NY Independent General Insurance
Adjuster Practice Examination
What does a misrepresentation involve that could void a policy? - answer information
that may change the insurer's interest in issuing the policy if known at the time of the
application
All of the following are Unfair Claims Settlement Practices EXCEPT
1. misrepresentation of policy provisions.
2. failure to acknowledge pertinent communications.
3. failure to respond to a first notice of loss within 24 hours.
4. denial of claim without a reasonable investigation. - answer failure to respond to a
first notice of loss within 24 hours.
Which of the following characteristics of an insurance contract expresses the principle
that the policyholder is returned to the approximate financial condition as before the
loss? - answer Indemnity
Compensatory damages are awarded - answer For actual loss suffered
An insured with split liability limits of $400/500/400 is at fault in an automobile accident
and the other vehicle sustains $15000 in property damages, as well as two passengers
have bodily injury and are claiming $81500 each. What is the MOST insurance will pay
to each occupant? - answer$400,000
Who does a public adjuster represent?
1. an adjustment bureau
2. the government
3. the insured
4. the insurer - answerthe insured
Which of the following is a duty of the insured after a loss?
1. assigning risk to future loss
2. investigating cause of loss
3. minimizing further loss
4. appraising value of loss - answerminimizing further loss
What is the insurance adjuster's first step in an investigation?
1. determine if a loss occurred
2. determine the amount covered
3. determine if the type of loss is covered in the contract
,4. determine if the loss occurred during the coverage period - answerdetermine if a loss
occurred
What allows insurance agents to issue payment on behalf of their company? -
answerdraft authority
What is typically the first option available for the insured who disagrees with a loss
settlement amount?
1. appeal
2. lawsuit
3. arbitration
4. grievance claim - answerarbitration
Which party is required to provide proof of loss to establish entitlement?
1. the insurer
2. the insured
3. selling agent
4. law enforcement - answerthe insured
Jane takes her vehicle to the local garage to have new brakes installed. After
completing the job, the mechanic takes the car out for a test drive. The mechanic runs a
red light and hits another vehicle. The damage to Jane's car would be covered
PRIMARILY by - answerthe repair shop's Garagekeepers Liability Policy.
During the first 60 days an automobile policy is in force, when may an insurer cancel the
policy? - answerby a statement of the specific reason
Which of the following is how defense costs are paid in relation to the limit of insurance
under the personal auto policy for bodily injury and property damage part A-liability
coverage? - answerin excess of the limit
All of the following are TRUE regarding a nonowned auto EXCEPT - answerbodily Injury
to an insured's nonresident family member or relative.
The insured has a commercial auto policy with a drive other car broadened coverage
liability for named individuals (DOC) endorsement. In which of the following would the
named individual be covered? - answerdriving neighbor's auto
All of the following are TRUE regarding torts EXCEPT
1. a tort is always unintentional.
2. another term for tort is negligence.
3. torts involve private relationships.
4. a tort is a civil wrong that violates the rights of another. - answera tort is always
unintentional.
Which of the following is considered temporary substitute auto for physical damage?
, 1. a covered auto
2. a nonowned auto
3. an undefined risk
4. a noninsured auto - answera nonowned auto
All of the following are common exclusions in a liability policy EXCEPT - answerdamage
caused by acts of civil disobedience and riots.
An annuitant is paying into an annuity. The annuity contract is in the -
answerannuitization period.
The insured causes an accident in which three persons are injured. One person claims
$50,000, the second claims $100,000, and the third claims $250,000. The insured has a
combined single limit of $250,000 liability on his automobile policy. What is the sum total
the policy will pay? - answer$250,000
Which of the following causes of loss to a vehicle will trigger collision coverage on the
personal auto policy Part D- coverage for damage to your auto?
1. Contact with an animal
2. Explosion or earthquake
3. Missiles or falling objects
4. Vehicle upset - answerVehicle upset
When an individual with a pre-existing condition is in an automobile accident and the
insurance covers rehabilitation only to the level of the condition prior to the accident, this
is because of which of the following principles? - answerindemnity
All of the following are excluded losses under Part D-damage to an auto of the personal
auto policy EXCEPT - answerto caps, covers, or bedliners on pickup trucks.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of
2002? - answerIt limits the exposure of individual insurers and the insurance industry as
a whole.
An insured with split liability limits of $300/400/400 is at fault in an automobile accident
and the other vehicle sustains $15000 in property damages, as well as two passengers
have bodily injury and are claiming $9500 each. What is the MOST insurance will pay to
each occupant? - answer$300,000
In which of the following types of contracts is only one party legally required to do
something after the insured has completed the act of paying the premium? -
answerUnilateral
All of the following are commonly included in the declarations page EXCEPT -
answerthe birth date of the insured.
Adjuster Practice Examination
What does a misrepresentation involve that could void a policy? - answer information
that may change the insurer's interest in issuing the policy if known at the time of the
application
All of the following are Unfair Claims Settlement Practices EXCEPT
1. misrepresentation of policy provisions.
2. failure to acknowledge pertinent communications.
3. failure to respond to a first notice of loss within 24 hours.
4. denial of claim without a reasonable investigation. - answer failure to respond to a
first notice of loss within 24 hours.
Which of the following characteristics of an insurance contract expresses the principle
that the policyholder is returned to the approximate financial condition as before the
loss? - answer Indemnity
Compensatory damages are awarded - answer For actual loss suffered
An insured with split liability limits of $400/500/400 is at fault in an automobile accident
and the other vehicle sustains $15000 in property damages, as well as two passengers
have bodily injury and are claiming $81500 each. What is the MOST insurance will pay
to each occupant? - answer$400,000
Who does a public adjuster represent?
1. an adjustment bureau
2. the government
3. the insured
4. the insurer - answerthe insured
Which of the following is a duty of the insured after a loss?
1. assigning risk to future loss
2. investigating cause of loss
3. minimizing further loss
4. appraising value of loss - answerminimizing further loss
What is the insurance adjuster's first step in an investigation?
1. determine if a loss occurred
2. determine the amount covered
3. determine if the type of loss is covered in the contract
,4. determine if the loss occurred during the coverage period - answerdetermine if a loss
occurred
What allows insurance agents to issue payment on behalf of their company? -
answerdraft authority
What is typically the first option available for the insured who disagrees with a loss
settlement amount?
1. appeal
2. lawsuit
3. arbitration
4. grievance claim - answerarbitration
Which party is required to provide proof of loss to establish entitlement?
1. the insurer
2. the insured
3. selling agent
4. law enforcement - answerthe insured
Jane takes her vehicle to the local garage to have new brakes installed. After
completing the job, the mechanic takes the car out for a test drive. The mechanic runs a
red light and hits another vehicle. The damage to Jane's car would be covered
PRIMARILY by - answerthe repair shop's Garagekeepers Liability Policy.
During the first 60 days an automobile policy is in force, when may an insurer cancel the
policy? - answerby a statement of the specific reason
Which of the following is how defense costs are paid in relation to the limit of insurance
under the personal auto policy for bodily injury and property damage part A-liability
coverage? - answerin excess of the limit
All of the following are TRUE regarding a nonowned auto EXCEPT - answerbodily Injury
to an insured's nonresident family member or relative.
The insured has a commercial auto policy with a drive other car broadened coverage
liability for named individuals (DOC) endorsement. In which of the following would the
named individual be covered? - answerdriving neighbor's auto
All of the following are TRUE regarding torts EXCEPT
1. a tort is always unintentional.
2. another term for tort is negligence.
3. torts involve private relationships.
4. a tort is a civil wrong that violates the rights of another. - answera tort is always
unintentional.
Which of the following is considered temporary substitute auto for physical damage?
, 1. a covered auto
2. a nonowned auto
3. an undefined risk
4. a noninsured auto - answera nonowned auto
All of the following are common exclusions in a liability policy EXCEPT - answerdamage
caused by acts of civil disobedience and riots.
An annuitant is paying into an annuity. The annuity contract is in the -
answerannuitization period.
The insured causes an accident in which three persons are injured. One person claims
$50,000, the second claims $100,000, and the third claims $250,000. The insured has a
combined single limit of $250,000 liability on his automobile policy. What is the sum total
the policy will pay? - answer$250,000
Which of the following causes of loss to a vehicle will trigger collision coverage on the
personal auto policy Part D- coverage for damage to your auto?
1. Contact with an animal
2. Explosion or earthquake
3. Missiles or falling objects
4. Vehicle upset - answerVehicle upset
When an individual with a pre-existing condition is in an automobile accident and the
insurance covers rehabilitation only to the level of the condition prior to the accident, this
is because of which of the following principles? - answerindemnity
All of the following are excluded losses under Part D-damage to an auto of the personal
auto policy EXCEPT - answerto caps, covers, or bedliners on pickup trucks.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of
2002? - answerIt limits the exposure of individual insurers and the insurance industry as
a whole.
An insured with split liability limits of $300/400/400 is at fault in an automobile accident
and the other vehicle sustains $15000 in property damages, as well as two passengers
have bodily injury and are claiming $9500 each. What is the MOST insurance will pay to
each occupant? - answer$300,000
In which of the following types of contracts is only one party legally required to do
something after the insured has completed the act of paying the premium? -
answerUnilateral
All of the following are commonly included in the declarations page EXCEPT -
answerthe birth date of the insured.
