New York State Property and Casualty
Licensing Exam Questions and Answers
Graded A+
Pro Rata Liability Clause is included in an insurance policy to deal with the problem of
✔✔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 ✔✔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? ✔✔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? ✔✔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? ✔✔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: ✔✔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? ✔✔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.
Licensing Exam Questions and Answers
Graded A+
Pro Rata Liability Clause is included in an insurance policy to deal with the problem of
✔✔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 ✔✔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? ✔✔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? ✔✔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? ✔✔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: ✔✔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? ✔✔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.
