1|Page
New York General Adjuster 17-70 State
Exam Prep Test Bank with 750 Recent Test
Questions and Correct Answers/ NY General
Lines Adjuster State Exam 2025 Test Bank
A boat damaged out of the water and at a lake would be covered
under the Homeowners Policy for: - ..........ANSWER.......The policy
limits physical damage to only $1,500. Also, theft that occurs off
the insured's premises is not covered. Watercraft is covered for
the perils of wind and hail only while in a fully enclosed
building.
A brand new house costing $500,000 to build would need to be
covered for what minimum limit according to the "insurance to
value" clause, in order for the insured to receive full replacement
cost coverage in the event of a $50,000 fire loss? -
..........ANSWER.......$400,000
The "insurance to value" clause requires a home to be covered
with a limit of at least 80% of the home's full replacement
value.
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A building valued at $500,000 is insured at $300,000 on a policy
containing an 80% coinsurance clause. How much would be paid on
a covered $200,000 loss? - ..........ANSWER.......The answer is
$150,000. Per the coinsurance clause, the required amount of
insurance is 80% of $500,000, which equals $400,000.
However, the insured's limit of $300,000 is only ¾ of the
insurance required. That same fraction, ¾, is applied to the loss
amount. ¾ of $200,000 is $150,000. Thus there is a
"coinsurance penalty" of ¼ of the loss, or $50,000.
A building with an actual cash value of $240,000 is insured for
$200,000. The policy has an 80% coinsurance requirement. If there
are no deductibles, how much would be paid for a $60,000 loss? -
..........ANSWER.......$60,000
The insured needs to be covered for at least 80% x $240,000 or
$192,000 to avoid a penalty in case of a partial loss. In this case,
the insured carries more than is required, and therefore, all the
loss is covered.
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A business adjacent to an insured's business is damaged by fire.
Because of the damage to the adjoining property, the insured is
denied access to his business by the fire department. The insured's
Commercial Property policy contains a Business Income coverage
form, the insurance company will cover the loss of business income -
..........ANSWER.......For a maximum of four weeks.
Coverage is limited to only four weeks, after a waiting period of
72 hours. In some cases, the insurer will extend this provision
for an additional premium.
A business owner who is careless about property left in his care may
be guilty of which of the following hazards: -
..........ANSWER.......Morale
A commercial property policy specifies which of the following
responsibilities as a duty of the insured? - ..........ANSWER.......To
provide a proof of loss statement following a loss if requested
by the company.
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If the insured reports a covered loss, the insurer may request
the insured to complete a proof of loss statement. If this request
is made, the insured must complete the proof of loss relatively
quickly. Some policies give the insured only 60 days to
complete the proof of loss after the insurer makes its request.
A company adjuster primarily represents the interests of: -
..........ANSWER.......The insurer.
A company adjuster is an adjuster representing the interests of
the insurer.
Upon discovering that an agent may have violated an insurance law,
the state insurance department is required to take which of the
following actions?
1 Hold a hearing on the infraction
2 Place the licensee on probation immediately
3 Publish notice of the violation
4 Revoke the agent's license - ..........ANSWER.......1 Hold a hearing
on the infraction
New York General Adjuster 17-70 State
Exam Prep Test Bank with 750 Recent Test
Questions and Correct Answers/ NY General
Lines Adjuster State Exam 2025 Test Bank
A boat damaged out of the water and at a lake would be covered
under the Homeowners Policy for: - ..........ANSWER.......The policy
limits physical damage to only $1,500. Also, theft that occurs off
the insured's premises is not covered. Watercraft is covered for
the perils of wind and hail only while in a fully enclosed
building.
A brand new house costing $500,000 to build would need to be
covered for what minimum limit according to the "insurance to
value" clause, in order for the insured to receive full replacement
cost coverage in the event of a $50,000 fire loss? -
..........ANSWER.......$400,000
The "insurance to value" clause requires a home to be covered
with a limit of at least 80% of the home's full replacement
value.
,2|Page
A building valued at $500,000 is insured at $300,000 on a policy
containing an 80% coinsurance clause. How much would be paid on
a covered $200,000 loss? - ..........ANSWER.......The answer is
$150,000. Per the coinsurance clause, the required amount of
insurance is 80% of $500,000, which equals $400,000.
However, the insured's limit of $300,000 is only ¾ of the
insurance required. That same fraction, ¾, is applied to the loss
amount. ¾ of $200,000 is $150,000. Thus there is a
"coinsurance penalty" of ¼ of the loss, or $50,000.
A building with an actual cash value of $240,000 is insured for
$200,000. The policy has an 80% coinsurance requirement. If there
are no deductibles, how much would be paid for a $60,000 loss? -
..........ANSWER.......$60,000
The insured needs to be covered for at least 80% x $240,000 or
$192,000 to avoid a penalty in case of a partial loss. In this case,
the insured carries more than is required, and therefore, all the
loss is covered.
,3|Page
A business adjacent to an insured's business is damaged by fire.
Because of the damage to the adjoining property, the insured is
denied access to his business by the fire department. The insured's
Commercial Property policy contains a Business Income coverage
form, the insurance company will cover the loss of business income -
..........ANSWER.......For a maximum of four weeks.
Coverage is limited to only four weeks, after a waiting period of
72 hours. In some cases, the insurer will extend this provision
for an additional premium.
A business owner who is careless about property left in his care may
be guilty of which of the following hazards: -
..........ANSWER.......Morale
A commercial property policy specifies which of the following
responsibilities as a duty of the insured? - ..........ANSWER.......To
provide a proof of loss statement following a loss if requested
by the company.
, 4|Page
If the insured reports a covered loss, the insurer may request
the insured to complete a proof of loss statement. If this request
is made, the insured must complete the proof of loss relatively
quickly. Some policies give the insured only 60 days to
complete the proof of loss after the insurer makes its request.
A company adjuster primarily represents the interests of: -
..........ANSWER.......The insurer.
A company adjuster is an adjuster representing the interests of
the insurer.
Upon discovering that an agent may have violated an insurance law,
the state insurance department is required to take which of the
following actions?
1 Hold a hearing on the infraction
2 Place the licensee on probation immediately
3 Publish notice of the violation
4 Revoke the agent's license - ..........ANSWER.......1 Hold a hearing
on the infraction
