NY Personal Lines Insurance Practice Examination
Questions and Verified Answers
All of the following are correct for excess lines carriers EXCEPT Correct Answer: they offer better
contracts at lower rates.
Which of the following is one of the ways the Gramm-Leach Bliley Act affects the insurance industry?
Correct Answer: It establishes which insurance products banks and bank subsidiaries may provide as
principal.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of 2002? Correct
Answer: It limits the exposure of individual insurers and the insurance industry as a whole.
Which of the following ways did the Violent Crime Control and Law Enforcement Act expand federal
laws? Correct Answer: It prohibited anyone in insurance convicted on a state or federal felony involving
dishonesty or breach of trust without a consent waiver from the Commissioner.
What does the abandonment condition state? Correct Answer: It prevents the insured from abandoning
property before being reimbursed.
The following is true regarding deductibles EXCEPT Correct Answer: the benefit can exceed the policy
limitations when the deductible is paid.
All of the following elements are necessary for an insurance contract to be valid and enforceable
EXCEPT Correct Answer: the contract must be signed and notarized to be valid.
The description of the insured will be found in which part of an insurance policy? Correct Answer:
definitions
Which of the following does Homeowners Special form (HO-3) cover that Homeowners Broad form
(HO-2) does not? Correct Answer: structures other than the dwelling
Which of the following is the special limit of coverage on the homeowners policy form for property
damage to personal watercraft? Correct Answer: $1,500
Which of the following would be covered perils under the DP-1 Basic policy form? Correct Answer: riot
or civil commotion
All of the following are TRUE for the hired auto liability policy EXCEPT Correct Answer: the
endorsement is available with other commercial auto insurance.
Questions and Verified Answers
All of the following are correct for excess lines carriers EXCEPT Correct Answer: they offer better
contracts at lower rates.
Which of the following is one of the ways the Gramm-Leach Bliley Act affects the insurance industry?
Correct Answer: It establishes which insurance products banks and bank subsidiaries may provide as
principal.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of 2002? Correct
Answer: It limits the exposure of individual insurers and the insurance industry as a whole.
Which of the following ways did the Violent Crime Control and Law Enforcement Act expand federal
laws? Correct Answer: It prohibited anyone in insurance convicted on a state or federal felony involving
dishonesty or breach of trust without a consent waiver from the Commissioner.
What does the abandonment condition state? Correct Answer: It prevents the insured from abandoning
property before being reimbursed.
The following is true regarding deductibles EXCEPT Correct Answer: the benefit can exceed the policy
limitations when the deductible is paid.
All of the following elements are necessary for an insurance contract to be valid and enforceable
EXCEPT Correct Answer: the contract must be signed and notarized to be valid.
The description of the insured will be found in which part of an insurance policy? Correct Answer:
definitions
Which of the following does Homeowners Special form (HO-3) cover that Homeowners Broad form
(HO-2) does not? Correct Answer: structures other than the dwelling
Which of the following is the special limit of coverage on the homeowners policy form for property
damage to personal watercraft? Correct Answer: $1,500
Which of the following would be covered perils under the DP-1 Basic policy form? Correct Answer: riot
or civil commotion
All of the following are TRUE for the hired auto liability policy EXCEPT Correct Answer: the
endorsement is available with other commercial auto insurance.
