Final New York Adjuster Exam with
Revised/Correct Solutions.
Offering any return of premium, valuable consideration or inducement when purchasing an
insurance policy is an example of: - Answer I. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - Answer Actual cash value
When may an insured sue an insurance company? - Answer Not 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? - Answer Someone 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? - Answer The 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: - Answer
The 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: - Answer Purchase the Mobile Home Transportation Coverage Endorsement
on the homeowner policy
The workers compensation policy language is written by the: - Answer National 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: - Answer A 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? - Answer The 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? - Answer An
Authorized Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of currency? -
Answer Employee 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: - Answer Bind additional coverage.
The giving up of a known right is known as: - Answer Waiver
What is the definition of custom farming? - Answer Farming 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.
An insured has an occurrence-type CGL policy with a $100,000 aggregate limit and a $25,000
per occurrence limit. The insured had one occurrence settled for $35,000 and a second
occurrence, which took place during the same policy period, was settled for $20,000. If a third
occurrence took place in this same term, what is the maximum amount the insurer would be
obligated to pay as damages? - Answer Explanation:
The policy can only pay up to its per occurrence limit on any one occurrence. The insurer will
pay $25,000 for the first occurrence, and will pay all of the $20,000 settlement for the second
occurrence. The aggregate limit has thus been reduced by a total of $45,000, leaving just
$55,000 for any other occurrences during that policy period.
The insured owns a home with a swimming pool. The pool is not fenced. If a child were to
drown in the pool, which of the following liability doctrines would most likely apply? - Answer
Attractive Nuisance .
Explanation:
In law, one who maintains a dangerous instrumentality on their premises which is likely to
attract children is under a duty to reasonably protect those children from the dangers of that
attraction
The insured maintains a business where workers compensation coverage can be written by
private insurance companies. If he has employees going to a state that is monopolistic for this
Revised/Correct Solutions.
Offering any return of premium, valuable consideration or inducement when purchasing an
insurance policy is an example of: - Answer I. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - Answer Actual cash value
When may an insured sue an insurance company? - Answer Not 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? - Answer Someone 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? - Answer The 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: - Answer
The 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: - Answer Purchase the Mobile Home Transportation Coverage Endorsement
on the homeowner policy
The workers compensation policy language is written by the: - Answer National 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: - Answer A 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? - Answer The 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? - Answer An
Authorized Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of currency? -
Answer Employee 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: - Answer Bind additional coverage.
The giving up of a known right is known as: - Answer Waiver
What is the definition of custom farming? - Answer Farming 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.
An insured has an occurrence-type CGL policy with a $100,000 aggregate limit and a $25,000
per occurrence limit. The insured had one occurrence settled for $35,000 and a second
occurrence, which took place during the same policy period, was settled for $20,000. If a third
occurrence took place in this same term, what is the maximum amount the insurer would be
obligated to pay as damages? - Answer Explanation:
The policy can only pay up to its per occurrence limit on any one occurrence. The insurer will
pay $25,000 for the first occurrence, and will pay all of the $20,000 settlement for the second
occurrence. The aggregate limit has thus been reduced by a total of $45,000, leaving just
$55,000 for any other occurrences during that policy period.
The insured owns a home with a swimming pool. The pool is not fenced. If a child were to
drown in the pool, which of the following liability doctrines would most likely apply? - Answer
Attractive Nuisance .
Explanation:
In law, one who maintains a dangerous instrumentality on their premises which is likely to
attract children is under a duty to reasonably protect those children from the dangers of that
attraction
The insured maintains a business where workers compensation coverage can be written by
private insurance companies. If he has employees going to a state that is monopolistic for this
