➢ 17-70 New York Independent General Adjuster
Exam Updated 2026 | 300+ Practice Questions &
Verified Answers | Premium Exam Prep Study
Guide, Insurance Claims Test Bank, New York
Insurance Law, Property & Casualty Coverage,
Claims Handling, Policy Interpretation, Liability
Evaluation, Damage Assessment, Ethics, Fraud
Prevention, Detailed Rationales, Licensing
Success
Question 1: Which of the following is a characteristic of an insurance contract
that arises from the unequal bargaining power between the insurer and the
insured, where ambiguities are typically interpreted against the insurer?
A. Aleatory contract
B. Personal contract
C. Contract of adhesion
D. Conditional contract
CORRECT ANSWER: C. Contract of adhesion
Rationale: A contract of adhesion is a "take it or leave it" contract drafted by the insurer,
where the insured has little to no ability to negotiate terms. Courts interpret any
ambiguities against the insurer. An aleatory contract depends on chance, a personal
contract is between specific parties, and a conditional contract requires certain
conditions to be met.
Question 2: Under New York Insurance Law, for an independent adjuster
license application, what is the minimum age requirement for an individual
applicant?
A. 21 years of age
B. 25 years of age
C. 18 years of age
D. 20 years of age
CORRECT ANSWER: C. 18 years of age
Rationale: Section 2108(c)(3) of the New York Insurance Law explicitly requires every
individual applicant for an adjuster's license and every proposed sub-licensee to be at
least 18 years of age at the time the license is issued.
Question 3: When determining loss valuation for a property claim, which
method is defined as the current replacement cost of the property, minus
depreciation?
A. Market value
B. Functional replacement cost
,C. Actual cash value
D. Agreed value
CORRECT ANSWER: C. Actual cash value
Rationale: Actual Cash Value (ACV) is calculated as the replacement cost of the
damaged property minus depreciation. It reflects the value of the property at the time of
loss. The broad evidence rule is one way to determine ACV, but the core definition
remains replacement cost minus depreciation.
Question 4: In the context of the Homeowners (2011) policy, which Section
provides coverage for the cost of defending the insured against a lawsuit?
A. Section I – Property Coverages
B. Section II – Liability Coverages
C. Additional Coverages
D. Perils Insured Against
CORRECT ANSWER: B. Section II – Liability Coverages
Rationale: Section II of the Homeowners policy contains the liability coverages
(Coverage E - Personal Liability and Coverage F - Medical Payments to Others) and
includes the insurer's duty to defend the insured. This is part of the liability protection
offered to the insured.
Question 5: What type of hazard is represented by an insured who deliberately
sets fire to their own property to collect insurance proceeds?
A. Morale hazard
B. Physical hazard
C. Legal hazard
D. Moral hazard
CORRECT ANSWER: D. Moral hazard
Rationale: A moral hazard arises from the character or dishonesty of the insured, such
as arson for profit. A morale hazard stems from carelessness or indifference (e.g., leaving
a door unlocked). A physical hazard relates to the tangible condition of the property.
Question 6: According to the New York State Department of Financial Services
exam outline, what is the time limit to complete the 17-70 examination?
A. 1.5 hours
B. 3 hours
C. 2 hours
D. 2.5 hours
CORRECT ANSWER: C. 2 hours
Rationale: The New York Independent General Adjuster Examination (Series 17-70)
consists of 100 questions and has a specified time limit of 2 hours to complete the exam.
,Question 7: Which of the following is NOT one of the elements required for a
valid legal contract?
A. Consideration
B. Utmost good faith
C. Competent parties
D. Legal purpose
CORRECT ANSWER: B. Utmost good faith
Rationale: The basic elements of a legal contract are offer and acceptance,
consideration, competent parties, and legal purpose. Utmost good faith (uberrima fides)
is a distinct characteristic and principle of insurance contracts, not a fundamental
element of all legal contracts.
Question 8: Which coverage under a Dwelling policy provides for the payment
of rent if the insured rents out the dwelling and it becomes uninhabitable due
to a covered loss?
A. Coverage A – Dwelling
B. Coverage C – Personal Property
C. Coverage E – Additional Living Expense
D. Coverage D – Fair Rental Value
CORRECT ANSWER: D. Coverage D – Fair Rental Value
Rationale: In the Dwelling (2014) policy, Coverage D is specifically designed for Fair
Rental Value. It covers the loss of rental income if a covered loss renders the rented
premises uninhabitable. Additional Living Expense (Coverage E) applies to the insured's
own living expenses if they are displaced from their primary residence.
Question 9: An adjuster is handling a claim where there may be a coverage
issue. The insurer decides to investigate further without waiving its right to
deny the claim. What is the appropriate document for the adjuster to issue?
A. Nonwaiver agreement
B. Proof of loss
C. Subrogation waiver
D. Reservation of rights letter
CORRECT ANSWER: D. Reservation of rights letter
Rationale: A reservation of rights letter is sent to the insured to inform them that the
insurer is investigating a claim but reserves all rights and defenses under the policy. A
nonwaiver agreement is a signed document by the insured, and while similar in purpose,
the letter is a unilateral notification by the insurer.
Question 10: What is the primary purpose of the subrogation clause in an
insurance policy?
, A. To allow the insurer to cancel the policy at any time
B. To prevent the insured from collecting twice for the same loss
C. To allow the insured to assign the policy to a new owner
D. To permit the insurer to recover payment from a third party who caused the loss
CORRECT ANSWER: D. To permit the insurer to recover payment from a third
party who caused the loss
Rationale: Subrogation is the legal right of the insurer to step into the shoes of the
insured after paying a claim and pursue recovery from a third party who was responsible
for the loss. This helps keep insurance costs down for all policyholders.
Question 11: Under New York law, what is the requirement for an independent
adjuster license renewal regarding continuing education?
A. 24 credit hours, including 3 hours of ethics
B. 15 credit hours, including 3 hours of ethics
C. 15 credit hours, no ethics requirement
D. 24 credit hours, no ethics requirement
CORRECT ANSWER: A. 24 credit hours, including 3 hours of ethics
Rationale: To maintain a New York independent adjuster license, licensees must
complete 24 credit hours of approved continuing education during each two-year
licensing period, which must include at least 3 hours in ethics, professionalism, or New
York Insurance Law.
Question 12: In a property insurance claim, what is "salvage"?
A. The cost to repair the damaged property
B. The amount of money the insurer is willing to pay
C. The remaining value of the damaged property after a loss
D. The deductible the insured must pay
CORRECT ANSWER: C. The remaining value of the damaged property after a
loss
Rationale: Salvage is the value of the damaged property after a loss. The insurer often
takes title to the salvage to help offset the cost of the claim, or the insured may retain it,
which reduces the settlement amount.
Question 13: What are the three parties involved in the Appraisal Clause of a
property insurance policy?
A. The insured, the insurer, and the umpire
B. The two appraisers and the umpire
C. The insured, the insurer, and the adjuster
D. The insured, the appraiser, and the insurer
CORRECT ANSWER: B. The two appraisers and the umpire
Exam Updated 2026 | 300+ Practice Questions &
Verified Answers | Premium Exam Prep Study
Guide, Insurance Claims Test Bank, New York
Insurance Law, Property & Casualty Coverage,
Claims Handling, Policy Interpretation, Liability
Evaluation, Damage Assessment, Ethics, Fraud
Prevention, Detailed Rationales, Licensing
Success
Question 1: Which of the following is a characteristic of an insurance contract
that arises from the unequal bargaining power between the insurer and the
insured, where ambiguities are typically interpreted against the insurer?
A. Aleatory contract
B. Personal contract
C. Contract of adhesion
D. Conditional contract
CORRECT ANSWER: C. Contract of adhesion
Rationale: A contract of adhesion is a "take it or leave it" contract drafted by the insurer,
where the insured has little to no ability to negotiate terms. Courts interpret any
ambiguities against the insurer. An aleatory contract depends on chance, a personal
contract is between specific parties, and a conditional contract requires certain
conditions to be met.
Question 2: Under New York Insurance Law, for an independent adjuster
license application, what is the minimum age requirement for an individual
applicant?
A. 21 years of age
B. 25 years of age
C. 18 years of age
D. 20 years of age
CORRECT ANSWER: C. 18 years of age
Rationale: Section 2108(c)(3) of the New York Insurance Law explicitly requires every
individual applicant for an adjuster's license and every proposed sub-licensee to be at
least 18 years of age at the time the license is issued.
Question 3: When determining loss valuation for a property claim, which
method is defined as the current replacement cost of the property, minus
depreciation?
A. Market value
B. Functional replacement cost
,C. Actual cash value
D. Agreed value
CORRECT ANSWER: C. Actual cash value
Rationale: Actual Cash Value (ACV) is calculated as the replacement cost of the
damaged property minus depreciation. It reflects the value of the property at the time of
loss. The broad evidence rule is one way to determine ACV, but the core definition
remains replacement cost minus depreciation.
Question 4: In the context of the Homeowners (2011) policy, which Section
provides coverage for the cost of defending the insured against a lawsuit?
A. Section I – Property Coverages
B. Section II – Liability Coverages
C. Additional Coverages
D. Perils Insured Against
CORRECT ANSWER: B. Section II – Liability Coverages
Rationale: Section II of the Homeowners policy contains the liability coverages
(Coverage E - Personal Liability and Coverage F - Medical Payments to Others) and
includes the insurer's duty to defend the insured. This is part of the liability protection
offered to the insured.
Question 5: What type of hazard is represented by an insured who deliberately
sets fire to their own property to collect insurance proceeds?
A. Morale hazard
B. Physical hazard
C. Legal hazard
D. Moral hazard
CORRECT ANSWER: D. Moral hazard
Rationale: A moral hazard arises from the character or dishonesty of the insured, such
as arson for profit. A morale hazard stems from carelessness or indifference (e.g., leaving
a door unlocked). A physical hazard relates to the tangible condition of the property.
Question 6: According to the New York State Department of Financial Services
exam outline, what is the time limit to complete the 17-70 examination?
A. 1.5 hours
B. 3 hours
C. 2 hours
D. 2.5 hours
CORRECT ANSWER: C. 2 hours
Rationale: The New York Independent General Adjuster Examination (Series 17-70)
consists of 100 questions and has a specified time limit of 2 hours to complete the exam.
,Question 7: Which of the following is NOT one of the elements required for a
valid legal contract?
A. Consideration
B. Utmost good faith
C. Competent parties
D. Legal purpose
CORRECT ANSWER: B. Utmost good faith
Rationale: The basic elements of a legal contract are offer and acceptance,
consideration, competent parties, and legal purpose. Utmost good faith (uberrima fides)
is a distinct characteristic and principle of insurance contracts, not a fundamental
element of all legal contracts.
Question 8: Which coverage under a Dwelling policy provides for the payment
of rent if the insured rents out the dwelling and it becomes uninhabitable due
to a covered loss?
A. Coverage A – Dwelling
B. Coverage C – Personal Property
C. Coverage E – Additional Living Expense
D. Coverage D – Fair Rental Value
CORRECT ANSWER: D. Coverage D – Fair Rental Value
Rationale: In the Dwelling (2014) policy, Coverage D is specifically designed for Fair
Rental Value. It covers the loss of rental income if a covered loss renders the rented
premises uninhabitable. Additional Living Expense (Coverage E) applies to the insured's
own living expenses if they are displaced from their primary residence.
Question 9: An adjuster is handling a claim where there may be a coverage
issue. The insurer decides to investigate further without waiving its right to
deny the claim. What is the appropriate document for the adjuster to issue?
A. Nonwaiver agreement
B. Proof of loss
C. Subrogation waiver
D. Reservation of rights letter
CORRECT ANSWER: D. Reservation of rights letter
Rationale: A reservation of rights letter is sent to the insured to inform them that the
insurer is investigating a claim but reserves all rights and defenses under the policy. A
nonwaiver agreement is a signed document by the insured, and while similar in purpose,
the letter is a unilateral notification by the insurer.
Question 10: What is the primary purpose of the subrogation clause in an
insurance policy?
, A. To allow the insurer to cancel the policy at any time
B. To prevent the insured from collecting twice for the same loss
C. To allow the insured to assign the policy to a new owner
D. To permit the insurer to recover payment from a third party who caused the loss
CORRECT ANSWER: D. To permit the insurer to recover payment from a third
party who caused the loss
Rationale: Subrogation is the legal right of the insurer to step into the shoes of the
insured after paying a claim and pursue recovery from a third party who was responsible
for the loss. This helps keep insurance costs down for all policyholders.
Question 11: Under New York law, what is the requirement for an independent
adjuster license renewal regarding continuing education?
A. 24 credit hours, including 3 hours of ethics
B. 15 credit hours, including 3 hours of ethics
C. 15 credit hours, no ethics requirement
D. 24 credit hours, no ethics requirement
CORRECT ANSWER: A. 24 credit hours, including 3 hours of ethics
Rationale: To maintain a New York independent adjuster license, licensees must
complete 24 credit hours of approved continuing education during each two-year
licensing period, which must include at least 3 hours in ethics, professionalism, or New
York Insurance Law.
Question 12: In a property insurance claim, what is "salvage"?
A. The cost to repair the damaged property
B. The amount of money the insurer is willing to pay
C. The remaining value of the damaged property after a loss
D. The deductible the insured must pay
CORRECT ANSWER: C. The remaining value of the damaged property after a
loss
Rationale: Salvage is the value of the damaged property after a loss. The insurer often
takes title to the salvage to help offset the cost of the claim, or the insured may retain it,
which reduces the settlement amount.
Question 13: What are the three parties involved in the Appraisal Clause of a
property insurance policy?
A. The insured, the insurer, and the umpire
B. The two appraisers and the umpire
C. The insured, the insurer, and the adjuster
D. The insured, the appraiser, and the insurer
CORRECT ANSWER: B. The two appraisers and the umpire
