NEW YORK STATE PROPERTY AND CASUALTY
LICENSING EXAM, QUESTIONS WITH CORRECT
ANSWERS (A+)
Pro Rata Liability Clause is included in an insurance policy to deal with the problem of -CORRECT
ANSWERS- Duplicate insurance policies
The purpose of this clause is to illustrate the method to determine each insurer's liability in case of a
loss. Each insurer pays its fair share determined by the percentage that the carrier's limit bears to the
total coverage carried.
pro rata liability -CORRECT ANSWERS- If a loss occurs that is covered by more than 1 insurance policy
that was purchased by the insured, then each policy pays a portion of the loss that is proportional to the
amount of that policy over the total amount of all policies for the loss—each policy pays its pro rata
share.
What is meant by Res Ipsa Loquitur? -CORRECT ANSWERS- Res ipsa loquitur means, roughly, "the thing
speaks for itself." Courts developed the concept of Res Ipsa Loquitur to deal with cases in which the
actual negligent act cannot be proved, but it is clear that the injury was caused by negligence.
What territories are covered by commercial auto insurance? -CORRECT ANSWERS- The coverage
territory granted in commercial auto insurance is the United States, its territories and possessions,
Puerto Rico and Canada.
What does automobile insurance Supplementary Payments refer to? -CORRECT ANSWERS- Payment of
defense and other expenses by the insurance company beyond the limits of liability..
Any expense the insurance company wishes to incur in the processing of a claim is outside the limits of
coverage. The insured is not penalized.
Medical Payments coverage under a Homeowner policy are available for expenses resulting from an
injury to: -CORRECT ANSWERS- A residence employee..
This could be someone who mows the lawn. However, if a residence employee is covered under
Workers Compensation Coverage then the Medical Payments Coverage would not apply. Coverage does
not apply to the insured or member of the household. Roomers, boarders and tenants are not covered
as well
, what does Homeowners - Coverage C exclude? -CORRECT ANSWERS- The Homeowners forms exclude
certain types of property. Pets are not covered for loss by an insured peril. The policy also excludes
coverage for property that is more specifically insured. Property of tenants is also excluded.
George Wilson has a personal auto policy. What coverage that would apply when a deer leaps onto Mr.
Wilson's car and causes extensive damage? -CORRECT ANSWERS- Comprehensive (other than collision).
Contact with a bird or animal is considered to be an "other than collision" loss.
insurance producer -CORRECT ANSWERS- an insurance agent, insurance broker, reinsurance
intermediary, excess lines broker, or any other person required to be licensed under the laws of this
state to sell, solicit, or negotiate insurance
home state -CORRECT ANSWERS- the District of Columbia or any state or territory of the United States in
which an insurance producer maintains his, her or its principal place of residence or principal place of
business and its licensed to act as an insurance producer
who represents the insurer in an insurance transaction? -CORRECT ANSWERS- agent
who do independent adjusters work on behalf of? -CORRECT ANSWERS- insureds
when do property and casualty agents' licenses expire on? -CORRECT ANSWERS- their birthdays
the continuing education requirement in New York requires________ hours of continuing education
every ______. -CORRECT ANSWERS- 15 ; biennium (specified period of two years)
state regulation promotes the public welfare by monitoring what aspects of insurer activities? -CORRECT
ANSWERS- solvency (the ability of a company to meet its long-term financial obligations.), policy forms,
rates
the superintendent of insurance does not have the power to perform what activity? -CORRECT
ANSWERS- create insurance law
LICENSING EXAM, QUESTIONS WITH CORRECT
ANSWERS (A+)
Pro Rata Liability Clause is included in an insurance policy to deal with the problem of -CORRECT
ANSWERS- Duplicate insurance policies
The purpose of this clause is to illustrate the method to determine each insurer's liability in case of a
loss. Each insurer pays its fair share determined by the percentage that the carrier's limit bears to the
total coverage carried.
pro rata liability -CORRECT ANSWERS- If a loss occurs that is covered by more than 1 insurance policy
that was purchased by the insured, then each policy pays a portion of the loss that is proportional to the
amount of that policy over the total amount of all policies for the loss—each policy pays its pro rata
share.
What is meant by Res Ipsa Loquitur? -CORRECT ANSWERS- Res ipsa loquitur means, roughly, "the thing
speaks for itself." Courts developed the concept of Res Ipsa Loquitur to deal with cases in which the
actual negligent act cannot be proved, but it is clear that the injury was caused by negligence.
What territories are covered by commercial auto insurance? -CORRECT ANSWERS- The coverage
territory granted in commercial auto insurance is the United States, its territories and possessions,
Puerto Rico and Canada.
What does automobile insurance Supplementary Payments refer to? -CORRECT ANSWERS- Payment of
defense and other expenses by the insurance company beyond the limits of liability..
Any expense the insurance company wishes to incur in the processing of a claim is outside the limits of
coverage. The insured is not penalized.
Medical Payments coverage under a Homeowner policy are available for expenses resulting from an
injury to: -CORRECT ANSWERS- A residence employee..
This could be someone who mows the lawn. However, if a residence employee is covered under
Workers Compensation Coverage then the Medical Payments Coverage would not apply. Coverage does
not apply to the insured or member of the household. Roomers, boarders and tenants are not covered
as well
, what does Homeowners - Coverage C exclude? -CORRECT ANSWERS- The Homeowners forms exclude
certain types of property. Pets are not covered for loss by an insured peril. The policy also excludes
coverage for property that is more specifically insured. Property of tenants is also excluded.
George Wilson has a personal auto policy. What coverage that would apply when a deer leaps onto Mr.
Wilson's car and causes extensive damage? -CORRECT ANSWERS- Comprehensive (other than collision).
Contact with a bird or animal is considered to be an "other than collision" loss.
insurance producer -CORRECT ANSWERS- an insurance agent, insurance broker, reinsurance
intermediary, excess lines broker, or any other person required to be licensed under the laws of this
state to sell, solicit, or negotiate insurance
home state -CORRECT ANSWERS- the District of Columbia or any state or territory of the United States in
which an insurance producer maintains his, her or its principal place of residence or principal place of
business and its licensed to act as an insurance producer
who represents the insurer in an insurance transaction? -CORRECT ANSWERS- agent
who do independent adjusters work on behalf of? -CORRECT ANSWERS- insureds
when do property and casualty agents' licenses expire on? -CORRECT ANSWERS- their birthdays
the continuing education requirement in New York requires________ hours of continuing education
every ______. -CORRECT ANSWERS- 15 ; biennium (specified period of two years)
state regulation promotes the public welfare by monitoring what aspects of insurer activities? -CORRECT
ANSWERS- solvency (the ability of a company to meet its long-term financial obligations.), policy forms,
rates
the superintendent of insurance does not have the power to perform what activity? -CORRECT
ANSWERS- create insurance law
