobile home while it is being transported from one
location to another would: - ANSWERPurchase the Mobile Home Transportation
Coverage Endorsement on the homeowner policy
The workers compensation policy language is written by the: - ANSWERNational
Council on Compensation Insurance (NCCI)
When a homeowners policy has been in effect for 60 days in New York, an insurer can
cancel at anytime for any of the following reasons, EXCEPT: - ANSWERA large loss
has occurred
, Under the underinsured motorist limit, how much will be paid on a claim providing the
insured can prove his or her claim for damages? - ANSWERThe difference between the
negligent driver's coverage and the insured's underinsured motorist coverage
Who signs the declarations page on most property and casualty policies? - ANSWERAn
Authorized Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of
currency? - ANSWEREmployee Theft.
Once the adjuster is appointed by the insurer to represent the insurer, the adjuster has
the power to do all of the following, EXCEPT: - ANSWERBind additional coverage.
The giving up of a known right is known as: - ANSWERWaiver
What is the definition of custom farming? - ANSWERFarming for Others.
Explanation:
Custom farming is farming for others for a fee under a contract or agreement. A special
endorsement is required if the receipts are in excess of $5,000 per year.
In crime insurance, which of the following individuals is NOT considered to be a
custodian? - ANSWERJanitor
Question:
An insurance adjuster is allowed to enter a privately owned building when:
Whenever he/she so desires
If the adjuster has the consent of the
owner
If the owner of the building carries insurance
If the adjuster has a loss to inspect - ANSWERQuestion:
An insurance adjuster is allowed to enter a privately owned building when:
The adjuster should have the consent of the owner of the property before entering the
building.
Answer Choices: Select the Correct Answer
Whenever he/she so desires
If the adjuster has the consent of the owner
If the owner of the building carries insurance
If the adjuster has a loss to inspect
Strict liability is best described as:
Strict liability is liability without fault.
