New York State Auto Damage and Theft General Adjuster 17-70 Practice Questions And Answers 2024/2025

New York State Auto Damage and Theft General Adjuster 17-70 Practice Questions And Answers 2024/2025 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? - CORRECT 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: - CORRECT 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. Which of the following would be considered a "supplementary payment" coverage under a business auto policy? 1)All post-judgment interest in a suit defended by the insurer 2)Payment for an insured employee's truck being used by the employee on a businessrelated trip 3)Costs for a private investigator hired by an employee to prove he was not involved in a hit and run accident of which he has been accused 4)Up to $2,000 for the cost of bail bonds for an employee involved in an accident while he was on a trip to Mexico that he won for exceeding sales goals set by the company - CORRECT ANSWER-1) All post-judgment interest in a suit defended by the insurer. Supplementary payments do not include physical damages, nor personal expenses of employees. The bail bonds would be covered except that Mexico is outside the coverage area. Which of the following professional liability policies would cover a dishonest, fraudulent or criminal act of the manager of a LLC? 1)Fiduciary Liability 2)Malpractice Liability 3)Errors and Omissions 4)None of the policies cover these acts - CORRECT ANSWER-4) None of the policies cover these acts. When securing a recorded statement over the telephone, an adjuster must: 1 Identify him or herself. 2 Advise he or she would like to record the statement and request and receive permission to do so. 3 State the time and date. 4 All responses listed are correct. - CORRECT ANSWER-4 All responses listed are correct. The adjuster must identify him or herself, state the date and time and get permission to record the statement. Uninsured Motorist coverage includes the named insured's: I. Medical bills and pain and suffering. II. Lost wages. - CORRECT ANSWER-Both I and II is correct. Coverage C (Uninsured Motorists) provides for payments to or on behalf of the named insured for injuries sustained through the negligence of an uninsured driver. Substitute services will provide: - CORRECT ANSWER-$25 per day for one year. Basic economic loss benefits will provide up to $25 per day for substitute services for a maximum of one year if the injured party is not gainfully employed. Which of the following is not a violation of the Unfair Trade Practices Act? 1 Not attempting in good faith to settle claims 2 Denying an uncovered claim 3 Failing to promptly settle claims under one portion of coverage in order to influence settlements under other portions of coverage 4 Not setting forth the coverage under which a claim payment is being made - CORRECT ANSWER-Denying a claim that is not covered is not a violation. In case of a total loss in an automobile accident, the adjuster can do the insured which of the following? I. Pay cost to replace the vehicle with like kind and quality if the vehicle is a current year model. II. Use the most recent publication of an "Official Used Car Guide." III. If not listed in the "Guide," obtain quotations from local automobile dealers. - CORRECT ANSWER-I, II and III depending on the circumstances All the responses listed can be options in settling a total loss claim. Personal umbrella liability policies usually cover liability as a result of: 1 Performing a professional service. 2 Serving as an officer or director of a nonprofit corporation or association. 3 For a work related activity 4 None of the activities are covered - CORRECT ANSWER-2 Serving as an officer or director of a nonprofit corporation or association.. Coverage is included while serving as an officer or director of a nonprofit corporation or association. 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 - CORRECT 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. A tram, tape and centering gauges are being used to quick reference a unibody vehicle. Technician A says the tram gauge is used to determine vehicle centerline. Technician B says that centering gauges should be used to determine vehicle centerline. Who is right? 1 Technician A only 2 Technician B only 3 Both technicians are correct 4 Neither technician is correct - CORRECT ANSWER-2 Technician B only Technician B is correct. Centering gauges use centering pins to locate centerline. A tram is used to make point-to-point measurements. The maximum payable for damage or loss to signs attached to the building covered under a BOP is: 1 $2500 2 The building limit since it's attached to the building 3 $1000 4 $5000 - CORRECT ANSWER-3 The correct answer is: $1000. Damage or loss to a sign attached to the building is limited to $1000 even though it is attached to the building and considered part of the building. Which of the following basic workers compensation benefits compensates a widow or other dependent family members of an employee whose death results from a workrelated injury? 1 Disability income benefits 2 Medical benefits 3 Survivor benefits 4 Rehabilitation benefits - CORRECT ANSWER-3 Survivor benefits Survivor benefits compensate a widow or other dependent family members. Lawful economic interest in the preservation of the subject of insurance, free from loss or destruction or monetary impairment is the definition of: 1 Insurable Interest 2 Right of Ownership 3 An Amendatory Endorsement 4 Contractual Obligation - CORRECT ANSWER-1 Insurable Interest This is the definition of insurable interest. In property and casualty insurance, insurable interest must exist at the time of the loss. In a property loss the insured is required to do all of the following, EXCEPT: - CORRECT ANSWER-Repair the property within 20 days of notifying the insurer. The insured should not repair the property until agreed upon by the insurer. The prefix "neo" refers to: 1 Old. 2 New. 3 Flat. 4 After. - CORRECT ANSWER-2 New "Neo" refers to something that is new. neo-: new or recent, or in a modern form: If a commercial building has been vacant for more than sixty days, which of the perils are affected as regards coverage? 1 Vandalism 2 Freezing 3 Fire 4 All of the perils are affected - CORRECT ANSWER-4 All of the perils are affected All of the perils listed are affected as a result of the vacancy. Some of the coverage for certain perils is voided and fire losses are reduced by 15%. Automobile Medical Payments covers: 1 The insured as an occupant of a car, an occupant of the insured vehicle and the insured as a pedestrian when hit by a car. 2 The insured as an occupant of a car only. 3 An occupant of the insured vehicle only. 4 The insured as a pedestrian only. - CORRECT ANSWER-1 The insured as an occupant of a car, an occupant of the insured vehicle and the insured as a pedestrian when hit by a car. It also covers any family member. In addition, any other person while occupying the insured's covered auto. The Federal Terrorism Act covers property and casualty losses that exceed ______in the aggregate. - CORRECT ANSWER-$100,000,000 The Act covers losses from a certified terrorism act that exceed $100,000,000 (the trigger) in the aggregate. The Federal Terrorism Act was amended in 2007 to this limit. The Act has was further amended and extended 2015. The trigger remains the same, but will increase each year by $20 million starting in 2016. Please refer to your testing vendor outline to determine if it is testing on the prevous amendment or if it is testing on the 2015 extension of the Act. The answer to this question is correct for either year. All the following are the insured's duties after a loss in regards to the physical damage coverage of the policy, EXCEPT: 1 Take reasonable steps after the loss to protect the property from further damage 2 Promptly notify the police if the vehicle is stolen 3 Allow the insurer to inspect and appraise the damaged property 4 Facilitate the repairs to the vehicle and submit the invoice to the insurer. - CORRECT ANSWER-4 Facilitate the repairs to the vehicle and submit the invoice to the insurer.. The insured is not permitted to make repairs on the vehicle until after the vehicle has been inspected and/or appraised and an agreement as to the damages has been reached with the insurer. The insured carries a Businessowners Policy (BOP). If the premises become 69% or more vacant, what can the insurer do? The insurer can cancel the policy. The insurer can non-renew the policy. The insurer can restrict coverage. The insurer can reduce coverage. - CORRECT ANSWER-The insurer can cancel the policy. . The insurance company can cancel the policy if the risk is 69% or more vacant. How many years must a business be operational in New York before it can qualify as a self-insurer for workers compensation? 1 Three years. 2 Four years. 3 Five years. 4 Two years. - CORRECT ANSWER-Three years A company must be in business for at least three years before it can make application with the state to become a qualified self-insurer. Which of the following would be covered under Coverage C of form HO-3? I. Property normally kept at the insured residence but in transit to a new principal residence II. Personal Property in Switzerland while the insured is on vacation - CORRECT ANSWER-Both I and II. Coverage C provides protection for personal property owned or used by the insured anywhere in the world - with some exceptions. One is personal property normally stored off the premises - although this can be added by endorsement. (Property of away-fromhome students is not "stored".)