Offering any return of premium, valuable consideration or inducement when purchasing an
insurance policy is an example of: - ANSWER I. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - ANSWER Actual cash value
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
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 cor-
rect.
The court awards a judgment against the insured for $300,000 plus $10,000 of accrued inter-
est 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: $345,000.
Explanation:
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 affect on the limit of
liability available in a judgment against the insured. So the entire amount of $345,000 is pay-
able in this case.
The minimum coverage required in New York for uninsured motorists bodily injury is: - AN-
SWER The correct answer is: $25,000 per person, $50,000 per accident. .
Explanation:
1
, 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.
If an insured wishes to cover the mobile home while it is being transported from one loca-
tion to another would: - ANSWER Purchase the Mobile Home Transportation Coverage
Endorsement on the homeowner policy
The workers compensation policy language is written by the: - ANSWER National Council
on Compensation Insurance (NCCI)
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 reasons, EXCEPT: - ANSWER A large loss has occurred
Under the underinsured motorist limit, how much will be paid on a claim providing the in-
sured can prove his or her claim for damages? - ANSWER The difference between the
negligent driver's coverage and the insured's underinsured motorist coverage
Who signs the declarations page on most property and casualty policies? - ANSWER An
Authorized Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of cur-
rency? - ANSWER Employee Theft.
Once the adjuster is appointed by the insurer to represent the insurer, the adjuster has the
power to do all of the following, EXCEPT: - ANSWER Bind additional coverage.
The giving up of a known right is known as: - ANSWER Waiver
What is the definition of custom farming? - ANSWER Farming for Others.
Explanation:
2
insurance policy is an example of: - ANSWER I. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - ANSWER Actual cash value
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
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 cor-
rect.
The court awards a judgment against the insured for $300,000 plus $10,000 of accrued inter-
est 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: $345,000.
Explanation:
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 affect on the limit of
liability available in a judgment against the insured. So the entire amount of $345,000 is pay-
able in this case.
The minimum coverage required in New York for uninsured motorists bodily injury is: - AN-
SWER The correct answer is: $25,000 per person, $50,000 per accident. .
Explanation:
1
, 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.
If an insured wishes to cover the mobile home while it is being transported from one loca-
tion to another would: - ANSWER Purchase the Mobile Home Transportation Coverage
Endorsement on the homeowner policy
The workers compensation policy language is written by the: - ANSWER National Council
on Compensation Insurance (NCCI)
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 reasons, EXCEPT: - ANSWER A large loss has occurred
Under the underinsured motorist limit, how much will be paid on a claim providing the in-
sured can prove his or her claim for damages? - ANSWER The difference between the
negligent driver's coverage and the insured's underinsured motorist coverage
Who signs the declarations page on most property and casualty policies? - ANSWER An
Authorized Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of cur-
rency? - ANSWER Employee Theft.
Once the adjuster is appointed by the insurer to represent the insurer, the adjuster has the
power to do all of the following, EXCEPT: - ANSWER Bind additional coverage.
The giving up of a known right is known as: - ANSWER Waiver
What is the definition of custom farming? - ANSWER Farming for Others.
Explanation:
2
