17-70 – NY Independent General Adjuster Original
Practice Questions & Answers | Comprehensive
New York Independent General Adjuster License
Exam Preparation Study Guide | Property &
Casualty Insurance, Claims Investigation, Policy
Analysis, Coverage Evaluation, Adjusting
Procedures, Loss Assessment, Damage
Documentation, Settlement Principles, New York
Insurance Regulations, Ethics & Detailed Rationales
Question 1: An applicant for a New York independent adjuster license who has
not met the one-year experience requirement in the insurance business may
still qualify to take the Series 17-70 examination by completing which of the
following?
A. A 20-hour course in basic insurance principles.
B. A 40-hour formal training course approved by the Superintendent of Financial
Services.
C. A 60-hour internship with a licensed public adjuster.
D. A 90-day temporary permit issued by the Department of Financial Services.
CORRECT ANSWER: B. A 40-hour formal training course approved by the
Superintendent of Financial Services.
Rationale:According to New York Insurance Law Section 2108(f)(1), an individual is not
qualified to take the independent adjuster examination unless they demonstrate
satisfactory evidence of either a minimum of one year's experience in the insurance
business or successful completion of forty hours of formal training in a course approved
by the Superintendent .
Question 2: Under New York law, which license type grants an independent
adjuster the broadest authority to investigate and adjust claims across
multiple lines, excluding motor vehicle and aircraft insurance?
A. Independent adjuster, casualty.
B. Independent adjuster, fire.
C. Independent adjuster, general.
D. Independent adjuster, inland marine.
CORRECT ANSWER: C. Independent adjuster, general.
Rationale:The general independent adjuster license includes authority to investigate
and adjust claims for all lines specified under subdivisions (a) through (g) of the
regulations, which encompasses fire, casualty, automobile, and other lines . However,
this authority explicitly does not include motor vehicle and aircraft insurance, which
have their own dedicated license types .
,Question 3: An insurer, third-party administrator, or independent adjuster in
New York may recommend a particular repair entity to an insured, provided
that:
A. The repair entity is the lowest bidder.
B. The recommendation is made in writing and signed by the insured.
C. Any financial interest in the recommended entity is disclosed.
D. The insured has no prior relationship with the repair entity.
CORRECT ANSWER: C. Any financial interest in the recommended entity is
disclosed.
Rationale:New York law permits insurers, adjusters, and TPAs to recommend repairs by
a particular entity, but mandates that any financial interest in such entity must be
disclosed to the insured . This transparency requirement aims to prevent conflicts of
interest in the claims process.
Question 4: Which of the following is an accurate statement regarding the
renewal of an independent adjuster's license in New York?
A. Licenses are renewed annually on January 1st.
B. Licenses are renewed biennially by the licensee's birthday.
C. Renewal requires passing the Series 17-70 examination again.
D. Renewal fees are waived for all veterans.
CORRECT ANSWER: B. Licenses are renewed biennially by the licensee's
birthday.
Rationale:New York independent adjuster licenses must be renewed every two years,
and the renewal date is based on the licensee's birthday . Continuing education
requirements must also be met within this biennial period to maintain the license.
Question 5: Which of the following is NOT a type of independent adjuster
license prescribed under New York Insurance Regulations?
A. Independent adjuster, fire.
B. Independent adjuster, casualty.
C. Independent adjuster, life and annuity.
D. Independent adjuster, accident and health.
CORRECT ANSWER: C. Independent adjuster, life and annuity.
Rationale:The prescribed types of independent adjuster licenses in New York include
fire, inland marine, aviation, automobile, motor vehicle no-fault and workers'
compensation health service charges, automobile damage or theft appraisals, casualty,
fidelity and surety, accident and health, general, and multi-peril crop insurance . There is
no separate license type for "life and annuity" adjusters.
Question 6: The "liberalization" clause in an insurance policy provides that:
,A. The insured may liberalize the coverage terms unilaterally.
B. If the insurer makes a coverage expansion during the policy period, that expanded
coverage automatically applies to existing policies.
C. The insured may cancel the policy at any time without penalty.
D. The policy will be interpreted liberally in favor of the insurance company.
CORRECT ANSWER: B. If the insurer makes a coverage expansion during the
policy period, that expanded coverage automatically applies to existing
policies.
Rationale:The liberalization clause is a policy provision that requires an insurer to
automatically extend any coverage enhancements made to its standard policy forms to
existing policies, without additional premium, for the duration of the current policy
period .
Question 7: Under the concept of "subrogation," when an insurer pays a claim
on behalf of an insured, the insurer:
A. Waives all rights to recover from any third party.
B. Steps into the shoes of the insured and may pursue recovery from the party
responsible for the loss.
C. Must immediately file a lawsuit against the insured.
D. Is prohibited from seeking recovery from any other party.
CORRECT ANSWER: B. Steps into the shoes of the insured and may pursue
recovery from the party responsible for the loss.
Rationale:Subrogation is the legal right of an insurer to pursue recovery from a third
party who caused a loss after the insurer has paid the insured's claim . The insurer
"steps into the shoes" of the insured and acquires the insured's rights to seek recovery
from the responsible party.
Question 8: The "entire contract" provision in an insurance policy:
A. Allows the insurer to modify the policy by referring to external documents.
B. Prevents the insurer from altering the agreement by referring to documents not
contained in the policy.
C. Requires the insured to read the entire policy before signing.
D. Permits the insured to cancel the policy at any time.
CORRECT ANSWER: B. Prevents the insurer from altering the agreement by
referring to documents not contained in the policy.
Rationale:The entire contract provision ensures that the insurance policy, along with
any attached endorsements, constitutes the complete agreement between the insurer
and the insured . The insurer cannot alter its obligations by referencing documents,
applications, or other materials not explicitly contained within the policy itself.
Question 9: What is the primary purpose of a "reservation of rights" letter in
claims adjustment?
, A. To inform the insured that the claim is denied.
B. To notify the insured that the insurer will investigate a claim but coverage may not
apply.
C. To confirm that full coverage is available for the loss.
D. To request additional information from the insured.
CORRECT ANSWER: B. To notify the insured that the insurer will investigate a
claim but coverage may not apply.
Rationale:A reservation of rights letter is issued by an insurer to inform the insured that
the insurer is undertaking the defense or investigation of a claim, but reserves the right
to later deny coverage if it is determined that the loss is not covered under the policy
terms .
Question 10: An insured receives a payment based on Actual Cash Value (ACV)
for a covered loss under a policy that also provides replacement cost coverage.
Under an HO-3 form, how many days does the insured generally have to
submit receipts to recover the additional replacement cost payment?
A. 90 days.
B. 180 days.
C. 365 days.
D. 730 days.
CORRECT ANSWER: B. 180 days.
Rationale:Under the standard HO-3 homeowners policy, after receiving an actual cash
value payment for a covered loss, the insured typically has 180 days from the date of the
loss to actually repair or replace the damaged property and submit the receipts to the
insurer to receive the additional replacement cost payment .
Question 11: New York's Regulation 64 (Part 216.7(c)(1)) addresses the
valuation method for which type of loss?
A. Total loss valuation for automobiles.
B. Actual cash value for property claims.
C. Business interruption losses.
D. Bodily injury damages.
CORRECT ANSWER: A. Total loss valuation for automobiles.
Rationale:Regulation 64, specifically Part 216.7(c)(1), establishes the requirements for
the valuation and settlement of total loss claims for automobiles in New York . It outlines
the methodology adjusters must use to determine the value of a vehicle declared a total
loss.
Question 12: An adjuster discovers that the insured's property has been vacant
for more than 60 consecutive days. Under the broad theft coverage
endorsement, this vacancy will result in:
Practice Questions & Answers | Comprehensive
New York Independent General Adjuster License
Exam Preparation Study Guide | Property &
Casualty Insurance, Claims Investigation, Policy
Analysis, Coverage Evaluation, Adjusting
Procedures, Loss Assessment, Damage
Documentation, Settlement Principles, New York
Insurance Regulations, Ethics & Detailed Rationales
Question 1: An applicant for a New York independent adjuster license who has
not met the one-year experience requirement in the insurance business may
still qualify to take the Series 17-70 examination by completing which of the
following?
A. A 20-hour course in basic insurance principles.
B. A 40-hour formal training course approved by the Superintendent of Financial
Services.
C. A 60-hour internship with a licensed public adjuster.
D. A 90-day temporary permit issued by the Department of Financial Services.
CORRECT ANSWER: B. A 40-hour formal training course approved by the
Superintendent of Financial Services.
Rationale:According to New York Insurance Law Section 2108(f)(1), an individual is not
qualified to take the independent adjuster examination unless they demonstrate
satisfactory evidence of either a minimum of one year's experience in the insurance
business or successful completion of forty hours of formal training in a course approved
by the Superintendent .
Question 2: Under New York law, which license type grants an independent
adjuster the broadest authority to investigate and adjust claims across
multiple lines, excluding motor vehicle and aircraft insurance?
A. Independent adjuster, casualty.
B. Independent adjuster, fire.
C. Independent adjuster, general.
D. Independent adjuster, inland marine.
CORRECT ANSWER: C. Independent adjuster, general.
Rationale:The general independent adjuster license includes authority to investigate
and adjust claims for all lines specified under subdivisions (a) through (g) of the
regulations, which encompasses fire, casualty, automobile, and other lines . However,
this authority explicitly does not include motor vehicle and aircraft insurance, which
have their own dedicated license types .
,Question 3: An insurer, third-party administrator, or independent adjuster in
New York may recommend a particular repair entity to an insured, provided
that:
A. The repair entity is the lowest bidder.
B. The recommendation is made in writing and signed by the insured.
C. Any financial interest in the recommended entity is disclosed.
D. The insured has no prior relationship with the repair entity.
CORRECT ANSWER: C. Any financial interest in the recommended entity is
disclosed.
Rationale:New York law permits insurers, adjusters, and TPAs to recommend repairs by
a particular entity, but mandates that any financial interest in such entity must be
disclosed to the insured . This transparency requirement aims to prevent conflicts of
interest in the claims process.
Question 4: Which of the following is an accurate statement regarding the
renewal of an independent adjuster's license in New York?
A. Licenses are renewed annually on January 1st.
B. Licenses are renewed biennially by the licensee's birthday.
C. Renewal requires passing the Series 17-70 examination again.
D. Renewal fees are waived for all veterans.
CORRECT ANSWER: B. Licenses are renewed biennially by the licensee's
birthday.
Rationale:New York independent adjuster licenses must be renewed every two years,
and the renewal date is based on the licensee's birthday . Continuing education
requirements must also be met within this biennial period to maintain the license.
Question 5: Which of the following is NOT a type of independent adjuster
license prescribed under New York Insurance Regulations?
A. Independent adjuster, fire.
B. Independent adjuster, casualty.
C. Independent adjuster, life and annuity.
D. Independent adjuster, accident and health.
CORRECT ANSWER: C. Independent adjuster, life and annuity.
Rationale:The prescribed types of independent adjuster licenses in New York include
fire, inland marine, aviation, automobile, motor vehicle no-fault and workers'
compensation health service charges, automobile damage or theft appraisals, casualty,
fidelity and surety, accident and health, general, and multi-peril crop insurance . There is
no separate license type for "life and annuity" adjusters.
Question 6: The "liberalization" clause in an insurance policy provides that:
,A. The insured may liberalize the coverage terms unilaterally.
B. If the insurer makes a coverage expansion during the policy period, that expanded
coverage automatically applies to existing policies.
C. The insured may cancel the policy at any time without penalty.
D. The policy will be interpreted liberally in favor of the insurance company.
CORRECT ANSWER: B. If the insurer makes a coverage expansion during the
policy period, that expanded coverage automatically applies to existing
policies.
Rationale:The liberalization clause is a policy provision that requires an insurer to
automatically extend any coverage enhancements made to its standard policy forms to
existing policies, without additional premium, for the duration of the current policy
period .
Question 7: Under the concept of "subrogation," when an insurer pays a claim
on behalf of an insured, the insurer:
A. Waives all rights to recover from any third party.
B. Steps into the shoes of the insured and may pursue recovery from the party
responsible for the loss.
C. Must immediately file a lawsuit against the insured.
D. Is prohibited from seeking recovery from any other party.
CORRECT ANSWER: B. Steps into the shoes of the insured and may pursue
recovery from the party responsible for the loss.
Rationale:Subrogation is the legal right of an insurer to pursue recovery from a third
party who caused a loss after the insurer has paid the insured's claim . The insurer
"steps into the shoes" of the insured and acquires the insured's rights to seek recovery
from the responsible party.
Question 8: The "entire contract" provision in an insurance policy:
A. Allows the insurer to modify the policy by referring to external documents.
B. Prevents the insurer from altering the agreement by referring to documents not
contained in the policy.
C. Requires the insured to read the entire policy before signing.
D. Permits the insured to cancel the policy at any time.
CORRECT ANSWER: B. Prevents the insurer from altering the agreement by
referring to documents not contained in the policy.
Rationale:The entire contract provision ensures that the insurance policy, along with
any attached endorsements, constitutes the complete agreement between the insurer
and the insured . The insurer cannot alter its obligations by referencing documents,
applications, or other materials not explicitly contained within the policy itself.
Question 9: What is the primary purpose of a "reservation of rights" letter in
claims adjustment?
, A. To inform the insured that the claim is denied.
B. To notify the insured that the insurer will investigate a claim but coverage may not
apply.
C. To confirm that full coverage is available for the loss.
D. To request additional information from the insured.
CORRECT ANSWER: B. To notify the insured that the insurer will investigate a
claim but coverage may not apply.
Rationale:A reservation of rights letter is issued by an insurer to inform the insured that
the insurer is undertaking the defense or investigation of a claim, but reserves the right
to later deny coverage if it is determined that the loss is not covered under the policy
terms .
Question 10: An insured receives a payment based on Actual Cash Value (ACV)
for a covered loss under a policy that also provides replacement cost coverage.
Under an HO-3 form, how many days does the insured generally have to
submit receipts to recover the additional replacement cost payment?
A. 90 days.
B. 180 days.
C. 365 days.
D. 730 days.
CORRECT ANSWER: B. 180 days.
Rationale:Under the standard HO-3 homeowners policy, after receiving an actual cash
value payment for a covered loss, the insured typically has 180 days from the date of the
loss to actually repair or replace the damaged property and submit the receipts to the
insurer to receive the additional replacement cost payment .
Question 11: New York's Regulation 64 (Part 216.7(c)(1)) addresses the
valuation method for which type of loss?
A. Total loss valuation for automobiles.
B. Actual cash value for property claims.
C. Business interruption losses.
D. Bodily injury damages.
CORRECT ANSWER: A. Total loss valuation for automobiles.
Rationale:Regulation 64, specifically Part 216.7(c)(1), establishes the requirements for
the valuation and settlement of total loss claims for automobiles in New York . It outlines
the methodology adjusters must use to determine the value of a vehicle declared a total
loss.
Question 12: An adjuster discovers that the insured's property has been vacant
for more than 60 consecutive days. Under the broad theft coverage
endorsement, this vacancy will result in:
