Fall Semester 2026–2027 17-70 – NY Independent
General Adjuster License Updated 2026 | 190+
Questions and Answers | New York 17-70
Independent General Adjuster Licensing Exam Prep,
Comprehensive Study Guide, Practice Exam, Test
Bank, Property & Casualty Insurance, Claims
Investigation, Policy Interpretation, Loss
Adjustment, Property Damage Assessment, Liability
Claims, New York Insurance Law, Ethics,
Settlement Procedures, Fraud Prevention, Detailed
Rationales and Complete Revision Material
Question 1: A New York-licensed independent adjuster is adjudged bankrupt.
In accordance with New York Insurance Law, the Superintendent of Financial
Services may take what action regarding the adjuster's license?
A. The license is automatically suspended until the bankruptcy is discharged.
B. The license is automatically revoked upon the adjudication of bankruptcy.
C. The license may be revoked or suspended after a hearing.
D. The license remains unaffected as bankruptcy is not a regulatory concern.
CORRECT ANSWER: C. The license may be revoked or suspended after a
hearing.
Rationale: Under New York Insurance Law, the Superintendent has the authority to
revoke or suspend an adjuster's license if, after a hearing, the licensee is found to have
been adjudicated bankrupt. The action is not automatic but requires a formal process.
Question 2: An independent adjuster in New York is required to complete
continuing education (CE) credits for license renewal. What is the biennial CE
requirement for a resident independent adjuster?
A. 10 credit hours
B. 12 credit hours
C. 15 credit hours
D. 24 credit hours
CORRECT ANSWER: C. 15 credit hours
Rationale: New York requires resident and non-resident adjusters to complete 15 credit
hours of approved continuing education courses during each full biennial licensing
period .
Question 3: Which of the following is a distinct characteristic of an insurance
contract, where any ambiguity in the policy language is interpreted against the
insurer who drafted it?
,A. Aleatory contract
B. Contract of adhesion
C. Unilateral contract
D. Conditional contract
CORRECT ANSWER: B. Contract of adhesion
Rationale: A contract of adhesion is a "take-it-or-leave-it" contract where the insurer
drafts the policy language. Due to the unequal bargaining power, any ambiguities are
typically interpreted in favor of the insured and against the insurer.
Question 4: An insured has a homeowners policy. While the insured is on
vacation, a guest slips and falls on an icy walkway, sustaining a serious injury.
Which coverage section of the policy would respond to the guest's claim?
A. Coverage A — Dwelling
B. Coverage D — Loss of Use
C. Coverage E — Personal Liability
D. Coverage F — Medical Payments to Others
CORRECT ANSWER: C. Coverage E — Personal Liability
Rationale: Coverage E — Personal Liability provides protection against claims for
bodily injury or property damage for which the insured is legally responsible. A guest's
injury on the property falls under this liability coverage, assuming negligence is
established.
Question 5: In the context of negligence law, which of the following best
defines "proximate cause"?
A. The failure to exercise reasonable care resulting in damage.
B. An unforeseeable event that breaks the chain of causation.
C. An act or omission that is a substantial factor in causing an injury and which the
injury was a foreseeable consequence.
D. A person's duty to prevent harm to others.
CORRECT ANSWER: C. An act or omission that is a substantial factor in
causing an injury and which the injury was a foreseeable consequence.
Rationale: Proximate cause, or legal cause, links the negligent act to the injury. It
requires that the harm was a foreseeable result of the defendant's actions and that the
act was a substantial factor in bringing about the injury.
Question 6: Under a Commercial General Liability (CGL) policy, what is the
primary purpose of an "Additional Insured" endorsement?
A. To add an insured's spouse as a named insured.
B. To cover the liability of a party that the named insured is contractually obligated to
indemnify.
,C. To increase policy limits for a specific project.
D. To cover property damage to the insured's own work product.
CORRECT ANSWER: B. To cover the liability of a party that the named insured
is contractually obligated to indemnify.
Rationale: Additional insured endorsements are commonly used in construction and
other contracts. They extend coverage to a third party (the additional insured) that the
named insured (e.g., a subcontractor) has agreed to indemnify, protecting them from
liability arising out of the named insured's operations.
Question 7: What is the most important first step for an independent adjuster
when assigned a new claim?
A. Issue a payment to the insured to show good faith.
B. Verify coverage and confirm that the policy was in effect.
C. Contact the state Department of Financial Services.
D. Immediately send a reservation of rights letter.
CORRECT ANSWER: B. Verify coverage and confirm that the policy was in
effect.
Rationale: The foundation of claims handling is coverage analysis. Before investigating
the loss or liability, the adjuster must confirm that the policy provides coverage for the
claimed loss and was in force on the date of the incident.
Question 8: An insured has a Dwelling Policy with DP-1 (Basic Form) coverage.
A fire causes extensive damage. How is loss generally settled under this form?
A. Replacement Cost
B. Functional Replacement Cost
C. Actual Cash Value (ACV)
D. Agreed Value
CORRECT ANSWER: C. Actual Cash Value (ACV)
Rationale: The DP-1 Basic Form is typically written on an Actual Cash Value basis,
which is calculated as Replacement Cost less depreciation. This is a key distinction from
broader forms like the DP-2 (Broad) or DP-3 (Special), which may offer Replacement
Cost.
Question 9: Under the standard property policy, what is the "Duties After
Loss" provision?
A. A clause that allows the insurer to cancel the policy.
B. A provision requiring the insured to perform specific actions following a loss, such as
protecting the property from further damage and submitting a proof of loss.
C. A clause defining the insurance agent's responsibilities.
D. A provision for mortgagee obligations.
, CORRECT ANSWER: B. A provision requiring the insured to perform specific
actions following a loss, such as protecting the property from further damage
and submitting a proof of loss.
Rationale: The "Duties After Loss" clause is a condition in the policy. It outlines the
insured's obligations to trigger coverage, such as giving prompt notice, protecting
property from further damage, separating damaged from undamaged property, and
providing a signed, sworn proof of loss.
Question 10: Which legal doctrine prevents an insurer from denying coverage
based on a policy provision if its past conduct or actions have led the insured
to reasonably believe that coverage existed?
A. Waiver
B. Estoppel
C. Subrogation
D. Indemnity
CORRECT ANSWER: B. Estoppel
Rationale: Estoppel is an equitable doctrine. It prevents an insurer from asserting a
right or fact that is inconsistent with its previous actions or representations when the
insured has relied on those actions to their detriment.
Question 11: The New York Motor Vehicle Financial Security Act requires that
all owners of registered motor vehicles maintain financial responsibility. What
is the mandatory minimum liability coverage limit for bodily injury per person
in New York State?
A. $10,000
B. $15,000
C. $25,000
D. $50,000
CORRECT ANSWER: C. $25,000
Rationale: New York law mandates minimum auto liability limits of $25,000 for bodily
injury per person, $50,000 for bodily injury per accident, and $10,000 for property
damage (25/50/10).
Question 12: An independent adjuster is investigating a water damage claim.
The insured tells the adjuster that the roof leaked but that they repaired the
leak themselves. The adjuster notes signs of unrepaired mold in the attic.
What is the adjuster's most appropriate course of action?
A. Deny the claim immediately due to the insured's failure to mitigate damage.
B. Refer the insured to a lawyer.
C. Document the extent of the damage and the facts, and recommend coverage for the
resultant damage from the initial leak while advising of potential exclusions for mold if
General Adjuster License Updated 2026 | 190+
Questions and Answers | New York 17-70
Independent General Adjuster Licensing Exam Prep,
Comprehensive Study Guide, Practice Exam, Test
Bank, Property & Casualty Insurance, Claims
Investigation, Policy Interpretation, Loss
Adjustment, Property Damage Assessment, Liability
Claims, New York Insurance Law, Ethics,
Settlement Procedures, Fraud Prevention, Detailed
Rationales and Complete Revision Material
Question 1: A New York-licensed independent adjuster is adjudged bankrupt.
In accordance with New York Insurance Law, the Superintendent of Financial
Services may take what action regarding the adjuster's license?
A. The license is automatically suspended until the bankruptcy is discharged.
B. The license is automatically revoked upon the adjudication of bankruptcy.
C. The license may be revoked or suspended after a hearing.
D. The license remains unaffected as bankruptcy is not a regulatory concern.
CORRECT ANSWER: C. The license may be revoked or suspended after a
hearing.
Rationale: Under New York Insurance Law, the Superintendent has the authority to
revoke or suspend an adjuster's license if, after a hearing, the licensee is found to have
been adjudicated bankrupt. The action is not automatic but requires a formal process.
Question 2: An independent adjuster in New York is required to complete
continuing education (CE) credits for license renewal. What is the biennial CE
requirement for a resident independent adjuster?
A. 10 credit hours
B. 12 credit hours
C. 15 credit hours
D. 24 credit hours
CORRECT ANSWER: C. 15 credit hours
Rationale: New York requires resident and non-resident adjusters to complete 15 credit
hours of approved continuing education courses during each full biennial licensing
period .
Question 3: Which of the following is a distinct characteristic of an insurance
contract, where any ambiguity in the policy language is interpreted against the
insurer who drafted it?
,A. Aleatory contract
B. Contract of adhesion
C. Unilateral contract
D. Conditional contract
CORRECT ANSWER: B. Contract of adhesion
Rationale: A contract of adhesion is a "take-it-or-leave-it" contract where the insurer
drafts the policy language. Due to the unequal bargaining power, any ambiguities are
typically interpreted in favor of the insured and against the insurer.
Question 4: An insured has a homeowners policy. While the insured is on
vacation, a guest slips and falls on an icy walkway, sustaining a serious injury.
Which coverage section of the policy would respond to the guest's claim?
A. Coverage A — Dwelling
B. Coverage D — Loss of Use
C. Coverage E — Personal Liability
D. Coverage F — Medical Payments to Others
CORRECT ANSWER: C. Coverage E — Personal Liability
Rationale: Coverage E — Personal Liability provides protection against claims for
bodily injury or property damage for which the insured is legally responsible. A guest's
injury on the property falls under this liability coverage, assuming negligence is
established.
Question 5: In the context of negligence law, which of the following best
defines "proximate cause"?
A. The failure to exercise reasonable care resulting in damage.
B. An unforeseeable event that breaks the chain of causation.
C. An act or omission that is a substantial factor in causing an injury and which the
injury was a foreseeable consequence.
D. A person's duty to prevent harm to others.
CORRECT ANSWER: C. An act or omission that is a substantial factor in
causing an injury and which the injury was a foreseeable consequence.
Rationale: Proximate cause, or legal cause, links the negligent act to the injury. It
requires that the harm was a foreseeable result of the defendant's actions and that the
act was a substantial factor in bringing about the injury.
Question 6: Under a Commercial General Liability (CGL) policy, what is the
primary purpose of an "Additional Insured" endorsement?
A. To add an insured's spouse as a named insured.
B. To cover the liability of a party that the named insured is contractually obligated to
indemnify.
,C. To increase policy limits for a specific project.
D. To cover property damage to the insured's own work product.
CORRECT ANSWER: B. To cover the liability of a party that the named insured
is contractually obligated to indemnify.
Rationale: Additional insured endorsements are commonly used in construction and
other contracts. They extend coverage to a third party (the additional insured) that the
named insured (e.g., a subcontractor) has agreed to indemnify, protecting them from
liability arising out of the named insured's operations.
Question 7: What is the most important first step for an independent adjuster
when assigned a new claim?
A. Issue a payment to the insured to show good faith.
B. Verify coverage and confirm that the policy was in effect.
C. Contact the state Department of Financial Services.
D. Immediately send a reservation of rights letter.
CORRECT ANSWER: B. Verify coverage and confirm that the policy was in
effect.
Rationale: The foundation of claims handling is coverage analysis. Before investigating
the loss or liability, the adjuster must confirm that the policy provides coverage for the
claimed loss and was in force on the date of the incident.
Question 8: An insured has a Dwelling Policy with DP-1 (Basic Form) coverage.
A fire causes extensive damage. How is loss generally settled under this form?
A. Replacement Cost
B. Functional Replacement Cost
C. Actual Cash Value (ACV)
D. Agreed Value
CORRECT ANSWER: C. Actual Cash Value (ACV)
Rationale: The DP-1 Basic Form is typically written on an Actual Cash Value basis,
which is calculated as Replacement Cost less depreciation. This is a key distinction from
broader forms like the DP-2 (Broad) or DP-3 (Special), which may offer Replacement
Cost.
Question 9: Under the standard property policy, what is the "Duties After
Loss" provision?
A. A clause that allows the insurer to cancel the policy.
B. A provision requiring the insured to perform specific actions following a loss, such as
protecting the property from further damage and submitting a proof of loss.
C. A clause defining the insurance agent's responsibilities.
D. A provision for mortgagee obligations.
, CORRECT ANSWER: B. A provision requiring the insured to perform specific
actions following a loss, such as protecting the property from further damage
and submitting a proof of loss.
Rationale: The "Duties After Loss" clause is a condition in the policy. It outlines the
insured's obligations to trigger coverage, such as giving prompt notice, protecting
property from further damage, separating damaged from undamaged property, and
providing a signed, sworn proof of loss.
Question 10: Which legal doctrine prevents an insurer from denying coverage
based on a policy provision if its past conduct or actions have led the insured
to reasonably believe that coverage existed?
A. Waiver
B. Estoppel
C. Subrogation
D. Indemnity
CORRECT ANSWER: B. Estoppel
Rationale: Estoppel is an equitable doctrine. It prevents an insurer from asserting a
right or fact that is inconsistent with its previous actions or representations when the
insured has relied on those actions to their detriment.
Question 11: The New York Motor Vehicle Financial Security Act requires that
all owners of registered motor vehicles maintain financial responsibility. What
is the mandatory minimum liability coverage limit for bodily injury per person
in New York State?
A. $10,000
B. $15,000
C. $25,000
D. $50,000
CORRECT ANSWER: C. $25,000
Rationale: New York law mandates minimum auto liability limits of $25,000 for bodily
injury per person, $50,000 for bodily injury per accident, and $10,000 for property
damage (25/50/10).
Question 12: An independent adjuster is investigating a water damage claim.
The insured tells the adjuster that the roof leaked but that they repaired the
leak themselves. The adjuster notes signs of unrepaired mold in the attic.
What is the adjuster's most appropriate course of action?
A. Deny the claim immediately due to the insured's failure to mitigate damage.
B. Refer the insured to a lawyer.
C. Document the extent of the damage and the facts, and recommend coverage for the
resultant damage from the initial leak while advising of potential exclusions for mold if
