1
NYS 17-71 INDEPENDENT AUTO DAMAGE AND
THEFT APPRAISAL ADJUSTER EXAM – EXAM
PREP GUIDE | LATEST UPDATE 2026–2027 |
PRACTICE QUESTIONS AND ANSWERS
Insurance Regulation and Licensing
Insurance Basics and Loss Principles
Role of the Appraiser and Duties After Loss
Determining Value, Loss Adjustment, and Total Loss
Vehicle Inspection, Identification, and Repair Estimating
Vehicle Parts, Construction, and Damage Analysis
Auto Theft, Arson, and Fraud
,2
Question 1: An applicant for an independent auto damage and theft appraisal
adjuster license in New York must meet which of the following statutory
qualifications under Insurance Law §2108?
A) Be at least 21 years of age and a New York State resident.
B) Be at least 18 years of age and complete the licensing process, including
fingerprinting and any required bond.
C) Hold a valid New York driver license and have five years of automotive
repair experience.
D) Be employed by an authorized insurer at the time of application.
Correct Answer: B
Insurance Law §2108 establishes the licensing framework for independent
adjusters, including minimum age (18), application process, fingerprinting, and
bond requirements where applicable. Residency in New York is not required,
and employment by an insurer is not a prerequisite for an independent adjuster
license. Automotive repair experience is not a statutory qualification for the 17-
71 license, though it may be helpful in practice.
Question 2: An independent appraiser licensed under Series 17-71 is asked by
an insurer to appraise a vehicle with severe structural damage. The appraiser
concludes that the vehicle is a total loss but the insurer disagrees and directs the
appraiser to write a repair estimate instead. Under New York Insurance Law and
professional standards, the appraiser should:
A) Follow the insurer’s direction because the insurer pays the appraiser’s fee.
B) Prepare an objective appraisal report reflecting the appraiser’s independent
professional judgment, documenting the basis for the total loss conclusion.
C) Refuse to issue any report and withdraw from the assignment immediately.
D) Report the insurer to the Department of Financial Services without preparing
an appraisal.
,3
Correct Answer: B
An independent appraiser’s core obligation is objectivity and impartiality. The
appraiser is not an advocate for the insurer’s desired outcome. The appraiser
must prepare an accurate appraisal based on evidence and professional
judgment. Withdrawing entirely or filing a regulatory complaint may be
appropriate in extreme circumstances, but the first and primary professional
obligation is to produce an honest appraisal. The fee source does not
compromise the duty of independence.
Question 3: Under New York Insurance Law §2108, an independent adjuster’s
license is generally valid for how long before renewal is required?
A) One year
B) Two years
C) Three years
D) Five years
Correct Answer: B
New York adjuster licenses, including the independent auto damage and theft
appraisal adjuster license, are generally valid for two years. Renewal requires
compliance with continuing education and other applicable requirements. One-
year, three-year, and five-year terms do not reflect the standard licensing cycle.
Question 4: An appraiser licensed in New York changes their business address.
Under the applicable regulations, the appraiser must notify the Superintendent
of Financial Services within what time frame?
A) 10 days
B) 30 days
C) 60 days
D) 90 days
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Correct Answer: B
New York regulations require licensees to notify the Superintendent of a change
of address within 30 days. This ensures that regulatory correspondence, renewal
notices, and disciplinary communications reach the licensee. Longer periods do
not satisfy the regulatory requirement.
Question 5: Which of the following best describes the Superintendent’s
authority when an independent adjuster violates New York insurance law or
regulations?
A) The Superintendent may only issue a warning letter.
B) The Superintendent may suspend, revoke, or refuse to renew the license, and
may impose civil penalties.
C) The Superintendent must refer all matters to criminal prosecutors and cannot
act administratively.
D) The Superintendent may only act if the insurer files a complaint.
Correct Answer: B
The Superintendent of Financial Services has broad administrative authority
over licensees, including suspension, revocation, non-renewal, and civil
penalties. The Superintendent may act on the agency’s own initiative or based
on complaints. Criminal referral is possible but is not the exclusive remedy, and
insurer complaint is not a prerequisite for regulatory action.
Question 6: Under New York’s Unfair Claim Settlement Practices regulation
(Regulation 64, 11 NYCRR Part 216), which of the following is a prohibited
practice?
A) Conducting a prompt investigation of a claim.
B) Failing to acknowledge communications about a claim within a reasonable
time.
NYS 17-71 INDEPENDENT AUTO DAMAGE AND
THEFT APPRAISAL ADJUSTER EXAM – EXAM
PREP GUIDE | LATEST UPDATE 2026–2027 |
PRACTICE QUESTIONS AND ANSWERS
Insurance Regulation and Licensing
Insurance Basics and Loss Principles
Role of the Appraiser and Duties After Loss
Determining Value, Loss Adjustment, and Total Loss
Vehicle Inspection, Identification, and Repair Estimating
Vehicle Parts, Construction, and Damage Analysis
Auto Theft, Arson, and Fraud
,2
Question 1: An applicant for an independent auto damage and theft appraisal
adjuster license in New York must meet which of the following statutory
qualifications under Insurance Law §2108?
A) Be at least 21 years of age and a New York State resident.
B) Be at least 18 years of age and complete the licensing process, including
fingerprinting and any required bond.
C) Hold a valid New York driver license and have five years of automotive
repair experience.
D) Be employed by an authorized insurer at the time of application.
Correct Answer: B
Insurance Law §2108 establishes the licensing framework for independent
adjusters, including minimum age (18), application process, fingerprinting, and
bond requirements where applicable. Residency in New York is not required,
and employment by an insurer is not a prerequisite for an independent adjuster
license. Automotive repair experience is not a statutory qualification for the 17-
71 license, though it may be helpful in practice.
Question 2: An independent appraiser licensed under Series 17-71 is asked by
an insurer to appraise a vehicle with severe structural damage. The appraiser
concludes that the vehicle is a total loss but the insurer disagrees and directs the
appraiser to write a repair estimate instead. Under New York Insurance Law and
professional standards, the appraiser should:
A) Follow the insurer’s direction because the insurer pays the appraiser’s fee.
B) Prepare an objective appraisal report reflecting the appraiser’s independent
professional judgment, documenting the basis for the total loss conclusion.
C) Refuse to issue any report and withdraw from the assignment immediately.
D) Report the insurer to the Department of Financial Services without preparing
an appraisal.
,3
Correct Answer: B
An independent appraiser’s core obligation is objectivity and impartiality. The
appraiser is not an advocate for the insurer’s desired outcome. The appraiser
must prepare an accurate appraisal based on evidence and professional
judgment. Withdrawing entirely or filing a regulatory complaint may be
appropriate in extreme circumstances, but the first and primary professional
obligation is to produce an honest appraisal. The fee source does not
compromise the duty of independence.
Question 3: Under New York Insurance Law §2108, an independent adjuster’s
license is generally valid for how long before renewal is required?
A) One year
B) Two years
C) Three years
D) Five years
Correct Answer: B
New York adjuster licenses, including the independent auto damage and theft
appraisal adjuster license, are generally valid for two years. Renewal requires
compliance with continuing education and other applicable requirements. One-
year, three-year, and five-year terms do not reflect the standard licensing cycle.
Question 4: An appraiser licensed in New York changes their business address.
Under the applicable regulations, the appraiser must notify the Superintendent
of Financial Services within what time frame?
A) 10 days
B) 30 days
C) 60 days
D) 90 days
, 4
Correct Answer: B
New York regulations require licensees to notify the Superintendent of a change
of address within 30 days. This ensures that regulatory correspondence, renewal
notices, and disciplinary communications reach the licensee. Longer periods do
not satisfy the regulatory requirement.
Question 5: Which of the following best describes the Superintendent’s
authority when an independent adjuster violates New York insurance law or
regulations?
A) The Superintendent may only issue a warning letter.
B) The Superintendent may suspend, revoke, or refuse to renew the license, and
may impose civil penalties.
C) The Superintendent must refer all matters to criminal prosecutors and cannot
act administratively.
D) The Superintendent may only act if the insurer files a complaint.
Correct Answer: B
The Superintendent of Financial Services has broad administrative authority
over licensees, including suspension, revocation, non-renewal, and civil
penalties. The Superintendent may act on the agency’s own initiative or based
on complaints. Criminal referral is possible but is not the exclusive remedy, and
insurer complaint is not a prerequisite for regulatory action.
Question 6: Under New York’s Unfair Claim Settlement Practices regulation
(Regulation 64, 11 NYCRR Part 216), which of the following is a prohibited
practice?
A) Conducting a prompt investigation of a claim.
B) Failing to acknowledge communications about a claim within a reasonable
time.
