NY Independent General Adjuster Exam
- Series 17-70 (2024/2025) Exam
Questions with Correct Detailed
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HO insurance policy appraisal clause - ANSWER ✔ if the insurer and the named
insured cannot agree on the loss payment amount, either party can invoke the
appraisal process describe in the policy to determine the amount payable
HO insurance - ANSWER ✔ provided in a package policy, package policy
combines two or more separate coverage, such as property and liability insurance,
into a single policy
HO policy consists - ANSWER ✔ insuring agreement, definitions, deductible,
section 1 (includes coverage A,B,C,D) Exclusions and conditions, section 2
liability coverage (includes E and F) exclusions, additional coverages and
conditions
HO affects - ANSWER ✔ property, liability or all coverage
Ho endorsement - ANSWER ✔ may modify coverage of property for liability or
both
property loss covered by a HO - ANSWER ✔ also covered by other insurance, the
insurer will pay only the proportion of the loss that the limit of liability under this
policy bears to the total amount of protection covering the loss
, Personal Auto Policy (PAP) - ANSWER ✔ combines property and liability
insurance in a single policy for individuals and familities
PAP consistent of 3 major parts - ANSWER ✔ declarations pages as a covered
auto must have been owned or leased by the named insured for at lease 6 months
newly acquired auto - ANSWER ✔ one that named insured takes ownership of
while the policy is in force
'Your covered auto" - ANSWER ✔ is critical in the PAP, there are four types of
covered auto: vehicles shown in the declarations, newly acquired autos, owned
trailers and temporary substitute autos
Temporary substitute - ANSWER ✔ autos or trailers that the named insured does
not own- while substituted for any vehicle in the declarations page under certain
conditions- are also covered autos
Do dwelling forms cover earth movement? - ANSWER ✔ The dwelling forms
exclude virtually all forms of earth movement. Earthquake coverage can be added
by endorsement.
Under the "basic economic loss" coverage required in auto insurance in New
York, the maximum limit for loss of wages is: - ANSWER ✔ 80% of claimants
wages, subject to a maximum of $2,000 per month
Universal Foods buys the Chewy Cereal Company. After the purchase is
completed, a well known actress sues Universal, claiming that her picture was used
without her permission in a Chewy advertisement. The advertisement appeared
some time before Universal acquired Chewy. Will Universal's Commercial
General Liability policy cover this claim? - ANSWER ✔ No. Personal injury
coverage with respect to newly acquired organizations does not apply to offenses
committed before the acquisition..
The policy term of a flood insurance policy is: - ANSWER ✔ One year term only.
In crime insurance under the loss sustained form, what is the length of the
discovery period after the bond has expired to discover an employee crime? -
ANSWER ✔ One year.
, Is cargo on long-haul trucks considered "instrumentalities of communication and
transportation" in inland marine insurance? - ANSWER ✔ No.
Johnny neglected to admit in his application for a health policy that he had
suffered rheumatic fever as a child. In order for the company to cancel this policy,
the insurer must determine that this omission was: - ANSWER ✔ deliberate and
fraudulent.
Jack is helping a friend move a pool table when he strains his back, causing a
disability. The insurer declines his claim because the injury is not considered
accidental under the terms of Jack's policy. Jack's policy must include; - ANSWER
✔ an accidental means definition of an accident..
In order to issue a written binder for a commercial property policy, what is the
minimum consideration an agent must secure from an applicant? - ANSWER ✔ A
promise to pay the premium.
Does an aircraft policy cover a loss involving an unapproved pilot operating an
insured aircraft? - ANSWER ✔ No, a loss involving an unapproved pilot is
excluded.
Under a business owners policy, the hired non-owner coverage would apply to: -
ANSWER ✔ Vehicles borrowed by the insured.
An insured has a $2 million limit of insurance under a personal umbrella liability
policy with a $2,000 self-insured retention limit. The insured is sued for $1 million
in personal injury damages and $1.5 million in property damages arising from the
same occurrence. The insured's underlying liability policies do not cover the
damages. In this case, the umbrella policy will pay: - ANSWER ✔ $1,998,000 of
the damages. Since the underlying coverage does not apply the insured must pay
the $2,000 self-retained limit and the umbrella insurer must pay the rest of the
claim.
Which dwelling forms provide broad perils coverage for personal property? -
ANSWER ✔ DP2 and DP3.
, In ocean marine insurance, what is the purpose of the IVEL clause? - ANSWER ✔
To provide excess hull and collision liability coverage.
An employee suffered a severe injury while operating a piece of machinery known
to be in need of repair. Unfamiliar with the workers compensation law, the spouse
sued the employer, claiming loss of consortium. What coverage if any in a standard
workers compensation policy would respond to this lawsuit? - ANSWER ✔
Employer's Liability Coverage.
What is the limit under the Businessowners Policy for pollution clean up? -
ANSWER ✔ A maximum of $10,000.
How are losses evaluated for payment under the Watercraft and Yacht policies? -
ANSWER ✔ Actual cash value at the time of the loss.
Henry is the first named insured on a $1 million umbrella liability policy. His
wife, Dorothy, is also an insured. Both Henry and Dorothy were sued for $1
million in separate, unrelated suits by separate third parties. Both insureds lost their
suits on the same day. In this possible but rare situation, if the umbrella policy is
applicable and the self-insured retention is not applicable: - ANSWER ✔ Henry
will not receive more protection than Dorothy and the policy could pay a total of
the $2 million amount for the two awards, subject to the "aggregate limit". .
The requirements of the Employment Retirement Income Security Act compel
employers to cover their professional liability exposure for honest errors and
omissions regarding employee benefit plans by purchasing: - ANSWER ✔
Fiduciary Liability.
How long is payroll coverage limited to in case of a business income loss under
the BOP? - ANSWER ✔ 60 days.
Is coverage under the Terrorism Risk Insurance Act mandatory? - ANSWER ✔
No.
The most comprehensive coverage provided by the Dwelling Property program is
found in the: - ANSWER ✔ DP3.
