New York Adjuster Exam UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Offering any return of premium, valuable consideration or inducement when purchasing an
insurance policy is an example of: - CORRECT ANSWER I. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - CORRECT ANSWER Actual
cash value
When may an insured sue an insurance company? - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT ANSWER 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: -
CORRECT ANSWER 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: - CORRECT ANSWER Purchase the Mobile Home Transportation Coverage
Endorsement on the homeowner policy
The workers compensation policy language is written by the: - CORRECT
ANSWER 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: - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT
ANSWER An Authorized Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of currency? -
CORRECT ANSWER 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: - CORRECT ANSWER Bind additional coverage.
The giving up of a known right is known as: - CORRECT ANSWER Waiver
What is the definition of custom farming? - CORRECT ANSWER Farming for Others.
Explanation:
ACTUAL Exam Questions and CORRECT
Answers
Offering any return of premium, valuable consideration or inducement when purchasing an
insurance policy is an example of: - CORRECT ANSWER I. Illegal Inducement
II. Rebating
Under a watercraft or yacht policy how claims are settled: - CORRECT ANSWER Actual
cash value
When may an insured sue an insurance company? - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT ANSWER 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: -
CORRECT ANSWER 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: - CORRECT ANSWER Purchase the Mobile Home Transportation Coverage
Endorsement on the homeowner policy
The workers compensation policy language is written by the: - CORRECT
ANSWER 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: - CORRECT ANSWER 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? - CORRECT ANSWER 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? - CORRECT
ANSWER An Authorized Representative of the Insurer
Which of the following commercial crime insuring agreements would cover theft of currency? -
CORRECT ANSWER 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: - CORRECT ANSWER Bind additional coverage.
The giving up of a known right is known as: - CORRECT ANSWER Waiver
What is the definition of custom farming? - CORRECT ANSWER Farming for Others.
Explanation:
