NYPCL New york Property and Causality license exam - Set 2 - Part 2

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 21: A policyholder wants to transfer his existing policy to the person buying his property. Because the insurer underwrote this particular insured, what does the policy require first?

A new declarations page

The insurer's written consent

A short-rate refund

A higher deductible

Question 22: Two policies written on the same basis cover the same home, neither designated as excess. The other-insurance provision has each insurer pay a share matching its share of the total coverage. This is what?

Pro rata sharing

Primary and excess

Subrogation

Coinsurance

Question 23: A Westchester bank holding the mortgage is named on the policy so it receives its own cancellation notice and may file proof of loss if the owner does not. Which provision grants this?

Loss payable clause

Standard mortgage clause

No benefit to bailee

Liberalization clause

Question 24: An upstate furnished house is left empty of people for the winter while all the furniture remains inside. In coverage terms this building is best described as what?

Vacant

Abandoned

Condemned

Unoccupied

Question 25: Property forms often suspend perils such as vandalism and glass breakage once a building has sat empty of people and contents beyond a set period. Why is that empty condition treated as riskier?

An unwatched empty building invites loss

Empty buildings cannot be insured

Vacancy voids the entire policy

Vacant buildings never depreciate

Question 26: To establish negligence an injured party must prove a legal duty, a breach of that duty, proximate cause, and one more element. Which completes the four required parts?

Intent to harm

A written contract

A criminal conviction

Actual damages

Question 27: A delivery company is held responsible when its driver negligently injures a pedestrian in Albany while making deliveries on the job. This liability for another's negligence is called what?

Vicarious liability

Absolute liability

Strict liability

Contributory negligence

Question 28: A consumer hurt by a defective product can recover from the manufacturer without proving the manufacturer was careless, only that the product was defective and caused the injury. This doctrine is what?

Vicarious liability

Strict liability

Comparative negligence

Assumption of risk

Question 29: After an accident, a court awards money for the victim's documented medical bills, lost wages, and repair costs. These provable, itemizable economic losses are which type of damages?

Punitive damages

General damages

Exemplary damages

Special damages

Question 30: A jury orders an extra award, beyond the victim's actual losses, to punish a company for malicious conduct and deter others. Which kind of damages does this describe?

Special compensatory

Punitive damages

General compensatory

Nominal damages

Question 31: In a liability policy the insurer must protect the insured against a covered suit even when the suit is groundless or false. This obligation, broader than the duty to pay, is called what?

Subrogation

Indemnity

Salvage

The duty to defend

Question 32: A liability form responds to bodily injury or property damage that takes place during the policy period, no matter when the claim is later reported. Which trigger does this describe?

Occurrence basis

Claims-made basis

Agreed value basis

Stated amount basis

Question 33: Under the federal terrorism backstop, a commercial insurer must offer terrorism coverage, yet the policyholder is free to take it or turn it down. What does this rule give the insured?

A guaranteed federal payout

Automatic terrorism coverage

The right to accept or reject

A premium refund

Question 34: A dwelling policy in its base form insures only property and contains no automatic liability coverage. Because it covers a single line of business, the policy is described as what?

Monoline

A package policy

A casualty policy

A blanket policy

Question 35: An agent reviews four risks for the dwelling program: a rental duplex, a seasonal lake cabin, a working farm dwelling, and a home under construction. Which one is not eligible?

The rental duplex

The seasonal lake cabin

The farm dwelling

The home under construction

Question 36: A bare Basic Form dwelling policy with no extra perils purchased automatically covers only a short, foundational set of causes of loss. Which set is automatically covered?

Fire, lightning, windstorm

Fire, theft, vandalism

All risks of direct loss

Fire, lightning, internal explosion

Question 37: After a heavy upstate blizzard, the weight of accumulated snow caves in an insured's roof. This cause of loss is a broad-form peril, so it is covered under which forms?

The Broad and Special Forms

The Basic Form only

No dwelling form

Only with a theft endorsement

Question 38: The Special Form dwelling policy treats the building and the contents differently. Which statement correctly describes how it covers each?

Open peril on building and contents

Basic peril on the building

Open building, broad named contents

Named building, open contents

Question 39: A kitchen fire forces an owner-occupant family in the Hudson Valley into a hotel for two months, where they pay for lodging, meals, and laundry. Which coverage pays those extra costs?

Additional Living Expense

Fair Rental Value

Other Structures

Personal Property

Question 40: A Nassau County landlord's insured rental house is damaged by a covered peril and cannot be rented for three months. Which coverage replaces the rent the owner loses?

Additional Living Expense

Personal Property

Fair Rental Value

Medical Payments

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