New York Adjuster License Exam – Practice
Questions & 100% Verified Answers | Complete NY
Insurance Adjuster Licensing Exam Review |
2026–2027
,What is Insurance Financial tool that protects individuals and organizations from unforeseen and
extraordinary financial losses by transferring risk to another party
The Principle of Indemnity Restoration of approximate previous financial condition: no more, no less. Prevents
insured from profiting from a loss
What is a reserve A pool of collected premiums that the insurer sets aside to pay claims.
Example of Indemnification -Repairs to property
-Reimbursement for additional living expenses
-Rental cars, hotels
-Costs directly associated with a loss, as allowed under the policy
What is a Legal Contract -An Agreement ( Offer and Acceptance )
-Consideration
-Competent Parties
-Legal Purpose
What are the six characteristics of insurance contracts -Personal
-Adhesion
-Utmost good faith
-Aleatory
-Unilateral
-Conditional
Personal Characteristic Protects POLICYHOLDER from financial Losses
Adhesion Characteristic The insurer is responsible for the terms of the contract, the insured has no say in
the wording
Utmost Good Faith Characteristic Applicants are honest about the risk, Insurer must be honest on the policy
Aleatory Characteristic Unknown future event, neither party can know future losses
Unilateral Characteristic Insurer has an obligation to pay covered losses, Insured has no obligation and can
stop paying premiums
Conditional Characteristics Insurer only has to perform if certain conditions are met, insured must fulfill all
conditions listed in policy
D.I.C.E -Declarations Page
-Insuring Agreement
-Conditions
-Exclusions
, Declaratations Page -Names of both parties
-Policy number
-Locations & description of insured item
-Value of insured item
-Dates of the policy
-Amount and limit of coverage
-Deductible
-Premium
Defenitions -Not essential, but common in policies
-Defines terms used to write policy ( "Collision", "Decay", "like kind and quality"
-Includes important language for adjusters to know
Insuring Agreement -What is covered
-Which causes of loss are covered
-Any services provided
-Any exclusions to coverage
-The max limit of policy coverage in dollars
Conditions -Requiring a security guard for a jewelry store
-How to file a proof of loss
-How to protect the property after a loss
Exclusions -Earthquakes
-Flooding
-War
-Nuclear Hazards
-Intentional acts
Endorsements -Add or reduce insurance coverage
-Change policy provisions
-Change the premium price after the policy period ends.
Certificate of Insurance -Includes basic details of the insurance policy
-Constitutes proof of coverage
-Often required for drivers
Government Insurers -Non profit
-Mandatory participation
-Benefits prescribed by law
-Designed to meet needs of general public
-Government has monopoly
(Medicare, Social Security, FEMA, Federal Deposit Insurance)
Private Insurers -Sell insurance based on consumer preferences
-Offer a wide variety of insurance products
-Typically exist to generate a profit or benefit a group
-Insured party voluntarily participates
Stock Insurers -Always for profit
-Usually public-traded
-Stockholders provide capital and participate in profits or losses
-"Non-participating" insurers: no dividends go to policyholders
(Aflac, Allstate, Geico)
Mutual Insurers -Owned by policyholders (no shareholders)
-Policyholders elect board of directors
-"Participating" insurers: Policyholders participate in dividends
(Nationwide, New York Life, State Farm)
Re-Insurer An insurer that provides insurance for other insurers
-The insurer buys insurance to reduce its exposure to loss
-The re-insurer pays a percentage of the insurer's losses, or any losses over a
certain amount
Example (9/11 attacks)
Questions & 100% Verified Answers | Complete NY
Insurance Adjuster Licensing Exam Review |
2026–2027
,What is Insurance Financial tool that protects individuals and organizations from unforeseen and
extraordinary financial losses by transferring risk to another party
The Principle of Indemnity Restoration of approximate previous financial condition: no more, no less. Prevents
insured from profiting from a loss
What is a reserve A pool of collected premiums that the insurer sets aside to pay claims.
Example of Indemnification -Repairs to property
-Reimbursement for additional living expenses
-Rental cars, hotels
-Costs directly associated with a loss, as allowed under the policy
What is a Legal Contract -An Agreement ( Offer and Acceptance )
-Consideration
-Competent Parties
-Legal Purpose
What are the six characteristics of insurance contracts -Personal
-Adhesion
-Utmost good faith
-Aleatory
-Unilateral
-Conditional
Personal Characteristic Protects POLICYHOLDER from financial Losses
Adhesion Characteristic The insurer is responsible for the terms of the contract, the insured has no say in
the wording
Utmost Good Faith Characteristic Applicants are honest about the risk, Insurer must be honest on the policy
Aleatory Characteristic Unknown future event, neither party can know future losses
Unilateral Characteristic Insurer has an obligation to pay covered losses, Insured has no obligation and can
stop paying premiums
Conditional Characteristics Insurer only has to perform if certain conditions are met, insured must fulfill all
conditions listed in policy
D.I.C.E -Declarations Page
-Insuring Agreement
-Conditions
-Exclusions
, Declaratations Page -Names of both parties
-Policy number
-Locations & description of insured item
-Value of insured item
-Dates of the policy
-Amount and limit of coverage
-Deductible
-Premium
Defenitions -Not essential, but common in policies
-Defines terms used to write policy ( "Collision", "Decay", "like kind and quality"
-Includes important language for adjusters to know
Insuring Agreement -What is covered
-Which causes of loss are covered
-Any services provided
-Any exclusions to coverage
-The max limit of policy coverage in dollars
Conditions -Requiring a security guard for a jewelry store
-How to file a proof of loss
-How to protect the property after a loss
Exclusions -Earthquakes
-Flooding
-War
-Nuclear Hazards
-Intentional acts
Endorsements -Add or reduce insurance coverage
-Change policy provisions
-Change the premium price after the policy period ends.
Certificate of Insurance -Includes basic details of the insurance policy
-Constitutes proof of coverage
-Often required for drivers
Government Insurers -Non profit
-Mandatory participation
-Benefits prescribed by law
-Designed to meet needs of general public
-Government has monopoly
(Medicare, Social Security, FEMA, Federal Deposit Insurance)
Private Insurers -Sell insurance based on consumer preferences
-Offer a wide variety of insurance products
-Typically exist to generate a profit or benefit a group
-Insured party voluntarily participates
Stock Insurers -Always for profit
-Usually public-traded
-Stockholders provide capital and participate in profits or losses
-"Non-participating" insurers: no dividends go to policyholders
(Aflac, Allstate, Geico)
Mutual Insurers -Owned by policyholders (no shareholders)
-Policyholders elect board of directors
-"Participating" insurers: Policyholders participate in dividends
(Nationwide, New York Life, State Farm)
Re-Insurer An insurer that provides insurance for other insurers
-The insurer buys insurance to reduce its exposure to loss
-The re-insurer pays a percentage of the insurer's losses, or any losses over a
certain amount
Example (9/11 attacks)
