Contact for further consultation
New York License
Comprehensive
Questions (Frequently
Tested)with Verified
Answers Graded A+
1/
24
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1. Offering any return of premium, valuable consideration or
inducement when purchasing an insurance policy is an example of
Answer: Answer: I. Illegal Inducement
II. Rebating
2. Under a watercraft or yacht policy how claims are settled Answer:
Answer: Actual cash value
3. When may an insured sue an insurance company? Answer: Not until the
insured has complied with all policy provisions and within the time limit specified in the state
laws
4. What is the definition of a non-resident agent? Answer: Someone licensed in
their state and obtains a license in another state to solicit insurance business in that state. is
correct.
5. The court awards a judgment against the insured for $300,000
plus $10,000 of accrued interest and the legal fees amount to an
additional $35,000. Our insured has a $300,000 liability limit on the
policy. How much will be paid by the policy? Answer: The correct answer is
Answer: $345,000.
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Explanation Answer:
The $10,000 of accrued pre judgment interest and the $35,000 cost of the defense are all payable as
additional coverage on the policy. These amounts have no attect on the limit of liability available in a
judgment against the insured. So the entire amount of $345,000 is payable in this case.
6. The minimum coverage required in New York for uninsured
motorists bodily injury is Answer: Answer: The correct answer is Answer: $25,000 per
person, $50,000 per accident. .
Explanation Answer:
New York state law established the minimum coverage limits of $25,000 per person, $50,000 per accident
and up to
$50,000 per person, and $100,000 per accident for death.
7. If an insured wishes to cover the mobile home while it is being
transported from one location to another would Answer: Answer: Purchase the
Mobile Home Transportation Coverage Endorse- ment on the homeowner policy
8. The workers compensation policy language is written by the Answer:
Answer: National Council on Compensation Insurance (NCCI)
9. When a homeowners policy has been in effect for 60 days in New
York, an insurer can cancel at anytime for any of the following
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24
New York License
Comprehensive
Questions (Frequently
Tested)with Verified
Answers Graded A+
1/
24
, Contact for further consultation
1. Offering any return of premium, valuable consideration or
inducement when purchasing an insurance policy is an example of
Answer: Answer: I. Illegal Inducement
II. Rebating
2. Under a watercraft or yacht policy how claims are settled Answer:
Answer: Actual cash value
3. When may an insured sue an insurance company? Answer: Not until the
insured has complied with all policy provisions and within the time limit specified in the state
laws
4. What is the definition of a non-resident agent? Answer: Someone licensed in
their state and obtains a license in another state to solicit insurance business in that state. is
correct.
5. The court awards a judgment against the insured for $300,000
plus $10,000 of accrued interest and the legal fees amount to an
additional $35,000. Our insured has a $300,000 liability limit on the
policy. How much will be paid by the policy? Answer: The correct answer is
Answer: $345,000.
1/
24
, Contact for further consultation
Explanation Answer:
The $10,000 of accrued pre judgment interest and the $35,000 cost of the defense are all payable as
additional coverage on the policy. These amounts have no attect on the limit of liability available in a
judgment against the insured. So the entire amount of $345,000 is payable in this case.
6. The minimum coverage required in New York for uninsured
motorists bodily injury is Answer: Answer: The correct answer is Answer: $25,000 per
person, $50,000 per accident. .
Explanation Answer:
New York state law established the minimum coverage limits of $25,000 per person, $50,000 per accident
and up to
$50,000 per person, and $100,000 per accident for death.
7. If an insured wishes to cover the mobile home while it is being
transported from one location to another would Answer: Answer: Purchase the
Mobile Home Transportation Coverage Endorse- ment on the homeowner policy
8. The workers compensation policy language is written by the Answer:
Answer: National Council on Compensation Insurance (NCCI)
9. When a homeowners policy has been in effect for 60 days in New
York, an insurer can cancel at anytime for any of the following
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24
