New York Personal Lines Final Exam

A passenger is injured while getting into a friends car. Which of the following statements would apply if both the passenger and the driver had medical payments coverage under the auto policy. - Answer- The drivers policy would be primary. Adverse selection is a concept best described as: - Answer- Risks with higher probability of loss, seeking insurances more often than other risks. An example of an alien insurer doing business in NY is one formed under the laws of - Answer- Mexico According to the NY motor vehicle financial responsibility law what are the required limits of liability on auto policies issued in this state? - Answer- 25/50/10 Which of the following examples of losses paid under an HO-3 homeowners policy? - Answer- Damage to the dwelling caused by lava or dust from volcanic eruption. The insureds car was hit and damaged by a deer. Under which of the following coverages in a personal auto policy would this loss be paid? - Answer- Other-Than- Collision Negligence may be defined as - Answer- The failure to use reasonable and prudent care When the direct chain of events resulting from a negligent act causes injury or damage that act is considered to be - Answer- A proximate cause All of the following are major coverages included in the homeowners policy except - Answer- Loss of income Which of the following would be added for coverage under a property policy by an endorsement? - Answer- Additional Insureds Under the automobile assigned risk plan how much coverage must be provided to the insured for liability arising out of the death of two persons caused by a single auto accident? - Answer- Up to 100,000$ An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some of furniture and clothes in the house. From an insurance standpoint, the insured's house is considered - Answer- Unoccupied If the