New York State Property and Casualty Insurance
Exam With A+ ratings
Physical damage coverage under a garage policy is a blanket limit for covered auto, an
accurate statement? - 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? - 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? - 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: -
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? - ANSWER-An
HO-3 Policy; A homeowner policy specifically excludes flood coverage.
The purpose of a Medicare Supplement policy, (aka Medi Gap), is to: - 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: - 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? - 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? - 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: - 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? - 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?
- 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? - 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? - 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? -
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? -
ANSWER-: Pro rata basis; Each company will pay its pro-rata share of the loss. This
means the percentage of coverage (the total amount of insurance carried) that each
company provides on the risk.
The liberalization clause of a businessowners policy automatically applies favorable
expansions of coverage, for which a premium is not charged if the changes are made
during the policy period or within: - ANSWER-45 days prior to the effective date; A
Exam With A+ ratings
Physical damage coverage under a garage policy is a blanket limit for covered auto, an
accurate statement? - 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? - 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? - 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: -
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? - ANSWER-An
HO-3 Policy; A homeowner policy specifically excludes flood coverage.
The purpose of a Medicare Supplement policy, (aka Medi Gap), is to: - 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: - 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? - 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? - 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: - 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? - 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?
- 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? - 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? - 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? -
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? -
ANSWER-: Pro rata basis; Each company will pay its pro-rata share of the loss. This
means the percentage of coverage (the total amount of insurance carried) that each
company provides on the risk.
The liberalization clause of a businessowners policy automatically applies favorable
expansions of coverage, for which a premium is not charged if the changes are made
during the policy period or within: - ANSWER-45 days prior to the effective date; A
