NYS License Exam Study Guide
Questions And Answers | 100% Verified
2025
Declarations Page CORRECT ANSWERS has first named insured
Aleatory in nature refers to: CORRECT ANSWERS Unequal exchange by two parties
First aid costs for others injured on the insured's premises CORRECT ANSWERS Are
paid in addition to the liability limit.
Which of the following actions would be considered an offer? CORRECT ANSWERS An
applicant submitting the application
A homeowner lives in a 150-year-old adobe building that is on the National Register of
Historic Places. The homeowner has HO-8 coverage. If a fire destroys part of the roof,
which of the following describes the insurer's responsibility? CORRECT ANSWERS
Partial roof replacement to current code specifications
An agent who solicits and files applications for the sale of life insurance represents
CORRECT ANSWERS The insurer.
Which of the following would be covered under Coverage C - Personal Property of a
dwelling policy? CORRECT ANSWERS Canoes
In which of the following situations would a property be considered unoccupied?
CORRECT ANSWERS The insured went on vacation for a month while the house
remained empty.
Which special liability insurance is designed to protect a business from financial
mismanagement claims? CORRECT ANSWERS Fiduciary liability
The voluntary compensation endorsement in workers compensation coverage provides
statutory coverage for which types of employees? CORRECT ANSWERS Farm workers
All of the following types of property may be covered under Coverage E of a farm policy
EXCEPT CORRECT ANSWERS Growing crops
When the health insurance policy premium is paid monthly, the grace period is
CORRECT ANSWERS 10 days
Under the Motor Carrier Act of 1980, haulers transporting oil must maintain liability limits
of at least CORRECT ANSWERS $1,000,000
, Which of the following is NOT a feature of broad theft coverage under a dwelling policy?
CORRECT ANSWERS It is automatically covered under DP-3 - Special Form.
Which of the following would protect an employer from legal action resulting from a
work-related sexual harassment claim CORRECT ANSWERS Employee practices
liability insurance
What insurance principle means something of value that each party gives to the other?
CORRECT ANSWERS Consideration
Over several years, a policyowner paid $10,000 in premiums for his insurance policy.
When he suffered a loss, the insurance company paid out $50,000 in benefits. What
characteristic of an insurance contract does this describe? CORRECT ANSWERS
Aleatory
An unidentified hit-and-run driver would be considered an CORRECT ANSWERS
Uninsured motorist
Under the businessowners property coverage form, which common policy condition
addresses what will happen if the insured and the insurer do not agree on the amount of
damage? CORRECT ANSWERS Appraisal
What is the purpose of requiring licenses for persons who transact insurance?
CORRECT ANSWERS Protect the general public
In an auto insurance policy, what does the first limit represent in split liability limits?
CORRECT ANSWERS Bodily injury to one person in a single accident
Which of the following watercraft will be covered under Section II - Liability Coverage of
a businessowners policy? CORRECT ANSWERS Nonowned watercraft less than 51
feet long
Under a personal auto liability coverage, damages to a vehicle may be covered if the
person driving the insured vehicle is CORRECT ANSWERS A family member in the
same household.
Which of the following is an example of an indirect loss? CORRECT ANSWERS An
insured not being able to stay in the home and having to stay in a hotel because of the
fire damage to the home
Which of the following would NOT be covered under the supplementary payments
provided under Coverage A - Bodily Injury and Property Damage of a CGL policy?
CORRECT ANSWERS Up to $500 a day for loss of income
Questions And Answers | 100% Verified
2025
Declarations Page CORRECT ANSWERS has first named insured
Aleatory in nature refers to: CORRECT ANSWERS Unequal exchange by two parties
First aid costs for others injured on the insured's premises CORRECT ANSWERS Are
paid in addition to the liability limit.
Which of the following actions would be considered an offer? CORRECT ANSWERS An
applicant submitting the application
A homeowner lives in a 150-year-old adobe building that is on the National Register of
Historic Places. The homeowner has HO-8 coverage. If a fire destroys part of the roof,
which of the following describes the insurer's responsibility? CORRECT ANSWERS
Partial roof replacement to current code specifications
An agent who solicits and files applications for the sale of life insurance represents
CORRECT ANSWERS The insurer.
Which of the following would be covered under Coverage C - Personal Property of a
dwelling policy? CORRECT ANSWERS Canoes
In which of the following situations would a property be considered unoccupied?
CORRECT ANSWERS The insured went on vacation for a month while the house
remained empty.
Which special liability insurance is designed to protect a business from financial
mismanagement claims? CORRECT ANSWERS Fiduciary liability
The voluntary compensation endorsement in workers compensation coverage provides
statutory coverage for which types of employees? CORRECT ANSWERS Farm workers
All of the following types of property may be covered under Coverage E of a farm policy
EXCEPT CORRECT ANSWERS Growing crops
When the health insurance policy premium is paid monthly, the grace period is
CORRECT ANSWERS 10 days
Under the Motor Carrier Act of 1980, haulers transporting oil must maintain liability limits
of at least CORRECT ANSWERS $1,000,000
, Which of the following is NOT a feature of broad theft coverage under a dwelling policy?
CORRECT ANSWERS It is automatically covered under DP-3 - Special Form.
Which of the following would protect an employer from legal action resulting from a
work-related sexual harassment claim CORRECT ANSWERS Employee practices
liability insurance
What insurance principle means something of value that each party gives to the other?
CORRECT ANSWERS Consideration
Over several years, a policyowner paid $10,000 in premiums for his insurance policy.
When he suffered a loss, the insurance company paid out $50,000 in benefits. What
characteristic of an insurance contract does this describe? CORRECT ANSWERS
Aleatory
An unidentified hit-and-run driver would be considered an CORRECT ANSWERS
Uninsured motorist
Under the businessowners property coverage form, which common policy condition
addresses what will happen if the insured and the insurer do not agree on the amount of
damage? CORRECT ANSWERS Appraisal
What is the purpose of requiring licenses for persons who transact insurance?
CORRECT ANSWERS Protect the general public
In an auto insurance policy, what does the first limit represent in split liability limits?
CORRECT ANSWERS Bodily injury to one person in a single accident
Which of the following watercraft will be covered under Section II - Liability Coverage of
a businessowners policy? CORRECT ANSWERS Nonowned watercraft less than 51
feet long
Under a personal auto liability coverage, damages to a vehicle may be covered if the
person driving the insured vehicle is CORRECT ANSWERS A family member in the
same household.
Which of the following is an example of an indirect loss? CORRECT ANSWERS An
insured not being able to stay in the home and having to stay in a hotel because of the
fire damage to the home
Which of the following would NOT be covered under the supplementary payments
provided under Coverage A - Bodily Injury and Property Damage of a CGL policy?
CORRECT ANSWERS Up to $500 a day for loss of income
