Certified Public Adjuster (CPA) Licensing Examination - New York: 100 Practice Questions
with Answers and Detailed Rationales
Question 1. Under New York Insurance Law, what is the primary distinction between a public adjuster
and an independent adjuster?
A) Public adjusters work for insurance companies; independent adjusters work for insureds
B) Public adjusters act on behalf of insureds; independent adjusters act on behalf of insurers
C) Public adjusters handle only auto claims; independent adjusters handle property claims
D) There is no legal distinction between the two roles
Answer: B
Rationale: A public adjuster acts on behalf of an insured in negotiating claim settlements, while an
independent adjuster acts on behalf of an insurer when investigating and adjusting claims .
Question 2. What is the minimum age requirement to obtain a public adjuster license in New York?
A) 18 years
B) 21 years
C) 25 years
D) No minimum age requirement
Answer: A
Rationale: Every individual applicant for a license under Insurance Law §2108 must be eighteen years of
age or over at the time of issuance .
,Question 3. How many hours of prelicensing education must a public adjuster candidate complete in
New York?
A) 20 hours
B) 40 hours
C) 90 hours
D) No prelicensing education required
Answer: B
Rationale: Public adjuster candidates must complete a Department-approved prelicensing education
course totaling not less than 40 hours of instruction .
Question 4. Which of the following exemptions from the 40-hour prelicensing education requirement is
available to public adjuster applicants?
A) Holding a bachelor's degree in business
B) One year of experience in insurance sales, underwriting, or claims
C) Holding a CPCU designation
D) Five years of experience as an independent adjuster
Answer: B
Rationale: An applicant may waive the education requirement if they were regularly employed in the
insurance industry for no less than one year in duties involving sales, underwriting, or claims .
,Question 5. What is the amount of the bond required for a public adjuster license in New York?
A) $500
B) $1,000
C) $5,000
D) $10,000
Answer: B
Rationale: A public adjuster candidate must submit a bond in the amount of $1,000 to cover the
licensing period .
Question 6. How long is a public adjuster license valid in New York?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: B
Rationale: Public adjuster licenses are issued for up to 2 years, expiring on December 31 of even-
numbered years .
, Question 7. What is the initial license fee for a public adjuster when issued for a full two-year period?
A) $50
B) $100
C) $135
D) $210
Answer: B
Rationale: A non-refundable fee of $100 is charged when a license is issued for a licensing period of
more than one year .
Question 8. What is the fee when a public adjuster license is issued for a period of one year or less?
A) $25
B) $50
C) $75
D) $100
Answer: B
Rationale: A non-refundable fee of $50 is charged when a license is issued for a period of one year or
less .
Question 9. How many Certificates of Character must a public adjuster applicant submit?
with Answers and Detailed Rationales
Question 1. Under New York Insurance Law, what is the primary distinction between a public adjuster
and an independent adjuster?
A) Public adjusters work for insurance companies; independent adjusters work for insureds
B) Public adjusters act on behalf of insureds; independent adjusters act on behalf of insurers
C) Public adjusters handle only auto claims; independent adjusters handle property claims
D) There is no legal distinction between the two roles
Answer: B
Rationale: A public adjuster acts on behalf of an insured in negotiating claim settlements, while an
independent adjuster acts on behalf of an insurer when investigating and adjusting claims .
Question 2. What is the minimum age requirement to obtain a public adjuster license in New York?
A) 18 years
B) 21 years
C) 25 years
D) No minimum age requirement
Answer: A
Rationale: Every individual applicant for a license under Insurance Law §2108 must be eighteen years of
age or over at the time of issuance .
,Question 3. How many hours of prelicensing education must a public adjuster candidate complete in
New York?
A) 20 hours
B) 40 hours
C) 90 hours
D) No prelicensing education required
Answer: B
Rationale: Public adjuster candidates must complete a Department-approved prelicensing education
course totaling not less than 40 hours of instruction .
Question 4. Which of the following exemptions from the 40-hour prelicensing education requirement is
available to public adjuster applicants?
A) Holding a bachelor's degree in business
B) One year of experience in insurance sales, underwriting, or claims
C) Holding a CPCU designation
D) Five years of experience as an independent adjuster
Answer: B
Rationale: An applicant may waive the education requirement if they were regularly employed in the
insurance industry for no less than one year in duties involving sales, underwriting, or claims .
,Question 5. What is the amount of the bond required for a public adjuster license in New York?
A) $500
B) $1,000
C) $5,000
D) $10,000
Answer: B
Rationale: A public adjuster candidate must submit a bond in the amount of $1,000 to cover the
licensing period .
Question 6. How long is a public adjuster license valid in New York?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: B
Rationale: Public adjuster licenses are issued for up to 2 years, expiring on December 31 of even-
numbered years .
, Question 7. What is the initial license fee for a public adjuster when issued for a full two-year period?
A) $50
B) $100
C) $135
D) $210
Answer: B
Rationale: A non-refundable fee of $100 is charged when a license is issued for a licensing period of
more than one year .
Question 8. What is the fee when a public adjuster license is issued for a period of one year or less?
A) $25
B) $50
C) $75
D) $100
Answer: B
Rationale: A non-refundable fee of $50 is charged when a license is issued for a period of one year or
less .
Question 9. How many Certificates of Character must a public adjuster applicant submit?
