❖ 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 Coverage Analysis, Claims Investigation,
Loss Adjustment, Liability Determination,
Claims Settlement, Ethics, Fraud Prevention,
Insurance Regulations, Detailed Rationales,
Licensing Exam Success
Question 1: Under the New York Insurance Law, what is the maximum penalty
per violation for acting as an independent adjuster without a license?
A. A fine of up to $500
B. A fine of up to $1,000
C. A fine of up to $5,000
D. A fine of up to $10,000
CORRECT ANSWER: C. A fine of up to $5,000
Rationale:Under New York Insurance Law Section 2108, the Superintendent may
impose a penalty of up to $5,000 for each violation of the licensing provisions, including
acting without a valid independent adjuster license.
Question 2: Which of the following types of adjusters is specifically prohibited
from being a public adjuster in New York?
A. A licensed independent adjuster
B. A licensed attorney
C. A salaried employee of an insurer
D. A former firefighter
CORRECT ANSWER: C. A salaried employee of an insurer
Rationale:New York Insurance Law Section 2101(g)(2) explicitly excludes salaried
employees of an insurer from being licensed as public adjusters to avoid conflicts of
interest and ensure impartiality on behalf of the policyholder.
Question 3: In New York, how many continuing education (CE) credit hours
must an independent adjuster complete during each licensing period?
A. 12 hours
B. 15 hours
,C. 24 hours
D. 30 hours
CORRECT ANSWER: C. 24 hours
Rationale:Under NYDFS Regulation, independent adjusters must complete 24 hours of
continuing education, including at least 3 hours of ethics, within each two-year licensing
cycle to maintain their license.
Question 4: What is the primary purpose of the "Fair Claims Settlement
Practices" regulation in New York?
A. To maximize insurer profitability
B. To expedite the settlement of claims to prevent bad faith
C. To reduce the number of claims filed
D. To eliminate the need for independent adjusters
CORRECT ANSWER: B. To expedite the settlement of claims to prevent bad
faith
Rationale:11 NYCRR 216 (Regulation 64) is designed to ensure prompt, fair, and
equitable settlements of claims, thereby preventing insurers from engaging in unfair
claims settlement practices that could lead to bad faith litigation.
Question 5: Under New York law, which of the following is considered an
unfair claims settlement practice?
A. Requesting a proof of loss within 30 days
B. Failing to acknowledge a claim within 15 business days
C. Conducting a field inspection within 72 hours
D. Offering a settlement based on actual cash value
CORRECT ANSWER: B. Failing to acknowledge a claim within 15 business days
Rationale:11 NYCRR 216.3 requires that an insurer acknowledge a claim within 15
business days of receipt; failure to do so constitutes a violation of the Fair Claims
Settlement Practices regulation.
Question 6: What is the statute of limitations for filing a lawsuit on a fire
insurance policy in New York?
A. 1 year
B. 2 years
C. 3 years
D. 6 years
,CORRECT ANSWER: B. 2 years
Rationale:New York Insurance Law Section 3404(e) stipulates that a fire insurance
policy must contain a clause limiting the time for bringing suit to two years from the
date of the loss.
Question 7: In a standard New York homeowners policy, what is the typical
coinsurance requirement for a commercial property?
A. 80%
B. 85%
C. 90%
D. 100%
CORRECT ANSWER: A. 80%
Rationale:While it can vary, the standard commercial property coinsurance clause
typically requires the insured to carry insurance equal to at least 80% of the property's
replacement cost to avoid a penalty on partial losses.
Question 8: Which New York regulation specifically outlines the standards for
prompt, fair, and equitable settlement of claims?
A. Regulation 64
B. Regulation 68
C. Regulation 194
D. Regulation 26
CORRECT ANSWER: A. Regulation 64
Rationale:11 NYCRR Part 216, commonly known as Regulation 64, establishes the
minimum standards for the handling and settlement of claims in New York State.
Question 9: An independent adjuster in New York must report a change of
address to the NYDFS within how many days?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
CORRECT ANSWER: C. 30 days
Rationale:Under New York licensing maintenance rules, licensees must report a change
of address, email, or business telephone number to the Department of Financial
Services within 30 days of the change.
, Question 10: What is the "valued policy" law as it applies to New York?
A. Insurers must pay the face amount of a policy in case of a total loss, regardless of
actual cash value
B. Insurers can depreciate labor costs in a total loss
C. Insurers can pay the actual cash value minus depreciation
D. Insurers are required to pay replacement cost on all claims
CORRECT ANSWER: A. Insurers must pay the face amount of a policy in case
of a total loss, regardless of actual cash value
Rationale:New York Insurance Law Section 3404(a) mandates that in the event of a
total loss by fire, the insurer must pay the full policy limit (face amount) stated in the
contract, irrespective of the property's actual cash value at the time of loss.
Question 11: Who has the authority to appoint an independent adjuster in New
York?
A. The insured
B. The New York Department of State
C. An insurer or self-insured entity
D. The Governor of New York
CORRECT ANSWER: C. An insurer or self-insured entity
Rationale:An independent adjuster is appointed by an insurer or self-insured entity to
investigate and settle claims on their behalf, as defined in NY Insurance Law Section
2101.
Question 12: Which type of damage is NOT typically covered under a standard
Commercial General Liability (CGL) policy?
A. Bodily injury
B. Property damage to a third party
C. Personal and advertising injury
D. Punitive damages
CORRECT ANSWER: D. Punitive damages
Rationale:While coverage varies, standard CGL policies generally cover compensatory
damages for bodily injury and property damage, but often exclude punitive damages as
they are considered a punishment rather than compensation.
License Exam Updated 2026 | 250+ Practice
Questions & Verified Answers | Comprehensive
Study Guide, Exam Prep Test Bank, New York
Insurance Law, Property & Casualty Claims,
Policy Coverage Analysis, Claims Investigation,
Loss Adjustment, Liability Determination,
Claims Settlement, Ethics, Fraud Prevention,
Insurance Regulations, Detailed Rationales,
Licensing Exam Success
Question 1: Under the New York Insurance Law, what is the maximum penalty
per violation for acting as an independent adjuster without a license?
A. A fine of up to $500
B. A fine of up to $1,000
C. A fine of up to $5,000
D. A fine of up to $10,000
CORRECT ANSWER: C. A fine of up to $5,000
Rationale:Under New York Insurance Law Section 2108, the Superintendent may
impose a penalty of up to $5,000 for each violation of the licensing provisions, including
acting without a valid independent adjuster license.
Question 2: Which of the following types of adjusters is specifically prohibited
from being a public adjuster in New York?
A. A licensed independent adjuster
B. A licensed attorney
C. A salaried employee of an insurer
D. A former firefighter
CORRECT ANSWER: C. A salaried employee of an insurer
Rationale:New York Insurance Law Section 2101(g)(2) explicitly excludes salaried
employees of an insurer from being licensed as public adjusters to avoid conflicts of
interest and ensure impartiality on behalf of the policyholder.
Question 3: In New York, how many continuing education (CE) credit hours
must an independent adjuster complete during each licensing period?
A. 12 hours
B. 15 hours
,C. 24 hours
D. 30 hours
CORRECT ANSWER: C. 24 hours
Rationale:Under NYDFS Regulation, independent adjusters must complete 24 hours of
continuing education, including at least 3 hours of ethics, within each two-year licensing
cycle to maintain their license.
Question 4: What is the primary purpose of the "Fair Claims Settlement
Practices" regulation in New York?
A. To maximize insurer profitability
B. To expedite the settlement of claims to prevent bad faith
C. To reduce the number of claims filed
D. To eliminate the need for independent adjusters
CORRECT ANSWER: B. To expedite the settlement of claims to prevent bad
faith
Rationale:11 NYCRR 216 (Regulation 64) is designed to ensure prompt, fair, and
equitable settlements of claims, thereby preventing insurers from engaging in unfair
claims settlement practices that could lead to bad faith litigation.
Question 5: Under New York law, which of the following is considered an
unfair claims settlement practice?
A. Requesting a proof of loss within 30 days
B. Failing to acknowledge a claim within 15 business days
C. Conducting a field inspection within 72 hours
D. Offering a settlement based on actual cash value
CORRECT ANSWER: B. Failing to acknowledge a claim within 15 business days
Rationale:11 NYCRR 216.3 requires that an insurer acknowledge a claim within 15
business days of receipt; failure to do so constitutes a violation of the Fair Claims
Settlement Practices regulation.
Question 6: What is the statute of limitations for filing a lawsuit on a fire
insurance policy in New York?
A. 1 year
B. 2 years
C. 3 years
D. 6 years
,CORRECT ANSWER: B. 2 years
Rationale:New York Insurance Law Section 3404(e) stipulates that a fire insurance
policy must contain a clause limiting the time for bringing suit to two years from the
date of the loss.
Question 7: In a standard New York homeowners policy, what is the typical
coinsurance requirement for a commercial property?
A. 80%
B. 85%
C. 90%
D. 100%
CORRECT ANSWER: A. 80%
Rationale:While it can vary, the standard commercial property coinsurance clause
typically requires the insured to carry insurance equal to at least 80% of the property's
replacement cost to avoid a penalty on partial losses.
Question 8: Which New York regulation specifically outlines the standards for
prompt, fair, and equitable settlement of claims?
A. Regulation 64
B. Regulation 68
C. Regulation 194
D. Regulation 26
CORRECT ANSWER: A. Regulation 64
Rationale:11 NYCRR Part 216, commonly known as Regulation 64, establishes the
minimum standards for the handling and settlement of claims in New York State.
Question 9: An independent adjuster in New York must report a change of
address to the NYDFS within how many days?
A. 10 days
B. 15 days
C. 30 days
D. 45 days
CORRECT ANSWER: C. 30 days
Rationale:Under New York licensing maintenance rules, licensees must report a change
of address, email, or business telephone number to the Department of Financial
Services within 30 days of the change.
, Question 10: What is the "valued policy" law as it applies to New York?
A. Insurers must pay the face amount of a policy in case of a total loss, regardless of
actual cash value
B. Insurers can depreciate labor costs in a total loss
C. Insurers can pay the actual cash value minus depreciation
D. Insurers are required to pay replacement cost on all claims
CORRECT ANSWER: A. Insurers must pay the face amount of a policy in case
of a total loss, regardless of actual cash value
Rationale:New York Insurance Law Section 3404(a) mandates that in the event of a
total loss by fire, the insurer must pay the full policy limit (face amount) stated in the
contract, irrespective of the property's actual cash value at the time of loss.
Question 11: Who has the authority to appoint an independent adjuster in New
York?
A. The insured
B. The New York Department of State
C. An insurer or self-insured entity
D. The Governor of New York
CORRECT ANSWER: C. An insurer or self-insured entity
Rationale:An independent adjuster is appointed by an insurer or self-insured entity to
investigate and settle claims on their behalf, as defined in NY Insurance Law Section
2101.
Question 12: Which type of damage is NOT typically covered under a standard
Commercial General Liability (CGL) policy?
A. Bodily injury
B. Property damage to a third party
C. Personal and advertising injury
D. Punitive damages
CORRECT ANSWER: D. Punitive damages
Rationale:While coverage varies, standard CGL policies generally cover compensatory
damages for bodily injury and property damage, but often exclude punitive damages as
they are considered a punishment rather than compensation.
