Fall Semester 2026–2027 17-70 New York
Independent General Adjuster License
Updated 2026 | 190+ Questions and
Answers | NY 17-70 Independent General
Adjuster Licensing Exam Prep,
Comprehensive Study Guide, Practice
Exam, Test Bank, Property & Casualty
Insurance, Claims Investigation, Policy
Interpretation, Loss Adjusting, New York
Insurance Law, Ethics, Settlement
Procedures, Detailed Rationales and
Complete Revision Material
Question 1: According to New York Insurance Law Section 2108, which of the
following is a prerequisite for an individual applicant to be issued an
independent adjuster's license?
A. Must be a resident of New York State.
B. Must have a minimum of two years of experience in the insurance industry.
C. Must be at least 18 years of age.
D. Must be sponsored by an authorized insurer.
CORRECT ANSWER: C. Must be at least 18 years of age.
Rationale: Section 2108(c)(3) of the New York Insurance Law explicitly states that every
individual applicant for a license under this section, and every proposed sub-licensee,
shall be eighteen years of age or over at the time of the issuance of such license. While
trustworthiness and competency are required, specific experience is not a statutory
prerequisite for all applicants, residency is not a requirement for an independent adjuster
license, and sponsorship is not mandated .
Question 2: Under New York Insurance Law, what is the maximum duration for
which the Superintendent may issue a temporary permit to an independent
adjuster applicant?
A. 60 days
B. 90 days
C. 120 days
D. 180 days
CORRECT ANSWER: C. 120 days
Rationale: Section 2108(h)(2) of the New York Insurance Law stipulates that a
temporary permit for an independent adjuster applicant may be issued for a period of
time specified by the Superintendent, but in no event for a period in excess of one
,hundred twenty days. This permit allows a qualified applicant to adjust claims while
their full license application is pending .
Question 3: Which type of independent adjuster license, as prescribed in
NYCRR Part 26, grants the authority to investigate and adjust all claims arising
under policies of motor vehicle insurance, including automobile personal
injury liability and property damage liability?
A. Independent adjuster, casualty
B. Independent adjuster, fire
C. Independent adjuster, automobile
D. Independent adjuster, general
CORRECT ANSWER: C. Independent adjuster, automobile
Rationale: According to NYCRR 26.3(d), the independent adjuster, automobile license
authorizes the holder to investigate and adjust all claims arising under policies of motor
vehicle insurance, including automobile personal injury liability insurance and property
damage liability insurance, automobile collision insurance, insurance covering the theft
of automobiles, and comprehensive automobile insurance .
Question 4: In New York, what is the primary distinction between the role of a
staff adjuster and that of an independent adjuster?
A. Staff adjusters are licensed by the state, while independent adjusters are not.
B. Staff adjusters work directly for a single insurer, while independent adjusters are
typically hired on a contract basis by multiple insurers or adjusting firms.
C. Staff adjusters only handle property losses, while independent adjusters handle all
types.
D. Independent adjusters are not permitted to handle liability claims.
CORRECT ANSWER: B. Staff adjusters work directly for a single insurer, while
independent adjusters are typically hired on a contract basis by multiple
insurers or adjusting firms.
Rationale: A staff adjuster is a direct employee of a specific insurance company. An
independent adjuster, while also licensed, is typically an independent contractor who
works for a fee on behalf of various insurers, often through an independent adjusting
firm. The exam content outline explicitly differentiates the roles of staff, independent,
and public adjusters .
Question 5: Under a Dwelling Policy (DP-1, DP-2, or DP-3), what distinguishes
the 'Special' form (DP-3) from the 'Basic' (DP-1) and 'Broad' (DP-2) forms?
A. The 'Special' form provides coverage for the dwelling on an open-perils basis.
B. The 'Special' form includes liability coverage as a standard feature.
C. The 'Special' form does not include coverage for other structures.
D. The 'Special' form provides coverage only for named perils on both dwelling and
personal property.
,CORRECT ANSWER: A. The 'Special' form provides coverage for the dwelling
on an open-perils basis.
Rationale: In dwelling policies, the DP-1 (Basic) and DP-2 (Broad) forms typically
provide coverage on a named-peril basis for the dwelling. The DP-3 (Special) form is
distinguished by providing coverage for the dwelling on an open-perils (or "all-risk")
basis, meaning all direct physical losses are covered except those specifically excluded.
This is a key distinction in policy structure .
Question 6: Which of the following is a standard definition of 'Actual Cash
Value' (ACV) as used in property insurance adjusting?
A. The cost to replace the damaged property with new property of like kind and quality.
B. The market value of the property at the time of the loss.
C. Replacement cost minus depreciation.
D. The original purchase price of the property.
CORRECT ANSWER: C. Replacement cost minus depreciation.
Rationale: Actual Cash Value (ACV) is a common method of loss valuation. It is
generally calculated by taking the replacement cost of the damaged or destroyed item
and subtracting depreciation. This contrasts with replacement cost, which does not
deduct depreciation .
Question 7: An adjuster is investigating a liability claim. Under the principles
of negligence, what are the four elements that a plaintiff must prove to
establish a prima facie case?
A. Duty, Breach, Causation, and Damages.
B. Intent, Breach, Causation, and Injury.
C. Duty, Negligence, Injury, and Intent.
D. Duty of Care, Proximate Cause, Injury, and Punitive Damages.
CORRECT ANSWER: A. Duty, Breach, Causation, and Damages.
Rationale: The four essential elements of a negligence claim are: (1) a legal duty owed
by the defendant to the plaintiff; (2) a breach of that duty; (3) a causal connection
between the breach and the plaintiff's injury (causation); and (4) actual damages suffered
by the plaintiff. The exam content outline specifies these elements: "Elements of a
negligent act" .
Question 8: What is the purpose of a 'Non-Waiver Agreement' in the claims
adjustment process?
A. To allow the insurer to waive the policy's deductible.
B. To allow the adjuster to authorize immediate repairs.
C. To permit the insurer to investigate a claim without waiving any of its policy rights or
defenses.
D. To formally transfer the insured's rights to the insurer.
, CORRECT ANSWER: C. To permit the insurer to investigate a claim without
waiving any of its policy rights or defenses.
Rationale: A non-waiver agreement is a crucial tool for an adjuster. When there are
questions of coverage, the insurer can investigate the loss without forfeiting its right to
later deny coverage. This signed agreement stipulates that the insurer's investigation is
not an admission that the policy provides coverage, preventing the doctrine of waiver
from applying .
Question 9: In a standard Homeowners Policy (HO-3), Coverage C provides
protection for:
A. The dwelling structure.
B. Other structures on the premises.
C. Personal property.
D. Loss of use.
CORRECT ANSWER: C. Personal property.
Rationale: The Homeowners Policy (HO-3) is structured into sections. Coverage A is for
the Dwelling, Coverage B is for Other Structures, Coverage C is for Personal Property,
and Coverage D is for Loss of Use (Additional Living Expense). The exam content
outline details these specific coverages .
Question 10: Under the New York Motor Vehicle Financial Responsibility Law,
what is one of the primary purposes?
A. To ensure that all drivers pass a driving test.
B. To mandate that vehicle owners provide proof of financial responsibility to cover
potential losses from motor vehicle accidents.
C. To regulate the price of auto insurance premiums.
D. To require all vehicles to be inspected annually.
CORRECT ANSWER: B. To mandate that vehicle owners provide proof of
financial responsibility to cover potential losses from motor vehicle accidents.
Rationale: The New York Motor Vehicle Financial Responsibility Law is designed to
ensure that vehicle owners and operators can pay for damages they cause in an
accident. It mandates that all drivers carry a minimum level of liability insurance as
proof of financial responsibility to protect the public .
Question 11: In an insurance contract, what does the principle of 'Utmost
Good Faith' (Uberrimae Fidei) require?
A. The insurer must always interpret the contract in favor of the insured.
B. Both the insured and the insurer are required to disclose all material facts honestly.
C. The insured must pay premiums on time.
D. The insurer must provide a copy of the policy to the insured at no cost.
Independent General Adjuster License
Updated 2026 | 190+ Questions and
Answers | NY 17-70 Independent General
Adjuster Licensing Exam Prep,
Comprehensive Study Guide, Practice
Exam, Test Bank, Property & Casualty
Insurance, Claims Investigation, Policy
Interpretation, Loss Adjusting, New York
Insurance Law, Ethics, Settlement
Procedures, Detailed Rationales and
Complete Revision Material
Question 1: According to New York Insurance Law Section 2108, which of the
following is a prerequisite for an individual applicant to be issued an
independent adjuster's license?
A. Must be a resident of New York State.
B. Must have a minimum of two years of experience in the insurance industry.
C. Must be at least 18 years of age.
D. Must be sponsored by an authorized insurer.
CORRECT ANSWER: C. Must be at least 18 years of age.
Rationale: Section 2108(c)(3) of the New York Insurance Law explicitly states that every
individual applicant for a license under this section, and every proposed sub-licensee,
shall be eighteen years of age or over at the time of the issuance of such license. While
trustworthiness and competency are required, specific experience is not a statutory
prerequisite for all applicants, residency is not a requirement for an independent adjuster
license, and sponsorship is not mandated .
Question 2: Under New York Insurance Law, what is the maximum duration for
which the Superintendent may issue a temporary permit to an independent
adjuster applicant?
A. 60 days
B. 90 days
C. 120 days
D. 180 days
CORRECT ANSWER: C. 120 days
Rationale: Section 2108(h)(2) of the New York Insurance Law stipulates that a
temporary permit for an independent adjuster applicant may be issued for a period of
time specified by the Superintendent, but in no event for a period in excess of one
,hundred twenty days. This permit allows a qualified applicant to adjust claims while
their full license application is pending .
Question 3: Which type of independent adjuster license, as prescribed in
NYCRR Part 26, grants the authority to investigate and adjust all claims arising
under policies of motor vehicle insurance, including automobile personal
injury liability and property damage liability?
A. Independent adjuster, casualty
B. Independent adjuster, fire
C. Independent adjuster, automobile
D. Independent adjuster, general
CORRECT ANSWER: C. Independent adjuster, automobile
Rationale: According to NYCRR 26.3(d), the independent adjuster, automobile license
authorizes the holder to investigate and adjust all claims arising under policies of motor
vehicle insurance, including automobile personal injury liability insurance and property
damage liability insurance, automobile collision insurance, insurance covering the theft
of automobiles, and comprehensive automobile insurance .
Question 4: In New York, what is the primary distinction between the role of a
staff adjuster and that of an independent adjuster?
A. Staff adjusters are licensed by the state, while independent adjusters are not.
B. Staff adjusters work directly for a single insurer, while independent adjusters are
typically hired on a contract basis by multiple insurers or adjusting firms.
C. Staff adjusters only handle property losses, while independent adjusters handle all
types.
D. Independent adjusters are not permitted to handle liability claims.
CORRECT ANSWER: B. Staff adjusters work directly for a single insurer, while
independent adjusters are typically hired on a contract basis by multiple
insurers or adjusting firms.
Rationale: A staff adjuster is a direct employee of a specific insurance company. An
independent adjuster, while also licensed, is typically an independent contractor who
works for a fee on behalf of various insurers, often through an independent adjusting
firm. The exam content outline explicitly differentiates the roles of staff, independent,
and public adjusters .
Question 5: Under a Dwelling Policy (DP-1, DP-2, or DP-3), what distinguishes
the 'Special' form (DP-3) from the 'Basic' (DP-1) and 'Broad' (DP-2) forms?
A. The 'Special' form provides coverage for the dwelling on an open-perils basis.
B. The 'Special' form includes liability coverage as a standard feature.
C. The 'Special' form does not include coverage for other structures.
D. The 'Special' form provides coverage only for named perils on both dwelling and
personal property.
,CORRECT ANSWER: A. The 'Special' form provides coverage for the dwelling
on an open-perils basis.
Rationale: In dwelling policies, the DP-1 (Basic) and DP-2 (Broad) forms typically
provide coverage on a named-peril basis for the dwelling. The DP-3 (Special) form is
distinguished by providing coverage for the dwelling on an open-perils (or "all-risk")
basis, meaning all direct physical losses are covered except those specifically excluded.
This is a key distinction in policy structure .
Question 6: Which of the following is a standard definition of 'Actual Cash
Value' (ACV) as used in property insurance adjusting?
A. The cost to replace the damaged property with new property of like kind and quality.
B. The market value of the property at the time of the loss.
C. Replacement cost minus depreciation.
D. The original purchase price of the property.
CORRECT ANSWER: C. Replacement cost minus depreciation.
Rationale: Actual Cash Value (ACV) is a common method of loss valuation. It is
generally calculated by taking the replacement cost of the damaged or destroyed item
and subtracting depreciation. This contrasts with replacement cost, which does not
deduct depreciation .
Question 7: An adjuster is investigating a liability claim. Under the principles
of negligence, what are the four elements that a plaintiff must prove to
establish a prima facie case?
A. Duty, Breach, Causation, and Damages.
B. Intent, Breach, Causation, and Injury.
C. Duty, Negligence, Injury, and Intent.
D. Duty of Care, Proximate Cause, Injury, and Punitive Damages.
CORRECT ANSWER: A. Duty, Breach, Causation, and Damages.
Rationale: The four essential elements of a negligence claim are: (1) a legal duty owed
by the defendant to the plaintiff; (2) a breach of that duty; (3) a causal connection
between the breach and the plaintiff's injury (causation); and (4) actual damages suffered
by the plaintiff. The exam content outline specifies these elements: "Elements of a
negligent act" .
Question 8: What is the purpose of a 'Non-Waiver Agreement' in the claims
adjustment process?
A. To allow the insurer to waive the policy's deductible.
B. To allow the adjuster to authorize immediate repairs.
C. To permit the insurer to investigate a claim without waiving any of its policy rights or
defenses.
D. To formally transfer the insured's rights to the insurer.
, CORRECT ANSWER: C. To permit the insurer to investigate a claim without
waiving any of its policy rights or defenses.
Rationale: A non-waiver agreement is a crucial tool for an adjuster. When there are
questions of coverage, the insurer can investigate the loss without forfeiting its right to
later deny coverage. This signed agreement stipulates that the insurer's investigation is
not an admission that the policy provides coverage, preventing the doctrine of waiver
from applying .
Question 9: In a standard Homeowners Policy (HO-3), Coverage C provides
protection for:
A. The dwelling structure.
B. Other structures on the premises.
C. Personal property.
D. Loss of use.
CORRECT ANSWER: C. Personal property.
Rationale: The Homeowners Policy (HO-3) is structured into sections. Coverage A is for
the Dwelling, Coverage B is for Other Structures, Coverage C is for Personal Property,
and Coverage D is for Loss of Use (Additional Living Expense). The exam content
outline details these specific coverages .
Question 10: Under the New York Motor Vehicle Financial Responsibility Law,
what is one of the primary purposes?
A. To ensure that all drivers pass a driving test.
B. To mandate that vehicle owners provide proof of financial responsibility to cover
potential losses from motor vehicle accidents.
C. To regulate the price of auto insurance premiums.
D. To require all vehicles to be inspected annually.
CORRECT ANSWER: B. To mandate that vehicle owners provide proof of
financial responsibility to cover potential losses from motor vehicle accidents.
Rationale: The New York Motor Vehicle Financial Responsibility Law is designed to
ensure that vehicle owners and operators can pay for damages they cause in an
accident. It mandates that all drivers carry a minimum level of liability insurance as
proof of financial responsibility to protect the public .
Question 11: In an insurance contract, what does the principle of 'Utmost
Good Faith' (Uberrimae Fidei) require?
A. The insurer must always interpret the contract in favor of the insured.
B. Both the insured and the insurer are required to disclose all material facts honestly.
C. The insured must pay premiums on time.
D. The insurer must provide a copy of the policy to the insured at no cost.
