New York USAA EXAM QUESTIONS CORRECTLY ANSWERED

USAA Auto Insurance Terms EXAM QUESTIONS CORRECTLY ANSWERED New York USAA EXAM QUESTIONS CORRECTLY ANSWERED Watercraft liability, medical expenses and uninsured boaters are coverages provided under which of the following policies? I. Watercraft. II. Homeowners. III. Mariners. - ANSWER I only is correct. Explanation: Watercraft policies are designed to cover boats used primarily on fresh water streams and lakes. It is a package policy providing several coverages including hull, motor and trailer coverage along with liability coverage. Under the New York cybersecurity regulation each covered entity, including insurance companies, must submit a written statement by _____ of each year certifying that it is in compliance. - ANSWER February 15 is correct. EXPLANATION: Each covered entity must annually, by February 15, submit a written statement covering the prior calendar year certifying that it is in compliance with the cybersecurity regulation Mr. Jones has injured Susan Miller in an auto accident. Susan has sustained medical expenses, loss of wages, and the loss of use of her vehicle. These types of expenses are known as: - ANSWER Special Damages.. EXPLANATION: These are called "special damages" and involve expenses where the costs are known or can easily be determined. Which of the following statements regarding aircraft insurance is incorrect? - ANSWER The hull physical damage coverage is written with a flat deductible.. EXPLANATION: Aviation hull coverage is usually expressed as a percentage of the value of the aircraft All the following are exclusions under a DP-2, dwelling form, EXCEPT: - ANSWER Tornado. . EXPLANATION: Flood, earthquake and mudslides are excluded perils. Coverage for flood and mudslides can be covered by purchasing a separate flood policy. Earthquake coverage can be purchased separately. Tornados are covered by the wind peril. A manufacturing company is sending two U.S. employees to Russia to discuss their products and visit a Russian plant. They have volunteered for the trip. What coverage would be needed for injuries they may occur in a work-related accident while abroad? - ANSWER Add the Foreign Coverage Endorsement to the company's workers compensation policy. is correct. EXPLANATION: The Foreign Coverage Endorsement should be added to the company's workers compensation policy. However, this endorsement applies for a period of no longer than 90 days. Equipment Breakdown coverage does not apply to which of the following losses? - ANSWER Vandals have destroyed a boiler is correct. EXPLANATION: Coverage does not apply to loss outside the equipment (often referred to as the insured object or objects). An explosion outside the equipment is not covered whereas an explosion inside the equipment is covered. The insured, who is a chair manufacturer, produced a new line of lift chairs with electric heat and massage for people who are disabled. After the chairs had been on the market for several months, it was discovered that the control panel had been designed with a glitch in it that could be powerful enough to cause injury. The chairs were withdrawn from the market. The retailer who had purchased the chairs lost a great deal of money because of the recall. Under what circumstances, if any, will the insured's commercial umbrella liability policy cover those losses? - ANSWER The correct answer is: Under no circumstances.. EXPLANATION: Product recall is excluded in the policy for product liability. All recall costs must be absorbed by the insured.