NY Personal Lines Insurance
Practice Examination
questions and answers 2025-
2026 latest update (verified
for accuracy by experts)
All of the following are correct for excess lines carriers EXCEPT - answer
they offer better contracts at lower rates.
Which of the following is one of the ways the Gramm-Leach Bliley Act
affects the insurance industry? - answer It establishes which insurance
products banks and bank subsidiaries may provide as principal.
Which of the following is one of the objectives of the Terrorism Risk
Insurance Act of 2002? - answer It limits the exposure of individual
insurers and the insurance industry as a whole.
Which of the following ways did the Violent Crime Control and Law
Enforcement Act expand federal laws? - answer It prohibited anyone in
insurance convicted on a state or federal felony involving dishonesty or
breach of trust without a consent waiver from the Commissioner.
What does the abandonment condition state? - answer It prevents the
insured from abandoning property before being reimbursed.
The following is true regarding deductibles EXCEPT - answer the benefit
can exceed the policy limitations when the deductible is paid.
All of the following elements are necessary for an insurance contract to be
valid and enforceable EXCEPT - answer the contract must be signed and
notarized to be valid.
, The description of the insured will be found in which part of an insurance
policy? - answer definitions
Which of the following does Homeowners Special form (HO-3) cover that
Homeowners Broad form (HO-2) does not? - answer structures other than
the dwelling
Which of the following is the special limit of coverage on the homeowners
policy form for property damage to personal watercraft? - answer $1,500
Which of the following would be covered perils under the DP-1 Basic policy
form? - answer riot or civil commotion
All of the following are TRUE for the hired auto liability policy EXCEPT -
answer the endorsement is available with other commercial auto
insurance.
All the following are TRUE regarding assigned risk plans EXCEPT - answer
the insurer participation in the assigned risk program is mandatory.
In accordance with the Fair Credit Reporting Act, in what way must a
consumer be informed that an investigative report has been ordered by an
insurer? - answer They must be informed in writing before or soon after
the report has been ordered and be allowed more information upon
written request about the report.
All of the following are TRUE of the emergency type of flood insurance
under the National Flood Insurance Program EXCEPT - answer the insured
may buy limited amounts of flood insurance coverage at subsidized rates
for buildings only
Which of the following methods of risk management have an insured
practicing actions to control risk? - answer reduction
Practice Examination
questions and answers 2025-
2026 latest update (verified
for accuracy by experts)
All of the following are correct for excess lines carriers EXCEPT - answer
they offer better contracts at lower rates.
Which of the following is one of the ways the Gramm-Leach Bliley Act
affects the insurance industry? - answer It establishes which insurance
products banks and bank subsidiaries may provide as principal.
Which of the following is one of the objectives of the Terrorism Risk
Insurance Act of 2002? - answer It limits the exposure of individual
insurers and the insurance industry as a whole.
Which of the following ways did the Violent Crime Control and Law
Enforcement Act expand federal laws? - answer It prohibited anyone in
insurance convicted on a state or federal felony involving dishonesty or
breach of trust without a consent waiver from the Commissioner.
What does the abandonment condition state? - answer It prevents the
insured from abandoning property before being reimbursed.
The following is true regarding deductibles EXCEPT - answer the benefit
can exceed the policy limitations when the deductible is paid.
All of the following elements are necessary for an insurance contract to be
valid and enforceable EXCEPT - answer the contract must be signed and
notarized to be valid.
, The description of the insured will be found in which part of an insurance
policy? - answer definitions
Which of the following does Homeowners Special form (HO-3) cover that
Homeowners Broad form (HO-2) does not? - answer structures other than
the dwelling
Which of the following is the special limit of coverage on the homeowners
policy form for property damage to personal watercraft? - answer $1,500
Which of the following would be covered perils under the DP-1 Basic policy
form? - answer riot or civil commotion
All of the following are TRUE for the hired auto liability policy EXCEPT -
answer the endorsement is available with other commercial auto
insurance.
All the following are TRUE regarding assigned risk plans EXCEPT - answer
the insurer participation in the assigned risk program is mandatory.
In accordance with the Fair Credit Reporting Act, in what way must a
consumer be informed that an investigative report has been ordered by an
insurer? - answer They must be informed in writing before or soon after
the report has been ordered and be allowed more information upon
written request about the report.
All of the following are TRUE of the emergency type of flood insurance
under the National Flood Insurance Program EXCEPT - answer the insured
may buy limited amounts of flood insurance coverage at subsidized rates
for buildings only
Which of the following methods of risk management have an insured
practicing actions to control risk? - answer reduction
