Insurance License NY, Questions with accurate answers. Graded A. 2022/2023

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Insurance License NY, Questions with accurate answers. Graded A. 2022/2023 New home buyer S called his agent and told him that he wanted the broadest coverage available for his new home. Which po... licy would the agent be most likely to recommend? A) HO-3 B) HO-5 C) HO-2 D) HO-8 - ✔✔B Which of the following best defines a hazard? A) It eliminates the chance of loss B) It increases the chance of loss C) It is a cause of loss D) It increases the amount of loss - ✔✔B Under the Homeowners Forms, Coverage C includes which type of coverage? A Other Structures B Additional Living Expense C Special Damages D Contents and Personal Property - ✔✔D Under Coverage A of a Dwelling Policy, all of the following are covered, except: A Fire or lightning damage to outdoor television antennas B Land, including the land on which the dwelling is located C Materials for repairing the dwelling, located on the described location D Outdoor equipment on the location used to service the dwelling - ✔✔B Which of the following definitions is NOT amended by the Miscellaneous Type Vehicle - New York PP 03 29 Endorsement? A Newly Acquired Auto B Insured C Miscellaneous Type Vehicle D Physical Damage - ✔✔D Which federal entity administers the Terrorism Insurance Program created by TRIA? A Department of Homeland Security B Department of the Treasury C NAIC D Department of Defense - ✔✔B Which of the following is part of the legal responsibility of maintaining an insurance license? A An agent must inform the Superintendent of any change in address within 10 days B An agent must inform the Superintendent of any change in address within 60 days C An agent must inform the Superintendent of any change in address within 30 days D An agent must inform the Superintendent of any change in address within - ✔✔C The following coverages are all found under Section I of the Homeowners Policy, except: A Other Structures B Personal Injury Liability C Personal Property D Dwelling - ✔✔B Which of the following best describes a liability policy that is written on a primary basis? A It is the policy that pays first with respect to other policies B It shares the loss with other policies covering the same loss C It provides only basic coverage D It pays only after other insurance covering the same loss is exhausted - ✔✔A The rules and procedures to be followed by the insured and the insurer are found in which section of an insurance policy? A Declarations B Conditions C Insuring Agreement D Definitions - ✔✔B A peril is defined as which of the following? A It is a risk of financial loss B It is a condition that may increase a loss C It is the specific cause of loss D It is an indirect loss - ✔✔C Policyholder C's debit card is stolen, and $1,000 is subsequently stolen from his account. How much will his HO-3 pay for the loss? A $1,000 B $500 C $250 D 0% - ✔✔B Which of the following is true of a Dwelling Form? A The Broad Form covers the cost to repair defective plumbing B The Basic Form covers the contents on an open perils basis C The Basic Form covers the contents against theft D The Special Form covers the building and other structures on an open perils basis - ✔✔D All of the following are true about liability, except: A A loss may take place over a period of time rather than all at once B Liability policies pay costs incurred by an insured to sue negligent third parties C Breach of contract is not considered an act of negligence D The burden of proof is on the injured party to prove that the other party was negligent - ✔✔B Which statement is not correct about the Right to Recover Payment under the PAP? A The Right to Recover is an insured's right B The right to recover involves going after the negligent party to pay for the insured's loss C The insured must reimburse the insurance company if the insured is paid by the other party D The person who is paid a claim must give the insurance company the right to recover damages - ✔✔A The Superintendent will waive any requirements for a nonresident license applicant otherwise applicable if: A The applicant has over 10 years of experience as a licensed agent in his/her home state B The applicant has successfully passed the applicable prelicensing exam in his/her home state C The applicant has a current and valid license, and is in good standing, in his/her home state D The applicant had, within the prior 6-month period, a valid license, and is in good standing, in his/her home state - ✔✔C The Dwelling Broad Form (DP-2) insures against all of the following perils, except: A Damage caused by burglars B Accidental discharge or overflow C Breakage of glass that is a part of a building, storm door or window D Theft - ✔✔D Coverage B of a dwelling policy will not apply to a detached garage if which of the following is being stored? A A broken down farm tractor belonging to the tenant B A helium tank used for the insured's business C Ski equipment owned by the insured's 18 year old son D A tenant's lawnmower with a full tank of gas - ✔✔B Which of the following reduces an award in proportion to the amount of negligence? A Contributory risk B Comparative negligence C Contributory negligence D Comparative risk - ✔✔B Which of the following homeowners coverages does not have a deductible? A Dwelling B Damage to Property of Others C Other Structures D Personal Property - ✔✔B Which of the following is NOT a reason for which the Superintendent may revoke, suspend, or refuse to renew a license? A Failed to pay state income taxes B Been convicted of a felony C Obtained a license by misrepresentation D Issued insufficient coverage to a customer through apparent authority - ✔✔D Which of the following notifies the Superintendent of a change of address? A Licensor B Client C Insurer D Licensee - ✔✔D Which of the following is not true concerning Section II of the Homeowners Policy? A The coverage for Damage to Property of Others pays the replacement cost of the property damaged up to $1,000 per occurrence B The coverage for Damage to Property of Others excludes property that is covered in Section I C The Damage to Property of Others duplicates coverage that is included in Section I D Payment under Damage to Property of Others is made regardless of negligence - ✔✔C Under a dwelling policy, an insured tenant may use up to what percentage of the Coverage C limit of insurance for a covered loss to improvements, alterations, and additions made at the insured's expense to that part of the described location occupied by the named insured? A 5% B 20% C 0% D 10% - ✔✔D Policyholder J hit a deer with his Honda. J has collision coverage with a $250 deductible and Other Than Collision coverage with a $50 deductible. The damage to J's car was $450. How much will the policy pay? A $200 B $150 C $400 D Nothing - ✔✔C H's liability policy has the following limits: $25,000 per person, $100,000 per occurrence, and $2,000,000 aggregate. This year, five separate claimants file in the amount $25,000 for injuries suffered in a single accident. How much will the policy pay? A $100,000 B $25,000 C $125,000 D $50,000 - ✔✔A If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer would it be considered in New York? A Domestic B Nonadmitted C Alien D Foreign - ✔✔D An insurer with capital that is divided into shares, and is owned by shareholders, is considered a: A Reciprocal insurer B Mutual company C Stock company D Fraternal Benefit Society - ✔✔C Under the Homeowners Policy, Medical Payments coverage will apply to expenses that are incurred within what length of time following an accident? A 1 year B 4 years C 3 years D 2 years - ✔✔C Which of the following is not true of the National Flood Insurance Program? A Coverage becomes effective 24 hours after the applicant completes the application and pays the premium. B The deductible applies separately to the building and personal property C Property moved to another location to protect it from flood at the insured location is covered for 45 days at the other location. D Personal property in basements is not covered - ✔✔A Damaged household and personal property in transit between the insured's old and new residences is covered by the Dwelling Policy under: A Coverage A B Coverage C C Coverage B D Coverage D - ✔✔B [Show More]

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