NEW YORK STATE PROPERTY AND CASUALTY INSURANCE EXAM with Verified Solutions 2024/2025

NEW YORK STATE PROPERTY AND CASUALTY INSURANCE EXAM with Verified Solutions 2024 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 liberalization condition states that the insurer will automatically and immediately apply to the policy any revisions made during the policy period or within 45 days prior to the effective date if those revisions broaden the coverage without additional premium. What is insured under the HO-5 form? - Answer -Though typically "insured" refers to the policyholder and his or her spouse, relatives by blood, marriage or adoption who reside in the named insured'shousehold are also covered. Also included are wards or foster children under the age of 21 as well as resident relatives who are attending college away from home and are under 24 years of age. Insurers must participate in the "write your own" program under flood insurance. Is this statement accurate? - Answer -No; Insurers voluntarily participate in the program; they are not required to do so. Would the owner of the uninsure