Fall Semester 2026–2027 17-70 – NY Independent General
Adjuster License Updated 2026 | 190+ Questions and
Answers | New York 17-70 Independent General Adjuster
Licensing Exam Prep, Comprehensive Study Guide,
Practice Exam, Test Bank, Property & Casualty Insurance,
Claims Investigation, Policy Interpretation, Loss
Adjustment, Property Damage Assessment, Liability
Claims, New York Insurance Law, Ethics, Fraud
Prevention, Settlement Procedures, Detailed Rationales
and Complete Revision Material
Question 1: Under New York Insurance Law, what is the minimum bond
amount required to obtain an Independent General Adjuster's license?
A. $5,000
B. $10,000
C. $1,000
D. $15,000
CORRECT ANSWER: C. $1,000
Rationale: New York Insurance Law Section 2108(l) requires applicants for an adjuster's
license to post a bond in the amount of $1,000. This bond serves as a financial
guarantee for the faithful performance of the adjuster's duties .
Question 2: According to New York Regulation 64 (Part 216), failing to
acknowledge a claim communication within what timeframe is considered an
unfair claims settlement practice?
A. 5 business days
B. 10 business days
C. 15 business days
D. 30 calendar days
CORRECT ANSWER: C. 15 business days
Rationale: New York Regulation 64, Part 216, requires insurers and adjusters to
acknowledge receipt of a claim communication within 15 business days. Failure to do so
is specifically cited as an example of an unfair claim settlement practice under the
regulation .
Question 3: Which federal law provides a mechanism for individuals convicted
of certain felony crimes involving dishonesty to be permitted to work in the
insurance industry after receiving written consent?
A. Gramm-Leach-Bliley Act
B. Fair Credit Reporting Act
C. 18 U.S.C. Section 1033
D. Terrorism Risk Insurance Act
,CORRECT ANSWER: C. 18 U.S.C. Section 1033
Rationale: 18 U.S.C. Section 1033 prohibits individuals convicted of felony crimes
involving dishonesty or breach of trust from working in the insurance industry unless
they have received written consent from a state insurance regulatory official, such as the
Superintendent of Insurance .
Question 4: An adjuster's license in New York must be renewed by which
specific date?
A. January 1st of odd-numbered years
B. June 1st of even-numbered years
C. December 1st of even-numbered years
D. The date of the adjuster's birth
CORRECT ANSWER: C. December 1st of even-numbered years
Rationale: New York Insurance Law Section 2108(i) and (j) stipulates that adjuster
licenses expire and must be renewed by December 1st of each even-numbered year.
Failure to renew by this date results in the license becoming void .
Question 5: What is the maximum fine per violation that can be imposed by
the Superintendent of Financial Services for a continuing violation of a cease
and desist order?
A. $500
B. $1,000
C. $5,000
D. $10,000
CORRECT ANSWER: C. $5,000
Rationale: Under New York Insurance Law Section 2127, a person who violates a cease
and desist order issued by the Superintendent after a hearing may be subject to a
penalty of up to $5,000 for each violation. This is a key disciplinary action authorized by
the Superintendent's general duties and powers .
Question 6: In the context of insurance contracts, the principle that the values
exchanged by the parties are unequal and the promise of performance is
conditioned on a fortuitous event is known as:
A. A contract of adhesion
B. A unilateral contract
C. An aleatory contract
D. A conditional contract
CORRECT ANSWER: C. An aleatory contract
Rationale: An aleatory contract is a distinct characteristic of insurance. It is defined as a
contract where the performance of the promise by one party is conditioned on a
fortuitous event, meaning the values given by the parties are unequal. The insured pays
,a premium, while the insurer may pay a much larger sum, or nothing at all, depending
on the occurrence of the insured event .
Question 7: Which principle allows an insurance company to "step into the
shoes" of the insured and seek recovery from a third party who caused the loss
after the insurer has paid a claim?
A. Indemnity
B. Subrogation
C. Utmost good faith
D. Assignment
CORRECT ANSWER: B. Subrogation
Rationale: Subrogation is a common policy provision that gives the insurer the right to
recover the amount it paid to its insured from a third party who was responsible for the
loss. This prevents the insured from collecting twice for the same loss and allows the
insurer to recoup its costs .
Question 8: A policy that covers "all risks of physical loss" except for those
losses specifically excluded is known as:
A. A named peril policy
B. An open peril policy
C. A basic form policy
D. A broad form policy
CORRECT ANSWER: B. An open peril policy
Rationale: An "open perils" policy, often called an "all-risk" policy, provides the broadest
coverage available. It covers any cause of loss that is not specifically excluded in the
policy. This is in contrast to a named peril policy, which only covers losses caused by
perils that are specifically listed in the contract .
Question 9: Under New York's No-Fault law, what is the maximum amount
payable per day for "substitute services" (such as household help) for an
injured person who is not gainfully employed?
A. $10 per day
B. $25 per day
C. $50 per day
D. $100 per day
CORRECT ANSWER: B. $25 per day
Rationale: Under the Comprehensive Motor Vehicle Insurance Reparations Act (New
York No-Fault), substitute services are covered at a rate of up to $25 per day for a
maximum of one year. This benefit is designed to compensate for the cost of services
the injured person can no longer perform .
, Question 10: In the context of negligence, an unbroken chain of events
resulting from a negligent act that leads to injury or damage is referred to as:
A. Res ipsa loquitur
B. Proximate cause
C. Vicarious liability
D. Strict liability
CORRECT ANSWER: B. Proximate cause
Rationale: Proximate cause is a key concept in negligence law. It refers to a cause that
is legally sufficient to result in liability. It is defined as an uninterrupted chain of events
resulting from negligence that directly causes injury or damage to another party .
Question 11: The "other insurance" clause in a property policy that requires
the insurer to pay a share of the loss equal to the proportion that its limit
bears to the total of all applicable limits is known as:
A. Primary clause
B. Excess clause
C. Contribution by equal shares clause
D. Pro rata clause
CORRECT ANSWER: D. Pro rata clause
Rationale: The pro rata clause is a method of apportioning loss among multiple
insurers. Each insurer pays a share of the loss equal to the proportion that its policy limit
bears to the total limits of all applicable policies. This is a common solution to the
problem of "nonconcurrency" where multiple policies cover the same loss .
Question 12: A reservation of rights letter is used by an insurer to:
A. Waive its right to deny a claim
B. Inform the insured that it is investigating a potential coverage issue while defending
the claim
C. Formally withdraw from defending a claim
D. Subrogate against a third party
CORRECT ANSWER: B. Inform the insured that it is investigating a potential
coverage issue while defending the claim
Rationale: A reservation of rights letter is a critical tool for dealing with coverage
problems. It is sent to the insured to notify them that the insurer is defending a claim
under a reservation of its rights to later deny coverage. This prevents the insurer from
waiving its rights to assert a policy defense later, as it explicitly preserves those rights .
Question 13: Under the New York Automobile Insurance Plan, who is required
to participate in the plan for the purpose of assigning risks?
A. Only insurers who are members of the NYS Insurance Association
B. All admitted auto insurers selling auto insurance in New York
Adjuster License Updated 2026 | 190+ Questions and
Answers | New York 17-70 Independent General Adjuster
Licensing Exam Prep, Comprehensive Study Guide,
Practice Exam, Test Bank, Property & Casualty Insurance,
Claims Investigation, Policy Interpretation, Loss
Adjustment, Property Damage Assessment, Liability
Claims, New York Insurance Law, Ethics, Fraud
Prevention, Settlement Procedures, Detailed Rationales
and Complete Revision Material
Question 1: Under New York Insurance Law, what is the minimum bond
amount required to obtain an Independent General Adjuster's license?
A. $5,000
B. $10,000
C. $1,000
D. $15,000
CORRECT ANSWER: C. $1,000
Rationale: New York Insurance Law Section 2108(l) requires applicants for an adjuster's
license to post a bond in the amount of $1,000. This bond serves as a financial
guarantee for the faithful performance of the adjuster's duties .
Question 2: According to New York Regulation 64 (Part 216), failing to
acknowledge a claim communication within what timeframe is considered an
unfair claims settlement practice?
A. 5 business days
B. 10 business days
C. 15 business days
D. 30 calendar days
CORRECT ANSWER: C. 15 business days
Rationale: New York Regulation 64, Part 216, requires insurers and adjusters to
acknowledge receipt of a claim communication within 15 business days. Failure to do so
is specifically cited as an example of an unfair claim settlement practice under the
regulation .
Question 3: Which federal law provides a mechanism for individuals convicted
of certain felony crimes involving dishonesty to be permitted to work in the
insurance industry after receiving written consent?
A. Gramm-Leach-Bliley Act
B. Fair Credit Reporting Act
C. 18 U.S.C. Section 1033
D. Terrorism Risk Insurance Act
,CORRECT ANSWER: C. 18 U.S.C. Section 1033
Rationale: 18 U.S.C. Section 1033 prohibits individuals convicted of felony crimes
involving dishonesty or breach of trust from working in the insurance industry unless
they have received written consent from a state insurance regulatory official, such as the
Superintendent of Insurance .
Question 4: An adjuster's license in New York must be renewed by which
specific date?
A. January 1st of odd-numbered years
B. June 1st of even-numbered years
C. December 1st of even-numbered years
D. The date of the adjuster's birth
CORRECT ANSWER: C. December 1st of even-numbered years
Rationale: New York Insurance Law Section 2108(i) and (j) stipulates that adjuster
licenses expire and must be renewed by December 1st of each even-numbered year.
Failure to renew by this date results in the license becoming void .
Question 5: What is the maximum fine per violation that can be imposed by
the Superintendent of Financial Services for a continuing violation of a cease
and desist order?
A. $500
B. $1,000
C. $5,000
D. $10,000
CORRECT ANSWER: C. $5,000
Rationale: Under New York Insurance Law Section 2127, a person who violates a cease
and desist order issued by the Superintendent after a hearing may be subject to a
penalty of up to $5,000 for each violation. This is a key disciplinary action authorized by
the Superintendent's general duties and powers .
Question 6: In the context of insurance contracts, the principle that the values
exchanged by the parties are unequal and the promise of performance is
conditioned on a fortuitous event is known as:
A. A contract of adhesion
B. A unilateral contract
C. An aleatory contract
D. A conditional contract
CORRECT ANSWER: C. An aleatory contract
Rationale: An aleatory contract is a distinct characteristic of insurance. It is defined as a
contract where the performance of the promise by one party is conditioned on a
fortuitous event, meaning the values given by the parties are unequal. The insured pays
,a premium, while the insurer may pay a much larger sum, or nothing at all, depending
on the occurrence of the insured event .
Question 7: Which principle allows an insurance company to "step into the
shoes" of the insured and seek recovery from a third party who caused the loss
after the insurer has paid a claim?
A. Indemnity
B. Subrogation
C. Utmost good faith
D. Assignment
CORRECT ANSWER: B. Subrogation
Rationale: Subrogation is a common policy provision that gives the insurer the right to
recover the amount it paid to its insured from a third party who was responsible for the
loss. This prevents the insured from collecting twice for the same loss and allows the
insurer to recoup its costs .
Question 8: A policy that covers "all risks of physical loss" except for those
losses specifically excluded is known as:
A. A named peril policy
B. An open peril policy
C. A basic form policy
D. A broad form policy
CORRECT ANSWER: B. An open peril policy
Rationale: An "open perils" policy, often called an "all-risk" policy, provides the broadest
coverage available. It covers any cause of loss that is not specifically excluded in the
policy. This is in contrast to a named peril policy, which only covers losses caused by
perils that are specifically listed in the contract .
Question 9: Under New York's No-Fault law, what is the maximum amount
payable per day for "substitute services" (such as household help) for an
injured person who is not gainfully employed?
A. $10 per day
B. $25 per day
C. $50 per day
D. $100 per day
CORRECT ANSWER: B. $25 per day
Rationale: Under the Comprehensive Motor Vehicle Insurance Reparations Act (New
York No-Fault), substitute services are covered at a rate of up to $25 per day for a
maximum of one year. This benefit is designed to compensate for the cost of services
the injured person can no longer perform .
, Question 10: In the context of negligence, an unbroken chain of events
resulting from a negligent act that leads to injury or damage is referred to as:
A. Res ipsa loquitur
B. Proximate cause
C. Vicarious liability
D. Strict liability
CORRECT ANSWER: B. Proximate cause
Rationale: Proximate cause is a key concept in negligence law. It refers to a cause that
is legally sufficient to result in liability. It is defined as an uninterrupted chain of events
resulting from negligence that directly causes injury or damage to another party .
Question 11: The "other insurance" clause in a property policy that requires
the insurer to pay a share of the loss equal to the proportion that its limit
bears to the total of all applicable limits is known as:
A. Primary clause
B. Excess clause
C. Contribution by equal shares clause
D. Pro rata clause
CORRECT ANSWER: D. Pro rata clause
Rationale: The pro rata clause is a method of apportioning loss among multiple
insurers. Each insurer pays a share of the loss equal to the proportion that its policy limit
bears to the total limits of all applicable policies. This is a common solution to the
problem of "nonconcurrency" where multiple policies cover the same loss .
Question 12: A reservation of rights letter is used by an insurer to:
A. Waive its right to deny a claim
B. Inform the insured that it is investigating a potential coverage issue while defending
the claim
C. Formally withdraw from defending a claim
D. Subrogate against a third party
CORRECT ANSWER: B. Inform the insured that it is investigating a potential
coverage issue while defending the claim
Rationale: A reservation of rights letter is a critical tool for dealing with coverage
problems. It is sent to the insured to notify them that the insurer is defending a claim
under a reservation of its rights to later deny coverage. This prevents the insurer from
waiving its rights to assert a policy defense later, as it explicitly preserves those rights .
Question 13: Under the New York Automobile Insurance Plan, who is required
to participate in the plan for the purpose of assigning risks?
A. Only insurers who are members of the NYS Insurance Association
B. All admitted auto insurers selling auto insurance in New York
