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New York State General Adjuster
Exam with complete solutions
latest version
An employee has been asked to use his own personal vehicle to perform certain
tasks on behalf of his employer. What coverage is used under the business auto
policy to protect the employer for lawsuits when the employee has an accident
that causes legal action against the employer? - CORRECT ANSWER-Employers
non-ownership coverage. This coverage protects the employer and not the
employee. The employee is covered under his own PAP policy.
Replacement cost coverage is best defined as: - CORRECT ANSWER-
Replacement without deduction for depreciation.With replacement cost coverage,
the insured is permitted to replace old with new at today's cost without a
deduction for depreciation.
Which of the following would be considered a "supplementary payment"
coverage under a business auto policy? 1)All post-judgment interest in a suit
defended by the insurer 2)Payment for an insured employee's truck being used
by the employee on a business-related trip 3)Costs for a private investigator hired
by an employee to prove he was not involved in a hit and run accident of which
he has been accused 4)Up to $2,000 for the cost of bail bonds for an employee
involved in an accident while he was on a trip to Mexico that he won for
exceeding sales goals set by the company - CORRECT ANSWER-1) All post-
judgment interest in a suit defended by the insurer.
Supplementary payments do not include physical damages, nor personal
expenses of employees. The bail bonds would be covered except that Mexico is
outside the coverage area.
Which of the following professional liability policies would cover a dishonest,
fraudulent or criminal act of the manager of a LLC?
1)Fiduciary Liability
2)Malpractice Liability
3)Errors and Omissions
4)None of the policies cover these acts - CORRECT ANSWER-4) None of the
policies cover these acts.
When securing a recorded statement over the telephone, an adjuster must:
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1 Identify him or herself.
2 Advise he or she would like to record the statement and request and receive
permission to do so.
3 State the time and date.
4 All responses listed are correct. - CORRECT ANSWER-4 All responses listed are
correct. The adjuster must identify him or herself, state the date and time and get
permission to record the statement.
Uninsured Motorist coverage includes the named insured's:
I. Medical bills and pain and suffering.
II. Lost wages. - CORRECT ANSWER-Both I and II is correct.
Coverage C (Uninsured Motorists) provides for payments to or on behalf of the
named insured for injuries sustained through the negligence of an uninsured
driver.
Substitute services will provide: - CORRECT ANSWER-$25 per day for one year.
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.
Which of the following is not a violation of the Unfair Trade Practices Act?
1 Not attempting in good faith to settle claims
2 Denying an uncovered claim
3 Failing to promptly settle claims under one portion of coverage in order to
influence settlements under other portions of coverage
4 Not setting forth the coverage under which a claim payment is being made -
CORRECT ANSWER-Denying a claim that is not covered is not a violation.
In case of a total loss in an automobile accident, the adjuster can do the insured
which of the following?
I. Pay cost to replace the vehicle with like kind and quality if the vehicle is a
current year model.
II. Use the most recent publication of an "Official Used Car Guide."
III. If not listed in the "Guide," obtain quotations from local automobile dealers. -
CORRECT ANSWER-I, II and III depending on the circumstances
All the responses listed can be options in settling a total loss claim.
Personal umbrella liability policies usually cover liability as a result of:
1 Performing a professional service.
2 Serving as an officer or director of a nonprofit corporation or association.
3 For a work related activity
4 None of the activities are covered - CORRECT ANSWER-2 Serving as an officer
or director of a nonprofit corporation or association..
Coverage is included while serving as an officer or director of a nonprofit
corporation or association.
The Now Company carries a special BOP policy with a liability limit of $500,000.
The company is involved in an accident causing $200,000 bodily injury damage
and $200,000 property damage. The total amount collectible under the policy is:
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1 $500,000
2 $400,000
3 $200,000
4 $100,000 - CORRECT ANSWER-2 $400,000
BOP policies provide a single limit of liability. Both bodily injury and property
damage coverage is provided. Since the amounts for bodily injury and property
damage combined do not exceed the 500,000 occurrence limit, the total amount
of the claim would be covered.
A tram, tape and centering gauges are being used to quick reference a unibody
vehicle. Technician A says the tram gauge is used to determine vehicle
centerline. Technician B says that centering gauges should be used to determine
vehicle centerline. Who is right?
1 Technician A only
2 Technician B only
3 Both technicians are correct
4 Neither technician is correct - CORRECT ANSWER-2 Technician B only
Technician B is correct. Centering gauges use centering pins to locate centerline.
A tram is used to make point-to-point measurements.
The maximum payable for damage or loss to signs attached to the building
covered under a BOP is:
1 $2500
2 The building limit since it's attached to the building
3 $1000
4 $5000 - CORRECT ANSWER-3 The correct answer is: $1000.
Damage or loss to a sign attached to the building is limited to $1000 even though
it is attached to the building and considered part of the building.
Which of the following basic workers compensation benefits compensates a
widow or other dependent family members of an employee whose death results
from a work-related injury?
1 Disability income benefits
2 Medical benefits
3 Survivor benefits
4 Rehabilitation benefits - CORRECT ANSWER-3 Survivor benefits
Survivor benefits compensate a widow or other dependent family members.
Lawful economic interest in the preservation of the subject of insurance, free
from loss or destruction or monetary impairment is the definition of:
1 Insurable Interest
2 Right of Ownership
3 An Amendatory Endorsement
4 Contractual Obligation - CORRECT ANSWER-1 Insurable Interest
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This is the definition of insurable interest. In property and casualty insurance,
insurable interest must exist at the time of the loss.
In a property loss the insured is required to do all of the following, EXCEPT: -
CORRECT ANSWER-Repair the property within 20 days of notifying the insurer.
The insured should not repair the property until agreed upon by the insurer.
The prefix "neo" refers to:
1 Old.
2 New.
3 Flat.
4 After. - CORRECT ANSWER-2 New
"Neo" refers to something that is new.
neo-: new or recent, or in a modern form:
If a commercial building has been vacant for more than sixty days, which of the
perils are affected as regards coverage?
1 Vandalism
2 Freezing
3 Fire
4 All of the perils are affected - CORRECT ANSWER-4 All of the perils are affected
All of the perils listed are affected as a result of the vacancy. Some of the
coverage for certain perils is voided and fire losses are reduced by 15%.
Automobile Medical Payments covers:
1 The insured as an occupant of a car, an occupant of the insured vehicle and the
insured as a pedestrian when hit by a car.
2 The insured as an occupant of a car only.
3 An occupant of the insured vehicle only.
4 The insured as a pedestrian only. - CORRECT ANSWER-1 The insured as an
occupant of a car, an occupant of the insured vehicle and the insured as a
pedestrian when hit by a car.
It also covers any family member. In addition, any other person while occupying
the insured's covered auto.
The Federal Terrorism Act covers property and casualty losses that exceed
______in the aggregate. - CORRECT ANSWER-$100,000,000
The Act covers losses from a certified terrorism act that exceed $100,000,000 (the
trigger) in the aggregate. The Federal Terrorism Act was amended in 2007 to this
limit. The Act has was further amended and extended 2015. The trigger remains
the same, but will increase each year by $20 million starting in 2016. Please refer
to your testing vendor outline to determine if it is testing on the prevous
amendment or if it is testing on the 2015 extension of the Act. The answer to this
question is correct for either year.
New York State General Adjuster
Exam with complete solutions
latest version
An employee has been asked to use his own personal vehicle to perform certain
tasks on behalf of his employer. What coverage is used under the business auto
policy to protect the employer for lawsuits when the employee has an accident
that causes legal action against the employer? - CORRECT ANSWER-Employers
non-ownership coverage. This coverage protects the employer and not the
employee. The employee is covered under his own PAP policy.
Replacement cost coverage is best defined as: - CORRECT ANSWER-
Replacement without deduction for depreciation.With replacement cost coverage,
the insured is permitted to replace old with new at today's cost without a
deduction for depreciation.
Which of the following would be considered a "supplementary payment"
coverage under a business auto policy? 1)All post-judgment interest in a suit
defended by the insurer 2)Payment for an insured employee's truck being used
by the employee on a business-related trip 3)Costs for a private investigator hired
by an employee to prove he was not involved in a hit and run accident of which
he has been accused 4)Up to $2,000 for the cost of bail bonds for an employee
involved in an accident while he was on a trip to Mexico that he won for
exceeding sales goals set by the company - CORRECT ANSWER-1) All post-
judgment interest in a suit defended by the insurer.
Supplementary payments do not include physical damages, nor personal
expenses of employees. The bail bonds would be covered except that Mexico is
outside the coverage area.
Which of the following professional liability policies would cover a dishonest,
fraudulent or criminal act of the manager of a LLC?
1)Fiduciary Liability
2)Malpractice Liability
3)Errors and Omissions
4)None of the policies cover these acts - CORRECT ANSWER-4) None of the
policies cover these acts.
When securing a recorded statement over the telephone, an adjuster must:
, www.stuvia.com/doc
1 Identify him or herself.
2 Advise he or she would like to record the statement and request and receive
permission to do so.
3 State the time and date.
4 All responses listed are correct. - CORRECT ANSWER-4 All responses listed are
correct. The adjuster must identify him or herself, state the date and time and get
permission to record the statement.
Uninsured Motorist coverage includes the named insured's:
I. Medical bills and pain and suffering.
II. Lost wages. - CORRECT ANSWER-Both I and II is correct.
Coverage C (Uninsured Motorists) provides for payments to or on behalf of the
named insured for injuries sustained through the negligence of an uninsured
driver.
Substitute services will provide: - CORRECT ANSWER-$25 per day for one year.
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.
Which of the following is not a violation of the Unfair Trade Practices Act?
1 Not attempting in good faith to settle claims
2 Denying an uncovered claim
3 Failing to promptly settle claims under one portion of coverage in order to
influence settlements under other portions of coverage
4 Not setting forth the coverage under which a claim payment is being made -
CORRECT ANSWER-Denying a claim that is not covered is not a violation.
In case of a total loss in an automobile accident, the adjuster can do the insured
which of the following?
I. Pay cost to replace the vehicle with like kind and quality if the vehicle is a
current year model.
II. Use the most recent publication of an "Official Used Car Guide."
III. If not listed in the "Guide," obtain quotations from local automobile dealers. -
CORRECT ANSWER-I, II and III depending on the circumstances
All the responses listed can be options in settling a total loss claim.
Personal umbrella liability policies usually cover liability as a result of:
1 Performing a professional service.
2 Serving as an officer or director of a nonprofit corporation or association.
3 For a work related activity
4 None of the activities are covered - CORRECT ANSWER-2 Serving as an officer
or director of a nonprofit corporation or association..
Coverage is included while serving as an officer or director of a nonprofit
corporation or association.
The Now Company carries a special BOP policy with a liability limit of $500,000.
The company is involved in an accident causing $200,000 bodily injury damage
and $200,000 property damage. The total amount collectible under the policy is:
, www.stuvia.com/doc
1 $500,000
2 $400,000
3 $200,000
4 $100,000 - CORRECT ANSWER-2 $400,000
BOP policies provide a single limit of liability. Both bodily injury and property
damage coverage is provided. Since the amounts for bodily injury and property
damage combined do not exceed the 500,000 occurrence limit, the total amount
of the claim would be covered.
A tram, tape and centering gauges are being used to quick reference a unibody
vehicle. Technician A says the tram gauge is used to determine vehicle
centerline. Technician B says that centering gauges should be used to determine
vehicle centerline. Who is right?
1 Technician A only
2 Technician B only
3 Both technicians are correct
4 Neither technician is correct - CORRECT ANSWER-2 Technician B only
Technician B is correct. Centering gauges use centering pins to locate centerline.
A tram is used to make point-to-point measurements.
The maximum payable for damage or loss to signs attached to the building
covered under a BOP is:
1 $2500
2 The building limit since it's attached to the building
3 $1000
4 $5000 - CORRECT ANSWER-3 The correct answer is: $1000.
Damage or loss to a sign attached to the building is limited to $1000 even though
it is attached to the building and considered part of the building.
Which of the following basic workers compensation benefits compensates a
widow or other dependent family members of an employee whose death results
from a work-related injury?
1 Disability income benefits
2 Medical benefits
3 Survivor benefits
4 Rehabilitation benefits - CORRECT ANSWER-3 Survivor benefits
Survivor benefits compensate a widow or other dependent family members.
Lawful economic interest in the preservation of the subject of insurance, free
from loss or destruction or monetary impairment is the definition of:
1 Insurable Interest
2 Right of Ownership
3 An Amendatory Endorsement
4 Contractual Obligation - CORRECT ANSWER-1 Insurable Interest
, www.stuvia.com/doc
This is the definition of insurable interest. In property and casualty insurance,
insurable interest must exist at the time of the loss.
In a property loss the insured is required to do all of the following, EXCEPT: -
CORRECT ANSWER-Repair the property within 20 days of notifying the insurer.
The insured should not repair the property until agreed upon by the insurer.
The prefix "neo" refers to:
1 Old.
2 New.
3 Flat.
4 After. - CORRECT ANSWER-2 New
"Neo" refers to something that is new.
neo-: new or recent, or in a modern form:
If a commercial building has been vacant for more than sixty days, which of the
perils are affected as regards coverage?
1 Vandalism
2 Freezing
3 Fire
4 All of the perils are affected - CORRECT ANSWER-4 All of the perils are affected
All of the perils listed are affected as a result of the vacancy. Some of the
coverage for certain perils is voided and fire losses are reduced by 15%.
Automobile Medical Payments covers:
1 The insured as an occupant of a car, an occupant of the insured vehicle and the
insured as a pedestrian when hit by a car.
2 The insured as an occupant of a car only.
3 An occupant of the insured vehicle only.
4 The insured as a pedestrian only. - CORRECT ANSWER-1 The insured as an
occupant of a car, an occupant of the insured vehicle and the insured as a
pedestrian when hit by a car.
It also covers any family member. In addition, any other person while occupying
the insured's covered auto.
The Federal Terrorism Act covers property and casualty losses that exceed
______in the aggregate. - CORRECT ANSWER-$100,000,000
The Act covers losses from a certified terrorism act that exceed $100,000,000 (the
trigger) in the aggregate. The Federal Terrorism Act was amended in 2007 to this
limit. The Act has was further amended and extended 2015. The trigger remains
the same, but will increase each year by $20 million starting in 2016. Please refer
to your testing vendor outline to determine if it is testing on the prevous
amendment or if it is testing on the 2015 extension of the Act. The answer to this
question is correct for either year.
