New York Insurance Exam Practice Questions, Exams of Automobile Engineering

Download New York Insurance Exam Practice Questions and more Exams Automobile Engineering in PDF only on Docsity! New York Indep. Motor Vehicle No-Fault and Workers Compensation Health Services Adjuster (Series 17-72) Latest 2023/2024 An "uninsured motor vehicle" under a personal auto policy does not include: - ✔A️n abandoned car used as a residence. . Which of the following are exempt from certain sections of the New York cybersecurity regulation? - ✔A️ll responses listed are correct.. Danny owns an auto body shop and he has received a request from a client to restore his 1964 Ford Mustang. The client has requested a custom mustang horse be painted on the hood of the car. Danny always selects the type of paint most suited for the job, so which of the following paint types will Danny most likely select to paint the horse? - ✔L️acquer The root word "glyc" refers to: - ✔S️ugar. If any person engages in activities in violation of the Federal Insurance Fraud and False Statements regulation, he or she may be subject to which of the following? - ✔A️ civil penalty of not more than $50,000.. What commercial auto form is used to cover taxis and bus companies - ✔M️otor carrier form. Tom has lost 30% of his hearing in both ears. His doctor has advised him that his hearing loss has been caused by exposure to noise at his workplace for the past 25 years. Tom's hearing loss can be catoragized as a: - ✔C️umulative Trauma Disorder. Tearing of a muscle results in an injury known as a: - ✔s️train In commercial auto physical damage coverage, what "triggers" the coverage that applies to the vehicles? - ✔S️ymbols How would an insured's PAP coverage apply when renting a private passenger auto while on vacation when they have purchased insurance coverage from the rental company? - ✔T️he insured's PAP provides excess liability coverage when the insured drives non- owned autos. . Which of the following statements is true regarding the business auto policy - ✔O️ne or more of ten symbols triggers coverage. Under the New York cybersecurity regulation, each covered entity must maintain documentation supporting certification of compliance with the regulation for: - ✔5️ years The root word "stomat" refers to - ✔M️outh What is the purpose of "other states insurance" under a Workers Compensation policy? - ✔T️o provide coverage for exposures which develop in other states during the policy period . After receiving a blow to the head, Alex is released from the hospital after a few hours and told to rest and resume normal activity in 3-4 days. Alex has suffered a brain injury known as: - ✔C️oncussion When an insurer intends to non-renew a homeowners policy in New York, at least _____ advance notice of non-renewal must be sent to the insured - ✔4️5 days The type of auto body frame that is most often used in today's automobile and is a single molded unit, is known as: - ✔A️ unibody frame.. Jim Johnson has an automobile policy with a combined single limit of $50,000. He has an at-fault accident and incurs the following expenses: $30,000 bodily injury judgment; $30,000 property damage judgment; $5,000 damage to traffic light; $6,000 attorney's fees for his defense; $300 in premiums for appeal bond; and $75 in bail bond premiums for related traffic violations. What is the maximum amount his insurance company will pay? - ✔$️56,375. The policy cannot pay more than its limit of liability. Under supplemental coverages in the policy, the policy will pay the defense costs plus the cost of the premiums on appeal bonds and bail bonds. Before revoking or suspending a license, the Superintendent must first send _____ notice and give the accused an opportunity for a hearing. - ✔1️0 days. Mr. York had his pickup truck stolen while it was parked in a "no parking" zone outside his office. The value of the truck was $18,500. In addition, tools valued at $200, extra tires and hubcaps for the truck valued at $550 and a tarp worth $50 were in the truck. Mr. York has a collision deductible of $500 and a comprehensive deductible of $250. The insurance company will pay what amount - Cystic fibrosis is a serious and often fatal disease that affects the: - ✔L️ungs. Vehicle glass, other than the windshield, is made of: - ✔T️empered glass. The insured is covered under a personal auto policy and carries liability coverage, other than collision (comprehensive) coverage and collision coverage. He has a large quantity of CDs in the vehicle. The vehicle is broken into and these items are stolen. How will the insurance company handle the claim for the CDs? Deny the claim in full. Pay the claim in full. Pay the claim minus depreciation. Pay the claim minus the deductible. - ✔D️eny the claim in full. Which of the following insurance companies MUST participate in a state's automobile assigned risk plan All licensed insurance companies that sell auto insurance in the state. Only companies that sell more than 1,000 auto policies per year in the state. Only the ten largest auto insurance companies in the state. Only excess lines insurance companies that sell auto insurance in the state. - ✔A️ll licensed insurance companies that sell auto insurance in the state. You are at home having your roof repaired. An employee of the roofing company needs to go to the hardware store to purchase supplies. Your car is blocking the driveway so you allow him to use your car to go to the store. While driving your car, he is at-fault in an auto accident. Your insurance policy will protect: All of the parties would be protected by your policy. Only you the insured will be protected. Only the employee will be protected. Both you and the insured will be protected - ✔A️ll of the parties would be protected by your policy. The commercial auto policy form provides for "worldwide liability coverage" for private passenger autos that the insured: Hires, leases, rents or borrows without a driver. Purchases. Sells. Occupies. - ✔H️ires, leases, rents or borrows without a driver. What limit of liability would be needed for a risk that transports radio active materials as required by the Motor Carrier Act under the MCS-90 endorsement? - ✔$️5,000,000 The limit for medical expenses and rehabilitation expenses under the New York no- fault plan is: - ✔$️50,000 When a claimant is represented by an attorney, which of the following is prohibited by the adjuster? - ✔C️ontact the claimant without the consent of the attorney Driver 1 and Driver 2 are in an accident. Driver 2 has the following damages: Property Damage - $1,000 Rental Car Expense - $500 Emergency Room Expense - $400 Lost Wages - $300 The extent of the bodily injury will not be known for six months. How should the adjuster on this claim pay damages for Driver 2? Pay all damage to date, provide a full and final release has been signed by Driver 2. Pay nothing until total of all damages has been determined. Pay the property damage and rental car expense and settle the bodily injury at a later time. None of the responses listed are correct - ✔P️ay the property damage and rental car expense and settle the bodily injury at a later time. The named insured has a business auto policy issued by Company A and another auto policy issued by Company B. Company A's BAP has a limit of insurance for liability coverage of $100,000. Company B's policy provides $25,000 of liability coverage. If both policies apply to an accident on the same basis, how much of a $100,000 liability loss will Company A pay under its BAP? - ✔$️80,000.. The two companies provide a combined limit of $125,000. Company A provides 80% of the limits in place. In case of a $100,000 loss, company A would pay $80,000. Which of the following is not a duty of an insurer in case of a loss? - ✔S️eparate the damaged property from the undamaged property and protect the property from further loss In the event of a loss under a personal auto policy, an insured is required to submit to the insurance company all of the following information, EXCEPT: An appraisal of the damaged property. A list of any known witnesses. A notice of claim. Proof of loss statement if requested. - ✔A️n appraisal of the damaged property. Employers in New York have _____days from the date of the initial penalty for failing to comply with the compliance provisions of workers compensation coverage for eligible employees to appeal the penalty - ✔3️0. What is the primary function of a vehicle cooling system? - ✔I️t keeps the engine from overheating by transferring the heat from the engine to the air. The insured carries auto insurance in New York and has purchased the Supplementary Uninsured Motorist Coverage (SUM). This coverage: - ✔R️eplaces the statutory uninsured motorist coverage. Under the commercial auto policy providing physical damage, which of the following offers the broadest coverage Comprehensive. Specified cause of loss. Named perils. Broad named perils. - ✔C️omprehensive. The New York Superintendent of Insurance may refuse to renew, suspend or revoke a license as a result of which of the following? I. A violation of any provision of the New York Insurance Code. II. A licensee making a material misstatement in application for license. III. A licensee being found guilty of fraud or dishonest practices. - ✔I️, II and III In New York, property damage to a rental car is paid under which of the following automobile coverage? The insured's property damage coverage. The insured's physical damage coverage. By the attachment of a special endorsement. Coverage can only be purchased and provided by the rental car company. - ✔T️he insured's property damage coverage Which of the following is true regarding Independent Medical Examinations (IMEs) requested by an insurer while adjusting a workers compensation claim? The results found in an IME are confidential and cannot be shared with the insurer. The results of the IME are confidential and can only be shared with the insurer with the injured worker's consent. The results of an IME will only be shared with the insurer if the findings conflict with the findings of the treating physician. An IME does not create a doctor-patient relationship, therefore the findings of the IME are not confidential and can be shared with the adjuster and insurance company. - ✔A️n IME does not create a doctor-patient relationship, therefore the findings of the IME are not confidential and can be shared with the adjuster and insurance company. The Terrorism Risk Insurance Program Reauthorization Act of 2015 excludes all of the following, EXCEPT: - A New York insurance licensee must advise the Insurance Department of a change of address within: - ✔3️0 days of the change. Which of the following pollution losses would be covered by garage policy liability coverage? Pollution of a stream caused by gasoline leaking from the ruptured fuel tank of a covered auto following a collision. Escape of toxic sludge from a dump site used by the named insured to store waste produced in its garage operations. The cost of a governmentally ordered clean-up of the pollution from a dump site used by the named insured. None of the losses described would be covered. - ✔P️ollution of a stream caused by gasoline leaking from the ruptured fuel tank of a covered auto following a collision.. Tachycardia is a condition in which the heart contracts at a rate greater than ____ beats per minute. - ✔1️00 All of the following are included in an insurance property estimate of damages, EXCEPT: - ✔D️epreciation When would the personal auto policy respond to a loss with a three wheeler - ✔W️hen used in an emergency situation All of the following circumstances would be covered under workers compensation, EXCEPT: - ✔T️he worker was injured while violating a company rule at lunch break. All of the following are considered to be family members on the PAP, EXCEPT: - ✔I️nsured's mother who doesn't live in the household What can happen when an independent contractor is injured while working and files a claim stating that they were actually an employee? The claim will be denied. The claim will be paid as if the insured is "self insured." Only a portion of the claim will be paid. The insurance carrier can charge an additional premium for the exposure. - ✔T️he insurance carrier can charge an additional premium for the exposure. Which of the following is NOT a correct statement in determining the cost of a "comparable automobile" when a physical damage loss has a occurred? - ✔T️he cost of a comparable automobile as determined by a computerized automobile valuation service that produces statistically valid fair market values within the United States market. . The named insured is an auto dealer with a single insured location. Physical damage coverage under the insured's garage policy is written on a reporting basis. On the date of the insured's last report, the value of covered autos at the insured's location was $400,000; the insured's report on that date showed values of $300,000. A covered loss occurs, with damage totaling $80,000. How much of this loss will the garage insurer pay? $80,000 $60,000 $40,000 $0 - ✔$️60,000 The insured will suffer a penalty equal to the percentage of the under reporting of the inventory bears to the actual inventory. The insured reported 25% less than the actual inventory and would be paid $60,000 instead of the $80,000 loss. Which of the following best describes an abnormal condition in which a clot develops within a blood vessel? - ✔T️hrombosis Commercial Auto insurance applies to accidents or losses in all of the following locations, EXCEPT: - ✔M️exico. A person that has been found to be committing unfair or deceptive acts in the business of insurance can be fined up to ______ per day for each offence. - ✔$️500 Cars driven by Sue Trent and Jim Higgins were involved in an automobile accident where Mr. Higgins was at fault. Sue Trent's car was a total loss and valued at $6,000, plus she sustained bodily injuries totaling $25,000. Scott Finley, Ms. Trent's passenger, was injured and incurred $6,000 in medical expenses. Mr. Higgins, the responsible party, carries bodily injury coverage with limits of $15,000 per person and $30,000 per accident, and property damage coverage of $5,000. His policy will pay a maximum of: $26,000 $29,000 $35,000 $39,000 - ✔$️26,000 Mr. Higgins' policy will pay a maximum of $26,000. The maximum per person limit that can be paid to any one person as a result of Mr. Higgins' negligence is $15,000. Therefore, Sue Trent will receive only $15,000 and Scott Finley will receive $6,000. This amounts to $21,000 in bodily injury payments. The property damage limit carried by Mr. Higgins is only $5,000. Therefore, the most that can be paid for the total loss to Sue Trent's vehicle is $5,000 even though her vehicle is worth $6,000. The total of $21,000 plus the $5,000 is $26,000 An employee of a metal fabricating employer was injured while moving metal sheeting an fractured his right ulna and radial bones, and his right tibia and fibula. What regions of this employee's body was injured? - ✔T️his employee fractured his right forearm and his right lower leg. The insured is covered under a personal auto policy with collision coverage and a $500. deductible. He is involved in an at-fault accident. The loss involves $4,000 damage to the vehicle and a $45.00 storage fee. How much will the insurer pay $3,545 $4,000 $3,500 $4,045 - ✔$️3,545 The supplementary payments under the personal auto policy: Will pay the insured up to $200 per day for loss of earnings due to testifying at a trial concerning an accident caused by the insured Will not pay for loss of earnings while testifying at a trial Will pay the insured $100 per day for loss of earnings while testifying at trial None of the responses are correct. - ✔W️ill pay the insured up to $200 per day for loss of earnings due to testifying at a trial concerning an accident caused by the insured Supplementary payments under the liability section of a commercial auto policy include reasonable expenses incurred by the insured including loss of earnings up to ___ per day. $50 $150 $250 $500 - ✔$️250 There are four people in the Smith family: Mr. Smith, Mrs. Smith, Susan Smith (Mr. and Mrs. Smith's daughter), and Mrs. Hillman (Mrs. Smith's mother). The Smiths own a family car which is covered by a personal auto policy. Mrs. Hillman also has a 1995 Chevy Impala on which she carries no insurance (it is not listed on the Smith's policy). Which of the following injuries would NOT be eligible for medical payments coverage under the Smith's personal auto policy? - ✔I️njuries sustained by Mrs. Hillman when she is driving her own car. . All of the following are examples of a "door" in an automobile, EXCEPT: A panel that opens to allow access to the interior of the vehicle. The hood of the vehicle. The floor pan of the vehicle. The trunk lid of the vehicle. - ✔T️he floor pan of the vehicle. The suffix "somatic" refers to: Brain Body Tissue Muscle - ✔B️ody Additional (supplementary) payments Medical Payments - ✔P️roperty Damage Liability 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? The insured is paid a total of $300,000. The mortgagee is paid $150,000. The insured is paid $150,000 for the personal property loss. Since the loss is from an intentional act of the insured the entire loss is denied. - ✔T️he mortgagee is paid $150,000 After proof of loss has been received, a New York insurance company has how many days to pay the claim 30 45 60 90 - ✔3️0 If an insurer intends to cancel a workers compensation policy issued in New York for other than nonpayment of premium, a ___ day advance notice must be sent to the insured. - ✔3️0 You are the adjuster and you are contacted by a claimant and advised that he has fired his attorney and wants to proceed to negotiate the claim directly with you. As an adjuster, what should you do? - ✔R️equest a "drop letter" After receiving an inquiry from the New York Department of Insurance regarding a claim, an insurer must respond within: - ✔1️0 business days John does not own a vehicle and borrows a friend's car and has an accident. John carries named non-owned auto coverage. Which of the following applies to the accident? John's coverage is excess The friend's coverage is excess since John has coverage Both companies would share in the claim equally John's coverage would pay the majority of the claim - ✔J️ohn's coverage is excess Who determines legal liability? - ✔T️he court/jury/judge An insurance professional that is accused of dishonesty or breach of trust involving interstate commerce under the Federal Fraud and False Statement Regulation of the United States Code (USC 1033) will be prosecuted by: - ✔T️he U.S. Attorney general The insured owns a motor home that is not covered by the insured's personal auto policy. This vehicle can be added to the policy by using which of the following endorsements? - ✔M️iscellaneous Type Vehicle endorsement. Duplicate recovery under New York No-Fault coverage is not permitted. If the employee is covered under the employer's auto policy what might be done to the employee's personal auto insurance coverage: - ✔E️ndorsement PP 05 92 can be added to the employees personal auto policy. For all but small employers, premiums in a Workers Compensation policy include an adjustment, upwards or downwards, based upon how the employer's actual loss experience compares to that expected of employers which do similar work. What is the name of the factor that accounts for this adjustment? - ✔T️he experience modification factor Workers compensation insurance is a contract between: - ✔I️nsurance company and the employer. A tornado blows over a wall of a barn which, in turn, knocks over a lamp and starts a fire. What is the proximate cause of loss? Tornado Smoke Fire Water Damage - ✔T️ornado What is the first thing an insurance company staff adjuster must determine in handling a workers compensation injury claim? - ✔W️hether coverage was in effect at the time of the injury The human respiratory system supplies oxygen and removes _____ from the body - ✔c️arbon dioxide An authorized insurer in the state of New York may use a report from any acceptable consumer reporting agencies as part of its underwriting process. Which of the following Acts was established to protect individuals from possible abuses of information contained in their credit files? - ✔T️he Fair Credit Reporting Act Sally Roe's vehicle is rear-ended by John Doe. Sally and John are good friends. Sally tells John not to worry about the damage. She says she has insurance and will tell her insurance company to pay for the damage. She will waive her subrogation right so that John won't have to pay anything. Her insurer will: Honor the waiver. Not honor the waiver. Proceed with subrogation against John Doe and will not honor the waiver. Refuse to pay the claim because of the waiver of subrogation. - ✔P️roceed with subrogation against John Doe and will not honor the waiver Under the New York Comprehensive Automobile Insurance Reparations Act, (No Fault) coverages, what is paid for basic economic loss benefits for substitute services? - ✔$️25 per day for one year. Paul's neighbor Pete gives Paul the keys to his uninsured pickup truck to use whenever Paul wants to. When would this vehicle NOT be considered a "covered auto" on Paul's auto policy? - ✔P️aul's vehicle is out of gas New York residents securing any type of insurance adjuster license must meet all the following qualifications, EXCEPT The applicant must pass a state licensing examination. The applicant must be at least 21 years of age. The applicant must submit to fingerprinting. The applicant must not be a convicted felon - ✔T️he applicant must be at least 21 years of age.. Under the comprehensive coverage of a business auto policy, which of the following would not be a covered loss? After sliding on an icy pavement, a driver hits a guardrail. Electrical wiring in the vehicle catches fire when the ignition is turned on. All four tires are removed and a truck is put on blocks while it is parked over the weekend, even though there is no evidence of forcible entry into the company parking lot. A vehicle has its tires slashed by an undetermined person. - ✔A️fter sliding on an icy pavement, a driver hits a guardrail. What is found in the Part VI - Conditions section of a Workers Compensation policy - ✔C️ancellation clause Tom purchases a personal auto policy with limits of $25/50/25 and his wife Jane also purchases a policy with limits of $50/100/25. Both policies cover the same automobiles and both policies were purchased from the same insurance company. Neither Tom nor Jane is aware their spouse has purchased another personal auto policy. If an accident occurs and several people are injured, what is the most in liability coverage that will be available if Tom and Jane are both sued by the injured parties? - ✔I️f the policies are from the same company, Jane's limit of $100,000 would apply because it is the highest of the two limits Which of the following is the type of report indicating the initial results of the investigation of a claim? Field Report Interim Report