❖17-70 – NY Independent General Adjuster
License Exam Updated 2026 | 250+
Practice Questions & Verified Answers |
Comprehensive Study Guide, Exam Prep
Test Bank, New York Insurance Law,
Property & Casualty Claims, Policy
Interpretation, Claims Investigation, Loss
Adjustment, Liability Assessment, Claims
Settlement, Ethics, Insurance Regulations,
Detailed Rationales, Adjuster Licensing
Success
Question 1: Under the New York Insurance Law, what is the maximum penalty
for a first-time violation of a cease and desist order related to unauthorized
insurance activities?
A. A fine of up to $5,000 per violation
B. A fine of up to $10,000 per violation
C. A fine of up to $25,000 per violation
D. A fine of up to $50,000 per violation
CORRECT ANSWER: B. A fine of up to $10,000 per violation
Rationale:Under New York Insurance Law Section 1102 and related enforcement
provisions, the Superintendent may impose a penalty of up to $10,000 for each violation
of a cease and desist order. This is standard for first-time unauthorized insurer
violations, with higher penalties for subsequent offenses.
Question 2: In New York, an independent adjuster is obligated to report any
felony conviction to the Superintendent within what timeframe?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
CORRECT ANSWER: C. 30 days
Rationale:Under 11 NYCRR Part 26, also known as Regulation 26, licensed adjusters
must report any felony conviction to the New York Department of Financial Services
within 30 days. This requirement ensures the Department can evaluate the adjuster's
fitness to hold a license.
,Question 3: What is the primary purpose of the New York Fair Claims
Settlement Practices Act (Regulation 64)?
A. To regulate premium rates for auto insurance
B. To mandate specific timelines for insurer claim payments
C. To prohibit unfair claims settlement practices and ensure prompt, fair handling
D. To establish continuing education requirements for adjusters
CORRECT ANSWER: C. To prohibit unfair claims settlement practices and
ensure prompt, fair handling
Rationale:Regulation 64 (11 NYCRR 216) sets forth standards for the prompt, fair, and
equitable settlement of claims. Its purpose is to prevent insurers and adjusters from
engaging in deceptive or unfair practices that harm policyholders.
Question 4: If an insured fails to submit a proof of loss within the time
specified in the policy, what is the adjuster's primary responsibility under New
York law?
A. Deny the claim immediately
B. Request an extension from the Department of Financial Services
C. Advise the insured of the requirement and allow reasonable additional time
D. Close the file and refer the matter to underwriting
CORRECT ANSWER: C. Advise the insured of the requirement and allow
reasonable additional time
Rationale:Under New York Insurance Law and Regulation 64, an adjuster cannot
simply deny a claim for a technicality. The adjuster must inform the insured of the
missing documentation and provide a reasonable opportunity to comply, as fairness is
central to claims handling.
Question 5: Which of the following is a prohibited practice under New York's
anti-fraud regulations for independent adjusters?
A. Referring a claimant to a restoration company
B. Negotiating a settlement directly with the insured's attorney
C. Soliciting or accepting a referral fee from a repair shop
D. Conducting a recorded interview with a witness
CORRECT ANSWER: C. Soliciting or accepting a referral fee from a repair shop
Rationale:New York Insurance Law and Regulation 64 prohibit adjusters from
accepting kickbacks, referral fees, or any compensation for steering business to specific
vendors. Such practices are considered fraudulent and a conflict of interest.
,Question 6: Under New York law, which type of damages are typically NOT
recoverable in a first-party property claim?
A. Actual cash value
B. Replacement cost value
C. Punitive damages
D. Additional living expenses
CORRECT ANSWER: C. Punitive damages
Rationale:Punitive damages are generally not recoverable in first-party breach of
contract claims. They are reserved for tortious conduct involving egregious wrongdoing,
not standard property damage claims. First-party claims typically involve contract
damages like ACV, RCV, or ALE.
Question 7: What is the deadline for an insurer to acknowledge receipt of a
claim in New York?
A. 5 business days
B. 10 business days
C. 15 calendar days
D. 30 calendar days
CORRECT ANSWER: C. 15 calendar days
Rationale:Under Regulation 64 (11 NYCRR 216.6), an insurer must acknowledge
receipt of a claim within 15 calendar days. This initial communication sets the timeline
for the claim handling process and must include information about the claim number
and next steps.
Question 8: In the context of a New York property claim, what does
"proximate cause" refer to when evaluating a loss?
A. The immediate physical cause of the damage
B. The primary insured peril that set the chain of events in motion
C. The final event that occurred before the loss
D. The cause that is most expensive to repair
CORRECT ANSWER: B. The primary insured peril that set the chain of events
in motion
Rationale:Proximate cause is the dominant or efficient cause that initiates the sequence
of events leading to a loss. In insurance, if the proximate cause is a covered peril, the
resulting damage is typically covered, even if subsequent events are involved.
, Question 9: An independent adjuster in New York discovers that an insured
has deliberately misrepresented material facts on their application. What is
the adjuster's ethical and legal duty?
A. Continue handling the claim as if nothing is wrong
B. Notify the insurer immediately and document the finding
C. Confront the insured and threaten to cancel their policy
D. Ignore the misrepresentation if the claim is small
CORRECT ANSWER: B. Notify the insurer immediately and document the
finding
Rationale:Adjusters have a fiduciary duty to act in the best interest of the insurer.
Discovering material misrepresentation must be reported to the carrier immediately, as
it may constitute fraud and affect coverage. The adjuster must document all findings
professionally.
Question 10: What is the minimum number of continuing education (CE) hours
required for an independent adjuster in New York per licensing cycle?
A. 15 hours
B. 24 hours
C. 30 hours
D. 40 hours
CORRECT ANSWER: B. 24 hours
Rationale:Under New York Insurance Law, licensed independent adjusters must
complete 24 hours of approved continuing education every two years. This includes at
least 3 hours of ethics training to ensure adjusters remain current on laws and
professional standards.
Question 11: Under the New York standard fire policy, how long does an
insured have to file a lawsuit against the insurer after a loss?
A. 6 months
B. 1 year
C. 2 years
D. 3 years
CORRECT ANSWER: C. 2 years
Rationale:The New York standard fire policy, mandated under Insurance Law Section
3404, contains a 2-year statute of limitations from the date of loss for filing a lawsuit.
This is a contractual limitation and is strictly enforced.
License Exam Updated 2026 | 250+
Practice Questions & Verified Answers |
Comprehensive Study Guide, Exam Prep
Test Bank, New York Insurance Law,
Property & Casualty Claims, Policy
Interpretation, Claims Investigation, Loss
Adjustment, Liability Assessment, Claims
Settlement, Ethics, Insurance Regulations,
Detailed Rationales, Adjuster Licensing
Success
Question 1: Under the New York Insurance Law, what is the maximum penalty
for a first-time violation of a cease and desist order related to unauthorized
insurance activities?
A. A fine of up to $5,000 per violation
B. A fine of up to $10,000 per violation
C. A fine of up to $25,000 per violation
D. A fine of up to $50,000 per violation
CORRECT ANSWER: B. A fine of up to $10,000 per violation
Rationale:Under New York Insurance Law Section 1102 and related enforcement
provisions, the Superintendent may impose a penalty of up to $10,000 for each violation
of a cease and desist order. This is standard for first-time unauthorized insurer
violations, with higher penalties for subsequent offenses.
Question 2: In New York, an independent adjuster is obligated to report any
felony conviction to the Superintendent within what timeframe?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
CORRECT ANSWER: C. 30 days
Rationale:Under 11 NYCRR Part 26, also known as Regulation 26, licensed adjusters
must report any felony conviction to the New York Department of Financial Services
within 30 days. This requirement ensures the Department can evaluate the adjuster's
fitness to hold a license.
,Question 3: What is the primary purpose of the New York Fair Claims
Settlement Practices Act (Regulation 64)?
A. To regulate premium rates for auto insurance
B. To mandate specific timelines for insurer claim payments
C. To prohibit unfair claims settlement practices and ensure prompt, fair handling
D. To establish continuing education requirements for adjusters
CORRECT ANSWER: C. To prohibit unfair claims settlement practices and
ensure prompt, fair handling
Rationale:Regulation 64 (11 NYCRR 216) sets forth standards for the prompt, fair, and
equitable settlement of claims. Its purpose is to prevent insurers and adjusters from
engaging in deceptive or unfair practices that harm policyholders.
Question 4: If an insured fails to submit a proof of loss within the time
specified in the policy, what is the adjuster's primary responsibility under New
York law?
A. Deny the claim immediately
B. Request an extension from the Department of Financial Services
C. Advise the insured of the requirement and allow reasonable additional time
D. Close the file and refer the matter to underwriting
CORRECT ANSWER: C. Advise the insured of the requirement and allow
reasonable additional time
Rationale:Under New York Insurance Law and Regulation 64, an adjuster cannot
simply deny a claim for a technicality. The adjuster must inform the insured of the
missing documentation and provide a reasonable opportunity to comply, as fairness is
central to claims handling.
Question 5: Which of the following is a prohibited practice under New York's
anti-fraud regulations for independent adjusters?
A. Referring a claimant to a restoration company
B. Negotiating a settlement directly with the insured's attorney
C. Soliciting or accepting a referral fee from a repair shop
D. Conducting a recorded interview with a witness
CORRECT ANSWER: C. Soliciting or accepting a referral fee from a repair shop
Rationale:New York Insurance Law and Regulation 64 prohibit adjusters from
accepting kickbacks, referral fees, or any compensation for steering business to specific
vendors. Such practices are considered fraudulent and a conflict of interest.
,Question 6: Under New York law, which type of damages are typically NOT
recoverable in a first-party property claim?
A. Actual cash value
B. Replacement cost value
C. Punitive damages
D. Additional living expenses
CORRECT ANSWER: C. Punitive damages
Rationale:Punitive damages are generally not recoverable in first-party breach of
contract claims. They are reserved for tortious conduct involving egregious wrongdoing,
not standard property damage claims. First-party claims typically involve contract
damages like ACV, RCV, or ALE.
Question 7: What is the deadline for an insurer to acknowledge receipt of a
claim in New York?
A. 5 business days
B. 10 business days
C. 15 calendar days
D. 30 calendar days
CORRECT ANSWER: C. 15 calendar days
Rationale:Under Regulation 64 (11 NYCRR 216.6), an insurer must acknowledge
receipt of a claim within 15 calendar days. This initial communication sets the timeline
for the claim handling process and must include information about the claim number
and next steps.
Question 8: In the context of a New York property claim, what does
"proximate cause" refer to when evaluating a loss?
A. The immediate physical cause of the damage
B. The primary insured peril that set the chain of events in motion
C. The final event that occurred before the loss
D. The cause that is most expensive to repair
CORRECT ANSWER: B. The primary insured peril that set the chain of events
in motion
Rationale:Proximate cause is the dominant or efficient cause that initiates the sequence
of events leading to a loss. In insurance, if the proximate cause is a covered peril, the
resulting damage is typically covered, even if subsequent events are involved.
, Question 9: An independent adjuster in New York discovers that an insured
has deliberately misrepresented material facts on their application. What is
the adjuster's ethical and legal duty?
A. Continue handling the claim as if nothing is wrong
B. Notify the insurer immediately and document the finding
C. Confront the insured and threaten to cancel their policy
D. Ignore the misrepresentation if the claim is small
CORRECT ANSWER: B. Notify the insurer immediately and document the
finding
Rationale:Adjusters have a fiduciary duty to act in the best interest of the insurer.
Discovering material misrepresentation must be reported to the carrier immediately, as
it may constitute fraud and affect coverage. The adjuster must document all findings
professionally.
Question 10: What is the minimum number of continuing education (CE) hours
required for an independent adjuster in New York per licensing cycle?
A. 15 hours
B. 24 hours
C. 30 hours
D. 40 hours
CORRECT ANSWER: B. 24 hours
Rationale:Under New York Insurance Law, licensed independent adjusters must
complete 24 hours of approved continuing education every two years. This includes at
least 3 hours of ethics training to ensure adjusters remain current on laws and
professional standards.
Question 11: Under the New York standard fire policy, how long does an
insured have to file a lawsuit against the insurer after a loss?
A. 6 months
B. 1 year
C. 2 years
D. 3 years
CORRECT ANSWER: C. 2 years
Rationale:The New York standard fire policy, mandated under Insurance Law Section
3404, contains a 2-year statute of limitations from the date of loss for filing a lawsuit.
This is a contractual limitation and is strictly enforced.
