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Insurance Licensing

New York Property and Casualty Insurance Agent/Broker Examination Practice Test

New York property and casualty insurance practice involves interpreting coverage for homes, vehicles, businesses, and liability exposures. The available questions address concepts such as named-perils coverage, replacement cost, subrogation, medical payments, workers’ compensation, and duties after a property loss. These topics connect policy language to claim handling and risk responsibilities.

Exam overview

Exam providerNew York State Department of Financial Services
Exam codeNot listed
CategoryInsurance Licensing

About the New York Property and Casualty Insurance Agent/Broker Examination Exam

Property questions test how coverage responds to direct physical loss, including the distinction between named-perils forms and broader coverage, and how valuation provisions affect claim payments. Liability scenarios require identifying exposures such as premises hazards and understanding when an insurer may pay a covered claim or pursue recovery from a responsible third party through subrogation. Personal auto questions distinguish medical payments coverage from liability coverage. Business-focused items address the general role of a businessowners policy, workers’ compensation, and reinsurance. Other scenarios involve mortgagee interests and the insured’s duty to protect damaged property from further loss. Practice with these decisions can strengthen your ability to read policy provisions, recognize the relevant coverage or insurance principle, and connect a fact pattern to an appropriate insurance response.

Sample Practice Questions

Review a selection from this exam's published US Practice Tests practice bank.

Question 1

A policyholder’s insurer pays a covered property claim and then seeks recovery from a third party whose negligence caused the loss. What insurance principle describes this recovery effort?

  1. AContribution
  2. BSubrogation
  3. CCoinsurance
  4. DReinsurance
Show answerCorrect answer: B

Subrogation is the insurer’s right, after paying a covered loss, to pursue recovery from a responsible third party to the extent permitted by the policy and law. Contribution concerns sharing a loss among insurers; reinsurance transfers risk between insurers.

Question 2

A business owner buys a businessowners policy for a small operation. Which statement best describes the general purpose of this type of policy?

  1. AIt can combine selected property and liability coverages in a package designed for eligible businesses
  2. BIt guarantees coverage for every business activity and every type of loss
  3. CIt replaces all employee benefit and retirement plans
  4. DIt provides only automobile liability coverage for business-owned vehicles
Show answerCorrect answer: A

A businessowners policy is generally a package that combines specified property and liability coverages for eligible businesses. Eligibility, covered exposures, limits, and exclusions depend on the policy and insurer.

Question 3

A building’s owner wants the insurer to pay the cost of repairing damage using materials that are comparable in kind and quality, without deducting for age or wear. Which valuation basis is generally intended to do this, subject to policy terms?

  1. AActual cash value
  2. BReplacement cost
  3. CStated value
  4. DMarket value
Show answerCorrect answer: B

Replacement-cost valuation generally measures the cost to repair or replace covered property with comparable property, without a deduction for depreciation, subject to policy conditions and limits. Actual cash value commonly accounts for depreciation.

Question 4

A driver is found legally responsible for injuring a passenger in another vehicle. The injured passenger’s medical bills are within the applicable policy limit. Which personal auto coverage may pay those bills without first requiring the passenger to establish the driver’s legal liability?

  1. AMedical payments coverage
  2. BCollision coverage
  3. CUninsured motorist property damage coverage
  4. DRental reimbursement coverage
Show answerCorrect answer: A

Medical payments coverage can pay reasonable medical or funeral expenses for covered persons injured in an auto accident, subject to the policy’s terms and limits. It generally does not depend on establishing fault.

Question 5

A customer slips on an icy walkway outside a shop and alleges the shop owner failed to maintain the premises safely. Which type of liability exposure is most directly involved?

  1. APremises liability
  2. BProfessional liability
  3. CProduct liability
  4. DWorkers’ compensation liability
Show answerCorrect answer: A

Premises liability concerns an occupier’s or property owner’s potential legal responsibility for injuries arising from the condition or use of the premises. Whether the owner is liable depends on the facts and applicable law.

Question 6

An insurer issues a policy with a named-perils property form. How is coverage for direct physical loss generally determined under that approach?

  1. AThe loss is covered only if it results from a peril listed in the form, subject to exclusions and conditions
  2. BEvery cause of loss is covered unless the insured lists it on the application
  3. COnly losses caused by the insured are covered
  4. DCoverage applies only when the property is a total loss
Show answerCorrect answer: A

A named-perils form generally covers loss caused by perils specifically listed in the policy, subject to applicable exclusions, conditions, and limits. Causes not listed are generally outside that grant of coverage.

Question 7

An employee is injured while performing job duties, and the employer has workers’ compensation insurance. Which statement best describes the general purpose of that insurance?

  1. AIt covers damage to the employer’s building from fire
  2. BIt provides benefits for qualifying work-related injuries or illnesses under applicable law and policy terms
  3. CIt pays the employee’s ordinary wages indefinitely, regardless of the injury
  4. DIt replaces the employer’s commercial auto liability policy
Show answerCorrect answer: B

Workers’ compensation insurance generally provides prescribed benefits for covered work-related injuries or illnesses, subject to governing law and policy terms. It is not property insurance or a substitute for commercial auto coverage.

How to use this practice test

The free US Practice Tests bank contains 50 published questions for this exam. Each practice session presents up to 20 randomly selected questions, with results shown after the session. Use the results to identify concepts to revisit, such as property valuation, liability exposures, coverage distinctions, and claim responsibilities.

Preparation tips

  • Compare named-perils coverage with broader property coverage, and note how the policy’s covered-cause language affects a loss scenario.
  • Distinguish replacement cost from valuation that deducts for depreciation; connect each basis to the materials and settlement described in a question.
  • For auto scenarios, separate medical payments coverage from liability coverage by asking whether payment depends on establishing legal fault.
  • Practice tracing a property claim from covered loss through reasonable protection of damaged property, insurer payment, and possible subrogation against a responsible third party.
  • Review how businessowners policies, workers’ compensation, reinsurance, and mortgagee provisions address different business, employee, insurer, and lender interests.
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