New York Personal Lines Final Exam SET COMPLETE
QUESTIONS WITH ANSWERS.
A candidate for a personal lines license would need to complete how many hours of
prelicensing education? - CORRECT ANSWER✅✅40 hours
A copy of the total cost form which must be provided to every insured for each excess
line policy will be provided by the surplus lines broker: - CORRECT ANSWER✅✅prior
to binding coverage for a given risk
A house insured with a homeowners policy has been blown off by its foundation by a
tornado. It must be demolished and removed so a replacement house can be built.
What is true about debris removal? - CORRECT ANSWER✅✅It will be paid if the
debris removal endorsement has been added
A nonadmitted insurer who provides unique insurance coverage that is not available is
called a - CORRECT ANSWER✅✅Surplus lines insurer
A passenger is injured while getting into a friends car. Which of the following statements
would apply if both the passenger and the driver had medical payments coverage under
the auto policy. - CORRECT ANSWER✅✅The drivers policy would be primary.
A salaried employee who advertises and solicits insurance/ business is required to be a
licensed as an insurance producer? - CORRECT ANSWER✅✅Yes
According to the NY motor vehicle financial responsibility law what are the required
limits of liability on auto policies issued in this state? - CORRECT
ANSWER✅✅25/50/10
Adverse selection is a concept best described as: - CORRECT ANSWER✅✅Risks with
higher probability of loss, seeking insurances more often than other risks.
Agent C uses her license to write only business other than controlled. Is this a violation?
- CORRECT ANSWER✅✅No
All of the following are additional liability coverages automatically provided in a home
owners policy except (Pick from the following: Personal injury, damage to the property
of others, Loss assessment coverage, Claims Expenses) - CORRECT
ANSWER✅✅Personal Injury
, All of the following are conditions commonly found in the insurance policy except: ( 1.)
Subrogation, 2.) Appraisal, 3.) Insuring Agreement, 4.) Cancellation and Nonrenewal.) -
CORRECT ANSWER✅✅Insuring agreement
All of the following are major coverages included in the homeowners policy except -
CORRECT ANSWER✅✅Loss of income
All of the following would be eligible for coverage under the dwelling policy except (1.) A
dwelling in the course of construction. 2.) A duplex with one primary owner. 3.) A house
that has 5 residential units. 4.) A tenant occupied dwelling) - CORRECT
ANSWER✅✅A house that has 5 residential units
An example of an alien insurer doing business in NY is one formed under the laws of -
CORRECT ANSWER✅✅Mexico
An insurance agent was born in 1983. He obtained his NYS insurance licence in 2014.
When will the agents license expire? - CORRECT ANSWER✅✅On the agents birthday
every odd numbered year
An insured falsely reports the theft of a valuable item in order to collect payment from
the insurance policy. This is an example of - CORRECT ANSWER✅✅Fraud
An insured has 4 separate but identical policies written by different insureds to cover her
100,000$ building. Each policy is written for 100,000$ and each has the pro rata liability
other insurance clause. In the event of a total loss to the building what would each
insurer pay? - CORRECT ANSWER✅✅Each policy will pay 25,000$ of the loss.
An insured has a standard H0-4 policy with a $30,000 limit of coverage for a personal
property, while he was traveling a fire in his hotel destroys clothes and luggage with a
replacement value of $10,000 and jewelry with a replacement value of $10,000.
Disregarding any deductible and assuming a depreciation of 20% has occurred in both
properties what amount is the insurer obligated to pay? - CORRECT
ANSWER✅✅$16,000
An insured has an auto liability policy with limits of 25/50/15 The insured is involved in
an accident, caused by her negligence and is held legally liable for bodily injuries of 3
persons. How much will her insurer pay? - CORRECT ANSWER✅✅$50,000
An insured has an underinsured motorist limit of 100,000$. She is involved in an
accident with a driver whose part A limits are 25/50/25. The insured suffered 90,000$
worth of bodily damage. If the other driver is found to be 100% negligent, how much
would the insureds policy pay towards those medical expenses? - CORRECT
ANSWER✅✅65,000$
QUESTIONS WITH ANSWERS.
A candidate for a personal lines license would need to complete how many hours of
prelicensing education? - CORRECT ANSWER✅✅40 hours
A copy of the total cost form which must be provided to every insured for each excess
line policy will be provided by the surplus lines broker: - CORRECT ANSWER✅✅prior
to binding coverage for a given risk
A house insured with a homeowners policy has been blown off by its foundation by a
tornado. It must be demolished and removed so a replacement house can be built.
What is true about debris removal? - CORRECT ANSWER✅✅It will be paid if the
debris removal endorsement has been added
A nonadmitted insurer who provides unique insurance coverage that is not available is
called a - CORRECT ANSWER✅✅Surplus lines insurer
A passenger is injured while getting into a friends car. Which of the following statements
would apply if both the passenger and the driver had medical payments coverage under
the auto policy. - CORRECT ANSWER✅✅The drivers policy would be primary.
A salaried employee who advertises and solicits insurance/ business is required to be a
licensed as an insurance producer? - CORRECT ANSWER✅✅Yes
According to the NY motor vehicle financial responsibility law what are the required
limits of liability on auto policies issued in this state? - CORRECT
ANSWER✅✅25/50/10
Adverse selection is a concept best described as: - CORRECT ANSWER✅✅Risks with
higher probability of loss, seeking insurances more often than other risks.
Agent C uses her license to write only business other than controlled. Is this a violation?
- CORRECT ANSWER✅✅No
All of the following are additional liability coverages automatically provided in a home
owners policy except (Pick from the following: Personal injury, damage to the property
of others, Loss assessment coverage, Claims Expenses) - CORRECT
ANSWER✅✅Personal Injury
, All of the following are conditions commonly found in the insurance policy except: ( 1.)
Subrogation, 2.) Appraisal, 3.) Insuring Agreement, 4.) Cancellation and Nonrenewal.) -
CORRECT ANSWER✅✅Insuring agreement
All of the following are major coverages included in the homeowners policy except -
CORRECT ANSWER✅✅Loss of income
All of the following would be eligible for coverage under the dwelling policy except (1.) A
dwelling in the course of construction. 2.) A duplex with one primary owner. 3.) A house
that has 5 residential units. 4.) A tenant occupied dwelling) - CORRECT
ANSWER✅✅A house that has 5 residential units
An example of an alien insurer doing business in NY is one formed under the laws of -
CORRECT ANSWER✅✅Mexico
An insurance agent was born in 1983. He obtained his NYS insurance licence in 2014.
When will the agents license expire? - CORRECT ANSWER✅✅On the agents birthday
every odd numbered year
An insured falsely reports the theft of a valuable item in order to collect payment from
the insurance policy. This is an example of - CORRECT ANSWER✅✅Fraud
An insured has 4 separate but identical policies written by different insureds to cover her
100,000$ building. Each policy is written for 100,000$ and each has the pro rata liability
other insurance clause. In the event of a total loss to the building what would each
insurer pay? - CORRECT ANSWER✅✅Each policy will pay 25,000$ of the loss.
An insured has a standard H0-4 policy with a $30,000 limit of coverage for a personal
property, while he was traveling a fire in his hotel destroys clothes and luggage with a
replacement value of $10,000 and jewelry with a replacement value of $10,000.
Disregarding any deductible and assuming a depreciation of 20% has occurred in both
properties what amount is the insurer obligated to pay? - CORRECT
ANSWER✅✅$16,000
An insured has an auto liability policy with limits of 25/50/15 The insured is involved in
an accident, caused by her negligence and is held legally liable for bodily injuries of 3
persons. How much will her insurer pay? - CORRECT ANSWER✅✅$50,000
An insured has an underinsured motorist limit of 100,000$. She is involved in an
accident with a driver whose part A limits are 25/50/25. The insured suffered 90,000$
worth of bodily damage. If the other driver is found to be 100% negligent, how much
would the insureds policy pay towards those medical expenses? - CORRECT
ANSWER✅✅65,000$
