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

New York requires a minimum of $50,000 in Personal Injury Protection (no-fault) coverage per person for all personal auto insurance policies.

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

Term life insurance provides pure death benefit protection for a defined period with no cash value accumulation; if the insured outlives the term, coverage ends with no payout.

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

Subrogation is the insurer's right to step into the insured's shoes and seek reimbursement from the negligent third party responsible for the loss, after paying the claim.

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

An occurrence policy covers any loss event that happens during the policy period, even if the claim is filed months or years after the policy has expired.

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

A coinsurance clause (commonly 80%) requires the insured to maintain adequate coverage relative to the property's value; failing to do so results in the insured bearing a share of any loss.

New York State Exam Practice Test

New York State Exam Practice Test

New York State Exam New York State Insurance License Exam 2