Pg. 1
NEW YORK STATE PROPERTY AND
CASUALTY LICENSING EXAM 2025-2026. 66
QUESTIONS & CORRECT VERIFIED
ANSWERS. GRADED A+
Pro Rata Liability Clause is included in an insurance policy to deal with the
problem of - CORRECT ANSWER - Duplicate insurance policies
The purpose of this clause is to illustrate the method to determine each insurer's
liability in case of a loss. Each insurer pays its fair share determined by the
percentage that the carrier's limit bears to the total coverage carried.
pro rata liability - CORRECT ANSWER - If a loss occurs that is covered by more
than 1 insurance policy that was purchased by the insured, then each policy pays a
portion of the loss that is proportional to the amount of that policy over the total
amount of all policies for the loss—each policy pays its pro rata share.
What is meant by Res Ipsa Loquitur? - CORRECT ANSWER - Res ipsa loquitur
means, roughly, "the thing speaks for itself." Courts developed the concept of Res
Ipsa Loquitur to deal with cases in which the actual negligent act cannot be proved,
but it is clear that the injury was caused by negligence.
What territories are covered by commercial auto insurance? - CORRECT
ANSWER - The coverage territory granted in commercial auto insurance is the
United States, its territories and possessions, Puerto Rico and Canada.
What does automobile insurance Supplementary Payments refer to? - CORRECT
ANSWER - Payment of defense and other expenses by the insurance company
beyond the limits of liability..
, Pg. 2
Any expense the insurance company wishes to incur in the processing of a claim is
outside the limits of coverage. The insured is not penalized.
Medical Payments coverage under a Homeowner policy are available for expenses
resulting from an injury to: - CORRECT ANSWER - A residence employee..
This could be someone who mows the lawn. However, if a residence employee is
covered under Workers Compensation Coverage then the Medical Payments
Coverage would not apply. Coverage does not apply to the insured or member of
the household. Roomers, boarders and tenants are not covered as well
what does Homeowners - Coverage C exclude? - CORRECT ANSWER - The
Homeowners forms exclude certain types of property. Pets are not covered for loss
by an insured peril. The policy also excludes coverage for property that is more
specifically insured. Property of tenants is also excluded.
George Wilson has a personal auto policy. What coverage that would apply when a
deer leaps onto Mr. Wilson's car and causes extensive damage? - CORRECT
ANSWER - Comprehensive (other than collision).
Contact with a bird or animal is considered to be an "other than collision" loss.
insurance producer - CORRECT ANSWER - an insurance agent, insurance broker,
reinsurance intermediary, excess lines broker, or any other person required to be
licensed under the laws of this state to sell, solicit, or negotiate insurance
home state - CORRECT ANSWER - the District of Columbia or any state or
territory of the United States in which an insurance producer maintains his, her or
its principal place of residence or principal place of business and its licensed to act
as an insurance producer
NEW YORK STATE PROPERTY AND
CASUALTY LICENSING EXAM 2025-2026. 66
QUESTIONS & CORRECT VERIFIED
ANSWERS. GRADED A+
Pro Rata Liability Clause is included in an insurance policy to deal with the
problem of - CORRECT ANSWER - Duplicate insurance policies
The purpose of this clause is to illustrate the method to determine each insurer's
liability in case of a loss. Each insurer pays its fair share determined by the
percentage that the carrier's limit bears to the total coverage carried.
pro rata liability - CORRECT ANSWER - If a loss occurs that is covered by more
than 1 insurance policy that was purchased by the insured, then each policy pays a
portion of the loss that is proportional to the amount of that policy over the total
amount of all policies for the loss—each policy pays its pro rata share.
What is meant by Res Ipsa Loquitur? - CORRECT ANSWER - Res ipsa loquitur
means, roughly, "the thing speaks for itself." Courts developed the concept of Res
Ipsa Loquitur to deal with cases in which the actual negligent act cannot be proved,
but it is clear that the injury was caused by negligence.
What territories are covered by commercial auto insurance? - CORRECT
ANSWER - The coverage territory granted in commercial auto insurance is the
United States, its territories and possessions, Puerto Rico and Canada.
What does automobile insurance Supplementary Payments refer to? - CORRECT
ANSWER - Payment of defense and other expenses by the insurance company
beyond the limits of liability..
, Pg. 2
Any expense the insurance company wishes to incur in the processing of a claim is
outside the limits of coverage. The insured is not penalized.
Medical Payments coverage under a Homeowner policy are available for expenses
resulting from an injury to: - CORRECT ANSWER - A residence employee..
This could be someone who mows the lawn. However, if a residence employee is
covered under Workers Compensation Coverage then the Medical Payments
Coverage would not apply. Coverage does not apply to the insured or member of
the household. Roomers, boarders and tenants are not covered as well
what does Homeowners - Coverage C exclude? - CORRECT ANSWER - The
Homeowners forms exclude certain types of property. Pets are not covered for loss
by an insured peril. The policy also excludes coverage for property that is more
specifically insured. Property of tenants is also excluded.
George Wilson has a personal auto policy. What coverage that would apply when a
deer leaps onto Mr. Wilson's car and causes extensive damage? - CORRECT
ANSWER - Comprehensive (other than collision).
Contact with a bird or animal is considered to be an "other than collision" loss.
insurance producer - CORRECT ANSWER - an insurance agent, insurance broker,
reinsurance intermediary, excess lines broker, or any other person required to be
licensed under the laws of this state to sell, solicit, or negotiate insurance
home state - CORRECT ANSWER - the District of Columbia or any state or
territory of the United States in which an insurance producer maintains his, her or
its principal place of residence or principal place of business and its licensed to act
as an insurance producer
