New York State Property and Casualty Insurance Exam
with all Correct & 100% Verified Answers |Latest Version
|Already Graded A+
Physical damage coverage under a garage policy is a blanket limit for covered auto, an accurate
statement? ✔Correct Answer-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? ✔Correct Answer-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? ✔Correct Answer-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: ✔Correct
Answer-Directly liable for damages to a third party caused by the agent (employee)..This is
sometimes referred to as "vicarious" liability.
Which of the Homeowner's polices does not include coverage for flood? ✔Correct Answer-An
HO-3 Policy; A homeowner policy specifically excludes flood coverage.
The purpose of a Medicare Supplement policy, (aka Medi Gap), is to: ✔Correct Answer-pay for
services not covered by Medicare; Medicare coverage contains deductibles and coinsurance
payments. Having a Medicare Supplement/Medi Gap policy, offered by commercial insurers, is
designed to cover those coverage gaps.
Under the Federal Insurance Fraud and False Statements Act, if someone is prohibited from
doing business in a state, approval to resume transacting business must be granted by:
✔Correct Answer-Insurance Regulatory Official; Only an insurance regulatory official, such as
the Insurance Commissioner, can grant permission to resume business.
, What is not reflected in a privacy report? ✔Correct Answer-Categories of medical
information; Medical information is not a topic in a privacy report. It deals with financial issues
only.
If the surviving spouse of a covered worker does not remarry, how long are death benefits paid
to the surviving spouse if the worker is killed in a work related incident in New York?
✔Correct Answer-For life; Generally, the surviving spouse receives benefits for the remainder of
his or her life, except in situations where they remarry. In situations where the surviving spouse
remarries, the spouse receives a lump-sum of two years of benefits.
An insured has purchased a Medicare supplement policy from a new insurer, replacing a policy
from a previous insurer. A "Notice of Replacement" must be provided to this individual by:
✔Correct Answer-The replacing insurer; Since this transaction is a replacement, the insurance
regulations of the state require that the replacing insurer must provide the applicant with a
Notice of Replacement
What mandate is given in the Affordable Care Act requiring all health plans to offer child
dependency coverage to age 26? ✔Correct Answer-There is no mandate in any federal or
state law requiring employer group plans or individual health plans to provide dependent health
coverage; None. Health plans are not required by any law to offer dependent care coverage.
However, if a group health plan or insurer provides coverage for children, the plan must make
such coverage available for a child until age 26.
What injury is covered under the medical payments section of an insured's CGL policy?
✔Correct Answer-A shopper is injured while visiting a showroom owned by the insured; The
coverage excludes injuries to employees, persons participating in an athletic event on the
insured's premises and injuries to tenants. The shopper is the only third party that would be
covered.
Which type of HMO employs its own physicians on a salary basis? ✔Correct Answer-Closed
Panel; Closed panel plans aka Staff model plans, employ physicians, nurses and other health
care professionals.
What is an example of a privately run insurers? ✔Correct Answer-The excess and surplus lines
markets are privately run insurers that usually writes risks that the standard market does not
want to write.
Which of the dwelling forms provides broad form coverage for personal property? ✔Correct
Answer-DP-2 and DP-3 only; The DP-1 provides very limited coverage for personal property.
Both the broad form (DP-2) and the special form (DP-3) provide broad form coverage for
personal property.
An insured purchases two homeowner policies from two different insurance companies. If a
covered loss occurs, on what basis will the loss be settled by each of the insurers? ✔Correct
with all Correct & 100% Verified Answers |Latest Version
|Already Graded A+
Physical damage coverage under a garage policy is a blanket limit for covered auto, an accurate
statement? ✔Correct Answer-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? ✔Correct Answer-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? ✔Correct Answer-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: ✔Correct
Answer-Directly liable for damages to a third party caused by the agent (employee)..This is
sometimes referred to as "vicarious" liability.
Which of the Homeowner's polices does not include coverage for flood? ✔Correct Answer-An
HO-3 Policy; A homeowner policy specifically excludes flood coverage.
The purpose of a Medicare Supplement policy, (aka Medi Gap), is to: ✔Correct Answer-pay for
services not covered by Medicare; Medicare coverage contains deductibles and coinsurance
payments. Having a Medicare Supplement/Medi Gap policy, offered by commercial insurers, is
designed to cover those coverage gaps.
Under the Federal Insurance Fraud and False Statements Act, if someone is prohibited from
doing business in a state, approval to resume transacting business must be granted by:
✔Correct Answer-Insurance Regulatory Official; Only an insurance regulatory official, such as
the Insurance Commissioner, can grant permission to resume business.
, What is not reflected in a privacy report? ✔Correct Answer-Categories of medical
information; Medical information is not a topic in a privacy report. It deals with financial issues
only.
If the surviving spouse of a covered worker does not remarry, how long are death benefits paid
to the surviving spouse if the worker is killed in a work related incident in New York?
✔Correct Answer-For life; Generally, the surviving spouse receives benefits for the remainder of
his or her life, except in situations where they remarry. In situations where the surviving spouse
remarries, the spouse receives a lump-sum of two years of benefits.
An insured has purchased a Medicare supplement policy from a new insurer, replacing a policy
from a previous insurer. A "Notice of Replacement" must be provided to this individual by:
✔Correct Answer-The replacing insurer; Since this transaction is a replacement, the insurance
regulations of the state require that the replacing insurer must provide the applicant with a
Notice of Replacement
What mandate is given in the Affordable Care Act requiring all health plans to offer child
dependency coverage to age 26? ✔Correct Answer-There is no mandate in any federal or
state law requiring employer group plans or individual health plans to provide dependent health
coverage; None. Health plans are not required by any law to offer dependent care coverage.
However, if a group health plan or insurer provides coverage for children, the plan must make
such coverage available for a child until age 26.
What injury is covered under the medical payments section of an insured's CGL policy?
✔Correct Answer-A shopper is injured while visiting a showroom owned by the insured; The
coverage excludes injuries to employees, persons participating in an athletic event on the
insured's premises and injuries to tenants. The shopper is the only third party that would be
covered.
Which type of HMO employs its own physicians on a salary basis? ✔Correct Answer-Closed
Panel; Closed panel plans aka Staff model plans, employ physicians, nurses and other health
care professionals.
What is an example of a privately run insurers? ✔Correct Answer-The excess and surplus lines
markets are privately run insurers that usually writes risks that the standard market does not
want to write.
Which of the dwelling forms provides broad form coverage for personal property? ✔Correct
Answer-DP-2 and DP-3 only; The DP-1 provides very limited coverage for personal property.
Both the broad form (DP-2) and the special form (DP-3) provide broad form coverage for
personal property.
An insured purchases two homeowner policies from two different insurance companies. If a
covered loss occurs, on what basis will the loss be settled by each of the insurers? ✔Correct
