2025 Latest New York General Adjuster 17-70
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Questions and Correct Answers/ NY General
Lines Adjuster State Exam 2025-2026 Test Bank
Diane is fined by the Superintendent for a violation of the insurance law of New
York. The fine is not paid within 20 days. What action may the Superintendent
take? - ANSWER-If the fine has not been paid within 20 days the Superintendent
will suspend or revoke the license.
If the insured carries a DP-2 dwelling form and insures the dwelling for 80% of its
replacement cost value, what will he be paid if his 30 year old roof sustains
$10,000 in damages(disregarding any deductible)? - ANSWER-$10,000
If the insured carries 80% to value he would be entitled to full replacement cost
coverage for his damaged roof.
In New York, if an insured and an insurer cannot agree on the value of a property
loss, they each can select an appraiser. If the appraisers cannot agree, an umpire is
selected by: - ANSWER-A court of law.
The appraisers are given an opportunity to select an umpire within 15 days. Upon
failing to do so, the court will appoint one.
In New York, insurers must maintain records pertaining to claims, rating,
underwriting, marketing and other pertinent information for a period of -
ANSWER-The law requires that these records be maintained for inspection and/or
review for at least six years.
pg. 1
,Mary has insured her one-family home under an HO-3 form with a limit of
$100,000. What limit is she automatically entitled to for her unattached garage on
the premises? - ANSWER-The HO-3 form provides 10% of the dwelling limit that
applies to unattached structures. The most the insurance company can pay is
$10,000 ($100,000 multiplied by 10%).
The insured has a building worth $500,000 and insures it for $300,000. The policy
contains an 80% coinsurance clause. In case of a total loss, what will the insured
receive?
$240,000
$500,000
$300,000
Nothing because the insured was not in compliance with the coinsurance clause. -
ANSWER-$300,000
The coinsurance clause is an agreement between the insured and the insured. In
exchange for a lower rate the insured must carry at least 80% of the value of the
property to be insured. In case of a total loss to the covered property the
coinsurance clause is not a factor. The insured receives payment up to the limit of
the policy. In this case the insured would receive $300,000.
Under the BOP, the building limit of insurance is $100,000 and the deductible is
$1,000. The building loss amount is $110,000. Which of the following is the
correct loss payment?
1 $89,000
2 $110,000
3 $99,000
4 $100,000 - ANSWER-4 $100,000
pg. 2
,The deductible is subtracted from the loss and not the limit of coverage. The loss
exceeded the limit of coverage. Had the loss been less than the limit of the policy
the deductible would still be deducted from the loss amount.
The Now Company carries a special BOP policy with a liability limit of $500,000.
The company is involved in an accident causing $200,000 bodily injury damage
and $200,000 property damage. The total amount collectible under the policy is:
1 $500,000
2 $400,000
3 $200,000
4 $100,000 - ANSWER-2 $400,000
BOP policies provide a single limit of liability. Both bodily injury and property
damage coverage is provided. Since the amounts for bodily injury and property
damage combined do not exceed the 500,000 occurrence limit, the total amount of
the claim would be covered.
What is the percentage of coverage for the "loss of use" under HO-3, homeowner
form? - ANSWER-The percentage of Coverage A for this coverage is 30%.
Which of the following amounts would be paid on a covered auto suffering a total
loss? The retail value is $1,250.00 and the average trade in value is $1,000.00. -
ANSWER-$1,250.00 plus applicable taxes
In case of a total loss to a covered vehicle the insurer is required to pay the retail
value of the vehicle plus any applicable sales taxes.
Which of the following is correct regarding HO-3 and an HO-5 coverages? -
ANSWER-Personal property under an HO-3 is covered on a named peril basis,
while personal property under an HO-5 is covered on an open peril basis.
pg. 3
, The HO-3 and the HO-5 are the same in terms of dwelling exclusions, valuation on
dwelling losses, and the type of personal property insured. They are different in
terms of perils insured against for personal property losses.
Which of the following is covered property under the HO-3 form? I. Belongings of
the insured's daughter while she is away at college II. The insured's garage III. The
insured's dog IV. Personal property of a tenant - ANSWER-I and II only
Pets, no matter how valuable, are excluded under Coverage C, as is the property of
boarders or renters.
Which of the following is not an endorsement under a homeowner policy? -
ANSWER-Flood coverage
Flood insurance is not a homeowner endorsement
An employee has been asked to use his own personal vehicle to perform certain
tasks on behalf of his employer. What coverage is used under the business auto
policy to protect the employer for lawsuits when the employee has an accident that
causes legal action against the employer? - ANSWER-Employers non-ownership
coverage. This coverage protects the employer and not the employee. The
employee is covered under his own PAP policy.
Replacement cost coverage is best defined as: - ANSWER-Replacement without
deduction for depreciation. With replacement cost coverage, the insured is
permitted to replace old with new at today's cost without a deduction for
depreciation.
pg. 4
State Exam Prep Test Bank with 750 Recent Test
Questions and Correct Answers/ NY General
Lines Adjuster State Exam 2025-2026 Test Bank
Diane is fined by the Superintendent for a violation of the insurance law of New
York. The fine is not paid within 20 days. What action may the Superintendent
take? - ANSWER-If the fine has not been paid within 20 days the Superintendent
will suspend or revoke the license.
If the insured carries a DP-2 dwelling form and insures the dwelling for 80% of its
replacement cost value, what will he be paid if his 30 year old roof sustains
$10,000 in damages(disregarding any deductible)? - ANSWER-$10,000
If the insured carries 80% to value he would be entitled to full replacement cost
coverage for his damaged roof.
In New York, if an insured and an insurer cannot agree on the value of a property
loss, they each can select an appraiser. If the appraisers cannot agree, an umpire is
selected by: - ANSWER-A court of law.
The appraisers are given an opportunity to select an umpire within 15 days. Upon
failing to do so, the court will appoint one.
In New York, insurers must maintain records pertaining to claims, rating,
underwriting, marketing and other pertinent information for a period of -
ANSWER-The law requires that these records be maintained for inspection and/or
review for at least six years.
pg. 1
,Mary has insured her one-family home under an HO-3 form with a limit of
$100,000. What limit is she automatically entitled to for her unattached garage on
the premises? - ANSWER-The HO-3 form provides 10% of the dwelling limit that
applies to unattached structures. The most the insurance company can pay is
$10,000 ($100,000 multiplied by 10%).
The insured has a building worth $500,000 and insures it for $300,000. The policy
contains an 80% coinsurance clause. In case of a total loss, what will the insured
receive?
$240,000
$500,000
$300,000
Nothing because the insured was not in compliance with the coinsurance clause. -
ANSWER-$300,000
The coinsurance clause is an agreement between the insured and the insured. In
exchange for a lower rate the insured must carry at least 80% of the value of the
property to be insured. In case of a total loss to the covered property the
coinsurance clause is not a factor. The insured receives payment up to the limit of
the policy. In this case the insured would receive $300,000.
Under the BOP, the building limit of insurance is $100,000 and the deductible is
$1,000. The building loss amount is $110,000. Which of the following is the
correct loss payment?
1 $89,000
2 $110,000
3 $99,000
4 $100,000 - ANSWER-4 $100,000
pg. 2
,The deductible is subtracted from the loss and not the limit of coverage. The loss
exceeded the limit of coverage. Had the loss been less than the limit of the policy
the deductible would still be deducted from the loss amount.
The Now Company carries a special BOP policy with a liability limit of $500,000.
The company is involved in an accident causing $200,000 bodily injury damage
and $200,000 property damage. The total amount collectible under the policy is:
1 $500,000
2 $400,000
3 $200,000
4 $100,000 - ANSWER-2 $400,000
BOP policies provide a single limit of liability. Both bodily injury and property
damage coverage is provided. Since the amounts for bodily injury and property
damage combined do not exceed the 500,000 occurrence limit, the total amount of
the claim would be covered.
What is the percentage of coverage for the "loss of use" under HO-3, homeowner
form? - ANSWER-The percentage of Coverage A for this coverage is 30%.
Which of the following amounts would be paid on a covered auto suffering a total
loss? The retail value is $1,250.00 and the average trade in value is $1,000.00. -
ANSWER-$1,250.00 plus applicable taxes
In case of a total loss to a covered vehicle the insurer is required to pay the retail
value of the vehicle plus any applicable sales taxes.
Which of the following is correct regarding HO-3 and an HO-5 coverages? -
ANSWER-Personal property under an HO-3 is covered on a named peril basis,
while personal property under an HO-5 is covered on an open peril basis.
pg. 3
, The HO-3 and the HO-5 are the same in terms of dwelling exclusions, valuation on
dwelling losses, and the type of personal property insured. They are different in
terms of perils insured against for personal property losses.
Which of the following is covered property under the HO-3 form? I. Belongings of
the insured's daughter while she is away at college II. The insured's garage III. The
insured's dog IV. Personal property of a tenant - ANSWER-I and II only
Pets, no matter how valuable, are excluded under Coverage C, as is the property of
boarders or renters.
Which of the following is not an endorsement under a homeowner policy? -
ANSWER-Flood coverage
Flood insurance is not a homeowner endorsement
An employee has been asked to use his own personal vehicle to perform certain
tasks on behalf of his employer. What coverage is used under the business auto
policy to protect the employer for lawsuits when the employee has an accident that
causes legal action against the employer? - ANSWER-Employers non-ownership
coverage. This coverage protects the employer and not the employee. The
employee is covered under his own PAP policy.
Replacement cost coverage is best defined as: - ANSWER-Replacement without
deduction for depreciation. With replacement cost coverage, the insured is
permitted to replace old with new at today's cost without a deduction for
depreciation.
pg. 4
