NYS License Exam Study Guide with Complete Solutions

NYS License Exam Study Guide with Complete Solutions Declarations Page - ANSWER-has first named insured Aleatory in nature refers to: - ANSWER-Unequal exchange by two parties First aid costs for others injured on the insured's premises - ANSWER-Are paid in addition to the liability limit. Which of the following actions would be considered an offer? - ANSWER-An applicant submitting the application A homeowner lives in a 150-year-old adobe building that is on the National Register of Historic Places. The homeowner has HO-8 coverage. If a fire destroys part of the roof, which of the following describes the insurer's responsibility? - ANSWER-Partial roof replacement to current code specifications An agent who solicits and files applications for the sale of life insurance represents - ANSWER-The insurer. Which of the following would be covered under Coverage C - Personal Property of a dwelling policy? - ANSWER-Canoes In which of the following situations would a property be considered unoccupied? - ANSWER-The insured went on vacation for a month while the house remained empty. Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED Copyright ©Stuvia International BV Page 2/11 Which special liability insurance is designed to protect a business from financial mismanagement claims? - ANSWER-Fiduciary liability The voluntary compensation endorsement in workers compensation coverage provides statutory coverage for which types of employees? - ANSWER-Farm workers All of the following types of property may be covered under Coverage E of a farm policy EXCEPT - ANSWER-Growing crops When the health insurance policy premium is paid monthly, the grace period is - ANSWER-10 days Under the Motor Carrier Act of 1980, haulers transporting oil must maintain liability limits of at least - ANSWER-$1,000,000 Which of the following is NOT a feature of broad theft coverage under a dwelling policy? - ANSWER- It is automatically covered under DP-3 - Special Form. Which of the following would protect an employer from legal action resulting from a work-related sexual harassment claim - ANSWER-Employee practices liability insurance What insurance principle means something of value that each party gives to the other? - ANSWER- Consideration Over several years, a policyowner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristic of an insurance contract does this describe? - ANSWER-Aleatory An unidentified hit-and-run driver would be considered an - ANSWER-Uninsured motorist Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED Copyright ©Stuvia International BV Page 3/11 Under the businessowners property coverage form, which common policy condition addresses what will happen if the insured and the insurer do not agree on the amount of damage? - ANSWER-Appraisal What is the purpose of requiring licenses for persons who transact insurance? - ANSWER-Protect the general public In an auto insurance policy, what does the first limit represent in split liability limits? - ANSWER- Bodily injury to one person in a single accident Which of the following watercraft will be covered under Section II - Liability Coverage of a businessowners policy? - ANSWER-Nonowned watercraft less than 51 feet long Under a personal auto liability coverage, damages to a vehicle may be covered if the person driving the insured vehicle is - ANSWER-A family member in the same household. Which of the following is an example of an indirect loss? - ANSWER-An insured not being able to stay in the home and having to stay in a hotel because of the fire damage to the home Which of the following would NOT be covered under the supplementary payments provided under Coverage A - Bodily Injury and Property Damage of a CGL policy? - ANSWER-Up to $500 a day for loss of income Which of the following commercial auto coverage forms provides coverage to businesses that repair vehicles? - ANSWER-Garage coverage How long is a temporary license valid in New York? - ANSWER-90 days How soon after the aggregate limit have been met on a liability policy would the limit be restored? - ANSWER-At the policy anniversary date Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED Copyright ©Stuvia International BV Page 4/11 What type of law requires employers to provide workers compensation coverage to employees? - ANSWER-Compulsory The Guaranty Association is formed to protect which of the following? - ANSWER-Policyowners Of $10,000 in premiums a producer wrote over the past year, $3,000 came from sales to a business which employs the producer's spouse. This is considered - ANSWER-A legal practice. Which of the following is used to determine the actual cash value of property? - ANSWER- Replacement cost According the cancellation and nonrenewal condition in homeowners policies, if an insurer needs to cancel a policy due to a change in risk after the policy has been in effect for more than 60 days, the insurer must provide the insured a notice of cancellation of at least - ANSWER-30 days. Commercial property policies written together into a single contract are referred to as - ANSWER- Package policies. Which of the following commercial forms would cover costs associated with a temporary worksite while damages to an office building are being repaired? - ANSWER-Extra expense The provision in workers compensation coverage that requires an employer to pay compensation without regard to negligence and according to a compensation schedule set by law, and for the injured employee to agree to limit the employer's responsibility to the amount of workers compensation to which he or she is entitled, is called - ANSWER-Exclusive remedy. All of the following are perils covered under the broad form dwelling policy EXCEPT - ANSWER-Theft. Which of the following refers to the upper limit a liability policy will pay out for all claims that arise from a single accident? - ANSWER-Per occurrence Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED Copyright ©Stuvia International BV Page 5/11 Which of the following businessowners policy (BOP) endorsements provides coverage for the inability to collect monies due from customers as the result of a covered cause of loss? - ANSWER-Accounts receivable Which of the following is NOT required of an insured after a loss in a homeowners policy? - ANSWER- Replace lost property within 30 days A license and permit bond is designed to guarantee a recipient - ANSWER-Complies with laws and regulations associated with their profession. In group health insurance, which of the following terms applies to the calculation of premiums based on the experience of the group as a whole? - ANSWER-Experience rate A transportation network company driver must maintain a primary automobile policy with minimum coverage of at least - ANSWER-$75,000/$150,000/$25,000. Which of the following is NOT a coverage part of a commercial package policy? - ANSWER-Personal articles floater The principle of negligence is defined as - ANSWER-The failure to use the care that a reasonable person would have taken under the similar circumstances. Under the Commercial General Liability form, which of the following coverages provides protection for bodily injury and property damage suffered by third parties? - ANSWER-Covera