NY 25 Q Test 1

1.

1 point

The $1,000 for reasonable expenses incurred to remove property to another location to protect it from flood damage is available on flood insurance:

subject to the program's deductible.

for 45 days from the time it was removed

for each flood loss occurrence.

for 90 days from the time it was removed.

2.

1 point

In a Homeowner Policy under the additional coverage of glass breakage building glass is:

Never covered.

Covered but storm windows are not.

Covered unless the insured premises has been vacant for 60 consecutive days immediately before a loss.

Always covered regardless of the circumstance.

3.

1 point

Richard Lanham has been advised by the Superintendent of Insurance to cease and desist in the performance of certain infractions of the insurance code. He has had a hearing and been issued a cease and desist order. He continues to violate the cease and desist order. He can be fined a penalty of up to:

$2,000 per violation

$5,000 per violation

$1,000 per violation

$2,500 per violation

4.

1 point

The adjuster has uncovered some discrepancies in matters pertaining to a claim. He is unable to contact the insured to discuss these matters. What should the adjuster do?

Deny the claim

Do nothing until the insured can be contacted

Send a reservation of rights letter to the insured’s last known address

Pay the claim and give the insured the benefit of the doubt

5.

1 point

Insurers can recoup payments under the Terrorism Risk Act of 2002 (which was extended in 2007 to expire 12/31/14) by:

Collect the premium on the policy anniversary date

Attaching an endorsement charging an additional premium

A surcharge in the rates for insureds

Filing for a rate increase with the Insurance Department

6.

1 point

An insured's television set is damaged while at a repair shop. The interest of the repair shop is not covered because of which of the following clauses?

Pair and Set Clause

No Benefit to Bailee

Other Insurance

Insurable Interest

7.

1 point

In ocean marine insurance, each of the following is considered to be an "implied warranty" EXCEPT:

Seaworthiness.

Condition of cargo.

Legality of the voyage.

General average.

8.

1 point

In New York no suit or action against the insurer for the recovery of any claim shall be sustainable in any court of law unless all of the requirements of the policy shall have been complied with, unless commenced within ______ months next after inception of the loss.

36

24

15

12

9.

1 point

An HO-2 form sets special coverage limits on all of the following items, EXCEPT:

Money

Jewelry

Boats

Television sets

10.

1 point

Who makes a declaratory judgment?

The insurance company

The court

The insured’s attorney

The insurance department

11.

1 point

On a homeowner policy, Coverage A would include all of the following, EXCEPT

The residence being insured

Structures attached to the dwelling

A storage shed connected to the dwelling by a utility line

Material and supplies intended for repair or alteration of the dwelling

12.

1 point

Before an authorized/non-admitted company can begin selling policies in the state of New York they must:

Become an admitted carrier in the state

Pay additional fees and fines

Issue business as an excess and surplus lines carrier

Seek an exemption from the superintendent of insurance

13.

1 point

Instead of revoking an adjuster’s license because of a violation, the Superintendent of Insurance may invoke a penalty of up to ______ for each offense up to an aggregate penalty of ______ for all offenses.

$500/$2,500

$5,000/$10,000

$2,000/$5,500

$1,000/$3,000

14.

1 point

Insurers must maintain a complaint record for _________ after all elements of the complaint are resolved and the file is closed

three calendar years

five years

six calendar years

one year

15.

1 point

When can two insurance companies arbitrate a subrogation question?

When approved by the court

Only with the third party claimant’s consent

With the consent of both companies

Only with the insured’s consent