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Auto Insurance NYS Exam with accurate detailed solutions
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NY State Vehicle Financial Responsibility Law - ✔✔1. All vehicles except for emergency
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vehicles must carry liability insurance. Insurance satisfies the states requirement that auto
|| || || || || || || || || || || ||
owners have enough funds to pay for losses that they are legally liable for.
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2. Proof of coverage must be carried.
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*Must include name and address of provider
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3. Both the owner and the driver are legally liable for accidents.
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4. The vehicle owners insurance is PRIMARY and will indemnify both the owner of the
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vehicle and the driver. || || || ||
5. The drivers insurance is EXCESS and will indemnify only the driver
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Comprehensive Motor Vehicles Reprarations Act - ✔✔This law stipulates the criteria for || || || || || || || || || || || ||
suing in NYS when someone is injured in an automobile accident.
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Tort Limitation - ✔✔A tort is a civil, not criminal wrong that violates the rights of another.
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Persons injured in an auto mobile accident in NYS can only sue if they meet a Verbal
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Threshold
Verbal Threshold - ✔✔A person can only sue if serious injury is sustained:
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1. Death, dismemberment, or signficant disfiguration.
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2. Loss of an organ or loss of use of an organ
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3. Any fracture
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4. Any loss of a bodily function for 90 days or more.
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Mandatory Photo Inspection - ✔✔Applies to vehicles with any physical damage coverage
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(Collision and/or Other Than Collison *Comprehensive) || || || || ||
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*This law gives the insurance company the right to inspect the vehicle
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*The insured has 5 days to complete the inspection
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*If not done in 5 days, then physical damage coverage will be suspended.
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*Suspended physical damage coverage will be reinstated upon inspection. || || || || || || || ||
Motor Vehicle Accident Indemnification Corporation - ✔✔This applies when both the
|| || || || || || || || || || ||
injured person as well as the person causing the accident have no insurance.
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(ex. An uninsured passenger injured while an uninsured driver -or- an uninsured
|| || || || || || || || || || || ||
pedestrian injured when hit by an uninsured driver) || || || || || || ||
*All auto insurers in NYS are assessed a fee for this program.
|| || || || || || || || || || || ||
*The program pays benefits to the injured party when caused by an uninsured motorist.
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*Limit is 25/50 || ||
*Only covers accidents occuring within NYS.
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Insurance Information and Enforcement System (IIES) - ✔✔This is a NYS Vehicle and
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Traffic Law designed to reduce the number of uninsured vehicles.
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*The insurer must notify DMV within 7 days of issuing a policy.
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*The insurer must notify DMV within 30 days of canceling a policy
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Cancellation Notice - ✔✔*Insured can cancel at any time--may be required to cancel in || || || || || || || || || || || || || ||
writing. ||
*Insurance company must provide written notification || || || || ||
|| *15 days for nonpayment
|| || ||
|| *20 days for any other reason
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Valid Reasons to Cancel a Policy - ✔✔1. Policy in effect 1-60 days
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|| *Policy can be cancelled for a broad variety of reasons
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, 2
2. Policy in effect 61 or more days
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|| *Non-payment of premium || ||
|| *Fraud and mis-representation or concealment || || || ||
|| *License suspension or revocation || || ||
Non-renewals - ✔✔*Paperwork must be mailed out at least 45 days prior to expiration, but || || || || || || || || || || || || || || ||
not more than 60 days prior to expiration of policy
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*Policies can only be non-renewed after one year on the anniversary date
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Choice of Repair Shop - ✔✔Auto insurers can recommend or suggest specified repair shops,
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but consumers are not required to use those shops. They can use any repair shop they
|| || || || || || || || || || || || || || || || ||
choose.
New York Rental Endorsement - ✔✔This is a mandatory endorsement in New York that
|| || || || || || || || || || || || || ||
when renting a car provides both Collision and Comprehensive coverage on a rental
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vehicle, regardless of the coverage carried on the policy.
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This allows the state to endorse state changes.
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Personal Auto Policy - ✔✔P.A.P. || || || ||
PAP Eligible Vehicles - ✔✔Private passenger vehicles
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(Includes autos, vans, and pick-ups) || || || ||
Private passenger vehicles used on the insured's farm is covered.
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YOU - ✔✔The person named on the declaration--also that persons spouse if they reside in
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the same household
|| ||
Auto Insurance NYS Exam with accurate detailed solutions
|| || || || || || ||
NY State Vehicle Financial Responsibility Law - ✔✔1. All vehicles except for emergency
|| || || || || || || || || || || || ||
vehicles must carry liability insurance. Insurance satisfies the states requirement that auto
|| || || || || || || || || || || ||
owners have enough funds to pay for losses that they are legally liable for.
|| || || || || || || || || || || || || ||
2. Proof of coverage must be carried.
|| || || || || || ||
*Must include name and address of provider
|| || || || || ||
3. Both the owner and the driver are legally liable for accidents.
|| || || || || || || || || || || ||
4. The vehicle owners insurance is PRIMARY and will indemnify both the owner of the
|| || || || || || || || || || || || || || ||
vehicle and the driver. || || || ||
5. The drivers insurance is EXCESS and will indemnify only the driver
|| || || || || || || || || || ||
Comprehensive Motor Vehicles Reprarations Act - ✔✔This law stipulates the criteria for || || || || || || || || || || || ||
suing in NYS when someone is injured in an automobile accident.
|| || || || || || || || || ||
Tort Limitation - ✔✔A tort is a civil, not criminal wrong that violates the rights of another.
|| || || || || || || || || || || || || || || || ||
Persons injured in an auto mobile accident in NYS can only sue if they meet a Verbal
|| || || || || || || || || || || || || || || || ||
Threshold
Verbal Threshold - ✔✔A person can only sue if serious injury is sustained:
|| || || || || || || || || || || ||
1. Death, dismemberment, or signficant disfiguration.
|| || || || || ||
2. Loss of an organ or loss of use of an organ
|| || || || || || || || || || ||
3. Any fracture
|| ||
4. Any loss of a bodily function for 90 days or more.
|| || || || || || || || || || ||
Mandatory Photo Inspection - ✔✔Applies to vehicles with any physical damage coverage
|| || || || || || || || || || || ||
(Collision and/or Other Than Collison *Comprehensive) || || || || ||
,2
*This law gives the insurance company the right to inspect the vehicle
|| || || || || || || || || || ||
*The insured has 5 days to complete the inspection
|| || || || || || || ||
*If not done in 5 days, then physical damage coverage will be suspended.
|| || || || || || || || || || || ||
*Suspended physical damage coverage will be reinstated upon inspection. || || || || || || || ||
Motor Vehicle Accident Indemnification Corporation - ✔✔This applies when both the
|| || || || || || || || || || ||
injured person as well as the person causing the accident have no insurance.
|| || || || || || || || || || || || ||
(ex. An uninsured passenger injured while an uninsured driver -or- an uninsured
|| || || || || || || || || || || ||
pedestrian injured when hit by an uninsured driver) || || || || || || ||
*All auto insurers in NYS are assessed a fee for this program.
|| || || || || || || || || || || ||
*The program pays benefits to the injured party when caused by an uninsured motorist.
|| || || || || || || || || || || || || ||
*Limit is 25/50 || ||
*Only covers accidents occuring within NYS.
|| || || || ||
Insurance Information and Enforcement System (IIES) - ✔✔This is a NYS Vehicle and
|| || || || || || || || || || || || ||
Traffic Law designed to reduce the number of uninsured vehicles.
|| || || || || || || || || ||
*The insurer must notify DMV within 7 days of issuing a policy.
|| || || || || || || || || || || ||
*The insurer must notify DMV within 30 days of canceling a policy
|| || || || || || || || || || ||
Cancellation Notice - ✔✔*Insured can cancel at any time--may be required to cancel in || || || || || || || || || || || || || ||
writing. ||
*Insurance company must provide written notification || || || || ||
|| *15 days for nonpayment
|| || ||
|| *20 days for any other reason
|| || || || ||
Valid Reasons to Cancel a Policy - ✔✔1. Policy in effect 1-60 days
|| || || || || || || || || || || ||
|| *Policy can be cancelled for a broad variety of reasons
|| || || || || || || || ||
, 2
2. Policy in effect 61 or more days
|| || || || || || ||
|| *Non-payment of premium || ||
|| *Fraud and mis-representation or concealment || || || ||
|| *License suspension or revocation || || ||
Non-renewals - ✔✔*Paperwork must be mailed out at least 45 days prior to expiration, but || || || || || || || || || || || || || || ||
not more than 60 days prior to expiration of policy
|| || || || || || || || ||
*Policies can only be non-renewed after one year on the anniversary date
|| || || || || || || || || || ||
Choice of Repair Shop - ✔✔Auto insurers can recommend or suggest specified repair shops,
|| || || || || || || || || || || || ||
but consumers are not required to use those shops. They can use any repair shop they
|| || || || || || || || || || || || || || || || ||
choose.
New York Rental Endorsement - ✔✔This is a mandatory endorsement in New York that
|| || || || || || || || || || || || || ||
when renting a car provides both Collision and Comprehensive coverage on a rental
|| || || || || || || || || || || || ||
vehicle, regardless of the coverage carried on the policy.
|| || || || || || || || ||
This allows the state to endorse state changes.
|| || || || || || ||
Personal Auto Policy - ✔✔P.A.P. || || || ||
PAP Eligible Vehicles - ✔✔Private passenger vehicles
|| || || || || || ||
(Includes autos, vans, and pick-ups) || || || ||
Private passenger vehicles used on the insured's farm is covered.
|| || || || || || || || ||
YOU - ✔✔The person named on the declaration--also that persons spouse if they reside in
|| || || || || || || || || || || || || || ||
the same household
|| ||
