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NYS INDEPENDENT ADJUSTERS 17-66
Terms Questions and Correct Answers
The traditional and most simplistic (basic) definition of actual
cash value is— Ans: — Replacement cost minus depreciation
Some courts have ruled that the definition of actual cash value is
actually the— Ans: — Fair Market Value
the price someone would actually pay
for the property today— Ans: — Fair Market Value
Is used in insurance to indicate a reduction of the
claims payment due to its reduced market value because the
property has become obsolete— Ans: — obsolescence
Some courts have ruled in favor of calculating ACV according to
the— Ans: — Broad Evidence Rule
the current cost to purchase new, the item that
was lost or damaged, with no deduction for depreciation— Ans: —
Replacement cost
is used when the ACV of property is difficult to determine— Ans:
— Agreed Value
in the event of a total loss, the insurer will
pay the value that was agreed upon
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at the time the policy was purchased.— Ans: — "agreed value"
settlement
In states that have passed a -------insurers are required to pay the
full "agreed value" of the policy in the event of a total loss— Ans:
— "valued policy law"
The -------- in property policies, prohibits the insured
from abandoning damaged property to the insurance company for
repair or disposal_.— Ans: — "_________abandonment
clause_________________"
Property that has been partially damaged by an insured peril is
known as— Ans: — Salvage
Part A Liability covers— Ans: — -only damages caused by those
who are considered insured under the policy
- only damages that the insured is legally liable to pay.
- Only damages for bodily injury and property damage that results
from an automobile accident.
Who are covered as insurance under part A of the policy?— Ans:
— The named insured and members of the insurance family while
using any auto. Anyone using the insureds car with permission.
other people or organizations to the extent that they share liability
with the insured.
Other people or organizations for their liability incurred involving
any auto or trailer used by the insured's or a family member.
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What is included in the supplementary payments of part a?— Ans:
— Up to $250 for bail bonds required because of an accident.
Premiums on appeal bonds and bonds to release attachments in
any suit defended.
Up to $200 a day for loss of earnings because of attendance at
trials or hearings.
Other reasonable expenses incurred at the company's request,
when the insured is assisting in the investigation or defense of a
claim.
Part A exclusions— Ans: — No coverage for intentional body
injury or property damage losses.
No coverage for damage to property owned or being transported
by an insured.
No coverage for property damaged rented to, used by, or in the
care of the insured.
No coverage for bodily injury to an employee, except in domestic
employee who does not qualify for workers compensation.
No coverage while the vehicle is being used to carry persons or
property for a fee. Such as a taxi
Under part A limits of liability, how much can a person receive for
bodily injury?— Ans: — $25,000
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Under part A limits of liability, how much can be received per
accident for bodily injury?— Ans: — $50,000
Under part A limits of liability, how much can be received per
accident for property damage?— Ans: — $10,000 per accident for
property damage
These laws determine the livin's of part A that an insured is
required to purchase an order to comply with state laws.— Ans: —
Financial responsibility provisions
when the state legislature changes that financial responsibility
limits in a given State, the policy will automatically provide that
amount of coverage.— Ans: — Proof of future financial
responsibility
is a provision of the policy that states that if an insured is driving
in another state and is involved in an accident, the policy will
automatically provide whatever limits of liability are required in
the state where he is driving.— Ans: — Out of state coverage
this is the clause for liability coverage that states that the company
will only pay its share of a loss that is covered by other
insurance— Ans: — The other insurance clause
Where are the no-fault coverages included?— Ans: — And the
standard personal Auto policies
The individual State determines— Ans: — the length of time the
carrier is required to cover the insured.
How many times the insured must be denied coverage in a
standard market before becoming eligible for the state-sponsored
plan.
The premiums that can be charged and the reasons for coverage
denial.
The part a liability section of the personal auto policy will cover all
the following except— Ans: — Only the damages for the insurance
automobile in the accident.
© 2025 All rights reserved
NYS INDEPENDENT ADJUSTERS 17-66
Terms Questions and Correct Answers
The traditional and most simplistic (basic) definition of actual
cash value is— Ans: — Replacement cost minus depreciation
Some courts have ruled that the definition of actual cash value is
actually the— Ans: — Fair Market Value
the price someone would actually pay
for the property today— Ans: — Fair Market Value
Is used in insurance to indicate a reduction of the
claims payment due to its reduced market value because the
property has become obsolete— Ans: — obsolescence
Some courts have ruled in favor of calculating ACV according to
the— Ans: — Broad Evidence Rule
the current cost to purchase new, the item that
was lost or damaged, with no deduction for depreciation— Ans: —
Replacement cost
is used when the ACV of property is difficult to determine— Ans:
— Agreed Value
in the event of a total loss, the insurer will
pay the value that was agreed upon
© 2025 All rights reserved
, 2 | Page
at the time the policy was purchased.— Ans: — "agreed value"
settlement
In states that have passed a -------insurers are required to pay the
full "agreed value" of the policy in the event of a total loss— Ans:
— "valued policy law"
The -------- in property policies, prohibits the insured
from abandoning damaged property to the insurance company for
repair or disposal_.— Ans: — "_________abandonment
clause_________________"
Property that has been partially damaged by an insured peril is
known as— Ans: — Salvage
Part A Liability covers— Ans: — -only damages caused by those
who are considered insured under the policy
- only damages that the insured is legally liable to pay.
- Only damages for bodily injury and property damage that results
from an automobile accident.
Who are covered as insurance under part A of the policy?— Ans:
— The named insured and members of the insurance family while
using any auto. Anyone using the insureds car with permission.
other people or organizations to the extent that they share liability
with the insured.
Other people or organizations for their liability incurred involving
any auto or trailer used by the insured's or a family member.
© 2025 All rights reserved
, 3 | Page
What is included in the supplementary payments of part a?— Ans:
— Up to $250 for bail bonds required because of an accident.
Premiums on appeal bonds and bonds to release attachments in
any suit defended.
Up to $200 a day for loss of earnings because of attendance at
trials or hearings.
Other reasonable expenses incurred at the company's request,
when the insured is assisting in the investigation or defense of a
claim.
Part A exclusions— Ans: — No coverage for intentional body
injury or property damage losses.
No coverage for damage to property owned or being transported
by an insured.
No coverage for property damaged rented to, used by, or in the
care of the insured.
No coverage for bodily injury to an employee, except in domestic
employee who does not qualify for workers compensation.
No coverage while the vehicle is being used to carry persons or
property for a fee. Such as a taxi
Under part A limits of liability, how much can a person receive for
bodily injury?— Ans: — $25,000
© 2025 All rights reserved
, 4 | Page
Under part A limits of liability, how much can be received per
accident for bodily injury?— Ans: — $50,000
Under part A limits of liability, how much can be received per
accident for property damage?— Ans: — $10,000 per accident for
property damage
These laws determine the livin's of part A that an insured is
required to purchase an order to comply with state laws.— Ans: —
Financial responsibility provisions
when the state legislature changes that financial responsibility
limits in a given State, the policy will automatically provide that
amount of coverage.— Ans: — Proof of future financial
responsibility
is a provision of the policy that states that if an insured is driving
in another state and is involved in an accident, the policy will
automatically provide whatever limits of liability are required in
the state where he is driving.— Ans: — Out of state coverage
this is the clause for liability coverage that states that the company
will only pay its share of a loss that is covered by other
insurance— Ans: — The other insurance clause
Where are the no-fault coverages included?— Ans: — And the
standard personal Auto policies
The individual State determines— Ans: — the length of time the
carrier is required to cover the insured.
How many times the insured must be denied coverage in a
standard market before becoming eligible for the state-sponsored
plan.
The premiums that can be charged and the reasons for coverage
denial.
The part a liability section of the personal auto policy will cover all
the following except— Ans: — Only the damages for the insurance
automobile in the accident.
© 2025 All rights reserved
