New York Adjuster Exam questions with correct answers

Offering any return of premium, valuable consideration or inducement when purchasing an insurance policy is an example of: CORRECT ANS I. Illegal Inducement II. Rebating Under a watercraft or yacht policy how claims are settled: CORRECT ANS Actual cash value When may an insured sue an insurance company? CORRECT ANS 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? CORRECT ANS 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? CORRECT ANS 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: CORRECT ANS 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: CORRECT ANS Purchase the Mobile Home Transportation Coverage Endorsement on the homeowner policy