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, Claims Settlement, Catastrophe Claims,
Detailed Rationales and Complete Revision Material
Question 1: An individual is applying for a New York Independent General
Adjuster license. Which of the following is a mandatory requirement for
licensure?
A. Completion of a state-approved pre-licensing education course
B. A minimum of two years of experience as a staff adjuster
C. Submission of five Certificates of Character from individuals who have known the
applicant for at least five years
D. Passing a background check conducted by the FBI
CORRECT ANSWER: C. Submission of five Certificates of Character from
individuals who have known the applicant for at least five years
Rationale: New York Insurance Law requires applicants for an independent adjuster's
license to submit five Certificates of Character. These certificates must be from
individuals who are at least 18 years old, of good character, and have known the
applicant personally for at least five years . New York does not require pre-licensing
education for this license , and while experience is beneficial, it is not a specified
prerequisite. The background check is part of the fingerprinting process, but the
certificates are a distinct statutory requirement.
Question 2: According to New York regulations, an independent adjuster's
license is valid for what duration, and when does it expire?
A. One year, expiring on the adjuster's birthday
B. Two years, expiring on December 31 of odd-numbered years
C. Two years, expiring on December 31 of even-numbered years
D. Three years, expiring on the last day of the applicant's birth month
CORRECT ANSWER: C. Two years, expiring on December 31 of even-numbered
years
Rationale: The New York State Department of Financial Services (DFS) issues
independent adjuster licenses that are valid for a two-year term. All such licenses expire
,on December 31st of each even-numbered year . This biennial renewal cycle is a key
aspect of license maintenance.
Question 3: Under the New York Insurance Law, which of the following
statements is true regarding the surety bond requirement for an independent
adjuster?
A. The bond is not required if the adjuster has Errors and Omissions insurance.
B. The bond must be in the amount of $1,000 and covers the licensing period.
C. The bond is intended to protect the adjuster from non-payment by the insurer.
D. The bond is paid to the DFS as a non-refundable licensing fee.
CORRECT ANSWER: B. The bond must be in the amount of $1,000 and covers
the licensing period.
Rationale: New York requires independent adjusters to provide a $1,000 surety bond to
the DFS. The purpose of this bond is to ensure the adjuster faithfully executes their
duties, and the state can recover funds from it if the adjuster is found guilty of fraudulent
or dishonest behavior . The bond covers the licensing period and is not a fee, nor is it a
substitute for professional liability insurance.
Question 4: An adjuster is found guilty of a felony involving dishonesty. Under
federal law, what mechanism must they pursue to be allowed to work in the
insurance industry again?
A. An automatic pardon from the New York DFS
B. A 1033 waiver obtained from an insurance regulatory official
C. A certificate of relief from the FBI
D. A letter of good conduct from the local police department
CORRECT ANSWER: B. A 1033 waiver obtained from an insurance regulatory
official
Rationale: Federal law under 18 U.S.C. 1033 prohibits individuals convicted of certain
felonies from participating in the insurance business without consent. This consent is
known as a 1033 waiver, which must be obtained from an insurance regulatory official. It
does not automatically restore a license but allows an applicant to seek licensure after a
waiting period and proof of rehabilitation .
Question 5: A New York independent adjuster changes their business address.
What is the required action to maintain compliance with DFS regulations?
A. Notify the Department of Financial Services within 30 days of the change
B. Simply update the address on their business cards and website
C. Notify the Department of Financial Services of the new address prior to the next
license renewal
D. Publish a notice of the address change in a local newspaper
CORRECT ANSWER: A. Notify the Department of Financial Services within 30
days of the change
,Rationale: The New York Department of Financial Services requires licensees to keep
their contact information current. Regulation 25, Part 26.6 mandates that an adjuster
must notify the DFS of a change of address . The standard timeframe for this notification
is within 30 days of the change.
Question 6: Which of the following is the primary body responsible for
licensing and regulating independent adjusters in New York?
A. The National Association of Insurance Commissioners (NAIC)
B. The Federal Insurance Office (FIO)
C. The New York Department of Financial Services (DFS)
D. The New York Department of Labor
CORRECT ANSWER: C. The New York Department of Financial Services (DFS)
Rationale: The New York Department of Financial Services (DFS) is the state agency
that oversees the licensing, regulation, and discipline of insurance professionals,
including independent adjusters . The Superintendent of Financial Services has the
power to issue, suspend, and revoke licenses.
Question 7: If the Superintendent of Financial Services revokes an adjuster's
license for cause, what is the minimum period the individual must wait before
applying for any other insurance license in New York?
A. Six months
B. One year
C. Two years
D. Three years
CORRECT ANSWER: B. One year
Rationale: Under New York Insurance Law, an individual whose license has been
revoked for cause is barred from applying for any other insurance license for a minimum
of one year . This provides a cooling-off period and emphasizes the seriousness of the
actions leading to revocation.
Question 8: An adjuster is handling a claim and the insured is accused of
misrepresentation on the application. Which of the following best describes
misrepresentation in the context of insurance?
A. A statement of fact that is guaranteed to be true.
B. A statement believed to be true that, if material, may void the policy.
C. A promise to perform a future act.
D. An intentional failure to disclose a known fact.
CORRECT ANSWER: B. A statement believed to be true that, if material, may
void the policy.
Rationale: A representation is a statement made by the applicant that they believe to be
true to the best of their knowledge. If a representation is false, it is a misrepresentation.
, If the misrepresentation is material (i.e., it would have influenced the insurer's decision
to issue the policy), it can be grounds for the insurer to void the policy . This is distinct
from a warranty, which is a statement guaranteed to be true.
Question 9: The principle of insurable interest in property and casualty
insurance requires that the insured must have an interest in the subject
property at the time of:
A. Policy application
B. Policy issuance
C. The loss
D. Filing a claim
CORRECT ANSWER: C. The loss
Rationale: A fundamental principle of property and casualty insurance is that the insured
must have an insurable interest in the property to recover for a loss. This means the
insured would suffer a financial or economic hardship if the property were damaged or
destroyed . This interest must exist at the time of the loss, not necessarily at the time the
policy was purchased.
Question 10: An insurance contract is considered a "contract of adhesion."
What does this mean for the insured?
A. The insured has full power to negotiate the terms of the contract.
B. The contract is not legally binding until a premium is paid.
C. The contract is a take-it-or-leave-it proposition, and any ambiguities are interpreted in
favor of the insured.
D. The insured must adhere to a strict code of ethics.
CORRECT ANSWER: C. The contract is a take-it-or-leave-it proposition, and
any ambiguities are interpreted in favor of the insured.
Rationale: A contract of adhesion is a standard-form contract drafted by one party (the
insurer) and offered to the other party (the insured) on a take-it-or-leave-it basis.
Because the insured has little to no power to negotiate the terms, courts interpret any
ambiguous language in the contract in favor of the insured .
Question 11: The insurance principle of "indemnity" is best defined as:
A. Restoring the insured to the same financial position they were in before the loss.
B. Paying the insured the full policy limits regardless of the actual loss.
C. Transferring the risk of loss from the insured to the insurer.
D. Sharing losses among a large group of policyholders.
CORRECT ANSWER: A. Restoring the insured to the same financial position
they were in before the loss.
Rationale: The principle of indemnity aims to prevent the insured from profiting from a
loss. The insurer agrees to pay an amount that will place the insured in the same
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, Claims Settlement, Catastrophe Claims,
Detailed Rationales and Complete Revision Material
Question 1: An individual is applying for a New York Independent General
Adjuster license. Which of the following is a mandatory requirement for
licensure?
A. Completion of a state-approved pre-licensing education course
B. A minimum of two years of experience as a staff adjuster
C. Submission of five Certificates of Character from individuals who have known the
applicant for at least five years
D. Passing a background check conducted by the FBI
CORRECT ANSWER: C. Submission of five Certificates of Character from
individuals who have known the applicant for at least five years
Rationale: New York Insurance Law requires applicants for an independent adjuster's
license to submit five Certificates of Character. These certificates must be from
individuals who are at least 18 years old, of good character, and have known the
applicant personally for at least five years . New York does not require pre-licensing
education for this license , and while experience is beneficial, it is not a specified
prerequisite. The background check is part of the fingerprinting process, but the
certificates are a distinct statutory requirement.
Question 2: According to New York regulations, an independent adjuster's
license is valid for what duration, and when does it expire?
A. One year, expiring on the adjuster's birthday
B. Two years, expiring on December 31 of odd-numbered years
C. Two years, expiring on December 31 of even-numbered years
D. Three years, expiring on the last day of the applicant's birth month
CORRECT ANSWER: C. Two years, expiring on December 31 of even-numbered
years
Rationale: The New York State Department of Financial Services (DFS) issues
independent adjuster licenses that are valid for a two-year term. All such licenses expire
,on December 31st of each even-numbered year . This biennial renewal cycle is a key
aspect of license maintenance.
Question 3: Under the New York Insurance Law, which of the following
statements is true regarding the surety bond requirement for an independent
adjuster?
A. The bond is not required if the adjuster has Errors and Omissions insurance.
B. The bond must be in the amount of $1,000 and covers the licensing period.
C. The bond is intended to protect the adjuster from non-payment by the insurer.
D. The bond is paid to the DFS as a non-refundable licensing fee.
CORRECT ANSWER: B. The bond must be in the amount of $1,000 and covers
the licensing period.
Rationale: New York requires independent adjusters to provide a $1,000 surety bond to
the DFS. The purpose of this bond is to ensure the adjuster faithfully executes their
duties, and the state can recover funds from it if the adjuster is found guilty of fraudulent
or dishonest behavior . The bond covers the licensing period and is not a fee, nor is it a
substitute for professional liability insurance.
Question 4: An adjuster is found guilty of a felony involving dishonesty. Under
federal law, what mechanism must they pursue to be allowed to work in the
insurance industry again?
A. An automatic pardon from the New York DFS
B. A 1033 waiver obtained from an insurance regulatory official
C. A certificate of relief from the FBI
D. A letter of good conduct from the local police department
CORRECT ANSWER: B. A 1033 waiver obtained from an insurance regulatory
official
Rationale: Federal law under 18 U.S.C. 1033 prohibits individuals convicted of certain
felonies from participating in the insurance business without consent. This consent is
known as a 1033 waiver, which must be obtained from an insurance regulatory official. It
does not automatically restore a license but allows an applicant to seek licensure after a
waiting period and proof of rehabilitation .
Question 5: A New York independent adjuster changes their business address.
What is the required action to maintain compliance with DFS regulations?
A. Notify the Department of Financial Services within 30 days of the change
B. Simply update the address on their business cards and website
C. Notify the Department of Financial Services of the new address prior to the next
license renewal
D. Publish a notice of the address change in a local newspaper
CORRECT ANSWER: A. Notify the Department of Financial Services within 30
days of the change
,Rationale: The New York Department of Financial Services requires licensees to keep
their contact information current. Regulation 25, Part 26.6 mandates that an adjuster
must notify the DFS of a change of address . The standard timeframe for this notification
is within 30 days of the change.
Question 6: Which of the following is the primary body responsible for
licensing and regulating independent adjusters in New York?
A. The National Association of Insurance Commissioners (NAIC)
B. The Federal Insurance Office (FIO)
C. The New York Department of Financial Services (DFS)
D. The New York Department of Labor
CORRECT ANSWER: C. The New York Department of Financial Services (DFS)
Rationale: The New York Department of Financial Services (DFS) is the state agency
that oversees the licensing, regulation, and discipline of insurance professionals,
including independent adjusters . The Superintendent of Financial Services has the
power to issue, suspend, and revoke licenses.
Question 7: If the Superintendent of Financial Services revokes an adjuster's
license for cause, what is the minimum period the individual must wait before
applying for any other insurance license in New York?
A. Six months
B. One year
C. Two years
D. Three years
CORRECT ANSWER: B. One year
Rationale: Under New York Insurance Law, an individual whose license has been
revoked for cause is barred from applying for any other insurance license for a minimum
of one year . This provides a cooling-off period and emphasizes the seriousness of the
actions leading to revocation.
Question 8: An adjuster is handling a claim and the insured is accused of
misrepresentation on the application. Which of the following best describes
misrepresentation in the context of insurance?
A. A statement of fact that is guaranteed to be true.
B. A statement believed to be true that, if material, may void the policy.
C. A promise to perform a future act.
D. An intentional failure to disclose a known fact.
CORRECT ANSWER: B. A statement believed to be true that, if material, may
void the policy.
Rationale: A representation is a statement made by the applicant that they believe to be
true to the best of their knowledge. If a representation is false, it is a misrepresentation.
, If the misrepresentation is material (i.e., it would have influenced the insurer's decision
to issue the policy), it can be grounds for the insurer to void the policy . This is distinct
from a warranty, which is a statement guaranteed to be true.
Question 9: The principle of insurable interest in property and casualty
insurance requires that the insured must have an interest in the subject
property at the time of:
A. Policy application
B. Policy issuance
C. The loss
D. Filing a claim
CORRECT ANSWER: C. The loss
Rationale: A fundamental principle of property and casualty insurance is that the insured
must have an insurable interest in the property to recover for a loss. This means the
insured would suffer a financial or economic hardship if the property were damaged or
destroyed . This interest must exist at the time of the loss, not necessarily at the time the
policy was purchased.
Question 10: An insurance contract is considered a "contract of adhesion."
What does this mean for the insured?
A. The insured has full power to negotiate the terms of the contract.
B. The contract is not legally binding until a premium is paid.
C. The contract is a take-it-or-leave-it proposition, and any ambiguities are interpreted in
favor of the insured.
D. The insured must adhere to a strict code of ethics.
CORRECT ANSWER: C. The contract is a take-it-or-leave-it proposition, and
any ambiguities are interpreted in favor of the insured.
Rationale: A contract of adhesion is a standard-form contract drafted by one party (the
insurer) and offered to the other party (the insured) on a take-it-or-leave-it basis.
Because the insured has little to no power to negotiate the terms, courts interpret any
ambiguous language in the contract in favor of the insured .
Question 11: The insurance principle of "indemnity" is best defined as:
A. Restoring the insured to the same financial position they were in before the loss.
B. Paying the insured the full policy limits regardless of the actual loss.
C. Transferring the risk of loss from the insured to the insurer.
D. Sharing losses among a large group of policyholders.
CORRECT ANSWER: A. Restoring the insured to the same financial position
they were in before the loss.
Rationale: The principle of indemnity aims to prevent the insured from profiting from a
loss. The insurer agrees to pay an amount that will place the insured in the same
