Fall Semester 2026–2027 17-70 – NY Independent General
Adjuster Updated 2026 | 190+ Questions and Answers |
New York 17-70 Independent General Adjuster License
Comprehensive Study Guide, Practice Exam, Exam Prep
Test Bank, Property & Casualty Insurance, Claims
Investigation, Policy Interpretation, Property Damage
Assessment, Liability Claims, Loss Adjustment, New York
Insurance Law, Ethics, Fraud Prevention, Settlement
Negotiation, Detailed Rationales and Complete Revision
Material
Question 1: An insurance contract is considered a contract of adhesion
because:
A. Both parties have equal bargaining power in the negotiation of terms.
B. The contract is dependent on a fortuitous event for performance.
C. The insurer writes the contract, and the insured has little or no ability to negotiate its
terms.
D. The contract is a promise made by one party in exchange for a promise from the
other.
CORRECT ANSWER: C. The insurer writes the contract, and the insured has
little or no ability to negotiate its terms.
Rationale: A contract of adhesion is a "take-it-or-leave-it" agreement drafted by the
dominant party (the insurer) and presented to the other party (the insured) on a non-
negotiable basis. In insurance, this characteristic results in courts interpreting any
ambiguities in the contract in favor of the insured. The other options describe different
concepts: a contract dependent on chance is aleatory, and a promise-for-promise
exchange is a bilateral contract .
Question 2: Under New York Insurance Law, when can the Superintendent of
Financial Services revoke an adjuster's license?
A. Anytime, at the Superintendent's sole discretion.
B. Only after a hearing has been held.
C. By sending a 30-day notice of revocation.
D. Upon receiving proof of an offense from a third party.
CORRECT ANSWER: B. Only after a hearing has been held.
Rationale: The New York Superintendent of Financial Services has the power to
suspend, revise, or refuse to renew an adjuster's license. However, this disciplinary
action is not arbitrary; it must be preceded by a proper hearing. A license cannot be
revoked simply at the Superintendent's discretion, by sending a notice without a
hearing, or merely upon receipt of proof of an offense without an opportunity for the
licensee to be heard .
,Question 3: Which of the following describes the insuring agreement within a
property and casualty policy?
A. The part of the policy that defines the specific terms and words used.
B. The section that outlines the duties of the insured following a loss.
C. The insurer's promise to provide coverage in exchange for the premium.
D. The clause that allows the insurer to cancel the policy for non-payment.
CORRECT ANSWER: C. The insurer's promise to provide coverage in exchange
for the premium.
Rationale: The insuring agreement is the heart of the insurance contract. It contains the
insurer's fundamental promise to pay for covered losses. This is distinct from the
definitions section, the conditions (which outline duties), and cancellation clauses. It is
the part of the policy that states "We will pay..." .
Question 4: In New York, what is the amount of the bond that must be posted
to obtain an adjuster's license?
A. $500
B. $1,000
C. $5,000
D. $10,000
CORRECT ANSWER: B. $1,000
Rationale: Section 2108(l) of the New York Insurance Law specifies the requirement for
a bond as part of the qualifications for obtaining an adjuster's license. The required bond
amount is $1,000. This bond serves as a form of financial guarantee for the proper
performance of the adjuster's duties .
Question 5: The principle of subrogation in insurance allows an insurer to:
A. Deny a claim based on a material misrepresentation in the application.
B. Recover the amount paid to its insured from a third party who caused the loss.
C. Take possession of damaged property after paying a claim.
D. Exercise its right to cancel a policy at the renewal date.
CORRECT ANSWER: B. Recover the amount paid to its insured from a third
party who caused the loss.
Rationale: Subrogation is the right of an insurer, after it has paid a claim, to "stand in the
shoes" of its insured and pursue recovery against a responsible third party. This principle
prevents the insured from collecting twice for the same loss (from the insurer and the at-
fault party) and helps insurers control costs. The other options describe concepts like
salvage, abandonment, and cancellation .
Question 6: According to the New York exam content outline, which section of
the 17-70 exam carries the highest weight, at 11%?
,A. Insurance Regulation
B. Homeowners (2011) Policy
C. Adjusting Losses
D. Auto Insurance
CORRECT ANSWER: C. Adjusting Losses
Rationale: The official content outline for the Series 17-70 exam identifies "Adjusting
Losses" as the most heavily weighted section at 11%. This highlights the importance for
a general adjuster to have a thorough understanding of the claims process, from
investigation and documentation to valuation and settlement. The "Homeowners Policy"
section follows closely at 10% .
Question 7: What type of damages are intended to compensate an injured
party for non-economic losses such as pain and suffering?
A. Special damages
B. General damages
C. Punitive damages
D. Nominal damages
CORRECT ANSWER: B. General damages
Rationale: General damages compensate for subjective, non-monetary losses that are
not easily quantifiable, such as pain and suffering, mental anguish, and loss of
consortium. Special damages, conversely, compensate for objective, measurable
financial losses like medical bills and lost wages. Punitive damages are meant to punish
the wrongdoer, not compensate the victim .
Question 8: An adjuster's license in New York expires on what date?
A. January 1 of each year.
B. June 30 of odd-numbered years.
C. December 31 of even-numbered years.
D. The date the license was originally issued.
CORRECT ANSWER: C. December 31 of even-numbered years.
Rationale: In New York, independent adjuster licenses are biennial (renewed every two
years). The license term expires on a specific date: December 31 of each even-
numbered year. Licensees must renew before this date to continue practicing as an
adjuster .
Question 9: What is the primary purpose of the New York Motor Vehicle
Financial Responsibility Law?
A. To provide compensation for damage to a rental car.
B. To require all drivers to carry Uninsured Motorist coverage.
C. To compel drivers to maintain proof of financial responsibility (insurance) to operate a
, vehicle.
D. To establish mandatory inspection requirements for all vehicles.
CORRECT ANSWER: C. To compel drivers to maintain proof of financial
responsibility (insurance) to operate a vehicle.
Rationale: The New York Motor Vehicle Financial Responsibility Law is designed to
ensure that drivers have the financial means to cover damages they might cause in an
auto accident. This is achieved by requiring all vehicle owners to carry a minimum
amount of liability insurance, providing a form of compulsory insurance for the public's
protection .
Question 10: In a property loss, what is the insured's duty regarding salvage?
A. The insured must retain possession of the salvage.
B. The insured has no duty to protect the property from further damage.
C. The insured must allow the insurer to take possession of the damaged property after
the claim is paid.
D. The insured must repair the property immediately, regardless of the cost.
CORRECT ANSWER: C. The insured must allow the insurer to take possession
of the damaged property after the claim is paid.
Rationale: A "duties after loss" clause is a standard condition in property policies. It
typically requires the insured to protect the property from further damage and to allow
the insurer, at its option, to take possession of the salvage—the property that remains
after a loss. This allows the insurer to sell the salvage to recover some of the claim's
cost .
Question 11: Which of the following would most likely be covered under a
Commercial General Liability (CGL) policy?
A. An employee's injury while on the job.
B. Damage to the insured's own faulty workmanship.
C. Bodily injury to a customer caused by the insured's negligence.
D. Breach of contract by the insured.
CORRECT ANSWER: C. Bodily injury to a customer caused by the insured's
negligence.
Rationale: A CGL policy is designed to cover third-party claims for bodily injury and
property damage caused by the insured's operations, products, or premises. It generally
does not cover employee injuries (covered by workers' compensation), damage to the
insured's own work (an exclusion), or contractual disputes .
Question 12: Under the Personal Auto Policy, what is a "temporary substitute
vehicle"?
A. A vehicle owned by a family member that is used by the named insured.
B. A non-owned vehicle used by the insured while their covered auto is being repaired.
Adjuster Updated 2026 | 190+ Questions and Answers |
New York 17-70 Independent General Adjuster License
Comprehensive Study Guide, Practice Exam, Exam Prep
Test Bank, Property & Casualty Insurance, Claims
Investigation, Policy Interpretation, Property Damage
Assessment, Liability Claims, Loss Adjustment, New York
Insurance Law, Ethics, Fraud Prevention, Settlement
Negotiation, Detailed Rationales and Complete Revision
Material
Question 1: An insurance contract is considered a contract of adhesion
because:
A. Both parties have equal bargaining power in the negotiation of terms.
B. The contract is dependent on a fortuitous event for performance.
C. The insurer writes the contract, and the insured has little or no ability to negotiate its
terms.
D. The contract is a promise made by one party in exchange for a promise from the
other.
CORRECT ANSWER: C. The insurer writes the contract, and the insured has
little or no ability to negotiate its terms.
Rationale: A contract of adhesion is a "take-it-or-leave-it" agreement drafted by the
dominant party (the insurer) and presented to the other party (the insured) on a non-
negotiable basis. In insurance, this characteristic results in courts interpreting any
ambiguities in the contract in favor of the insured. The other options describe different
concepts: a contract dependent on chance is aleatory, and a promise-for-promise
exchange is a bilateral contract .
Question 2: Under New York Insurance Law, when can the Superintendent of
Financial Services revoke an adjuster's license?
A. Anytime, at the Superintendent's sole discretion.
B. Only after a hearing has been held.
C. By sending a 30-day notice of revocation.
D. Upon receiving proof of an offense from a third party.
CORRECT ANSWER: B. Only after a hearing has been held.
Rationale: The New York Superintendent of Financial Services has the power to
suspend, revise, or refuse to renew an adjuster's license. However, this disciplinary
action is not arbitrary; it must be preceded by a proper hearing. A license cannot be
revoked simply at the Superintendent's discretion, by sending a notice without a
hearing, or merely upon receipt of proof of an offense without an opportunity for the
licensee to be heard .
,Question 3: Which of the following describes the insuring agreement within a
property and casualty policy?
A. The part of the policy that defines the specific terms and words used.
B. The section that outlines the duties of the insured following a loss.
C. The insurer's promise to provide coverage in exchange for the premium.
D. The clause that allows the insurer to cancel the policy for non-payment.
CORRECT ANSWER: C. The insurer's promise to provide coverage in exchange
for the premium.
Rationale: The insuring agreement is the heart of the insurance contract. It contains the
insurer's fundamental promise to pay for covered losses. This is distinct from the
definitions section, the conditions (which outline duties), and cancellation clauses. It is
the part of the policy that states "We will pay..." .
Question 4: In New York, what is the amount of the bond that must be posted
to obtain an adjuster's license?
A. $500
B. $1,000
C. $5,000
D. $10,000
CORRECT ANSWER: B. $1,000
Rationale: Section 2108(l) of the New York Insurance Law specifies the requirement for
a bond as part of the qualifications for obtaining an adjuster's license. The required bond
amount is $1,000. This bond serves as a form of financial guarantee for the proper
performance of the adjuster's duties .
Question 5: The principle of subrogation in insurance allows an insurer to:
A. Deny a claim based on a material misrepresentation in the application.
B. Recover the amount paid to its insured from a third party who caused the loss.
C. Take possession of damaged property after paying a claim.
D. Exercise its right to cancel a policy at the renewal date.
CORRECT ANSWER: B. Recover the amount paid to its insured from a third
party who caused the loss.
Rationale: Subrogation is the right of an insurer, after it has paid a claim, to "stand in the
shoes" of its insured and pursue recovery against a responsible third party. This principle
prevents the insured from collecting twice for the same loss (from the insurer and the at-
fault party) and helps insurers control costs. The other options describe concepts like
salvage, abandonment, and cancellation .
Question 6: According to the New York exam content outline, which section of
the 17-70 exam carries the highest weight, at 11%?
,A. Insurance Regulation
B. Homeowners (2011) Policy
C. Adjusting Losses
D. Auto Insurance
CORRECT ANSWER: C. Adjusting Losses
Rationale: The official content outline for the Series 17-70 exam identifies "Adjusting
Losses" as the most heavily weighted section at 11%. This highlights the importance for
a general adjuster to have a thorough understanding of the claims process, from
investigation and documentation to valuation and settlement. The "Homeowners Policy"
section follows closely at 10% .
Question 7: What type of damages are intended to compensate an injured
party for non-economic losses such as pain and suffering?
A. Special damages
B. General damages
C. Punitive damages
D. Nominal damages
CORRECT ANSWER: B. General damages
Rationale: General damages compensate for subjective, non-monetary losses that are
not easily quantifiable, such as pain and suffering, mental anguish, and loss of
consortium. Special damages, conversely, compensate for objective, measurable
financial losses like medical bills and lost wages. Punitive damages are meant to punish
the wrongdoer, not compensate the victim .
Question 8: An adjuster's license in New York expires on what date?
A. January 1 of each year.
B. June 30 of odd-numbered years.
C. December 31 of even-numbered years.
D. The date the license was originally issued.
CORRECT ANSWER: C. December 31 of even-numbered years.
Rationale: In New York, independent adjuster licenses are biennial (renewed every two
years). The license term expires on a specific date: December 31 of each even-
numbered year. Licensees must renew before this date to continue practicing as an
adjuster .
Question 9: What is the primary purpose of the New York Motor Vehicle
Financial Responsibility Law?
A. To provide compensation for damage to a rental car.
B. To require all drivers to carry Uninsured Motorist coverage.
C. To compel drivers to maintain proof of financial responsibility (insurance) to operate a
, vehicle.
D. To establish mandatory inspection requirements for all vehicles.
CORRECT ANSWER: C. To compel drivers to maintain proof of financial
responsibility (insurance) to operate a vehicle.
Rationale: The New York Motor Vehicle Financial Responsibility Law is designed to
ensure that drivers have the financial means to cover damages they might cause in an
auto accident. This is achieved by requiring all vehicle owners to carry a minimum
amount of liability insurance, providing a form of compulsory insurance for the public's
protection .
Question 10: In a property loss, what is the insured's duty regarding salvage?
A. The insured must retain possession of the salvage.
B. The insured has no duty to protect the property from further damage.
C. The insured must allow the insurer to take possession of the damaged property after
the claim is paid.
D. The insured must repair the property immediately, regardless of the cost.
CORRECT ANSWER: C. The insured must allow the insurer to take possession
of the damaged property after the claim is paid.
Rationale: A "duties after loss" clause is a standard condition in property policies. It
typically requires the insured to protect the property from further damage and to allow
the insurer, at its option, to take possession of the salvage—the property that remains
after a loss. This allows the insurer to sell the salvage to recover some of the claim's
cost .
Question 11: Which of the following would most likely be covered under a
Commercial General Liability (CGL) policy?
A. An employee's injury while on the job.
B. Damage to the insured's own faulty workmanship.
C. Bodily injury to a customer caused by the insured's negligence.
D. Breach of contract by the insured.
CORRECT ANSWER: C. Bodily injury to a customer caused by the insured's
negligence.
Rationale: A CGL policy is designed to cover third-party claims for bodily injury and
property damage caused by the insured's operations, products, or premises. It generally
does not cover employee injuries (covered by workers' compensation), damage to the
insured's own work (an exclusion), or contractual disputes .
Question 12: Under the Personal Auto Policy, what is a "temporary substitute
vehicle"?
A. A vehicle owned by a family member that is used by the named insured.
B. A non-owned vehicle used by the insured while their covered auto is being repaired.
