New York USAA Exam Review With 100% Correct
Answers And Explanations 2025
Mr. Jones has injured Susan Miller in an auto accident. Susan has sustained medical
expenses, loss of wages, and the loss of use of her vehicle. These types of expenses
are known as: - ANSWER -Special Damages..
EXPLANATION:
These are called "special damages" and involve expenses where the costs are known
or can easily be determined.
Which of the following statements regarding aircraft insurance is incorrect? - ANSWER
-The hull physical damage coverage is written with a flat deductible..
EXPLANATION:
Aviation hull coverage is usually expressed as a percentage of the value of the aircraft
All the following are exclusions under a DP-2, dwelling form, EXCEPT: - ANSWER -
Tornado. .
EXPLANATION:
Flood, earthquake and mudslides are excluded perils. Coverage for flood and mudslides
can be covered by purchasing a separate flood policy. Earthquake coverage can be
purchased separately. Tornados are covered by the wind peril.
A manufacturing company is sending two U.S. employees to Russia to discuss their
products and visit a Russian plant. They have volunteered for the trip. What coverage
would be needed for injuries they may occur in a work-related accident while abroad? -
ANSWER -Add the Foreign Coverage Endorsement to the company's workers
compensation policy. is correct.
EXPLANATION:
The Foreign Coverage Endorsement should be added to the company's workers
compensation policy. However, this endorsement applies for a period of no longer than
90 days.
Equipment Breakdown coverage does not apply to which of the following losses? -
ANSWER -Vandals have destroyed a boiler is correct.
EXPLANATION:
Coverage does not apply to loss outside the equipment (often referred to as the insured
object or objects). An explosion outside the equipment is not covered whereas an
explosion inside the equipment is covered.
The insured, who is a chair manufacturer, produced a new line of lift chairs with electric
heat and massage for people who are disabled. After the chairs had been on the market
for several months, it was discovered that the control panel had been designed with a
glitch in it that could be powerful enough to cause injury. The chairs were withdrawn
from the market. The retailer who had purchased the chairs lost a great deal of money
,because of the recall. Under what circumstances, if any, will the insured's commercial
umbrella liability policy cover those losses? - ANSWER -The correct ANSWER is:
Under no circumstances..
EXPLANATION:
Product recall is excluded in the policy for product liability. All recall costs must be
absorbed by the insured.
All New York licensees that have a change of address, either business or residence,
must notify the Superintendent of Insurance within: - ANSWER -within 30 days. is
correct.
EXPLANATION:
The licensee must notify the Superintendent of an address change within 30 days of the
change.
The common abbreviation "ABG" used in medical reports means: - ANSWER -Arterial
blood gas. is correct.
EXPLANATION:
ABG stands for arterial blood gas.
Ocean marine coverage for losses to the insured vessel caused by bursting boilers,
latent defects in the vessel and negligence of the master or crew members are
addressed by which of the following? - ANSWER -The Inchmaree clause. .
EXPLANATION:
Inchmaree was a steam ship that suffered a machinery loss that was not covered. A
lawsuit followed, and future policies offered this coverage under what is commonly
referred to as the Inchmaree clause.
When a homeowners policy has been in effect for 60 days in New York, an insurer can
cancel at anytime for any of the following reasons, EXCEPT: - ANSWER -A large loss
has occurred
Which of the following are to be included in a loss report completed by the workers
compensation adjuster? - ANSWER -all of the responses are correct:
time & place, nature of injury and the policy term
Which of the following is eligible for a businessowners policy? - ANSWER -A six story
office building.
Explanation:
A six story office building would be eligible for a BOP provided the square footage does
not exceed 100,000. The BOP is designed for certain types of risks. The number of
stories is a factor and also the square footage of a risk is also a factor in eligibility.
Bridges and tunnels may be insured under: - ANSWER -Inland marine forms
,Which of the following would not be considered a "first party" coverage under the
personal auto policy? - ANSWER -Liability is considered to be "third party coverage."
The other coverages pay the insured (the first party) to the policy.
Under a Homeowner Policy (HO-5), if the insured carries 80% to value, what does
Replacement Cost Coverage NOT apply to? - ANSWER -Contents
Explanation:
Replacement Cost Coverage does not apply to contents unless the replacement cost for
contents coverage is purchased by endorsement. Without endorsement, replacement
cost coverage only applies to covered structures.
A payment bond is what type of instrument? - ANSWER -Financial Guarantee Bond.
Explanation:
A payment bond guarantees that bills for labor and materials will be paid by the
contractor
The theft of money and securities is automatically covered under which of the
coverages listed below? - ANSWER -Inside the Premises - Theft of Money and
Securities..
Explanation:
Robbery and safe burglary, as well as premises burglary require signs of forcible entry
or exit. Theft does not. Remember theft is the broadest definition of criminal activity.
Harry wants to apply for a temporary adjuster's permit to act as an independent
adjuster in New York. Which of the following is NOT true? - ANSWER -he must pass an
interim examination
An insured auto dealer has purchased garage policy physical damage coverage
against specified causes of loss. Which of the following losses will not be covered by
the policy? - ANSWER -Damage resulting from the collision of the truck carrying a
covered auto with another vehicle..
Explanation:
A specified cause of loss is named perils coverage and collision is not one of the named
perils. Collision is a separate physical damage coverage requiring the upset of the
covered vehicle, or its impact with another vehicle or object.
Employer group dental expense plans: - ANSWER -Seldom contain a conversion
privilege..
, Explanation:
A conversion privilege is generally not available.
Watercraft liability, medical expenses and uninsured boaters are coverages provided
under which of the following policies?
I. Watercraft.
II. Homeowners.
III. Mariners. - ANSWER -I only is correct.
Explanation:
Watercraft policies are designed to cover boats used primarily on fresh water streams
and lakes. It is a package policy providing several coverages including hull, motor and
trailer coverage along with liability coverage.
Under the New York cybersecurity regulation each covered entity, including insurance
companies, must submit a written statement by _____ of each year certifying that it is in
compliance. - ANSWER -February 15 is correct.
EXPLANATION:
Each covered entity must annually, by February 15, submit a written statement covering
the prior calendar year certifying that it is in compliance with the cybersecurity regulation
The insured sets a fire to his home and is found to be guilty of arson. There is a lien on
the burned property by a mortgage company in the amount of $150,000. The property is
insured for $300,000 and is a total loss. The personal property of the insured, covered
separately in a homeowner policy for $150,000, is also a total loss. How will this claim
most likely be paid? - ANSWER -The mortgagee is paid $150,000..
Explanation:
The provisions relative to the suspension of payment due to arson do not apply to a
bona fide lender that holds a valid recorded mortgage on the property in question.
Therefore, the lien holder is fully reimbursed for its insurable interest in the property.
The insured is not paid due to the charge and conviction of arson.
All of the following could be examples of strict liability activities, EXCEPT - ANSWER -
assumption of risk
Explanation:
Consider this scenario: George, a grocery clerk left an empty, wheeled pallet near the
end of a grocery store aisle when he went to the stockroom. Helen, a customer, failed to
see the pallet at the end of the isle and tripped over it. The pallet rolled into her path and
she suffered a broken leg and a dislocated shoulder. Since Helen did not see the pallet
she had no knowledge that she should avoid the hazard and therefore could not
assume the risk.
