THE NEW YORK STATE PROPERTY AND CASUALTY EXAM Questions and Correct Solutions 2024/2025

THE NEW YORK STATE PROPERTY AND CASUALTY EXAM Questions and Correct Solutions 2024 Ceding Insurer The insurer transferring the risk is called? Assuming insurer The insurer providing reinsurance to another insurance company is called? agent's contract with the principal because the principal grants authority to an agent through the agent's contract what documentation grants express authority to an agent? adhesion Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe? Contract of Adhesion Any contract in which one party must either accept the agreement as written by the other party or reject it. Unilateral Contract promise in exchange for an act Authorized Insurer insurer who has received a Certificate of Authority from the department of insurance to transact insurance in this state Admitted Insurer What is an authorized insurer also known as? B. Adverse selection is a concept best described as A. Only offering coverage to good risks.B. Risks with higher probability of loss seeking insurance more often than other risks. C. Underwriters slanting the odds in favor of the company. D. Poor choices of applicants to be covered. Adverse Selection that there are more risks with higher probability of loss seeking to purchase and maintain insurance than the risks who present lower probability. Underwriters must guard against this. B. The insured's house is located one mile from the county's new landfill and across the road from the entrance of a rock quarry. It would cost $150,000 to rebuild the house if something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will insure the house for only $80,000. What method of valuation is used to insure this property? AFunctional replacement cost B.Market value CActual cost value DReplacement cost market value When insured for __________ ________, it is insured for what a willing buyer would pay prior to a loss. This is different from actual cash value or replacement cost. Actual Cost Value payment you receive is based on the cost of an item minus depreciation personal property property that is moveable real property property that is nonmoveable Loss of Use Coverage insurance coverage for homeowners that pays for the costs of living away from home while the home is being repaired Contents Coverage Insures all of your personal belongings Dwelling Coverageinsures the structure and anything attached to it loss of use coverage What kind of coverage applies only after a direct loss caused by a covered peril has occurred?