NEW YORK ADJUSTER EXAM
QUESTIONS AND CORRECT ANSWERS
OfferingA2anyA2returnA2ofA2premium,A2valuableA2considerationA2orA2inducementA2whenA2p
urchasingA2anA2insuranceA2policyA2isA2anA2exampleA2of:A2-A2Ans--I.A2IllegalA2Inducement
II.A2Rebating
UnderA2aA2watercraftA2orA2yachtA2policyA2howA2claimsA2areA2settled:A2-A2Ans--
ActualA2cashA2value
WhenA2mayA2anA2insuredA2sueA2anA2insuranceA2company?A2-A2Ans--
NotA2untilA2theA2insuredA2hasA2compliedA2withA2allA2policyA2provisionsA2andA2withinA2theA2ti
meA2limitA2specifiedA2inA2theA2stateA2laws
WhatA2isA2theA2definitionA2ofA2aA2non-residentA2agent?A2-A2Ans--
SomeoneA2licensedA2inA2theirA2stateA2andA2obtainsA2aA2licenseA2inA2anotherA2stateA2toA2so
licitA2insuranceA2businessA2inA2thatA2state.A2isA2correct.
TheA2courtA2awardsA2aA2judgmentA2againstA2theA2insuredA2forA2$300,000A2plusA2$10,000A
2ofA2accruedA2interestA2andA2theA2legalA2feesA2amountA2toA2anA2additionalA2$35,000.A2Our
A2insuredA2hasA2aA2$300,000A2liabilityA2limitA2onA2theA2policy.A2HowA2muchA2willA2beA2paidA
2byA2theA2policy?A2-A2Ans--TheA2correctA2answerA2is:A2$345,000.
Explanation:
TheA2$10,000A2ofA2accruedA2preA2judgmentA2interestA2andA2theA2$35,000A2costA2ofA2theA2
defenseA2areA2allA2payableA2asA2additionalA2coverageA2onA2theA2policy.A2TheseA2amounts
A2haveA2noA2affectA2onA2theA2limitA2ofA2liabilityA2availableA2inA2aA2judgmentA2againstA2theA2i
nsured.A2SoA2theA2entireA2amountA2ofA2$345,000A2isA2payableA2inA2thisA2case.
TheA2minimumA2coverageA2requiredA2inA2NewA2YorkA2forA2uninsuredA2motoristsA2bodilyA2i
njuryA2is:A2-A2Ans--
TheA2correctA2answerA2is:A2$25,000A2perA2person,A2$50,000A2perA2accident.A2.
Explanation:
NewA2YorkA2stateA2lawA2establishedA2theA2minimumA2coverageA2limitsA2ofA2$25,000A2perA
2person,A2$50,000A2perA2accidentA2andA2upA2toA2$50,000A2perA2person,A2andA2$100,000A2
perA2accidentA2forA2death.
IfA2anA2insuredA2wishesA2toA2coverA2theA2mobileA2homeA2whileA2itA2isA2beingA2transportedA
2fromA2oneA2locationA2toA2anotherA2would:A2-A2Ans--
PurchaseA2theA2MobileA2HomeA2TransportationA2CoverageA2EndorsementA2onA2theA2hom
eownerA2policy
TheA2workersA2compensationA2policyA2languageA2isA2writtenA2byA2the:A2-A2Ans--
NationalA2CouncilA2onA2CompensationA2InsuranceA2(NCCI)
, WhenA2aA2homeownersA2policyA2hasA2beenA2inA2effectA2forA260A2daysA2inA2NewA2York,A2a
nA2insurerA2canA2cancelA2atA2anytimeA2forA2anyA2ofA2theA2followingA2reasons,A2EXCEPT:A2
-A2Ans--AA2largeA2lossA2hasA2occurred
UnderA2theA2underinsuredA2motoristA2limit,A2howA2muchA2willA2beA2paidA2onA2aA2claimA2pro
vidingA2theA2insuredA2canA2proveA2hisA2orA2herA2claimA2forA2damages?A2-A2Ans--
TheA2differenceA2betweenA2theA2negligentA2driver'sA2coverageA2andA2theA2insured'sA2und
erinsuredA2motoristA2coverage
WhoA2signsA2theA2declarationsA2pageA2onA2mostA2propertyA2andA2casualtyA2policies?A2-
A2Ans--AnA2AuthorizedA2RepresentativeA2ofA2theA2Insurer
WhichA2ofA2theA2followingA2commercialA2crimeA2insuringA2agreementsA2wouldA2coverA2the
ftA2ofA2currency?A2-A2Ans--EmployeeA2Theft.
OnceA2theA2adjusterA2isA2appointedA2byA2theA2insurerA2toA2representA2theA2insurer,A2theA2a
djusterA2hasA2theA2powerA2toA2doA2allA2ofA2theA2following,A2EXCEPT:A2-A2Ans--
BindA2additionalA2coverage.
TheA2givingA2upA2ofA2aA2knownA2rightA2isA2knownA2as:A2-A2Ans--Waiver
WhatA2isA2theA2definitionA2ofA2customA2farming?A2-A2Ans--FarmingA2forA2Others.
Explanation:
CustomA2farmingA2isA2farmingA2forA2othersA2forA2aA2feeA2underA2aA2contractA2orA2agreeme
nt.A2AA2specialA2endorsementA2isA2requiredA2ifA2theA2receiptsA2areA2inA2excessA2ofA2$5,00
0A2perA2year.
AnA2insuredA2hasA2anA2occurrence-
typeA2CGLA2policyA2withA2aA2$100,000A2aggregateA2limitA2andA2aA2$25,000A2perA2occurre
nceA2limit.A2TheA2insuredA2hadA2oneA2occurrenceA2settledA2forA2$35,000A2andA2aA2second
A2occurrence,A2whichA2tookA2placeA2duringA2theA2sameA2policyA2period,A2wasA2settledA2for
A2$20,000.A2IfA2aA2thirdA2occurrenceA2tookA2placeA2inA2thisA2sameA2term,A2whatA2isA2theA2m
aximumA2amountA2theA2insurerA2wouldA2beA2obligatedA2toA2payA2asA2damages?A2-A2Ans--
Explanation:
TheA2policyA2canA2onlyA2payA2upA2toA2itsA2perA2occurrenceA2limitA2onA2anyA2oneA2occurren
ce.A2TheA2insurerA2willA2payA2$25,000A2forA2theA2firstA2occurrence,A2andA2willA2payA2allA2ofA
2theA2$20,000A2settlementA2forA2theA2secondA2occurrence.A2TheA2aggregateA2limitA2hasA2t
husA2beenA2reducedA2byA2aA2totalA2ofA2$45,000,A2leavingA2justA2$55,000A2forA2anyA2otherA
2occurrencesA2duringA2thatA2policyA2period.
TheA2insuredA2ownsA2aA2homeA2withA2aA2swimmingA2pool.A2TheA2poolA2isA2notA2fenced.A2If
A2aA2childA2wereA2toA2drownA2inA2theA2pool,A2whichA2ofA2theA2followingA2liabilityA2doctrinesA
2wouldA2mostA2likelyA2apply?A2-A2Ans--AttractiveA2NuisanceA2.
Explanation:
QUESTIONS AND CORRECT ANSWERS
OfferingA2anyA2returnA2ofA2premium,A2valuableA2considerationA2orA2inducementA2whenA2p
urchasingA2anA2insuranceA2policyA2isA2anA2exampleA2of:A2-A2Ans--I.A2IllegalA2Inducement
II.A2Rebating
UnderA2aA2watercraftA2orA2yachtA2policyA2howA2claimsA2areA2settled:A2-A2Ans--
ActualA2cashA2value
WhenA2mayA2anA2insuredA2sueA2anA2insuranceA2company?A2-A2Ans--
NotA2untilA2theA2insuredA2hasA2compliedA2withA2allA2policyA2provisionsA2andA2withinA2theA2ti
meA2limitA2specifiedA2inA2theA2stateA2laws
WhatA2isA2theA2definitionA2ofA2aA2non-residentA2agent?A2-A2Ans--
SomeoneA2licensedA2inA2theirA2stateA2andA2obtainsA2aA2licenseA2inA2anotherA2stateA2toA2so
licitA2insuranceA2businessA2inA2thatA2state.A2isA2correct.
TheA2courtA2awardsA2aA2judgmentA2againstA2theA2insuredA2forA2$300,000A2plusA2$10,000A
2ofA2accruedA2interestA2andA2theA2legalA2feesA2amountA2toA2anA2additionalA2$35,000.A2Our
A2insuredA2hasA2aA2$300,000A2liabilityA2limitA2onA2theA2policy.A2HowA2muchA2willA2beA2paidA
2byA2theA2policy?A2-A2Ans--TheA2correctA2answerA2is:A2$345,000.
Explanation:
TheA2$10,000A2ofA2accruedA2preA2judgmentA2interestA2andA2theA2$35,000A2costA2ofA2theA2
defenseA2areA2allA2payableA2asA2additionalA2coverageA2onA2theA2policy.A2TheseA2amounts
A2haveA2noA2affectA2onA2theA2limitA2ofA2liabilityA2availableA2inA2aA2judgmentA2againstA2theA2i
nsured.A2SoA2theA2entireA2amountA2ofA2$345,000A2isA2payableA2inA2thisA2case.
TheA2minimumA2coverageA2requiredA2inA2NewA2YorkA2forA2uninsuredA2motoristsA2bodilyA2i
njuryA2is:A2-A2Ans--
TheA2correctA2answerA2is:A2$25,000A2perA2person,A2$50,000A2perA2accident.A2.
Explanation:
NewA2YorkA2stateA2lawA2establishedA2theA2minimumA2coverageA2limitsA2ofA2$25,000A2perA
2person,A2$50,000A2perA2accidentA2andA2upA2toA2$50,000A2perA2person,A2andA2$100,000A2
perA2accidentA2forA2death.
IfA2anA2insuredA2wishesA2toA2coverA2theA2mobileA2homeA2whileA2itA2isA2beingA2transportedA
2fromA2oneA2locationA2toA2anotherA2would:A2-A2Ans--
PurchaseA2theA2MobileA2HomeA2TransportationA2CoverageA2EndorsementA2onA2theA2hom
eownerA2policy
TheA2workersA2compensationA2policyA2languageA2isA2writtenA2byA2the:A2-A2Ans--
NationalA2CouncilA2onA2CompensationA2InsuranceA2(NCCI)
, WhenA2aA2homeownersA2policyA2hasA2beenA2inA2effectA2forA260A2daysA2inA2NewA2York,A2a
nA2insurerA2canA2cancelA2atA2anytimeA2forA2anyA2ofA2theA2followingA2reasons,A2EXCEPT:A2
-A2Ans--AA2largeA2lossA2hasA2occurred
UnderA2theA2underinsuredA2motoristA2limit,A2howA2muchA2willA2beA2paidA2onA2aA2claimA2pro
vidingA2theA2insuredA2canA2proveA2hisA2orA2herA2claimA2forA2damages?A2-A2Ans--
TheA2differenceA2betweenA2theA2negligentA2driver'sA2coverageA2andA2theA2insured'sA2und
erinsuredA2motoristA2coverage
WhoA2signsA2theA2declarationsA2pageA2onA2mostA2propertyA2andA2casualtyA2policies?A2-
A2Ans--AnA2AuthorizedA2RepresentativeA2ofA2theA2Insurer
WhichA2ofA2theA2followingA2commercialA2crimeA2insuringA2agreementsA2wouldA2coverA2the
ftA2ofA2currency?A2-A2Ans--EmployeeA2Theft.
OnceA2theA2adjusterA2isA2appointedA2byA2theA2insurerA2toA2representA2theA2insurer,A2theA2a
djusterA2hasA2theA2powerA2toA2doA2allA2ofA2theA2following,A2EXCEPT:A2-A2Ans--
BindA2additionalA2coverage.
TheA2givingA2upA2ofA2aA2knownA2rightA2isA2knownA2as:A2-A2Ans--Waiver
WhatA2isA2theA2definitionA2ofA2customA2farming?A2-A2Ans--FarmingA2forA2Others.
Explanation:
CustomA2farmingA2isA2farmingA2forA2othersA2forA2aA2feeA2underA2aA2contractA2orA2agreeme
nt.A2AA2specialA2endorsementA2isA2requiredA2ifA2theA2receiptsA2areA2inA2excessA2ofA2$5,00
0A2perA2year.
AnA2insuredA2hasA2anA2occurrence-
typeA2CGLA2policyA2withA2aA2$100,000A2aggregateA2limitA2andA2aA2$25,000A2perA2occurre
nceA2limit.A2TheA2insuredA2hadA2oneA2occurrenceA2settledA2forA2$35,000A2andA2aA2second
A2occurrence,A2whichA2tookA2placeA2duringA2theA2sameA2policyA2period,A2wasA2settledA2for
A2$20,000.A2IfA2aA2thirdA2occurrenceA2tookA2placeA2inA2thisA2sameA2term,A2whatA2isA2theA2m
aximumA2amountA2theA2insurerA2wouldA2beA2obligatedA2toA2payA2asA2damages?A2-A2Ans--
Explanation:
TheA2policyA2canA2onlyA2payA2upA2toA2itsA2perA2occurrenceA2limitA2onA2anyA2oneA2occurren
ce.A2TheA2insurerA2willA2payA2$25,000A2forA2theA2firstA2occurrence,A2andA2willA2payA2allA2ofA
2theA2$20,000A2settlementA2forA2theA2secondA2occurrence.A2TheA2aggregateA2limitA2hasA2t
husA2beenA2reducedA2byA2aA2totalA2ofA2$45,000,A2leavingA2justA2$55,000A2forA2anyA2otherA
2occurrencesA2duringA2thatA2policyA2period.
TheA2insuredA2ownsA2aA2homeA2withA2aA2swimmingA2pool.A2TheA2poolA2isA2notA2fenced.A2If
A2aA2childA2wereA2toA2drownA2inA2theA2pool,A2whichA2ofA2theA2followingA2liabilityA2doctrinesA
2wouldA2mostA2likelyA2apply?A2-A2Ans--AttractiveA2NuisanceA2.
Explanation:
