NEW YORK STATE PROPERTY
AND CASUALTY INSURANCE
EXAM
A tenant leases space in a building. The tenant's space is damaged by
fire. When will the Commerical Property policy pay for the damage? -
ANSWERS-When the owner of the building submits proof of loss for
the damage
"Impaired Property" under the CGL policy is commonly defined as: -
ANSWERS-Tangible property other than "your property" or "your
work" that cannot be used, or is less useful, due to your faulty work or
your work not completed on time.
Telemarketers who transmit prerecorded messages to consumers who
have not agreed to accept such messages will be fined up to: -
ANSWERS-$16,00 per call. Sellers and telemarketers who transmit
prerecorded messages to consumers who have not agreed in writing to
accept such messages will face penalities of up to $16,000 per call.
A CGL policy for business has a $600,000 aggregate limit and a
$200,000 per occurance limit. The business had one claim for
$300,000 and a second claim for $200,000. How much coverage is
available if the insurd company has third claim? - ANSWERS-
$200,000; The policy can only pay $200,000 of the $300,000 claim
because of the $200,000 occurrence limit. A second claim can also be
covered for $200,000. The two claims that can be paid total $400,000.
,This subtracted from the $600,000 aggregate limit leaves $200,000
for the rest of the policy period.
What coverage might a self-insured employer purchase to cover
Workers Compensation claims that exceeded their plan's pre-
established limits? - ANSWERS-Excess insurance
An insurance company can send a notice to the first named insured
canceling a business-owner policy for "a large liability loss has
occured and the limits are exhausted." - ANSWERS-True; a large
liability is not a legal reason to terminate a policy.
Which policy provides a high single limit of protection for
catastrophic medical expenses? - ANSWERS-Major medical expense
policy; designed to pay catastrophic expenses, using deductibles and
co-insurance limites to control costs (and usage) while providing high
max benefits
What type of automobile coverage might a person need if he or she
does not own a vehicle? - ANSWERS-A named non-owner auto
policy; designed to provide auto coverage for someone who does not
own a vehicle but who may need auto coverage when he or she rents a
car or borrows a vehicle. It is the same as a personal auto policy
except it does not list any specific auto.
The mandatory recoupment of the federal share through policyholder
surcharges under Terrorism Risk Insurance Program Reauthorization
Act of 2015 was increased from 133% to : - ANSWERS-140%; The
TRIA act mandates the government recoup 140% of the difference
, between the actual amount it has paid and the required retention, up
from 133%
Physical damage coverage under a garage policy is a blanket limit for
covered auto, an accurate statement? - ANSWERS-Yes; The dealer's
physical damage limit would be done on a blanket limit basis. This
would apply to comprehensive and collision losses to the auto
inventory of the dealer. This is done because it is simply not practical
to schedule each dealer owned vehicle for physical damage. This is
generally accomplished by the use of a monthly reporting form.
An insured owns a motorcycle, a moped and a motor home. What
endorsement is added to the personal auto policy to provide coverage?
- ANSWERS-Misc. Type Vehicle Endorsement; The "miscellaneous
type vehicle" endorsement is added for these types of recreational
vehicles. Note that ISO has a separate endorsement for snowmobiles.
Investment consultants should purchase which of the following
policies to protect themselves from errors and omissions? -
ANSWERS-Professional Liability; Errors and omissions coverage
does not involve bodily injury or property damage, which is provided
by other types of policies. This is why professional liability coverage
is needed. Medical malpractice insurance does cover bodily injury.
The negligent act of the agent is imputed to the principal if the act
occurred within the course and scope of the agent's employment. This
means that the principal becomes: - ANSWERS-Directly liable for
damages to a third party caused by the agent (employee)..This is
sometimes referred to as "vicarious" liability.
AND CASUALTY INSURANCE
EXAM
A tenant leases space in a building. The tenant's space is damaged by
fire. When will the Commerical Property policy pay for the damage? -
ANSWERS-When the owner of the building submits proof of loss for
the damage
"Impaired Property" under the CGL policy is commonly defined as: -
ANSWERS-Tangible property other than "your property" or "your
work" that cannot be used, or is less useful, due to your faulty work or
your work not completed on time.
Telemarketers who transmit prerecorded messages to consumers who
have not agreed to accept such messages will be fined up to: -
ANSWERS-$16,00 per call. Sellers and telemarketers who transmit
prerecorded messages to consumers who have not agreed in writing to
accept such messages will face penalities of up to $16,000 per call.
A CGL policy for business has a $600,000 aggregate limit and a
$200,000 per occurance limit. The business had one claim for
$300,000 and a second claim for $200,000. How much coverage is
available if the insurd company has third claim? - ANSWERS-
$200,000; The policy can only pay $200,000 of the $300,000 claim
because of the $200,000 occurrence limit. A second claim can also be
covered for $200,000. The two claims that can be paid total $400,000.
,This subtracted from the $600,000 aggregate limit leaves $200,000
for the rest of the policy period.
What coverage might a self-insured employer purchase to cover
Workers Compensation claims that exceeded their plan's pre-
established limits? - ANSWERS-Excess insurance
An insurance company can send a notice to the first named insured
canceling a business-owner policy for "a large liability loss has
occured and the limits are exhausted." - ANSWERS-True; a large
liability is not a legal reason to terminate a policy.
Which policy provides a high single limit of protection for
catastrophic medical expenses? - ANSWERS-Major medical expense
policy; designed to pay catastrophic expenses, using deductibles and
co-insurance limites to control costs (and usage) while providing high
max benefits
What type of automobile coverage might a person need if he or she
does not own a vehicle? - ANSWERS-A named non-owner auto
policy; designed to provide auto coverage for someone who does not
own a vehicle but who may need auto coverage when he or she rents a
car or borrows a vehicle. It is the same as a personal auto policy
except it does not list any specific auto.
The mandatory recoupment of the federal share through policyholder
surcharges under Terrorism Risk Insurance Program Reauthorization
Act of 2015 was increased from 133% to : - ANSWERS-140%; The
TRIA act mandates the government recoup 140% of the difference
, between the actual amount it has paid and the required retention, up
from 133%
Physical damage coverage under a garage policy is a blanket limit for
covered auto, an accurate statement? - ANSWERS-Yes; The dealer's
physical damage limit would be done on a blanket limit basis. This
would apply to comprehensive and collision losses to the auto
inventory of the dealer. This is done because it is simply not practical
to schedule each dealer owned vehicle for physical damage. This is
generally accomplished by the use of a monthly reporting form.
An insured owns a motorcycle, a moped and a motor home. What
endorsement is added to the personal auto policy to provide coverage?
- ANSWERS-Misc. Type Vehicle Endorsement; The "miscellaneous
type vehicle" endorsement is added for these types of recreational
vehicles. Note that ISO has a separate endorsement for snowmobiles.
Investment consultants should purchase which of the following
policies to protect themselves from errors and omissions? -
ANSWERS-Professional Liability; Errors and omissions coverage
does not involve bodily injury or property damage, which is provided
by other types of policies. This is why professional liability coverage
is needed. Medical malpractice insurance does cover bodily injury.
The negligent act of the agent is imputed to the principal if the act
occurred within the course and scope of the agent's employment. This
means that the principal becomes: - ANSWERS-Directly liable for
damages to a third party caused by the agent (employee)..This is
sometimes referred to as "vicarious" liability.
