➢ 17-70 New York Independent General
Adjuster Licensing Exam Updated 2026 |
225+ Practice Questions & Verified Answers |
Complete Insurance Adjuster Review, State
Exam Prep Test Bank, New York Insurance
Regulations, Property & Casualty Claims,
Coverage Analysis, Loss Investigation, Policy
Interpretation, Claims Settlement, Ethics,
Risk Management, Detailed Rationales
Question 1: In New York, what is the term of validity for an independent
adjuster's license, and when does it expire?
A. One year, expiring on the adjuster's birthday.
B. Two years, expiring on December 31 of each even-numbered year.
C. Three years, expiring on December 31 of each odd-numbered year.
D. Four years, expiring on the date of original issuance.
CORRECT ANSWER: B. Two years, expiring on December 31 of each even-
numbered year.
Rationale: According to the New York State Department of Financial Services (DFS), an
independent adjuster's license is valid for a two-year term. The license expires on
December 31 of each even-numbered year, requiring renewal by that date to continue
practicing .
Question 2: Under New York Insurance Law, which of the following is a
fundamental requirement for an individual to obtain an independent adjuster's
license?
A. Must be a resident of New York State.
B. Must have a minimum of two years of college education.
C. Must be at least 18 years of age and competent and trustworthy.
D. Must have at least five years of claims handling experience.
CORRECT ANSWER: C. Must be at least 18 years of age and competent and
trustworthy.
Rationale: Section 2108 of the New York Insurance Law specifies that an applicant
must be at least 18 years old and demonstrate that they are trustworthy and competent
to act as an adjuster in a manner that safeguards the interests of the people of the state .
Neither a residency requirement, a college degree, nor a specific amount of prior claims
experience is a stated prerequisite for the license.
,Question 3: An insurer in New York is prohibited from paying fees or other
compensation to a person for acting as an independent adjuster unless that
person:
A. Is a licensed independent adjuster or is otherwise exempt from licensing.
B. Has a written contract with the insured.
C. Is a salaried employee of the insurer.
D. Has been appointed by the New York DFS.
CORRECT ANSWER: A. Is a licensed independent adjuster or is otherwise
exempt from licensing.
Rationale: Section 2108(a)(4) of the New York Insurance Law explicitly states that no
insurer or its representative may pay fees or compensation to any person for acting as
an independent adjuster except to a licensed independent adjuster or to a person
excepted from the licensing requirement by law .
Question 4: When a license is issued to a corporation to act as an independent
adjuster, who may be named as sub-licensees under that corporate license?
A. Any employee of the corporation.
B. Only the officers and directors of the corporation.
C. Any shareholder of the corporation.
D. Any independent contractor working for the corporation.
CORRECT ANSWER: B. Only the officers and directors of the corporation.
Rationale: Under Section 2108(c)(2) of the New York Insurance Law, a license issued to
a corporation may name as sub-licensees only the officers and directors of that
corporation. Each sub-licensee must be individually qualified to obtain a license .
Question 5: The Superintendent of Financial Services in New York has the
authority to refuse to issue an adjuster's license if an applicant is found to be:
A. In disagreement with a policy provision.
B. Not trustworthy and competent.
C. A new resident of New York State.
D. Lacking an undergraduate degree.
CORRECT ANSWER: B. Not trustworthy and competent.
Rationale: The Superintendent is granted the power to deny an adjuster's license if, in
their judgment, the applicant or a proposed sub-licensee is not trustworthy and
competent to act as an adjuster, as established in Article 21 of the New York Insurance
Law .
,Question 6: According to DFS regulations, an adjuster who suspects insurance
fraud is generally required to report the suspicion:
A. Only after a court conviction is obtained.
B. To the New York DFS within 10 business days.
C. To the local police department.
D. Directly to the National Insurance Crime Bureau.
CORRECT ANSWER: B. To the New York DFS within 10 business days.
Rationale: The New York Insurance Fraud Prevention Act requires that an adjuster who
suspects fraudulent activity must report that suspicion to the Department of Financial
Services. The typical time frame for this report is within 10 business days of discovering
the suspicion .
Question 7: An insurance adjuster whose license has been revoked for cause is
not entitled to apply for any other insurance license in New York until at least:
A. Six months have passed.
B. One year has passed.
C. Two years have passed.
D. Three years have passed.
CORRECT ANSWER: B. One year has passed.
Rationale: Under New York insurance regulations, an adjuster whose license has been
revoked for cause is barred from applying for any other insurance license for a minimum
period of one year . This acts as a disciplinary measure for serious misconduct.
Question 8: Under New York's no-fault law, what is the minimum limit for
Personal Injury Protection (PIP) coverage?
A. $10,000 per person.
B. $25,000 per person.
C. $50,000 per person.
D. $100,000 per person.
CORRECT ANSWER: C. $50,000 per person.
Rationale: New York's Comprehensive Motor Vehicle Insurance Reparations Act
mandates a minimum of $50,000 in Personal Injury Protection (No-Fault) coverage per
person. This coverage is mandatory for all motor vehicles registered in the state and
covers expenses such as medical costs and lost wages .
Question 9: What is the minimum continuing education requirement for a New
York independent adjuster to renew their license?
, A. 12 hours every two years.
B. 24 hours every three years.
C. 48 hours every four years.
D. No continuing education is required.
CORRECT ANSWER: B. 24 hours every three years.
Rationale: New York State requires independent adjusters to complete 24 hours of
approved continuing education for each license renewal cycle, which occurs every three
years. This is to ensure adjusters remain current with evolving laws, regulations, and
industry practices .
Question 10: The New York Department of Financial Services (DFS) was
created by merging the former New York State Insurance Department with
which other state department?
A. Department of Taxation and Finance.
B. Department of Motor Vehicles.
C. Department of Environmental Conservation.
D. Banking Department.
CORRECT ANSWER: D. Banking Department.
Rationale: The New York State Department of Financial Services (DFS) was formed
through a consolidation of the former New York State Insurance Department and the
New York State Banking Department. This merger created a single, powerful financial
regulatory body .
Question 11: In New York, for how many years must an adjuster generally
maintain claim files for regulatory review?
A. 1 year.
B. 2 years.
C. 3 years.
D. 5 years.
CORRECT ANSWER: C. 3 years.
Rationale: New York recordkeeping requirements for adjusters mandate that claim files
be maintained for a period of at least 3 years. This ensures that claim files are available
for potential audits and reviews by the DFS .
Question 12: An insurance contract is considered a "contract of adhesion"
because:
Adjuster Licensing Exam Updated 2026 |
225+ Practice Questions & Verified Answers |
Complete Insurance Adjuster Review, State
Exam Prep Test Bank, New York Insurance
Regulations, Property & Casualty Claims,
Coverage Analysis, Loss Investigation, Policy
Interpretation, Claims Settlement, Ethics,
Risk Management, Detailed Rationales
Question 1: In New York, what is the term of validity for an independent
adjuster's license, and when does it expire?
A. One year, expiring on the adjuster's birthday.
B. Two years, expiring on December 31 of each even-numbered year.
C. Three years, expiring on December 31 of each odd-numbered year.
D. Four years, expiring on the date of original issuance.
CORRECT ANSWER: B. Two years, expiring on December 31 of each even-
numbered year.
Rationale: According to the New York State Department of Financial Services (DFS), an
independent adjuster's license is valid for a two-year term. The license expires on
December 31 of each even-numbered year, requiring renewal by that date to continue
practicing .
Question 2: Under New York Insurance Law, which of the following is a
fundamental requirement for an individual to obtain an independent adjuster's
license?
A. Must be a resident of New York State.
B. Must have a minimum of two years of college education.
C. Must be at least 18 years of age and competent and trustworthy.
D. Must have at least five years of claims handling experience.
CORRECT ANSWER: C. Must be at least 18 years of age and competent and
trustworthy.
Rationale: Section 2108 of the New York Insurance Law specifies that an applicant
must be at least 18 years old and demonstrate that they are trustworthy and competent
to act as an adjuster in a manner that safeguards the interests of the people of the state .
Neither a residency requirement, a college degree, nor a specific amount of prior claims
experience is a stated prerequisite for the license.
,Question 3: An insurer in New York is prohibited from paying fees or other
compensation to a person for acting as an independent adjuster unless that
person:
A. Is a licensed independent adjuster or is otherwise exempt from licensing.
B. Has a written contract with the insured.
C. Is a salaried employee of the insurer.
D. Has been appointed by the New York DFS.
CORRECT ANSWER: A. Is a licensed independent adjuster or is otherwise
exempt from licensing.
Rationale: Section 2108(a)(4) of the New York Insurance Law explicitly states that no
insurer or its representative may pay fees or compensation to any person for acting as
an independent adjuster except to a licensed independent adjuster or to a person
excepted from the licensing requirement by law .
Question 4: When a license is issued to a corporation to act as an independent
adjuster, who may be named as sub-licensees under that corporate license?
A. Any employee of the corporation.
B. Only the officers and directors of the corporation.
C. Any shareholder of the corporation.
D. Any independent contractor working for the corporation.
CORRECT ANSWER: B. Only the officers and directors of the corporation.
Rationale: Under Section 2108(c)(2) of the New York Insurance Law, a license issued to
a corporation may name as sub-licensees only the officers and directors of that
corporation. Each sub-licensee must be individually qualified to obtain a license .
Question 5: The Superintendent of Financial Services in New York has the
authority to refuse to issue an adjuster's license if an applicant is found to be:
A. In disagreement with a policy provision.
B. Not trustworthy and competent.
C. A new resident of New York State.
D. Lacking an undergraduate degree.
CORRECT ANSWER: B. Not trustworthy and competent.
Rationale: The Superintendent is granted the power to deny an adjuster's license if, in
their judgment, the applicant or a proposed sub-licensee is not trustworthy and
competent to act as an adjuster, as established in Article 21 of the New York Insurance
Law .
,Question 6: According to DFS regulations, an adjuster who suspects insurance
fraud is generally required to report the suspicion:
A. Only after a court conviction is obtained.
B. To the New York DFS within 10 business days.
C. To the local police department.
D. Directly to the National Insurance Crime Bureau.
CORRECT ANSWER: B. To the New York DFS within 10 business days.
Rationale: The New York Insurance Fraud Prevention Act requires that an adjuster who
suspects fraudulent activity must report that suspicion to the Department of Financial
Services. The typical time frame for this report is within 10 business days of discovering
the suspicion .
Question 7: An insurance adjuster whose license has been revoked for cause is
not entitled to apply for any other insurance license in New York until at least:
A. Six months have passed.
B. One year has passed.
C. Two years have passed.
D. Three years have passed.
CORRECT ANSWER: B. One year has passed.
Rationale: Under New York insurance regulations, an adjuster whose license has been
revoked for cause is barred from applying for any other insurance license for a minimum
period of one year . This acts as a disciplinary measure for serious misconduct.
Question 8: Under New York's no-fault law, what is the minimum limit for
Personal Injury Protection (PIP) coverage?
A. $10,000 per person.
B. $25,000 per person.
C. $50,000 per person.
D. $100,000 per person.
CORRECT ANSWER: C. $50,000 per person.
Rationale: New York's Comprehensive Motor Vehicle Insurance Reparations Act
mandates a minimum of $50,000 in Personal Injury Protection (No-Fault) coverage per
person. This coverage is mandatory for all motor vehicles registered in the state and
covers expenses such as medical costs and lost wages .
Question 9: What is the minimum continuing education requirement for a New
York independent adjuster to renew their license?
, A. 12 hours every two years.
B. 24 hours every three years.
C. 48 hours every four years.
D. No continuing education is required.
CORRECT ANSWER: B. 24 hours every three years.
Rationale: New York State requires independent adjusters to complete 24 hours of
approved continuing education for each license renewal cycle, which occurs every three
years. This is to ensure adjusters remain current with evolving laws, regulations, and
industry practices .
Question 10: The New York Department of Financial Services (DFS) was
created by merging the former New York State Insurance Department with
which other state department?
A. Department of Taxation and Finance.
B. Department of Motor Vehicles.
C. Department of Environmental Conservation.
D. Banking Department.
CORRECT ANSWER: D. Banking Department.
Rationale: The New York State Department of Financial Services (DFS) was formed
through a consolidation of the former New York State Insurance Department and the
New York State Banking Department. This merger created a single, powerful financial
regulatory body .
Question 11: In New York, for how many years must an adjuster generally
maintain claim files for regulatory review?
A. 1 year.
B. 2 years.
C. 3 years.
D. 5 years.
CORRECT ANSWER: C. 3 years.
Rationale: New York recordkeeping requirements for adjusters mandate that claim files
be maintained for a period of at least 3 years. This ensures that claim files are available
for potential audits and reviews by the DFS .
Question 12: An insurance contract is considered a "contract of adhesion"
because:
