New York auto exam 17-66 study guide rated A+

New York auto exam 17-66 study guide rated A+ All of the following are reasons that an adjuster should keep very detailed log notes, EXCEPT: To produce notes that will support a fraudulent denial of claims. . The adjuster's log notes are used to determine negligent parties, to assist in detecting fraud, to become a part of the claims file, and to be used in future proceedings. The log notes are not intended to produce a fraudulent record to deny a claim. 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: A large loss has occurred George Wilson has a personal auto policy. Select the coverage that would apply when a deer leaps onto Mr. Wilson's car and causes extensive damage. Comprehensive (other than collision). Contact with a bird or animal is considered to be an "other than collision" loss. What is the purpose of the New York automobile inspection requirement? To determine prior damage to the vehicle . The purpose of the New York automobile inspection requirement is to determine if there was prior damage to the vehicle at the time coverage was put into effect. The law recognizes two types of waivers. They are: Express/implied. They are express and implied. An express waiver occurs when the insurer or its representative knowingly gives up a known right under the insurance contract. Perhaps the right to request an appraisal of the damaged property is an example. By comparison, an implied waiver may be the result from some act of neglect on the part of the adjuster. In New York, how often may the Superintendent examine insurers doing business in the state? As often as he/she deems necessary. Duplicate recovery under New York No-Fault coverage is not permitted. If the employee is covered under the employer's auto policy what might be done to the employee's personal auto insurance coverage: PP 05 92 will exclude medical expenses from the basic economic loss coverage for no-fault benefits. With commercial lines, endorsement CA 22 49 can be used. The premiums for the basic economic loss (PIP) will be reduced accordingly. What symbol is used for a hired auto in a commercial automobile policy? Symbol 8 is used to provide hired auto coverage in a commercial automobile policy. It also includes leased, rented or borrowed. A New York licensee subject to an administrative action in another jurisdiction or governmental agency must report such action to the Superintendent within: The Superintendent must be notified within 30 days of the final disposition of the matter. Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-fault accident and incurs the following expenses: $30,000 bodily injury judgment; $30,000 property damage judgment; $5,000 damage to traffic light; $6,000 attorney's fees for his defense; $300 in premiums for appeal bond; and $75 in bail bond premiums for related traffic violations. What is the maximum amount his insurance company will pay? 56,375 The policy cannot pay more than its limit of liability. Under supplemental coverages in the policy, the policy will pay the defense costs plus the cost of the premiums on appeal bonds and bail bonds. What is the meaning of "diminution of value?" A reduction in the value of a vehicle even after repairs have been made Which of the following is NOT true concerning the Terrorism Risk Insurance Program Reauthorization Act of 2015? The coverage is not mandatory and can be rejected. Under the 2015 extension, an act of terrorism must be certified by the Secretary of Treasury in concurrence with the Secretary of Homeland Secretary (previously it was the in concurrence with the Secretary of State) and the United State Attorney General. David has damaged his vehicle by striking a tree. He can: I. Take the car to a repair garage recommended by the insurer. II. Take the car to a garage of his choice. III. Accept payment based on the adjuster's estimate. The correct answer is: I, II and III. The choice belongs to the David, the insured Substitute Services under NY no fault benefits will provide: The correct answer is: $25 per day for one year. EXPLANATION: Basic economic loss benefits will provide up to $25 per day for substitute services for a maximum of one year if the injured party is not gainfully employed. What is the penalty for committing a fraudulent insurance practice in New York? $5,000 plus the amount of the claim. EXPLANATION: In addition to any criminal liability, the Superintendent is empowered to levy a civil penalty not exceeding $5,000 plus the amount of the claim for each violation upon any person, including licensees and their employees. An insurance professional that is accused of dishonesty or breach of trust involving interstate commerce under Title 18 Section 1033 of the United State Code, will be prosecuted by: The U.S. Attorney general.. EXPLANATION: This breach of trust or dishonesty involving interstate commerce is a violation of USC 1033 and therefore prosecuted by the United States Attorney General's office. Under the commercial auto policy providing physical damage, which of the following offers the broadest coverage? Comprehensive.. EXPLANATION: Comprehensive coverage would be the broadest because it covers anything that is not defined as collision. The specified cause of loss is a named peril form and thus, is more limited. Driver 1 and Driver 2 are in an accident. Driver 2 has the following damages: Property Damage - $1,000 Rental Car Expense - $500 Emergency Room Expense - $400 Lost Wages - $300 The extent of the bodily injury will not be known for six months. How should the adjuster on this claim pay damages for Driver 2? Pay the property damage and rental car expense and settle the bodily injury at a later time.. EXPLANATION: In this case the adjuster should pay for the parts of the claim where he can easily determine its value. He should seek a partial release for these items. He can then settle the bodily injury claim and get a release at a later time. Which of the following is not a commercial auto endorsement? Change Other Driver. . EXPLANATION: Other available endorsements include: "changes in commercial auto coverage," "medical payments," "uninsured motorist," "underinsured motorists," and "additional insured-lessor." If a person is qualified to receive benefits from the Motor Vehicle Accident Indemnification Corporation and are injured by a "hit and run" driver, how many days do they have to file a claim? 90 days. EXPLANATION: First they must report the incident to a law enforcement agency within 24-hours. They have 90-days from the date of the accident to file a claim. A New York adjuster commits an act of insurance fraud addressed by the Federal Insurance Fraud Act. The fraud does not affect the financial stability of the company. What is the maximum time the adjuster may be confined to prison? 10 years is correct. EXPLANATION: This type of offense carries up to a 10 year sentence. The sentence is increased to 15 years if it affects the financial stability of the insurer. What is the definition of a rental vehicle under the personal auto policy? A non owned vehicle. EXPLANATION: A rental vehicle is considered to be a non owned vehicle for coverage purposes under the personal auto policy. Replacement cost coverage is best defined as: Replacement without deduction for depreciation. is correct. EXPLANATION: With replacement cost coverage, the insured is permitted to replace old with new at today's cost without a deduction for depreciation. No insurer may issue checks or drafts or partial settlement of a loss or claim that is still being negotiated that: Releases the insurer from additional liability.. EXPLANATION: An insurer cannot issue a check for partial payment of a claim that contains language that releases the insurer from total liability unless the limit of the policy or the bond has been paid or a compromise has been otherwise made. Insurers conducting business in New York must be examined at least once every: 5 years. is correct. EXPLANATION: Each insurer conducting business in New York must be examined in detail at least once every five years. Any company under investigation is responsible for all expenses involved in the examination. Coach Joe loans his car, covered under a personal auto policy, to assistant coach Tom to take several members of the Lake Recreation Swim Team home after a meet. In the event of an accident, the liability section of the personal auto policy would cover all of the following, EXCEPT: The auto manufacturer. . EXPLANATION: Coach Joe is covered because he owns the car. Assistant coach Tom is covered because he had Joe's permission to drive his car. Lake Recreation Swim Team is also an insured but only with respect to legal responsibilities for acts or omissions of a person for whom coverage is afforded.