NY Personal Lines Insurance
Practice Examination Questions
and Answers 100% PASS
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.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
Practice Examination Questions
and Answers 100% PASS
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.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law, Copyrighted By Brittie Donald
