New York State Exam New York State Insurance License Exam 2

Question 1

Under New York's no-fault auto insurance law, what is the minimum required Personal Injury Protection (PIP) coverage per person?

Accepted Answer

$50,000

Answer

$25,000

Answer

$30,000

Answer

$100,000

Question 2

What type of life insurance provides a death benefit only if the insured dies within a specified period and accumulates no cash value?

Accepted Answer

Term life insurance

Answer

Whole life insurance

Answer

Universal life insurance

Answer

Variable life insurance

Question 3

What is 'subrogation' in insurance?

Accepted Answer

The insurer's legal right to pursue a negligent third party after paying a claim

Answer

The policyholder's right to cancel a policy within the free-look period

Answer

The process of transferring a life insurance policy to a new owner

Answer

The method of calculating the replacement cost of insured property

Question 4

Which type of liability policy covers losses based on when the incident occurred, regardless of when the claim is submitted?

Accepted Answer

Occurrence policy

Answer

Claims-made policy

Answer

Aggregate policy

Answer

Blanket policy

Question 5

In commercial property insurance, what does a coinsurance clause require of the insured?

Accepted Answer

The insured must carry coverage equal to a specified percentage of the property's value or bear a proportionate penalty at claim time

Answer

The insured and insurer share all losses equally

Answer

Two separate insurers must cover the same property

Answer

The insured must pay the same premium regardless of coverage amount

Question 6

Which peril is typically EXCLUDED from a standard New York homeowners insurance policy and requires a separate policy?

Accepted Answer

Flood damage

Answer

Fire and smoke damage

Answer

Theft of personal property

Answer

Liability for injuries to guests on the premises

Question 7

What is the primary purpose of a personal umbrella liability insurance policy?

Accepted Answer

To provide excess liability coverage above the limits of underlying policies such as auto and homeowners

Answer

To replace an auto insurance policy with broader coverage at lower cost

Answer

To cover only weather-related property losses not covered by homeowners insurance

Answer

To insure multiple properties under a single blanket policy