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NY Independent General Adjuster Practice
Exam Questions and Correct Answers
Which of the following is covered by a dread disease policy? Ans:
— illnesses that do not occur frequently but incur significant costs
when they do occur
Which of the following professionals would purchase Directors
and Officers (D &O) insurance to manage the liability risk
associated with their activities? Ans: — chief executive officer
For the commercial general liability coverages of bodily injury,
property damage and medical payments, which of the following
limits of insurance apply if the aggregate limit is NOT met? Ans: —
per occurrence
An injured employee covered under workers' compensation is
entitled to reasonably justifiable expenses for retraining. This
benefit falls under which of the following? Ans: — vocational
rehabilitation
Which of the following is the party who agrees to be responsible
for loss in the case of a fidelity bond? Ans: — the surety
What increases the potential loss of an unforeseen event that
causes injury to an insured or damage to property? Ans: — Hazard
Which of the following sides represent the front surface of the
patient? Ans: — anterior
Which party is required to provide proof of loss to establish
entitlement? Ans: — the insured
What does homeowners Coverage B - Other Structures cover? Ans:
— structures located on the insured's property separated from the
dwelling by clear space
Which of the following is a duty of the insured after a loss? Ans: —
minimizing further loss
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When an agent tries to convince a policyholder to replace an
existing policy to buy another one, what are they practicing? Ans:
— misrepresentation
How long is the broad theft coverage endorsement invalid if the
property is vacant? Ans: — More than 60 consecutive days
The insured is mowing his lawn when a stranger is noticed in the
backyard. The stranger claims to be a substitute delivery person.
Several days later a gold watch can not be found. Which of the
following describes the loss? Ans: — mysterious disappearance
Before taking legal action, what third-party can help end disputes
over the value of a loss? Ans: — arbitrator
The Liability section of the Farmowners Policy would exclude
coverage for which of the following operations? Ans: — Repairing
tractors owned by neighboring farmers.
All of the following are tax qualified retirement plans EXCEPT Ans:
— Section 529 plan.
Which policy condition encourages policyholder to insure to at
least 80% of replacement value to avoid a penalty with partial
losses? Ans: — coinsurance
Which one of the following represents an advantage of obtaining a
policy loan vesus a withdrawal? Ans: — the loan is not taxed while
a withdrawal is taxed for amounts above the contract cost basis
A Basic Hospital Policy pays expenses for Ans: — hospital room
and board.
Which type of bond specifically protects against dishonesty by
employees whose names or positions are listed in the policy? Ans:
— scheduled
Exclusions common to liability coverage for both the personal auto
policy and the business auto policy include all of the following
EXCEPT Ans: — for liability arising while the insured auto is being
used in an auto business.
© 2025 All rights reserved
NY Independent General Adjuster Practice
Exam Questions and Correct Answers
Which of the following is covered by a dread disease policy? Ans:
— illnesses that do not occur frequently but incur significant costs
when they do occur
Which of the following professionals would purchase Directors
and Officers (D &O) insurance to manage the liability risk
associated with their activities? Ans: — chief executive officer
For the commercial general liability coverages of bodily injury,
property damage and medical payments, which of the following
limits of insurance apply if the aggregate limit is NOT met? Ans: —
per occurrence
An injured employee covered under workers' compensation is
entitled to reasonably justifiable expenses for retraining. This
benefit falls under which of the following? Ans: — vocational
rehabilitation
Which of the following is the party who agrees to be responsible
for loss in the case of a fidelity bond? Ans: — the surety
What increases the potential loss of an unforeseen event that
causes injury to an insured or damage to property? Ans: — Hazard
Which of the following sides represent the front surface of the
patient? Ans: — anterior
Which party is required to provide proof of loss to establish
entitlement? Ans: — the insured
What does homeowners Coverage B - Other Structures cover? Ans:
— structures located on the insured's property separated from the
dwelling by clear space
Which of the following is a duty of the insured after a loss? Ans: —
minimizing further loss
© 2025 All rights reserved
, 2 | Page
When an agent tries to convince a policyholder to replace an
existing policy to buy another one, what are they practicing? Ans:
— misrepresentation
How long is the broad theft coverage endorsement invalid if the
property is vacant? Ans: — More than 60 consecutive days
The insured is mowing his lawn when a stranger is noticed in the
backyard. The stranger claims to be a substitute delivery person.
Several days later a gold watch can not be found. Which of the
following describes the loss? Ans: — mysterious disappearance
Before taking legal action, what third-party can help end disputes
over the value of a loss? Ans: — arbitrator
The Liability section of the Farmowners Policy would exclude
coverage for which of the following operations? Ans: — Repairing
tractors owned by neighboring farmers.
All of the following are tax qualified retirement plans EXCEPT Ans:
— Section 529 plan.
Which policy condition encourages policyholder to insure to at
least 80% of replacement value to avoid a penalty with partial
losses? Ans: — coinsurance
Which one of the following represents an advantage of obtaining a
policy loan vesus a withdrawal? Ans: — the loan is not taxed while
a withdrawal is taxed for amounts above the contract cost basis
A Basic Hospital Policy pays expenses for Ans: — hospital room
and board.
Which type of bond specifically protects against dishonesty by
employees whose names or positions are listed in the policy? Ans:
— scheduled
Exclusions common to liability coverage for both the personal auto
policy and the business auto policy include all of the following
EXCEPT Ans: — for liability arising while the insured auto is being
used in an auto business.
© 2025 All rights reserved
