NEW YORK INDEPENDENT ADJUSTER
GENERAL TEST. EXAM 2025
QUESTIONS AND ANSWERS
All of the following statements are true regarding the Federal Employers Liability Act (FELA),
EXCEPT: - ANS It provides workers' compensation coverage for employees working in federal
government buildings.
Property damage to an insured's work that arises out of the work and is part of the products-
completed operations hazard, as defined in a commercial umbrella liability policy is: -
ANS Usually excluded unless the work out of which the damage arose was done by a
subcontractor rather than the insured.
The insured car dealer carries dealer's physical damage coverage with comprehensive and
collision coverage. One of the salesmen allows an old customer to test drive a van. The
customer steals the car and it is later found heavily damaged in an accident. The adjuster will: -
ANS Deny the claim unless the insured carries "false pretense" coverage.
The limit for "medical and rehabilitation expenses" under the New York automobile "No-Fault"
law is: - ANS $50,000.
All of the following types of signs can be covered by the Sign Coverage Form, except: -
ANS Signs carved in stone or brick
Which of the following is used to bring a standardized insurance form into compliance with
state laws? - ANS Endorsements.
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, Most crop insurance in the United States is written by: - ANS Private stock and mutual
companies.
Under a standardized NCCI workers' compensation policy, the insurance company will pay to
the insured, as part of any claim, proceeding, or suit defended, all of the following expenses,
EXCEPT: - ANS Loss of earnings.
Homeowners policies cover all of the following, EXCEPT: - ANS A 2-family dwelling occupied
by tenants who are renting the covered premises from the named insured.
Gavin operates a small manufacturing plant and is covered under a Commercial Property
Business Income form. Under which of the following scenarios will Gavin be covered? -
ANS His loss of profit while out of business as a result of a fire loss.
An insured has his home covered under Dwelling policies with three different insurance
companies. Company A provides 50% of the coverage, Company B provides 45% of the
coverage, and Company C provides 5% of the coverage. When settling a claim for $10,000
worth of damage to the dwelling, what will Company C pay? - ANS $500
Which of the following is true regarding the dealers' physical damage coverage under the
Garage policy? - ANS The coverage is provided by a blanket limit for covered autos.
The most common method of settling liability insurance claims is through: - ANS Negotiated
settlement.
The purpose of liability insurance is to protect an insured from financial loss: - ANS Arising
out of liability claims by transferring the burden of financial loss from the individual to the
insurance company.
Which of the following is NOT covered by liability coverage under a Homeowner policy? -
ANS A snowmobile in a park.
2 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
GENERAL TEST. EXAM 2025
QUESTIONS AND ANSWERS
All of the following statements are true regarding the Federal Employers Liability Act (FELA),
EXCEPT: - ANS It provides workers' compensation coverage for employees working in federal
government buildings.
Property damage to an insured's work that arises out of the work and is part of the products-
completed operations hazard, as defined in a commercial umbrella liability policy is: -
ANS Usually excluded unless the work out of which the damage arose was done by a
subcontractor rather than the insured.
The insured car dealer carries dealer's physical damage coverage with comprehensive and
collision coverage. One of the salesmen allows an old customer to test drive a van. The
customer steals the car and it is later found heavily damaged in an accident. The adjuster will: -
ANS Deny the claim unless the insured carries "false pretense" coverage.
The limit for "medical and rehabilitation expenses" under the New York automobile "No-Fault"
law is: - ANS $50,000.
All of the following types of signs can be covered by the Sign Coverage Form, except: -
ANS Signs carved in stone or brick
Which of the following is used to bring a standardized insurance form into compliance with
state laws? - ANS Endorsements.
1 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
, Most crop insurance in the United States is written by: - ANS Private stock and mutual
companies.
Under a standardized NCCI workers' compensation policy, the insurance company will pay to
the insured, as part of any claim, proceeding, or suit defended, all of the following expenses,
EXCEPT: - ANS Loss of earnings.
Homeowners policies cover all of the following, EXCEPT: - ANS A 2-family dwelling occupied
by tenants who are renting the covered premises from the named insured.
Gavin operates a small manufacturing plant and is covered under a Commercial Property
Business Income form. Under which of the following scenarios will Gavin be covered? -
ANS His loss of profit while out of business as a result of a fire loss.
An insured has his home covered under Dwelling policies with three different insurance
companies. Company A provides 50% of the coverage, Company B provides 45% of the
coverage, and Company C provides 5% of the coverage. When settling a claim for $10,000
worth of damage to the dwelling, what will Company C pay? - ANS $500
Which of the following is true regarding the dealers' physical damage coverage under the
Garage policy? - ANS The coverage is provided by a blanket limit for covered autos.
The most common method of settling liability insurance claims is through: - ANS Negotiated
settlement.
The purpose of liability insurance is to protect an insured from financial loss: - ANS Arising
out of liability claims by transferring the burden of financial loss from the individual to the
insurance company.
Which of the following is NOT covered by liability coverage under a Homeowner policy? -
ANS A snowmobile in a park.
2 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
