17-70 – NY Independent General Adjuster
Independent Practice Questions & Answers |
Comprehensive New York Adjuster Licensing Exam
Preparation Study Guide | Insurance Principles,
Claims Investigation, Policy Provisions, Coverage
Analysis, Property Losses, Damage Evaluation,
Claims Documentation, Settlement Practices, New
York Insurance Law, Adjuster Ethics & Detailed
Rationales
Question 1: Under New York Insurance Law Section 2108, what is the
fingerprinting requirement for an independent general adjuster license
applicant?
A. Fingerprinting is only required for applicants who have had a prior felony conviction.
B. Fingerprinting is mandatory for all adjuster applicants, including residents and non-
residents.
C. Fingerprinting is waived if the applicant holds a valid license in another state.
D. Fingerprinting is only required for public adjusters, not independent adjusters.
CORRECT ANSWER: B. Fingerprinting is mandatory for all adjuster applicants,
including residents and non-residents.
Rationale:Under New York Insurance Law §2108, all adjuster applicants, including
those for the independent general adjuster license, must submit fingerprints as part of
the licensing process. This requirement applies to both resident and non-resident
applicants, with specific procedures for each (e.g., electronic fingerprinting through
IdentoGo for residents, and mailed fingerprint cards for non-residents) . It is not waived
by out-of-state licensure or limited to certain applicant categories.
Question 2: Which of the following is the BEST description of the scope of
authority granted by a New York Independent General Adjuster license (Series
17-70)?
A. Authority to adjust all claims except those involving motor vehicle and workers'
compensation.
B. Authority to investigate and adjust all claims arising under policies of insurance as
specified under the fire, inland marine, aviation, automobile, casualty, and other listed
subdivisions.
C. Authority limited solely to property damage claims arising from fire and allied lines.
D. Authority to act only as an arbitrator in disputes between insurers and policyholders.
CORRECT ANSWER: B. Authority to investigate and adjust all claims arising
under policies of insurance as specified under the fire, inland marine, aviation,
automobile, casualty, and other listed subdivisions.
Rationale:The Independent General Adjuster license (Series 17-70) is the broadest
adjuster license in New York. It grants authority to investigate and adjust all claims
,arising under policies of insurance as specified under subdivisions (a) through (g) of 11
NYCRR 26.3, encompassing fire, inland marine, aviation, automobile, casualty, fidelity
and surety, and other lines . This authority is comprehensive compared to more limited
license types.
Question 3: In the context of a New York property insurance claim, what is the
primary function of a "loss payable clause"?
A. It specifies that the loss is payable only to the named insured.
B. It designates a third party, such as a mortgagee, to receive payment in addition to or
instead of the insured.
C. It establishes the method for calculating depreciation on the loss.
D. It requires the insured to pay a deductible before any claim payment is issued.
CORRECT ANSWER: B. It designates a third party, such as a mortgagee, to
receive payment in addition to or instead of the insured.
Rationale:A loss payable clause is a third-party provision in an insurance policy. It
directs the insurer to pay a designated third party, most commonly a mortgagee (as with
a standard mortgage clause), for a covered loss. This ensures the mortgagee's interest in
the property is protected and they are included in the claim settlement process .
Question 4: What is the primary difference between a "staff adjuster" and an
"independent adjuster" in New York?
A. A staff adjuster is an employee of the insurance company, while an independent
adjuster is a contractor who works on behalf of insurers.
B. A staff adjuster handles only property claims, while an independent adjuster handles
only liability claims.
C. A staff adjuster is licensed by the state, while an independent adjuster is not.
D. A staff adjuster represents the insured, while an independent adjuster represents the
insurer.
CORRECT ANSWER: A. A staff adjuster is an employee of the insurance
company, while an independent adjuster is a contractor who works on behalf
of insurers.
Rationale:The fundamental distinction is the employment relationship. A staff adjuster
is a direct employee of an insurance company and handles claims exclusively for that
insurer. An independent adjuster is an independent contractor who works for multiple
insurers on a fee-for-service basis, handling claims on their behalf, particularly during
peak periods or for claims in specific geographic areas .
Question 5: According to the New York State Insurance Department
regulations, what is the maximum period for which a license is typically
issued, and on what date do all adjuster licenses expire?
A. 1 year, expiring on December 31st of each year.
B. 2 years, expiring on December 31st of even-numbered years.
,C. 3 years, expiring on the licensee's birthday.
D. 4 years, expiring on June 30th of the fourth year.
CORRECT ANSWER: B. 2 years, expiring on December 31st of even-numbered
years.
Rationale:New York State adjuster licenses are issued for a term of up to two years. All
licenses have a standardized expiration date of December 31st of even-numbered years.
After the initial licensing period, licenses are renewed effective January 1st of odd-
numbered years through December 31st of even-numbered years .
Question 6: An out-of-state adjuster is deployed to New York following a major
hurricane. Which of the following is the ONLY legal way this individual can
adjust claims in New York?
A. By operating under the license of a resident New York attorney.
B. By obtaining a Temporary Adjuster Permit sponsored by a New York authorized
insurance company.
C. By limiting their adjusting strictly to automobile physical damage appraisals.
D. By invoking the reciprocity clause of the NAIC agreement.
CORRECT ANSWER: B. By obtaining a Temporary Adjuster Permit sponsored
by a New York authorized insurance company.
Rationale:New York does not offer reciprocity for independent adjuster licenses. To
facilitate the settlement of claims following a catastrophe or emergency, an unlicensed
but otherwise qualified individual can obtain a Temporary Adjuster Permit. This permit
requires sponsorship by a New York-authorized insurance company . Unlicensed
individuals cannot simply operate under an attorney's license, and the authority to
adjust auto damage requires a specific license or permit.
Question 7: What is the legal effect of "subrogation" after an insurer pays a
claim on behalf of an insured?
A. The insurer waives all rights to recover from any third party.
B. The insurer steps into the shoes of the insured and may pursue recovery from the
party responsible for the loss.
C. The insurer must immediately file a lawsuit against the insured.
D. The insurer is prohibited from seeking recovery from any other party.
CORRECT ANSWER: B. The insurer steps into the shoes of the insured and
may pursue recovery from the party responsible for the loss.
Rationale:Subrogation is a fundamental insurance principle. After paying a claim, the
insurer is "subrogated" to the rights of the insured and can pursue recovery from the
third party who caused the loss. This prevents the insured from receiving a double
recovery (from both the insurer and the responsible party) and allows the insurer to
recoup its losses .
, Question 8: Which of the following is an accurate statement regarding the
prelicensing education requirement for the New York Independent General
Adjuster license?
A. A candidate must complete a Department-approved prelicensing education course of
not less than 40 hours.
B. There is no prelicensing education course requirement for independent adjuster
candidates.
C. The prelicensing course requirement is waived for candidates with a bachelor's
degree.
D. A candidate must complete 20 hours of continuing education before taking the exam.
CORRECT ANSWER: B. There is no prelicensing education course requirement
for independent adjuster candidates.
Rationale:Unlike candidates for a Public Adjuster license who are required to complete
a 40-hour prelicensing course, there is no such education requirement for Independent
Adjuster candidates in New York. They must, however, pass the state licensing exam .
Question 9: Under the New York Insurance Law, what is the primary purpose
of a "nonwaiver agreement"?
A. To allow the insured to cancel the policy without penalty.
B. To allow an insurer to investigate a potential claim without waiving its rights to later
deny coverage.
C. To authorize the adjuster to pay a claim immediately.
D. To waive the insured's right to file a lawsuit.
CORRECT ANSWER: B. To allow an insurer to investigate a potential claim
without waiving its rights to later deny coverage.
Rationale:A nonwaiver agreement is a key tool for adjusters when there is a coverage
question. It allows the insurer to investigate a claim, often by participating in the defense
or conducting an examination, without waiving its right to later deny coverage based on
policy provisions (e.g., late notice, lack of coverage). This protects the insurer from the
legal doctrine of waiver, which could otherwise prevent it from raising a coverage
defense .
Question 10: When an adjuster prepares an estimate for a property loss, which
of the following is the LEAST relevant factor to consider when determining the
cost of repairs?
A. The extent of the direct physical damage.
B. The insured's personal preference for a specific contractor.
C. The current market rates for labor and materials in the area.
D. The cost to replace damaged items with like kind and quality.
CORRECT ANSWER: B. The insured's personal preference for a specific
contractor.
Independent Practice Questions & Answers |
Comprehensive New York Adjuster Licensing Exam
Preparation Study Guide | Insurance Principles,
Claims Investigation, Policy Provisions, Coverage
Analysis, Property Losses, Damage Evaluation,
Claims Documentation, Settlement Practices, New
York Insurance Law, Adjuster Ethics & Detailed
Rationales
Question 1: Under New York Insurance Law Section 2108, what is the
fingerprinting requirement for an independent general adjuster license
applicant?
A. Fingerprinting is only required for applicants who have had a prior felony conviction.
B. Fingerprinting is mandatory for all adjuster applicants, including residents and non-
residents.
C. Fingerprinting is waived if the applicant holds a valid license in another state.
D. Fingerprinting is only required for public adjusters, not independent adjusters.
CORRECT ANSWER: B. Fingerprinting is mandatory for all adjuster applicants,
including residents and non-residents.
Rationale:Under New York Insurance Law §2108, all adjuster applicants, including
those for the independent general adjuster license, must submit fingerprints as part of
the licensing process. This requirement applies to both resident and non-resident
applicants, with specific procedures for each (e.g., electronic fingerprinting through
IdentoGo for residents, and mailed fingerprint cards for non-residents) . It is not waived
by out-of-state licensure or limited to certain applicant categories.
Question 2: Which of the following is the BEST description of the scope of
authority granted by a New York Independent General Adjuster license (Series
17-70)?
A. Authority to adjust all claims except those involving motor vehicle and workers'
compensation.
B. Authority to investigate and adjust all claims arising under policies of insurance as
specified under the fire, inland marine, aviation, automobile, casualty, and other listed
subdivisions.
C. Authority limited solely to property damage claims arising from fire and allied lines.
D. Authority to act only as an arbitrator in disputes between insurers and policyholders.
CORRECT ANSWER: B. Authority to investigate and adjust all claims arising
under policies of insurance as specified under the fire, inland marine, aviation,
automobile, casualty, and other listed subdivisions.
Rationale:The Independent General Adjuster license (Series 17-70) is the broadest
adjuster license in New York. It grants authority to investigate and adjust all claims
,arising under policies of insurance as specified under subdivisions (a) through (g) of 11
NYCRR 26.3, encompassing fire, inland marine, aviation, automobile, casualty, fidelity
and surety, and other lines . This authority is comprehensive compared to more limited
license types.
Question 3: In the context of a New York property insurance claim, what is the
primary function of a "loss payable clause"?
A. It specifies that the loss is payable only to the named insured.
B. It designates a third party, such as a mortgagee, to receive payment in addition to or
instead of the insured.
C. It establishes the method for calculating depreciation on the loss.
D. It requires the insured to pay a deductible before any claim payment is issued.
CORRECT ANSWER: B. It designates a third party, such as a mortgagee, to
receive payment in addition to or instead of the insured.
Rationale:A loss payable clause is a third-party provision in an insurance policy. It
directs the insurer to pay a designated third party, most commonly a mortgagee (as with
a standard mortgage clause), for a covered loss. This ensures the mortgagee's interest in
the property is protected and they are included in the claim settlement process .
Question 4: What is the primary difference between a "staff adjuster" and an
"independent adjuster" in New York?
A. A staff adjuster is an employee of the insurance company, while an independent
adjuster is a contractor who works on behalf of insurers.
B. A staff adjuster handles only property claims, while an independent adjuster handles
only liability claims.
C. A staff adjuster is licensed by the state, while an independent adjuster is not.
D. A staff adjuster represents the insured, while an independent adjuster represents the
insurer.
CORRECT ANSWER: A. A staff adjuster is an employee of the insurance
company, while an independent adjuster is a contractor who works on behalf
of insurers.
Rationale:The fundamental distinction is the employment relationship. A staff adjuster
is a direct employee of an insurance company and handles claims exclusively for that
insurer. An independent adjuster is an independent contractor who works for multiple
insurers on a fee-for-service basis, handling claims on their behalf, particularly during
peak periods or for claims in specific geographic areas .
Question 5: According to the New York State Insurance Department
regulations, what is the maximum period for which a license is typically
issued, and on what date do all adjuster licenses expire?
A. 1 year, expiring on December 31st of each year.
B. 2 years, expiring on December 31st of even-numbered years.
,C. 3 years, expiring on the licensee's birthday.
D. 4 years, expiring on June 30th of the fourth year.
CORRECT ANSWER: B. 2 years, expiring on December 31st of even-numbered
years.
Rationale:New York State adjuster licenses are issued for a term of up to two years. All
licenses have a standardized expiration date of December 31st of even-numbered years.
After the initial licensing period, licenses are renewed effective January 1st of odd-
numbered years through December 31st of even-numbered years .
Question 6: An out-of-state adjuster is deployed to New York following a major
hurricane. Which of the following is the ONLY legal way this individual can
adjust claims in New York?
A. By operating under the license of a resident New York attorney.
B. By obtaining a Temporary Adjuster Permit sponsored by a New York authorized
insurance company.
C. By limiting their adjusting strictly to automobile physical damage appraisals.
D. By invoking the reciprocity clause of the NAIC agreement.
CORRECT ANSWER: B. By obtaining a Temporary Adjuster Permit sponsored
by a New York authorized insurance company.
Rationale:New York does not offer reciprocity for independent adjuster licenses. To
facilitate the settlement of claims following a catastrophe or emergency, an unlicensed
but otherwise qualified individual can obtain a Temporary Adjuster Permit. This permit
requires sponsorship by a New York-authorized insurance company . Unlicensed
individuals cannot simply operate under an attorney's license, and the authority to
adjust auto damage requires a specific license or permit.
Question 7: What is the legal effect of "subrogation" after an insurer pays a
claim on behalf of an insured?
A. The insurer waives all rights to recover from any third party.
B. The insurer steps into the shoes of the insured and may pursue recovery from the
party responsible for the loss.
C. The insurer must immediately file a lawsuit against the insured.
D. The insurer is prohibited from seeking recovery from any other party.
CORRECT ANSWER: B. The insurer steps into the shoes of the insured and
may pursue recovery from the party responsible for the loss.
Rationale:Subrogation is a fundamental insurance principle. After paying a claim, the
insurer is "subrogated" to the rights of the insured and can pursue recovery from the
third party who caused the loss. This prevents the insured from receiving a double
recovery (from both the insurer and the responsible party) and allows the insurer to
recoup its losses .
, Question 8: Which of the following is an accurate statement regarding the
prelicensing education requirement for the New York Independent General
Adjuster license?
A. A candidate must complete a Department-approved prelicensing education course of
not less than 40 hours.
B. There is no prelicensing education course requirement for independent adjuster
candidates.
C. The prelicensing course requirement is waived for candidates with a bachelor's
degree.
D. A candidate must complete 20 hours of continuing education before taking the exam.
CORRECT ANSWER: B. There is no prelicensing education course requirement
for independent adjuster candidates.
Rationale:Unlike candidates for a Public Adjuster license who are required to complete
a 40-hour prelicensing course, there is no such education requirement for Independent
Adjuster candidates in New York. They must, however, pass the state licensing exam .
Question 9: Under the New York Insurance Law, what is the primary purpose
of a "nonwaiver agreement"?
A. To allow the insured to cancel the policy without penalty.
B. To allow an insurer to investigate a potential claim without waiving its rights to later
deny coverage.
C. To authorize the adjuster to pay a claim immediately.
D. To waive the insured's right to file a lawsuit.
CORRECT ANSWER: B. To allow an insurer to investigate a potential claim
without waiving its rights to later deny coverage.
Rationale:A nonwaiver agreement is a key tool for adjusters when there is a coverage
question. It allows the insurer to investigate a claim, often by participating in the defense
or conducting an examination, without waiving its right to later deny coverage based on
policy provisions (e.g., late notice, lack of coverage). This protects the insurer from the
legal doctrine of waiver, which could otherwise prevent it from raising a coverage
defense .
Question 10: When an adjuster prepares an estimate for a property loss, which
of the following is the LEAST relevant factor to consider when determining the
cost of repairs?
A. The extent of the direct physical damage.
B. The insured's personal preference for a specific contractor.
C. The current market rates for labor and materials in the area.
D. The cost to replace damaged items with like kind and quality.
CORRECT ANSWER: B. The insured's personal preference for a specific
contractor.
