NEW YORK PERSONAL LINES FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS 2025/2026
A passenger is injured while getting into a friends car. Which of the following statements would
apply if both the passenger and the driver had medical payments coverage under the auto
policy. - CORRECT ANSWER -The drivers policy would be primary.
Adverse selection is a concept best described as: - CORRECT ANSWER -Risks with higher
probability of loss, seeking insurances more often than other risks.
An example of an alien insurer doing business in NY is one formed under the laws of - CORRECT
ANSWER -Mexico
According to the NY motor vehicle financial responsibility law what are the required limits of
liability on auto policies issued in this state? - CORRECT ANSWER -25/50/10
Which of the following examples of losses paid under an HO-3 homeowners policy? - CORRECT
ANSWER -Damage to the dwelling caused by lava or dust from volcanic eruption.
The insureds car was hit and damaged by a deer. Under which of the following coverages in a
personal auto policy would this loss be paid? - CORRECT ANSWER -Other-Than- Collision
Negligence may be defined as - CORRECT ANSWER -The failure to use reasonable and prudent
care
When the direct chain of events resulting from a negligent act causes injury or damage that act
is considered to be - CORRECT ANSWER -A proximate cause
All of the following are major coverages included in the homeowners policy except - CORRECT
ANSWER -Loss of income
, Which of the following would be added for coverage under a property policy by an
endorsement? - CORRECT ANSWER -Additional Insureds
Under the automobile assigned risk plan how much coverage must be provided to the insured
for liability arising out of the death of two persons caused by a single auto accident? - CORRECT
ANSWER -Up to 100,000$
An insured relocated to another state for work. However, she still owns and insures a house in
this state, but has had no one living in it for 3 months. She is also storing some of furniture and
clothes in the house. From an insurance standpoint, the insured's house is considered -
CORRECT ANSWER -Unoccupied
If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowners
policy by purchasing the - CORRECT ANSWER -Scheduled personal property endorsement
Which of the following statements is not true regarding a personal umbrella liability policy? -
CORRECT ANSWER -It provides errors and ommissions coverage for an agency
What is not part of the policy structure? - CORRECT ANSWER -provisions
Under the personal auto policy, liability for bodily injury resulting from the insureds use of a
nonowned automobile is - CORRECT ANSWER -Provided by the insureds policy on an excess
basis
What is not true regarding physical damage coverage? - CORRECT ANSWER -Its not true that the
limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the
amount necessary to repair or replace the vehicle.
WITH CORRECT ANSWERS 2025/2026
A passenger is injured while getting into a friends car. Which of the following statements would
apply if both the passenger and the driver had medical payments coverage under the auto
policy. - CORRECT ANSWER -The drivers policy would be primary.
Adverse selection is a concept best described as: - CORRECT ANSWER -Risks with higher
probability of loss, seeking insurances more often than other risks.
An example of an alien insurer doing business in NY is one formed under the laws of - CORRECT
ANSWER -Mexico
According to the NY motor vehicle financial responsibility law what are the required limits of
liability on auto policies issued in this state? - CORRECT ANSWER -25/50/10
Which of the following examples of losses paid under an HO-3 homeowners policy? - CORRECT
ANSWER -Damage to the dwelling caused by lava or dust from volcanic eruption.
The insureds car was hit and damaged by a deer. Under which of the following coverages in a
personal auto policy would this loss be paid? - CORRECT ANSWER -Other-Than- Collision
Negligence may be defined as - CORRECT ANSWER -The failure to use reasonable and prudent
care
When the direct chain of events resulting from a negligent act causes injury or damage that act
is considered to be - CORRECT ANSWER -A proximate cause
All of the following are major coverages included in the homeowners policy except - CORRECT
ANSWER -Loss of income
, Which of the following would be added for coverage under a property policy by an
endorsement? - CORRECT ANSWER -Additional Insureds
Under the automobile assigned risk plan how much coverage must be provided to the insured
for liability arising out of the death of two persons caused by a single auto accident? - CORRECT
ANSWER -Up to 100,000$
An insured relocated to another state for work. However, she still owns and insures a house in
this state, but has had no one living in it for 3 months. She is also storing some of furniture and
clothes in the house. From an insurance standpoint, the insured's house is considered -
CORRECT ANSWER -Unoccupied
If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowners
policy by purchasing the - CORRECT ANSWER -Scheduled personal property endorsement
Which of the following statements is not true regarding a personal umbrella liability policy? -
CORRECT ANSWER -It provides errors and ommissions coverage for an agency
What is not part of the policy structure? - CORRECT ANSWER -provisions
Under the personal auto policy, liability for bodily injury resulting from the insureds use of a
nonowned automobile is - CORRECT ANSWER -Provided by the insureds policy on an excess
basis
What is not true regarding physical damage coverage? - CORRECT ANSWER -Its not true that the
limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the
amount necessary to repair or replace the vehicle.
