NEW YORK INDEPENDENT GENERAL ADJUSTER EXAM SIMULATOR –
SERIES 17-70
1. Which of the following would NOT be found in the conditions section of a
homeowners insurance policy?
Subrogation rights
Duties of the insured
Insurance premium
Mortgagee clause: The insurance premium is not shown in the conditions section of the homeowner policy.
2. Which of the following is true regarding dealers physical damage coverage under a
garage policy?
It is a blanket limit for covered autos.
It extends coverage to customers' autos.
It is an annual maximum limit for comprehensive and collision losses. It is a
maximum limit per auto.: It is a blanket limit for covered autos.
EXPLANATION:
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.
3. Which of the following would not be considered an occupational disease?
Black lung.
Mesothelioma.
Pulmonary fibrosis.
Bending over to pick up a box and hurting your back.: Bending over to pick up a box and hurting your back.
is correct.
EXPLANATION:
Bending over to pick up a box and causing an injury is a work related injury and not a disease.
4. Which of the following is correct in order for the additional coverage of
"collapse" to be available under special BOP?
,The collapse must be such that the building can not be used as intended The
remaining part of the structure standing must be demolished
The remaining part of the structure must be judged unsound to rebuild on The building
must be leaning, settling or in danger of collapsing: The correct answer is: The collapse must be such that
the building can not be used as intended.
EXPLANATION:
The definition of collapse in the policy is the "abrupt falling down or caving in of the structure or part of the structure" and it must render the
building as unusable as intended.
5. Which of the following would not be eligible for coverage under a livestock
floater?
Poultry Cattle
Sheep
Swine: EXPLANATION:
Poultry is not eligible property under the livestock floater.
6. The insured owns a motorhome that is not covered by the insured's Personal Auto
policy. This vehicle can be added to the policy by using which of the following
endorsements?
Miscellaneous Type Vehicle endorsement
Special Type Vehicle endorsement Recreational
Vehicle endorsement
Motorhome endorsement: The correct answer is: Miscellaneous Type Vehicle endorsement. EXPLANATION:
The Miscellaneous Type Vehicle endorsement can be used to cover motorhomes, motorcycles, etc.
7. Insurers must maintain a complaint record for after all elements of
the complaint are resolved and the file is closed.
five years
three calendar years one
year
, six calendar years: The correct answer is: six calendar years. EXPLANATION:
Insurers are required to maintain complaint records for six calendar years.
8. A BOP policy has a $500,000 occurrence limit for liability and a $1,000,000
aggregate limit. If claims for $600,000 and $400,000 have been filed in two separate
incidents, how much coverage remains, if any, for any future claims submitted during
the policy term?
Answer Choices:
$500,000
-0-
$100,000
$1,000,000: The correct answer is: $100,000. EXPLANATION:
The most the policy will pay for any one single occurrence is $500,000. So that amount would be payable for the first loss. Once paid that
amount must be subtracted from the Aggregate limit (the most available for all claims in the policy year) leaving $500,000 remaining in the
aggregate. The second claim is within the occurrence limit and since there is enough left in the aggregate, the entire $400,000 is payable.
After subtracting the $400,000 loss from the remaining aggregate, $100,000 is left to pay any and all future claims for the remainder of
the policy term.
9. All of the following are uniform mandatory policy provisions, except the:
entire contract provision. grace
period provision.
reinstatement provision.
cancellation provision.: The correct answer is: cancellation provision..
EXPLANATION:
The cancellation provision is an optional provision giving insurers the ability to determine how the renewability of a health policy will be
renewed.
10. With an Equipment Breakdown policy, the loss settlement is:
ACV all of the time
SERIES 17-70
1. Which of the following would NOT be found in the conditions section of a
homeowners insurance policy?
Subrogation rights
Duties of the insured
Insurance premium
Mortgagee clause: The insurance premium is not shown in the conditions section of the homeowner policy.
2. Which of the following is true regarding dealers physical damage coverage under a
garage policy?
It is a blanket limit for covered autos.
It extends coverage to customers' autos.
It is an annual maximum limit for comprehensive and collision losses. It is a
maximum limit per auto.: It is a blanket limit for covered autos.
EXPLANATION:
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.
3. Which of the following would not be considered an occupational disease?
Black lung.
Mesothelioma.
Pulmonary fibrosis.
Bending over to pick up a box and hurting your back.: Bending over to pick up a box and hurting your back.
is correct.
EXPLANATION:
Bending over to pick up a box and causing an injury is a work related injury and not a disease.
4. Which of the following is correct in order for the additional coverage of
"collapse" to be available under special BOP?
,The collapse must be such that the building can not be used as intended The
remaining part of the structure standing must be demolished
The remaining part of the structure must be judged unsound to rebuild on The building
must be leaning, settling or in danger of collapsing: The correct answer is: The collapse must be such that
the building can not be used as intended.
EXPLANATION:
The definition of collapse in the policy is the "abrupt falling down or caving in of the structure or part of the structure" and it must render the
building as unusable as intended.
5. Which of the following would not be eligible for coverage under a livestock
floater?
Poultry Cattle
Sheep
Swine: EXPLANATION:
Poultry is not eligible property under the livestock floater.
6. The insured owns a motorhome that is not covered by the insured's Personal Auto
policy. This vehicle can be added to the policy by using which of the following
endorsements?
Miscellaneous Type Vehicle endorsement
Special Type Vehicle endorsement Recreational
Vehicle endorsement
Motorhome endorsement: The correct answer is: Miscellaneous Type Vehicle endorsement. EXPLANATION:
The Miscellaneous Type Vehicle endorsement can be used to cover motorhomes, motorcycles, etc.
7. Insurers must maintain a complaint record for after all elements of
the complaint are resolved and the file is closed.
five years
three calendar years one
year
, six calendar years: The correct answer is: six calendar years. EXPLANATION:
Insurers are required to maintain complaint records for six calendar years.
8. A BOP policy has a $500,000 occurrence limit for liability and a $1,000,000
aggregate limit. If claims for $600,000 and $400,000 have been filed in two separate
incidents, how much coverage remains, if any, for any future claims submitted during
the policy term?
Answer Choices:
$500,000
-0-
$100,000
$1,000,000: The correct answer is: $100,000. EXPLANATION:
The most the policy will pay for any one single occurrence is $500,000. So that amount would be payable for the first loss. Once paid that
amount must be subtracted from the Aggregate limit (the most available for all claims in the policy year) leaving $500,000 remaining in the
aggregate. The second claim is within the occurrence limit and since there is enough left in the aggregate, the entire $400,000 is payable.
After subtracting the $400,000 loss from the remaining aggregate, $100,000 is left to pay any and all future claims for the remainder of
the policy term.
9. All of the following are uniform mandatory policy provisions, except the:
entire contract provision. grace
period provision.
reinstatement provision.
cancellation provision.: The correct answer is: cancellation provision..
EXPLANATION:
The cancellation provision is an optional provision giving insurers the ability to determine how the renewability of a health policy will be
renewed.
10. With an Equipment Breakdown policy, the loss settlement is:
ACV all of the time
