New York Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a New York personal auto policy carry to meet the state's financial-responsibility law?

• a.$25,000 bodily injury per person, $50,000 bodily injury per accident, and $10,000 property damage (with $50,000/$100,000 for death)✓
• b.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• c.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage
• d.$100,000 per person / $300,000 per accident bodily injury and $50,000 property damage

New York requires minimum liability limits of 25/50/10 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $10,000 property damage (with $50,000/$100,000 for death). Producers should quote at least these limits and offer more. Source: N.Y. DMV financial-responsibility requirements; verify current figures with the Department of Financial Services (https://www.dfs.ny.gov).

How does New York generally handle auto injury claims?

• a.It is a pure tort state with no first-party medical coverage required
• b.It bars all injury claims and routes them through a state fund
• c.It is a no-fault state: a driver's own policy pays personal-injury / basic-economic-loss benefits regardless of who caused the crash, subject to a threshold before suing✓
• d.It requires liability coverage but prohibits any first-party medical benefits

New York is a no-fault state: each driver's own policy pays first-party injury benefits (PIP / basic economic loss) regardless of fault, and an injured person may sue the other driver only after meeting a statutory threshold. Confirm current no-fault rules with the Department of Financial Services (https://www.dfs.ny.gov).

What is the minimum 'basic economic loss' (no-fault/PIP) benefit a New York personal auto policy must provide per person?

• a.$25,000
• b.$50,000✓
• c.$10,000
• d.$100,000

New York Insurance Law defines basic economic loss at up to $50,000 per person, covering medical costs, a portion of lost earnings, and other reasonable expenses on a no-fault basis. Source: N.Y. Ins. Law 5102; verify current figures with the Department of Financial Services (https://www.dfs.ny.gov).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in New York?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Department of Financial Services✓

New York restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current New York notice periods with the Department of Financial Services.

Which best describes the body that writes and enforces New York's insurance regulations affecting personal lines policies?

• a.The Department of Financial Services, a state agency that supervises insurers and licenses producers✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county clerk's office where the policy is issued

Insurance in New York is regulated at the state level by the Department of Financial Services. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Department of Financial Services (https://www.dfs.ny.gov).