New York State Property and Casualty
Insurance Exam
Physical damage coverage under a garage policy is a blanket limit for covered auto, an
accurate statement? - ANSYes; The dealer's physical damage limit would be done on a
blanket limit basis. This would apply to comprehensive and collision losses to the auto
inventory of the dealer. This is done because it is simply not practical to schedule each
dealer owned vehicle for physical damage. This is generally accomplished by the use of a
monthly reporting form.
An insured owns a motorcycle, a moped and a motor home. What endorsement is added to
the personal auto policy to provide coverage? - ANSMisc. Type Vehicle Endorsement; The
"miscellaneous type vehicle" endorsement is added for these types of recreational vehicles.
Note that ISO has a separate endorsement for snowmobiles.
Investment consultants should purchase which of the following policies to protect themselves
from errors and omissions? - ANSProfessional Liability; Errors and omissions coverage does
not involve bodily injury or property damage, which is provided by other types of policies.
This is why professional liability coverage is needed. Medical malpractice insurance does
cover bodily injury.
The negligent act of the agent is imputed to the principal if the act occurred within the course
and scope of the agent's employment. This means that the principal becomes: - ANSDirectly
liable for damages to a third party caused by the agent (employee)..This is sometimes
referred to as "vicarious" liability.
Which of the Homeowner's polices does not include coverage for flood? - ANSAn HO-3
Policy; A homeowner policy specifically excludes flood coverage.
The purpose of a Medicare Supplement policy, (aka Medi Gap), is to: - ANSpay for services
not covered by Medicare; Medicare coverage contains deductibles and coinsurance
payments. Having a Medicare Supplement/Medi Gap policy, offered by commercial insurers,
is designed to cover those coverage gaps.
Under the Federal Insurance Fraud and False Statements Act, if someone is prohibited from
doing business in a state, approval to resume transacting business must be granted by: -
ANSInsurance Regulatory Official; Only an insurance regulatory official, such as the
Insurance Commissioner, can grant permission to resume business.
What is not reflected in a privacy report? - ANSCategories of medical information; Medical
information is not a topic in a privacy report. It deals with financial issues only.
If the surviving spouse of a covered worker does not remarry, how long are death benefits
paid to the surviving spouse if the worker is killed in a work related incident in New York? -
, ANSFor life; Generally, the surviving spouse receives benefits for the remainder of his or her
life, except in situations where they remarry. In situations where the surviving spouse
remarries, the spouse receives a lump-sum of two years of benefits.
An insured has purchased a Medicare supplement policy from a new insurer, replacing a
policy from a previous insurer. A "Notice of Replacement" must be provided to this individual
by: - ANSThe replacing insurer; Since this transaction is a replacement, the insurance
regulations of the state require that the replacing insurer must provide the applicant with a
Notice of Replacement
What mandate is given in the Affordable Care Act requiring all health plans to offer child
dependency coverage to age 26? - ANSThere is no mandate in any federal or state law
requiring employer group plans or individual health plans to provide dependent health
coverage; None. Health plans are not required by any law to offer dependent care coverage.
However, if a group health plan or insurer provides coverage for children, the plan must
make such coverage available for a child until age 26.
What injury is covered under the medical payments section of an insured's CGL policy? -
ANSA shopper is injured while visiting a showroom owned by the insured; The coverage
excludes injuries to employees, persons participating in an athletic event on the insured's
premises and injuries to tenants. The shopper is the only third party that would be covered.
Which type of HMO employs its own physicians on a salary basis? - ANSClosed Panel;
Closed panel plans aka Staff model plans, employ physicians, nurses and other health care
professionals.
What is an example of a privately run insurers? - ANSThe excess and surplus lines markets
are privately run insurers that usually writes risks that the standard market does not want to
write.
Which of the dwelling forms provides broad form coverage for personal property? -
ANSDP-2 and DP-3 only; The DP-1 provides very limited coverage for personal property.
Both the broad form (DP-2) and the special form (DP-3) provide broad form coverage for
personal property.
An insured purchases two homeowner policies from two different insurance companies. If a
covered loss occurs, on what basis will the loss be settled by each of the insurers? - ANS:
Pro rata basis; Each company will pay its pro-rata share of the loss. This means the
percentage of coverage (the total amount of insurance carried) that each company provides
on the risk.
The liberalization clause of a businessowners policy automatically applies favorable
expansions of coverage, for which a premium is not charged if the changes are made during
the policy period or within: - ANS45 days prior to the effective date; A liberalization condition
states that the insurer will automatically and immediately apply to the policy any revisions
made during the policy period or within 45 days prior to the effective date if those revisions
broaden the coverage without additional premium.
Insurance Exam
Physical damage coverage under a garage policy is a blanket limit for covered auto, an
accurate statement? - ANSYes; The dealer's physical damage limit would be done on a
blanket limit basis. This would apply to comprehensive and collision losses to the auto
inventory of the dealer. This is done because it is simply not practical to schedule each
dealer owned vehicle for physical damage. This is generally accomplished by the use of a
monthly reporting form.
An insured owns a motorcycle, a moped and a motor home. What endorsement is added to
the personal auto policy to provide coverage? - ANSMisc. Type Vehicle Endorsement; The
"miscellaneous type vehicle" endorsement is added for these types of recreational vehicles.
Note that ISO has a separate endorsement for snowmobiles.
Investment consultants should purchase which of the following policies to protect themselves
from errors and omissions? - ANSProfessional Liability; Errors and omissions coverage does
not involve bodily injury or property damage, which is provided by other types of policies.
This is why professional liability coverage is needed. Medical malpractice insurance does
cover bodily injury.
The negligent act of the agent is imputed to the principal if the act occurred within the course
and scope of the agent's employment. This means that the principal becomes: - ANSDirectly
liable for damages to a third party caused by the agent (employee)..This is sometimes
referred to as "vicarious" liability.
Which of the Homeowner's polices does not include coverage for flood? - ANSAn HO-3
Policy; A homeowner policy specifically excludes flood coverage.
The purpose of a Medicare Supplement policy, (aka Medi Gap), is to: - ANSpay for services
not covered by Medicare; Medicare coverage contains deductibles and coinsurance
payments. Having a Medicare Supplement/Medi Gap policy, offered by commercial insurers,
is designed to cover those coverage gaps.
Under the Federal Insurance Fraud and False Statements Act, if someone is prohibited from
doing business in a state, approval to resume transacting business must be granted by: -
ANSInsurance Regulatory Official; Only an insurance regulatory official, such as the
Insurance Commissioner, can grant permission to resume business.
What is not reflected in a privacy report? - ANSCategories of medical information; Medical
information is not a topic in a privacy report. It deals with financial issues only.
If the surviving spouse of a covered worker does not remarry, how long are death benefits
paid to the surviving spouse if the worker is killed in a work related incident in New York? -
, ANSFor life; Generally, the surviving spouse receives benefits for the remainder of his or her
life, except in situations where they remarry. In situations where the surviving spouse
remarries, the spouse receives a lump-sum of two years of benefits.
An insured has purchased a Medicare supplement policy from a new insurer, replacing a
policy from a previous insurer. A "Notice of Replacement" must be provided to this individual
by: - ANSThe replacing insurer; Since this transaction is a replacement, the insurance
regulations of the state require that the replacing insurer must provide the applicant with a
Notice of Replacement
What mandate is given in the Affordable Care Act requiring all health plans to offer child
dependency coverage to age 26? - ANSThere is no mandate in any federal or state law
requiring employer group plans or individual health plans to provide dependent health
coverage; None. Health plans are not required by any law to offer dependent care coverage.
However, if a group health plan or insurer provides coverage for children, the plan must
make such coverage available for a child until age 26.
What injury is covered under the medical payments section of an insured's CGL policy? -
ANSA shopper is injured while visiting a showroom owned by the insured; The coverage
excludes injuries to employees, persons participating in an athletic event on the insured's
premises and injuries to tenants. The shopper is the only third party that would be covered.
Which type of HMO employs its own physicians on a salary basis? - ANSClosed Panel;
Closed panel plans aka Staff model plans, employ physicians, nurses and other health care
professionals.
What is an example of a privately run insurers? - ANSThe excess and surplus lines markets
are privately run insurers that usually writes risks that the standard market does not want to
write.
Which of the dwelling forms provides broad form coverage for personal property? -
ANSDP-2 and DP-3 only; The DP-1 provides very limited coverage for personal property.
Both the broad form (DP-2) and the special form (DP-3) provide broad form coverage for
personal property.
An insured purchases two homeowner policies from two different insurance companies. If a
covered loss occurs, on what basis will the loss be settled by each of the insurers? - ANS:
Pro rata basis; Each company will pay its pro-rata share of the loss. This means the
percentage of coverage (the total amount of insurance carried) that each company provides
on the risk.
The liberalization clause of a businessowners policy automatically applies favorable
expansions of coverage, for which a premium is not charged if the changes are made during
the policy period or within: - ANS45 days prior to the effective date; A liberalization condition
states that the insurer will automatically and immediately apply to the policy any revisions
made during the policy period or within 45 days prior to the effective date if those revisions
broaden the coverage without additional premium.
