Insurance Licensing Certification Exams Pack
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- Exam Name: NewYorkIndependent General Adjuster (Series 17-70)
- 105 Questions
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Hired and Non-owned Auto Liability Endorsement covers which of the following?
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A
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Explanation
The correct answer is A. The BOP Hired Auto and Non-Owned Auto Liability Endorsement fills an important gap created by the standard auto exclusion. Non-owned auto liability applies to bodily injury or property damage arising from use of a non-owned automobile in the insured's business. A classic example is an employee using the employee's personally owned automobile while conducting business for the employer. Standard endorsement wording provides that Non-Owned Auto Liability applies to bodily injury or property damage arising from use of any “non-owned auto” in the business. It specifically contemplates automobiles owned by employees when they are being used for business purposes. Options B and C involve a company-owned van. An owned business automobile should ordinarily be insured under an appropriate commercial auto policy rather than the BOP's hired/non-owned endorsement. Option D likewise involves a company auto and therefore does not satisfy the non-owned or hired-auto concept. The endorsement is principally liability coverage; it does not automatically pay physical damage to the employee's personal automobile. The Series 17-70 BOP curriculum specifically tests the Hired Auto and Non-Owned Auto Liability endorsement, liability exclusions, and automobile-related business exposures. Therefore, A is correct. |
Which of the following is covered by the Causes of Loss — Special Form under commercial property?
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D
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Explanation
The correct answer is D — Windstorm. The Commercial Property Causes of Loss — Special Form operates primarily on an open-perils basis. Rather than limiting coverage only to individually listed causes of loss, it generally covers risks of direct physical loss unless the cause is specifically excluded or limited by the form. The Special Form specifically excludes smog. It also contains a Water exclusion that includes flood, surface water, waves, overflow of bodies of water, mudslide, and mudflow. Consequently, options A, B, and C describe causes specifically removed from the broad Special Form coverage grant. Windstorm, by contrast, is not generally excluded by the standard Causes of Loss — Special Form. Direct physical damage caused by wind is therefore ordinarily covered unless another exclusion, limitation, endorsement, or property-specific provision applies. This illustrates an essential adjusting distinction. Under a named-perils form, the insured must establish that the damage resulted from one of the listed covered causes. Under an open-perils Special Form, analysis begins with broad direct physical loss coverage and then determines whether an exclusion or limitation removes the loss. The Series 17-70 outline specifically covers Commercial Property causes-of-loss forms, exclusions, and open-versus-named-peril concepts. Therefore, D is correct. |
The primary purpose of the Workers Compensation Special Disability Fund is to
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A
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Explanation
The correct answer is A — encourage employers to hire workers with pre-existing disabilities. New York's Special Disability Fund, historically referred to as the Second Injury Fund, was designed to reduce the financial disincentive associated with employing workers who already had permanent physical impairments. The New York Workers' Compensation Board explains that the fund assumed, in qualifying cases, part of the permanent disability liability resulting when a worker with a pre-existing disability sustained a subsequent employment injury. The Board expressly states that one purpose was to encourage employers to hire people with disabilities by protecting employers against disproportionate liability from a subsequent workplace injury. Therefore, option A identifies the underlying policy objective. The fund was not created simply because an employee experienced two injuries, eliminating B. It does not provide ordinary benefits for injuries unrelated to employment, so C is incorrect. Option D inaccurately describes the fund as directly compensating employees for “second partial disability claims”; its principal mechanism was reimbursement or allocation of liability involving employers and insurers under qualifying statutory circumstances. The Fund is now closed to new claims, although historical Section 15(8) matters continue to be administered. The Series 17-70 outline nevertheless specifically tests the Special Disability Fund under WCL §15(8). Therefore, A is correct. |
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