NYPCL New york Property and Causality license exam - Set 2 - Part 1
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 1: A Buffalo homeowner can collect for fire damage only because losing the house would actually cost her money. Which insurance principle requires that financial stake?
Question 2: A man sells his Rochester house, forgets to cancel the policy, and the buyer's kitchen fire destroys it weeks later. Why does the former owner collect nothing?
Question 3: A struggling shop owner in Syracuse deliberately sets fire to his failing business to collect insurance money. This dishonest intent to cause a loss is which kind of hazard?
Question 4: A driver on Long Island routinely leaves his car unlocked with the keys inside, shrugging that the policy will pay if it is stolen. This careless attitude is best described as what?
Question 5: A dwelling policy lists fire, windstorm, and vandalism as covered events that can damage the property. In insurance terms, these covered causes of loss are called what?
Question 6: Gasoline stored in a basement and a cracked, icy sidewalk both increase the chance that a loss will occur. What does insurance call such a condition?
Question 7: A producer wants the single page that records the named insured, the property described, the policy period, the limits, the deductible, and the premium. Which policy part is that?
Question 8: Within a policy, one part is called the heart of the contract because it states the perils assumed and the insurer's core promise to pay covered losses. Which part is it?
Question 9: A homeowners form states that it will not pay for flood damage. The policy part that removes coverage the insuring agreement would otherwise provide is known as what?
Question 10: A client asks that a piece of jewelry be scheduled and an excluded peril be bought back on her policy. The attached document that adds or changes coverage this way is called what?
Question 11: A dwelling is written on a named-peril basis. When a loss occurs, which party must prove that the cause was one of the perils specifically listed in the policy?
Question 12: A building is insured on an open-peril basis covering all risks of direct physical loss except those excluded. To deny a claim, what must the insurer do?
Question 13: For a valuable antique, the insured and insurer set a figure before issuance, and that exact amount is guaranteed to be paid if a total loss occurs. Which valuation method is this?
Question 14: The most common basis for paying property losses takes today's cost to replace an item and then subtracts depreciation for age and wear. Which valuation method does this describe?
Question 15: A homeowner wants building losses paid for brand-new materials of like kind and quality, with no deduction for age or wear. Which valuation basis provides that?
Question 16: A property condition encourages owners to insure their building to a stated percentage of its replacement value, penalizing those who carry too little when a partial loss occurs. What is this called?
Question 17: An insured agrees to pay the first portion of any covered loss out of pocket, which eliminates many small claims and lowers the premium. What is this policy feature?
Question 18: After paying its insured for damage a careless neighbor caused, an insurer steps into the insured's shoes to recover that amount from the at-fault party. This right is called what?
Question 19: An insurer pays the full value of a totaled vehicle and then takes ownership of the wreck so it can sell the usable parts. The insurer is exercising which right?
Question 20: An insurer broadens coverage on its form during the policy term without charging more, and existing policyholders automatically gain the benefit. Which condition produces that result?
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