New York State Property and Casualty Insurance Exam questions with correct answers

Physical damage coverage under a garage policy is a blanket limit for covered auto, an accurate statement? CORRECT ANSWER Yes; The dealer's physical damage limit would be done on a blanket limit basis. This would apply to comprehensive and collision losses to the auto inventory of the dealer. This is done because it is simply not practical to schedule each dealer owned vehicle for physical damage. This is generally accomplished by the use of a monthly reporting form. An insured owns a motorcycle, a moped and a motor home. What endorsement is added to the personal auto policy to provide coverage? CORRECT ANSWER Misc. Type Vehicle Endorsement; The "miscellaneous type vehicle" endorsement is added for these types of recreational vehicles. Note that ISO has a separate endorsement for snowmobiles. Investment consultants should purchase which of the following policies to protect themselves from errors and omissions? CORRECT ANSWER Professional Liability; Errors and omissions coverage does not involve bodily injury or property damage, which is provided by other types of policies. This is why professional liability coverage is needed. Medical malpractice insurance does cover bodily injury. The negligent act of the agent is imputed to the principal if the act occurred within the course and scope of the agent's employment. This means that the principal becomes: CORRECT ANSWER Directly liable for damages to a third party caused by the agent (employee)..This is sometimes referred to as "vicarious" liability. Which of the Homeowner's polices does not include coverage for flood? CORRECT ANSWER An HO-3 Policy; A homeowner policy specifically excludes flood coverage.