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St. John’s University
(New York, NY)
[Risk Management and Insurance Program.]
State Insurance Claims Adjusters Certification
New York, NY Claims Adjuster Exam
Course Title and Number: Claims Adjuster Exam Exam Title: Board Exam Exam Date: Exam 2024- 2025 Instructor: [Insert Instructor’s Name] Student Name: [Insert Student’s Name] Student ID: [Insert Student ID]
Examination
180 minutes
Instructions:
**1. Read each question carefully.
- Answer all questions.
- Use the provided answer sheet to mark your responses.
- Ensure all answers are final before submitting the exam.
- Please answer each question below and click Submit when you have** **completed the Exam.
- This test has a time limit, The test will save and submit automatically** **when the time expires
- This is Exam which will assess your knowledge on the course Learning** Resources.
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State Insurance Claims Adjusters Certification 2024- New York N.Y Adjuster Exam Review Questions and Answers | 100% Pass Guaranteed | Graded A+ | Read All Instructions Carefully and Answer All the Questions Correctly Good Luck: - Question: According to the BAP definition, which of the following are "accidents"? All of the responses are correct. These are all considered to be "accidents" as defined by the policy definitions. Answer Choices: Select the Correct Answer Ground vibration caused by the operation of heavy dump trucks result over a period of weeks in structural damage to nearby buildings. A car fails to negotiate a sharp curve and crashes into a guard rail. The insured's truck hits a rock causing a collision with another vehicle. All of the responses are correct. - =Answer>> Question : According to the BAP definition, which of the following are "accidents"? All of the responses are correct. These are all considered to be "accidents" as defined by the policy definitions. Answer Choices: Select the Correct Answer Ground vibration caused by the operation of heavy dump trucks result over a period of weeks in structural damage to nearby buildings. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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All are additional coverages, but collapse and water or other liquid, powder or molten materials are available only under the BOP Special form. The named peril form endorsement which coverts open peril coverage to named peril coverage does not include collapse as an additional coverage. Answer Choices: Select the Correct Answer I, II, III and IV I, II, and III only I and II only III and IV only - =Answer>> I, II, a nd III only All of the following statements are false regarding an insured's right to cancel an automobile policy, EXCEPT: - =Answer>> The name d insured may cancel an auto policy at any time. is correct. The insured's homeowner policy provides $100,000 on his one family dwelling. In the event of a burglary at the insured's residence, other than his residence premises, how much coverage would be available for the loss of personal property? - =Answer>> The corr ect answer is: $5,000. Explanation: The question implies that the location of the loss belongs to the insured but that it is not his insured dwelling. The homeowner policy automatically provides personal property coverage in an amount equal to 50% of the dwelling coverage. In this instance there would be $50, coverage for the insured's personal property. However, as Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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this loss did not occur at the insured location (not listed on the declarations page for which a premium was paid), the personal property coverage at this location is reduced to 10% of $50,000 which amounts to $5,000. The expected county yield in Hiram's county is 50 bushels per acre, the expected price is $10, and Hiram chooses a coverage level of 75 percent and a dollar protection of $ per acre. If the actual county yield is 40 bushels per acre and the actual price is $8 per bushel, how much indemnity should Hiram receive? A. $15 per acre. B. $30 per acre. C. $20 per acre. D. $25 per acre. - =Answer>> A. $15 p er acre. Why do most insurance policies covering buildings and their contents exclude earthquake coverage? A. It is difficult to predict when an earthquake will occur. B. An earthquake may result in catastrophic losses. C. Earthquake coverage can only be obtained through the National Earthquake Insurance Program. D. Earthquake damage is a form of expected wear and tear.
- =Answer>> B. An ea rthquake may result in catastrophic losses. While adjusting a claim, Rebecca makes disparaging comments about the insurance company she represents, Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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B. Robin's policy will pay all but $1,000, Joe's policy will pay $900, and Joe will pay $100. C. Joe has no applicable collision coverage and must pay for all repairs. D. Robin's policy will pay all but $1,000 and Joe will pay $1,000. - =Answer>> B. Robin 's policy will pay all but $1,000, Joe's policy will pay $900, and Joe will pay $100. Because the sports car was a temporary substitute for an owned auto, Joe's policy considers it a nonowned auto, and Joe gets the broadest physical damage coverage available on any of his autos. However, because insurance follows the car, Robin's policy provides primary coverage. When a claims-made liability policy ends, when must the insurer notify its insured of the automatic extended reporting period coverage? A. 60 days. B. 30 days. C. 21 days. C. 14 days. - =Answer>> B. 30 da ys. In New York, when claims-made liability coverage ends, an insurer must within 30 days NOTIFY its insured that automatic extended reporting period coverage is provided for up to 60 days. When investigating a claim, and adjuster does each of the following tasks EXCEPT: Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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A. Verify information. B. Analyze information. C. Obtain information. D. Interpret information. - =Answer>> D. Inter pret information. Food products in Dolly Deli's refrigerated cooler would be ruined if the electrical supply is interrupted for more than a few hours. The deli adds the utility services-direct damage endorsement to its businessowners policy and schedules overhead transmission lines. If Dolly Deli loses electrical power because a windstorm downs power lines, what, if anything, will the policy cover? A. nothing, because windstorm is not a covered peril. B. direct damage and lost business income. C. direct damage alone. D. lost business income alone. - =Answer>> C. direc t damage alone. The utility services-direct damage endorsement covers direct damage loss only. Coverage for business income or extra expense losses requires a different endorsement. Jonah's Farm Livestock Coverage Form (FP 00 40) covers his livestock. As defined, this means Jonah has coverage for all of the following creatures on his farm EXCEPT: A. goats B. chickens C. lambs Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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engaged in casual employment. The coverage does not apply to bodily injury of an employee arising from the insured's business pursuits The employee must be a residence employee—and not an employee of the insured's business—for coverage to apply. ** Steve's car is in the dealer's garage when a tornado destroys the building and its contents. The dealer's garage policy includes garagekeepers coverage with the excess direct coverage option. How does the policy address the loss? A. It will pay for any of Steve's loss that his personal auto insurance does not cover. B. It will pay for the loss to Steve's car and other customers' cars, subject to the policy's limit and deductible. C. It will pay any loss for which the dealer is legally liable to its customers. D. Coverage does not apply because the dealer is not responsible for a windstorm. - =Answer>> A. It wi ll pay for any of Steve's loss that his personal auto insurance does not cover. With the excess direct coverage option selected for garagekeepers coverage, the insurer pays the excess over any other collectible insurance, without regard to the insured's legal liability. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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The Dwelling Property 3-Special Form provides more coverage than the Dwelling Property 2-Broad Form because the DP 3 automatically provides: A. replacement cost coverage rather than actual cash value coverage on personal property B. additional living expense rather than fair rental value coverage C. open perils coverage rather than named perils coverage on the building D. other structures coverage with higher limits and no deductible - =Answer>> C. open perils coverage rather than named perils coverage on the building In contrast to the DP 2's named perils coverage, the DP 3 provides open perils coverage on the dwelling building. What should business partners who want to be covered under a workers compensation policy covering their employees do if they want to also be protected for job-related injuries? A. Add the sole proprietors, partners, officers, and others coverage endorsement to their workers compensation policy. B. Nothing; in most states there is no way to provide workers compensation benefits to the partners of a business partnership. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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However, it generally excludes coverage for loss or damage to cargo or other property, including passengers' baggage and personal effects. A liability adjuster has each of the following duties EXCEPT: A. to represent the interests of the insurer. B. to treat the claimant fairly. C. to protect the insured. D. to prosecute the party that caused the loss. - =Answer>> D. to pr osecute the party that caused the loss. Any prosecution of a claim might be carried out in litigation, which would be referred to legal counsel. ** Maurice's personal auto policy (PAP) on the family car lists him as the named insured. His wife, Sondra, is involved in an accident while using the car as a Charity Organization volunteer. The injured parties sue Maurice, Sondra, and Charity Organization. Which is insured under the policy's liability coverage? A. Maurice, Sondra, and Charity Organization B. Maurice and Sondra C. Maurice and Charity Organization D. Maurice - =Answer>> A. Mauri ce, Sondra, and Charity Organization Sondra is a named insured by virtue of her marriage to Maurice, who is named in the policy. Charity Organization is Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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an insured because it may be held liable for an insured's use of the named insured's covered auto. Dawn is the only person named in the declarations of her homeowners insurance policy. References to an "insured" in her policy do NOT include: A. a neighbor hired to walk Dawn's dog B. Dawn's minor children living in her home C. Dawn's next-door neighbor D. Dawn - =Answer>> C. Dawn' s next-door neighbor Eliza's car is insured with a personal auto policy that includes liability, collision, and other-than-collision coverages. She buys a pickup truck. What coverage, if any, will the PAP provide for the truck? A. automatic liability coverage if she reports the newly acquired vehicle to the insurer within 14 days. B. automatic collision coverage if she reports the newly acquired vehicle to the insurer within 30 days C. none because the newly acquired vehicle is a truck D. automatic liability coverage for the remainder of the policy period - =Answer>> A. autom atic liability coverage if she reports the newly acquired vehicle to the insurer within 14 days. Because the truck is an additional vehicle, it has automatic liability coverage immediately. Eliza must notify the insurer within 14 days to add the truck to her policy. Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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insurance companies in a manner that will maximize their recovery. An insurer that delays payment of a valid claim more than 30 days after receiving proof of loss must pay monthly interest on the payment at the rate of: A. 0.5 percent. B. 2 percent. C. 3 percent. D. 1 percent. - =Answer>> C. 3 per cent. An insurer must pay a valid claim within 30 days after proof of loss has been submitted. Overdue payments incur interest at the rate of two percent each month. As a risk management technique, which of the following best illustrates risk transfer? A. John refuses to buy life insurance because he figures he has enough money in his savings to pay for his burial when he dies. B. Robert purchases life insurance because he figures doing so is far less expensive than trying to save all the money his survivors would need upon his death. C. Sheila refuses to drink alcoholic beverages if she expects to drive a car afterward. D. Carol eats a healthy diet and exercises regularly, hoping that doing so will keep her healthy. - =Answer>> B. Rober t purchases life insurance because he figures doing so is far Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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less expensive than trying to save all the money his survivors would need upon his death. Offering any return of premium, valuable consideration or inducement when purchasing an insurance policy is an example of: - =Answer>> I. Illeg al Inducement II. Rebating Under a watercraft or yacht policy how claims are settled: - =Answer>> Actual c ash value When may an insured sue an insurance company? - =Answer>> Not unti l the insured has complied with all policy provisions and within the time limit specified in the state laws What is the definition of a non-resident agent? - =Answer>> Someone licensed in their state and obtains a license in another state to solicit insurance business in that state. is correct. The court awards a judgment against the insured for $300,000 plus $10,000 of accrued interest and the legal fees amount to an additional $35,000. Our insured has a $300,000 liability limit on the policy. How much will be paid by the policy? - =Answer>> The corr ect answer is: $345,000. Explanation: The $10,000 of accrued pre judgment interest and the $35,000 cost of the defense are all payable as additional coverage on the policy. These amounts have no affect on the limit of liability available in a judgment against the Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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Who signs the declarations page on most property and casualty policies? - =Answer>> An Autho rized Representative of the Insurer Which of the following commercial crime insuring agreements would cover theft of currency? - =Answer>> Employee Theft. Once the adjuster is appointed by the insurer to represent the insurer, the adjuster has the power to do all of the following, EXCEPT: - =Answer>> Bind add itional coverage. The giving up of a known right is known as: - =Answer>> Waiver What is the definition of custom farming? - =Answer>> Farming for Others. Explanation: Custom farming is farming for others for a fee under a contract or agreement. A special endorsement is required if the receipts are in excess of $5,000 per year. An insured has an occurrence-type CGL policy with a $100,000 aggregate limit and a $25,000 per occurrence limit. The insured had one occurrence settled for $35, and a second occurrence, which took place during the same policy period, was settled for $20,000. If a third occurrence took place in this same term, what is the maximum amount the insurer would be obligated to pay as damages? - =Answer>> Explanat ion: The policy can only pay up to its per occurrence limit on any one occurrence. The insurer will pay $25,000 for the first Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
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occurrence, and will pay all of the $20,000 settlement for the second occurrence. The aggregate limit has thus been reduced by a total of $45,000, leaving just $55,000 for any other occurrences during that policy period. The insured owns a home with a swimming pool. The pool is not fenced. If a child were to drown in the pool, which of the following liability doctrines would most likely apply? - =Answer>> Attracti ve Nuisance. Explanation: In law, one who maintains a dangerous instrumentality on their premises which is likely to attract children is under a duty to reasonably protect those children from the dangers of that attraction The insured maintains a business where workers compensation coverage can be written by private insurance companies. If he has employees going to a state that is monopolistic for this coverage, what must he do to cover his employees for workers compensation coverage? - =Answer>> Purchase coverage for the employees from the state. The Terrorism Act of 2002 and its extension is an agreement between: - =Answer>> The Terr orism Act of 2002 and its extension is an agreement between: Which of the following is not essential in determining if a salvage award is to be made? - =Answer>> Life-sav ing efforts Need Writing 🤔Help? We've Got You Covered! ✍️ 100% NO A I or Plagiarism Guaranteed🤔
