New York Adjuster Exam Questions with
100% Correct Answers | Latest Version
2024 | Verified
Offering any return of premium, valuable consideration or inducement when purchasing an insurance
policy is an example of: - ✔✔
I. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - ✔✔Actual cash value
When may an insured sue an insurance company? - ✔✔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? - ✔✔Someone licensed in their state and obtains a
license in another state to solicit insurance business in that state. is correct.
The court awards a judgment against the insured for $300,000 plus $10,000 of accrued interest 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? - ✔✔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 payable in this case.
The minimum coverage required in New York for uninsured motorists bodily injury is: - ✔✔The correct
answer is: $25,000 per person, $50,000 per accident. .
Explanation:
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 location to another
would: - ✔✔Purchase the Mobile Home Transportation Coverage Endorsement on the homeowner
policy
The workers compensation policy language is written by the: - ✔✔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: - ✔✔A large loss has occurred
Under the underinsured motorist limit, how much will be paid on a claim providing the insured can
prove his or her claim for damages? - ✔✔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? - ✔✔An Authorized
Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of currency? -
✔✔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: - ✔✔Bind additional coverage.
The giving up of a known right is known as: - ✔✔Waiver
What is the definition of custom farming? - ✔✔Farming for Others.
Explanation:
Custom farming is farming for others for a fee under a contract or agreement. A special endorsement is
required if the receipts are in excess of $5,000 per year.
An insured has an occurrence-type CGL policy with a $100,000 aggregate limit and a $25,000 per
occurrence limit. The insured had one occurrence settled for $35,000 and a second occurrence, which
100% Correct Answers | Latest Version
2024 | Verified
Offering any return of premium, valuable consideration or inducement when purchasing an insurance
policy is an example of: - ✔✔
I. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - ✔✔Actual cash value
When may an insured sue an insurance company? - ✔✔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? - ✔✔Someone licensed in their state and obtains a
license in another state to solicit insurance business in that state. is correct.
The court awards a judgment against the insured for $300,000 plus $10,000 of accrued interest 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? - ✔✔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 payable in this case.
The minimum coverage required in New York for uninsured motorists bodily injury is: - ✔✔The correct
answer is: $25,000 per person, $50,000 per accident. .
Explanation:
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 location to another
would: - ✔✔Purchase the Mobile Home Transportation Coverage Endorsement on the homeowner
policy
The workers compensation policy language is written by the: - ✔✔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: - ✔✔A large loss has occurred
Under the underinsured motorist limit, how much will be paid on a claim providing the insured can
prove his or her claim for damages? - ✔✔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? - ✔✔An Authorized
Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of currency? -
✔✔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: - ✔✔Bind additional coverage.
The giving up of a known right is known as: - ✔✔Waiver
What is the definition of custom farming? - ✔✔Farming for Others.
Explanation:
Custom farming is farming for others for a fee under a contract or agreement. A special endorsement is
required if the receipts are in excess of $5,000 per year.
An insured has an occurrence-type CGL policy with a $100,000 aggregate limit and a $25,000 per
occurrence limit. The insured had one occurrence settled for $35,000 and a second occurrence, which
