Fall Semester 2026–2027 17-70 – NY Independent
General Adjuster Updated 2026 | 190+ Questions and
Answers | New York 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, Claims Settlement, Detailed Rationales
and Complete Revision Material
Question 1: In New York, on what date does an independent adjuster's license
expire?
A. January 1 of every year
B. June 30 of odd-numbered years
C. December 31 of even-numbered years
D. The last day of the adjuster's birth month
CORRECT ANSWER: C. December 31 of even-numbered years
Rationale: New York independent adjuster licenses are biennial and expire on December
31 of even-numbered years. This is a specific regulatory requirement under New York
Insurance Law Section 2108.
Question 2: What is the bond amount required to obtain an adjuster's license
in New York?
A. $500
B. $1,000
C. $5,000
D. $10,000
CORRECT ANSWER: B. $1,000
Rationale: New York Insurance Law Section 2108(l) requires applicants for an adjuster's
license to post a $1,000 bond. This bond serves as a financial guarantee for the proper
performance of the adjuster's duties.
Question 3: Before the Superintendent of Insurance can revoke an adjuster's
license, what must occur?
A. A 30-day notice of revocation must be sent
B. A hearing must be held
C. The adjuster must be convicted of a felony
D. The adjuster must voluntarily surrender the license
CORRECT ANSWER: B. A hearing must be held
,Rationale: Under New York law, the Superintendent of Insurance cannot revoke an
adjuster's license until a hearing is held. This provides due process and allows the
adjuster to respond to any allegations or evidence against them.
Question 4: Which of the following is an example of an unfair claims
settlement practice under New York Regulation 64?
A. Promptly acknowledging claim communications
B. Failing to acknowledge communications within a reasonable time
C. Providing a detailed explanation for claim denial
D. Paying a claim within 30 days of receiving proof of loss
CORRECT ANSWER: B. Failing to acknowledge communications within a
reasonable time
Rationale: Regulation 64 (Part 216) of the New York Insurance Law prohibits unfair
claims settlement practices. Failing to acknowledge communications with respect to
claims arising out of the insurer's policies within a reasonable time constitutes a
violation of these regulations.
Question 5: Under 18 U.S.C. Section 1033, who can permit a person found
guilty of federal insurance fraud to return to the insurance business?
A. A federal judge
B. The Attorney General
C. An insurance regulatory official such as the Superintendent of Insurance
D. No one, as the ban is permanent
CORRECT ANSWER: C. An insurance regulatory official such as the
Superintendent of Insurance
Rationale: Under 18 U.S.C. Section 1033, a person convicted of a felony involving
dishonesty or breach of trust cannot engage in the insurance business without written
consent from an insurance regulatory official. This waiver process allows for potential
rehabilitation and return to the industry.
Question 6: What is the primary purpose of the New York Motor Vehicle
Financial Responsibility Law?
A. To provide some form of compulsory insurance
B. To set premium rates for auto insurers
C. To establish traffic violation penalties
D. To regulate auto repair shops
CORRECT ANSWER: A. To provide some form of compulsory insurance
Rationale: The New York Motor Vehicle Financial Responsibility Law requires all vehicle
owners to maintain a minimum level of auto liability insurance. Its primary purpose is to
ensure that drivers can compensate others for injuries or damages resulting from motor
vehicle accidents.
,Question 7: In New York, uninsured motorist coverage is:
A. Optional
B. Mandatory
C. Available only with a signed waiver
D. Automatically provided at no cost
CORRECT ANSWER: B. Mandatory
Rationale: Under New York Insurance Law Section 3420(f), uninsured motorist coverage
is mandatory. This coverage protects insureds when they are injured by a motorist who
has no liability insurance. It cannot be rejected by the insured.
Question 8: Damage to a rental car in New York is paid under which coverage
of the insured's auto policy?
A. The insured's physical damage coverage
B. Property damage liability coverage
C. A special endorsement
D. Coverage must be purchased from the rental agency
CORRECT ANSWER: A. The insured's physical damage coverage
Rationale: When an insured damages a rental car, the physical damage coverage
(collision and other-than-collision/comprehensive) on the insured's personal auto policy
typically extends to cover the damage, subject to the policy's terms and conditions.
Question 9: Who must participate in the New York Automobile Insurance Plan
(Assigned Risk Plan)?
A. Only non-standard drivers
B. All admitted auto insurers selling auto insurance in New York
C. Only out-of-state insurers
D. Only insurers that sell commercial auto policies
CORRECT ANSWER: B. All admitted auto insurers selling auto insurance in
New York
Rationale: The New York Automobile Insurance Plan, also known as the assigned risk
plan, requires all admitted insurers that write auto insurance in New York to participate.
This ensures that high-risk drivers who cannot obtain coverage in the voluntary market
can still secure required auto insurance.
Question 10: Under a Business Auto Policy, employer's non-ownership
coverage protects the employer when:
A. The employer owns the vehicle involved in the accident
B. An employee is using their own vehicle on company business
C. The employee is driving a company-owned vehicle
D. The employer is renting a vehicle for personal use
, CORRECT ANSWER: B. An employee is using their own vehicle on company
business
Rationale: Employer's non-ownership coverage provides liability protection to the
employer when an employee uses their personal vehicle for business purposes. This
coverage protects the employer, not the employee, and is essential when employees use
their own vehicles for work-related tasks.
Question 11: Which of the following is NOT covered under workers'
compensation coverage?
A. Medical expenses
B. Pain and suffering
C. Loss of wages
D. Funeral expenses
CORRECT ANSWER: B. Pain and suffering
Rationale: Workers' compensation is a no-fault system that covers medical expenses,
lost wages (typically a percentage of regular wages), and funeral expenses for work-
related injuries. Pain and suffering damages, which are common in tort liability claims,
are not compensable under workers' compensation laws.
Question 12: Who makes a declaratory judgment regarding the merits of a
claim?
A. The claims adjuster
B. The insurer's attorney
C. The court
D. The claimant's attorney
CORRECT ANSWER: C. The court
Rationale: A declaratory judgment is a court-issued determination that establishes the
legal rights and obligations of parties under a contract or law. When coverage disputes
arise, either party may seek a declaratory judgment from a court to resolve the
interpretation of policy provisions or coverage questions.
Question 13: What type of liability does an employer assume through the
actions of their employees?
A. Primary liability
B. Contingent liability
C. Vicarious liability
D. No-fault liability
CORRECT ANSWER: C. Vicarious liability
Rationale: Vicarious liability, also known as respondeat superior, holds an employer
liable for the negligent acts of employees committed within the scope of their
General Adjuster Updated 2026 | 190+ Questions and
Answers | New York 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, Claims Settlement, Detailed Rationales
and Complete Revision Material
Question 1: In New York, on what date does an independent adjuster's license
expire?
A. January 1 of every year
B. June 30 of odd-numbered years
C. December 31 of even-numbered years
D. The last day of the adjuster's birth month
CORRECT ANSWER: C. December 31 of even-numbered years
Rationale: New York independent adjuster licenses are biennial and expire on December
31 of even-numbered years. This is a specific regulatory requirement under New York
Insurance Law Section 2108.
Question 2: What is the bond amount required to obtain an adjuster's license
in New York?
A. $500
B. $1,000
C. $5,000
D. $10,000
CORRECT ANSWER: B. $1,000
Rationale: New York Insurance Law Section 2108(l) requires applicants for an adjuster's
license to post a $1,000 bond. This bond serves as a financial guarantee for the proper
performance of the adjuster's duties.
Question 3: Before the Superintendent of Insurance can revoke an adjuster's
license, what must occur?
A. A 30-day notice of revocation must be sent
B. A hearing must be held
C. The adjuster must be convicted of a felony
D. The adjuster must voluntarily surrender the license
CORRECT ANSWER: B. A hearing must be held
,Rationale: Under New York law, the Superintendent of Insurance cannot revoke an
adjuster's license until a hearing is held. This provides due process and allows the
adjuster to respond to any allegations or evidence against them.
Question 4: Which of the following is an example of an unfair claims
settlement practice under New York Regulation 64?
A. Promptly acknowledging claim communications
B. Failing to acknowledge communications within a reasonable time
C. Providing a detailed explanation for claim denial
D. Paying a claim within 30 days of receiving proof of loss
CORRECT ANSWER: B. Failing to acknowledge communications within a
reasonable time
Rationale: Regulation 64 (Part 216) of the New York Insurance Law prohibits unfair
claims settlement practices. Failing to acknowledge communications with respect to
claims arising out of the insurer's policies within a reasonable time constitutes a
violation of these regulations.
Question 5: Under 18 U.S.C. Section 1033, who can permit a person found
guilty of federal insurance fraud to return to the insurance business?
A. A federal judge
B. The Attorney General
C. An insurance regulatory official such as the Superintendent of Insurance
D. No one, as the ban is permanent
CORRECT ANSWER: C. An insurance regulatory official such as the
Superintendent of Insurance
Rationale: Under 18 U.S.C. Section 1033, a person convicted of a felony involving
dishonesty or breach of trust cannot engage in the insurance business without written
consent from an insurance regulatory official. This waiver process allows for potential
rehabilitation and return to the industry.
Question 6: What is the primary purpose of the New York Motor Vehicle
Financial Responsibility Law?
A. To provide some form of compulsory insurance
B. To set premium rates for auto insurers
C. To establish traffic violation penalties
D. To regulate auto repair shops
CORRECT ANSWER: A. To provide some form of compulsory insurance
Rationale: The New York Motor Vehicle Financial Responsibility Law requires all vehicle
owners to maintain a minimum level of auto liability insurance. Its primary purpose is to
ensure that drivers can compensate others for injuries or damages resulting from motor
vehicle accidents.
,Question 7: In New York, uninsured motorist coverage is:
A. Optional
B. Mandatory
C. Available only with a signed waiver
D. Automatically provided at no cost
CORRECT ANSWER: B. Mandatory
Rationale: Under New York Insurance Law Section 3420(f), uninsured motorist coverage
is mandatory. This coverage protects insureds when they are injured by a motorist who
has no liability insurance. It cannot be rejected by the insured.
Question 8: Damage to a rental car in New York is paid under which coverage
of the insured's auto policy?
A. The insured's physical damage coverage
B. Property damage liability coverage
C. A special endorsement
D. Coverage must be purchased from the rental agency
CORRECT ANSWER: A. The insured's physical damage coverage
Rationale: When an insured damages a rental car, the physical damage coverage
(collision and other-than-collision/comprehensive) on the insured's personal auto policy
typically extends to cover the damage, subject to the policy's terms and conditions.
Question 9: Who must participate in the New York Automobile Insurance Plan
(Assigned Risk Plan)?
A. Only non-standard drivers
B. All admitted auto insurers selling auto insurance in New York
C. Only out-of-state insurers
D. Only insurers that sell commercial auto policies
CORRECT ANSWER: B. All admitted auto insurers selling auto insurance in
New York
Rationale: The New York Automobile Insurance Plan, also known as the assigned risk
plan, requires all admitted insurers that write auto insurance in New York to participate.
This ensures that high-risk drivers who cannot obtain coverage in the voluntary market
can still secure required auto insurance.
Question 10: Under a Business Auto Policy, employer's non-ownership
coverage protects the employer when:
A. The employer owns the vehicle involved in the accident
B. An employee is using their own vehicle on company business
C. The employee is driving a company-owned vehicle
D. The employer is renting a vehicle for personal use
, CORRECT ANSWER: B. An employee is using their own vehicle on company
business
Rationale: Employer's non-ownership coverage provides liability protection to the
employer when an employee uses their personal vehicle for business purposes. This
coverage protects the employer, not the employee, and is essential when employees use
their own vehicles for work-related tasks.
Question 11: Which of the following is NOT covered under workers'
compensation coverage?
A. Medical expenses
B. Pain and suffering
C. Loss of wages
D. Funeral expenses
CORRECT ANSWER: B. Pain and suffering
Rationale: Workers' compensation is a no-fault system that covers medical expenses,
lost wages (typically a percentage of regular wages), and funeral expenses for work-
related injuries. Pain and suffering damages, which are common in tort liability claims,
are not compensable under workers' compensation laws.
Question 12: Who makes a declaratory judgment regarding the merits of a
claim?
A. The claims adjuster
B. The insurer's attorney
C. The court
D. The claimant's attorney
CORRECT ANSWER: C. The court
Rationale: A declaratory judgment is a court-issued determination that establishes the
legal rights and obligations of parties under a contract or law. When coverage disputes
arise, either party may seek a declaratory judgment from a court to resolve the
interpretation of policy provisions or coverage questions.
Question 13: What type of liability does an employer assume through the
actions of their employees?
A. Primary liability
B. Contingent liability
C. Vicarious liability
D. No-fault liability
CORRECT ANSWER: C. Vicarious liability
Rationale: Vicarious liability, also known as respondeat superior, holds an employer
liable for the negligent acts of employees committed within the scope of their
