NY Independent General Adjuster Practice Exam 2025 | Complete
Questions and Correct Answers | Already Graded A+ | Verified
Answers | Latest Version | Brand New Version!
Question 1
Which of the following is covered by a dread disease policy?
A) Any and all illnesses diagnosed by a medical professional
B) Only common illnesses like the flu and colds
C) Illnesses that do not occur frequently but incur significant costs when they do occur
D) Preventive medical care and routine check-ups
E) Injuries resulting from accidents
Correct Answer: C) Illnesses that do not occur frequently but incur significant costs when
they do occur
Rationale: Dread disease policies, also known as critical illness policies, are a type of limited
health insurance designed to provide a lump-sum benefit for specific, high-cost, and often
rare, illnesses such as cancer, heart attack, or stroke.
Question 2
Which of the following professionals would purchase Directors and Officers (D&O) insurance to
manage the liability risk associated with their activities?
A) A plumber
B) A general contractor
C) A chief executive officer
D) A registered nurse
E) A freelance writer
Correct Answer: C) A chief executive officer
Rationale: Directors and Officers (D&O) liability insurance is designed to protect the
personal assets of corporate directors and officers, such as a CEO, from lawsuits alleging
wrongful acts while managing the company.
Question 3
For the commercial general liability coverages of bodily injury, property damage and medical
payments, which of the following limits of insurance apply if the aggregate limit is NOT met?
,A) Per person
B) Per occurrence
C) Per claim
D) General aggregate
E) Products-completed operations aggregate
Correct Answer: B) Per occurrence
Rationale: The per occurrence limit is the maximum amount the insurer will pay for all
damages arising out of any one occurrence. The general aggregate limit is the most the
insurer will pay for all occurrences during the policy period. Until the aggregate limit is
exhausted, the per occurrence limit applies to each individual incident.
Question 4
An injured employee covered under workers' compensation is entitled to reasonably justifiable
expenses for retraining. This benefit falls under which of the following?
A) Medical benefits
B) Disability income benefits
C) Death benefits
D) Vocational rehabilitation
E) Supplementary payments
Correct Answer: D) Vocational rehabilitation
Rationale: Vocational rehabilitation benefits are designed to help an injured employee
return to work. This can include services such as job retraining, counseling, and placement
assistance to prepare the worker for a new occupation if they cannot return to their
previous job.
Question 5
Which of the following is the party who agrees to be responsible for loss in the case of a fidelity
bond?
A) The obligee
B) The principal
C) The claimant
D) The surety
, E) The insured
Correct Answer: D) The surety
Rationale: In a fidelity bond (a type of surety bond), there are three parties. The principal is
the employee whose honesty is being guaranteed. The obligee is the employer who is
protected. The surety is the insurance company that guarantees the principal's honesty and
agrees to pay the loss if the principal acts dishonestly.
Question 6
What increases the potential loss of an unforeseen event that causes injury to an insured or
damage to property?
A) Peril
B) Risk
C) Hazard
D) Exposure
E) Loss
Correct Answer: C) Hazard
Rationale: A hazard is a condition or situation that increases the frequency or severity of a
loss. A peril is the cause of the loss (e.g., fire), while a hazard is something that makes the
peril more likely or the loss worse (e.g., storing gasoline next to a furnace).
Question 7
Which of the following sides represent the front surface of the patient?
A) Posterior
B) Dorsal
C) Lateral
D) Medial
E) Anterior
Correct Answer: E) Anterior
Rationale: In anatomical terminology, anterior (or ventral) refers to the front of the body.
Posterior (or dorsal) refers to the back.
Question 8
Which party is required to provide proof of loss to establish entitlement?
Questions and Correct Answers | Already Graded A+ | Verified
Answers | Latest Version | Brand New Version!
Question 1
Which of the following is covered by a dread disease policy?
A) Any and all illnesses diagnosed by a medical professional
B) Only common illnesses like the flu and colds
C) Illnesses that do not occur frequently but incur significant costs when they do occur
D) Preventive medical care and routine check-ups
E) Injuries resulting from accidents
Correct Answer: C) Illnesses that do not occur frequently but incur significant costs when
they do occur
Rationale: Dread disease policies, also known as critical illness policies, are a type of limited
health insurance designed to provide a lump-sum benefit for specific, high-cost, and often
rare, illnesses such as cancer, heart attack, or stroke.
Question 2
Which of the following professionals would purchase Directors and Officers (D&O) insurance to
manage the liability risk associated with their activities?
A) A plumber
B) A general contractor
C) A chief executive officer
D) A registered nurse
E) A freelance writer
Correct Answer: C) A chief executive officer
Rationale: Directors and Officers (D&O) liability insurance is designed to protect the
personal assets of corporate directors and officers, such as a CEO, from lawsuits alleging
wrongful acts while managing the company.
Question 3
For the commercial general liability coverages of bodily injury, property damage and medical
payments, which of the following limits of insurance apply if the aggregate limit is NOT met?
,A) Per person
B) Per occurrence
C) Per claim
D) General aggregate
E) Products-completed operations aggregate
Correct Answer: B) Per occurrence
Rationale: The per occurrence limit is the maximum amount the insurer will pay for all
damages arising out of any one occurrence. The general aggregate limit is the most the
insurer will pay for all occurrences during the policy period. Until the aggregate limit is
exhausted, the per occurrence limit applies to each individual incident.
Question 4
An injured employee covered under workers' compensation is entitled to reasonably justifiable
expenses for retraining. This benefit falls under which of the following?
A) Medical benefits
B) Disability income benefits
C) Death benefits
D) Vocational rehabilitation
E) Supplementary payments
Correct Answer: D) Vocational rehabilitation
Rationale: Vocational rehabilitation benefits are designed to help an injured employee
return to work. This can include services such as job retraining, counseling, and placement
assistance to prepare the worker for a new occupation if they cannot return to their
previous job.
Question 5
Which of the following is the party who agrees to be responsible for loss in the case of a fidelity
bond?
A) The obligee
B) The principal
C) The claimant
D) The surety
, E) The insured
Correct Answer: D) The surety
Rationale: In a fidelity bond (a type of surety bond), there are three parties. The principal is
the employee whose honesty is being guaranteed. The obligee is the employer who is
protected. The surety is the insurance company that guarantees the principal's honesty and
agrees to pay the loss if the principal acts dishonestly.
Question 6
What increases the potential loss of an unforeseen event that causes injury to an insured or
damage to property?
A) Peril
B) Risk
C) Hazard
D) Exposure
E) Loss
Correct Answer: C) Hazard
Rationale: A hazard is a condition or situation that increases the frequency or severity of a
loss. A peril is the cause of the loss (e.g., fire), while a hazard is something that makes the
peril more likely or the loss worse (e.g., storing gasoline next to a furnace).
Question 7
Which of the following sides represent the front surface of the patient?
A) Posterior
B) Dorsal
C) Lateral
D) Medial
E) Anterior
Correct Answer: E) Anterior
Rationale: In anatomical terminology, anterior (or ventral) refers to the front of the body.
Posterior (or dorsal) refers to the back.
Question 8
Which party is required to provide proof of loss to establish entitlement?
