NY Independent General Insurance Adjuster
Practice Examination Questions Latest Update
2026 (Questions and Answers-Verified solutions
What does a misrepresentation involve that could void a policy? - CORRECT ANSWERS information that
may change the insurer's interest in issuing the policy if known at the time of the application
All of the following are Unfair Claims Settlement Practices EXCEPT
1. misrepresentation of policy provisions.
2. failure to acknowledge pertinent communications.
3. failure to respond to a first notice of loss within 24 hours.
4. denial of claim without a reasonable investigation. - CORRECT ANSWERS failure to respond to a first
notice of loss within 24 hours.
Which of the following characteristics of an insurance contract expresses the principle that the policyholder is returned to the
approximate financial condition as before the loss? - CORRECT ANSWERS Indemnity
Compensatory damages are awarded - CORRECT ANSWERS For actual loss suffered
An insured with split liability limits of $400/500/400 is at fault in an automobile accident and the other vehicle sustains $15000
in property damages, as well as two passengers have bodily injury and are claiming $81500 each. What is the MOST insurance
will pay to each occupant? - CORRECT ANSWERS $400,000
Who does a public adjuster represent?
1. an adjustment bureau
2. the government
3. the insured
4. the insurer - CORRECT ANSWERS the insured
Which of the following is a duty of the insured after a loss?
1. assigning risk to future loss
2. investigating cause of loss
,3. minimizing further loss
4. appraising value of loss - CORRECT ANSWERS minimizing further loss
What is the insurance adjuster's first step in an investigation?
1. determine if a loss occurred
2. determine the amount covered
3. determine if the type of loss is covered in the contract
4. determine if the loss occurred during the coverage period - CORRECT ANSWERS determine if a loss
occurred
What allows insurance agents to issue payment on behalf of their company? - CORRECT ANSWERS
draft authority
What is typically the first option available for the insured who disagrees with a loss settlement amount?
1. appeal
2. lawsuit
3. arbitration
4. grievance claim - CORRECT ANSWERS arbitration
Which party is required to provide proof of loss to establish entitlement?
1. the insurer
2. the insured
3. selling agent
4. law enforcement - CORRECT ANSWERS the insured
Jane takes her vehicle to the local garage to have new brakes installed. After completing the job, the mechanic takes the car out
for a test drive. The mechanic runs a red light and hits another vehicle. The damage to Jane's car would be covered PRIMARILY
by - CORRECT ANSWERS the repair shop's Garagekeepers Liability Policy.
During the first 60 days an automobile policy is in force, when may an insurer cancel the policy? - CORRECT ANSWERS
by a statement of the specific reason
,Which of the following is how defense costs are paid in relation to the limit of insurance under the personal auto policy for
bodily injury and property damage part A-liability coverage? - CORRECT ANSWERS in excess of the limit
All of the following are TRUE regarding a nonowned auto EXCEPT - CORRECT ANSWERS bodily Injury to
an insured's nonresident family member or relative.
The insured has a commercial auto policy with a drive other car broadened coverage liability for named individuals (DOC)
endorsement. In which of the following would the named individual be covered? - CORRECT ANSWERS
driving neighbor's auto
All of the following are TRUE regarding torts EXCEPT
1. a tort is always unintentional.
2. another term for tort is negligence.
3. torts involve private relationships.
4. a tort is a civil wrong that violates the rights of another. - CORRECT ANSWERS a tort is always
unintentional.
Which of the following is considered temporary substitute auto for physical damage?
1. a covered auto
2. a nonowned auto
3. an undefined risk
4. a noninsured auto - CORRECT ANSWERS a nonowned auto
All of the following are common exclusions in a liability policy EXCEPT - CORRECT ANSWERS damage
caused by acts of civil disobedience and riots.
An annuitant is paying into an annuity. The annuity contract is in the - CORRECT ANSWERS
annuitization period.
The insured causes an accident in which three persons are injured. One person claims $50,000, the second claims $100,000,
and the third claims $250,000. The insured has a combined single limit of $250,000 liability on his automobile policy. What is
the sum total the policy will pay? - CORRECT ANSWERS $250,000
, Which of the following causes of loss to a vehicle will trigger collision coverage on the personal auto policy Part D- coverage for
damage to your auto?
1. Contact with an animal
2. Explosion or earthquake
3. Missiles or falling objects
4. Vehicle upset - CORRECT ANSWERS Vehicle upset
When an individual with a pre-existing condition is in an automobile accident and the insurance covers rehabilitation only to
the level of the condition prior to the accident, this is because of which of the following principles? - CORRECT ANSWERS
indemnity
All of the following are excluded losses under Part D-damage to an auto of the personal auto policy EXCEPT - CORRECT
ANSWERS to caps, covers, or bedliners on pickup trucks.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of 2002? - CORRECT ANSWERS
It limits the exposure of individual insurers and the insurance industry as a whole.
An insured with split liability limits of $300/400/400 is at fault in an automobile accident and the other vehicle sustains $15000
in property damages, as well as two passengers have bodily injury and are claiming $9500 each. What is the MOST insurance
will pay to each occupant? - CORRECT ANSWERS $300,000
In which of the following types of contracts is only one party legally required to do something after the insured has completed
the act of paying the premium? - CORRECT ANSWERS Unilateral
All of the following are commonly included in the declarations page EXCEPT - CORRECT ANSWERS the
birth date of the insured.
Which cost-control mechanism allows employers and insurers to monitor the quality and necessity of patient care?
1. mandated care
2. utilization review
3. excessive capacity
4. health savings account - CORRECT ANSWERS utilization review
Practice Examination Questions Latest Update
2026 (Questions and Answers-Verified solutions
What does a misrepresentation involve that could void a policy? - CORRECT ANSWERS information that
may change the insurer's interest in issuing the policy if known at the time of the application
All of the following are Unfair Claims Settlement Practices EXCEPT
1. misrepresentation of policy provisions.
2. failure to acknowledge pertinent communications.
3. failure to respond to a first notice of loss within 24 hours.
4. denial of claim without a reasonable investigation. - CORRECT ANSWERS failure to respond to a first
notice of loss within 24 hours.
Which of the following characteristics of an insurance contract expresses the principle that the policyholder is returned to the
approximate financial condition as before the loss? - CORRECT ANSWERS Indemnity
Compensatory damages are awarded - CORRECT ANSWERS For actual loss suffered
An insured with split liability limits of $400/500/400 is at fault in an automobile accident and the other vehicle sustains $15000
in property damages, as well as two passengers have bodily injury and are claiming $81500 each. What is the MOST insurance
will pay to each occupant? - CORRECT ANSWERS $400,000
Who does a public adjuster represent?
1. an adjustment bureau
2. the government
3. the insured
4. the insurer - CORRECT ANSWERS the insured
Which of the following is a duty of the insured after a loss?
1. assigning risk to future loss
2. investigating cause of loss
,3. minimizing further loss
4. appraising value of loss - CORRECT ANSWERS minimizing further loss
What is the insurance adjuster's first step in an investigation?
1. determine if a loss occurred
2. determine the amount covered
3. determine if the type of loss is covered in the contract
4. determine if the loss occurred during the coverage period - CORRECT ANSWERS determine if a loss
occurred
What allows insurance agents to issue payment on behalf of their company? - CORRECT ANSWERS
draft authority
What is typically the first option available for the insured who disagrees with a loss settlement amount?
1. appeal
2. lawsuit
3. arbitration
4. grievance claim - CORRECT ANSWERS arbitration
Which party is required to provide proof of loss to establish entitlement?
1. the insurer
2. the insured
3. selling agent
4. law enforcement - CORRECT ANSWERS the insured
Jane takes her vehicle to the local garage to have new brakes installed. After completing the job, the mechanic takes the car out
for a test drive. The mechanic runs a red light and hits another vehicle. The damage to Jane's car would be covered PRIMARILY
by - CORRECT ANSWERS the repair shop's Garagekeepers Liability Policy.
During the first 60 days an automobile policy is in force, when may an insurer cancel the policy? - CORRECT ANSWERS
by a statement of the specific reason
,Which of the following is how defense costs are paid in relation to the limit of insurance under the personal auto policy for
bodily injury and property damage part A-liability coverage? - CORRECT ANSWERS in excess of the limit
All of the following are TRUE regarding a nonowned auto EXCEPT - CORRECT ANSWERS bodily Injury to
an insured's nonresident family member or relative.
The insured has a commercial auto policy with a drive other car broadened coverage liability for named individuals (DOC)
endorsement. In which of the following would the named individual be covered? - CORRECT ANSWERS
driving neighbor's auto
All of the following are TRUE regarding torts EXCEPT
1. a tort is always unintentional.
2. another term for tort is negligence.
3. torts involve private relationships.
4. a tort is a civil wrong that violates the rights of another. - CORRECT ANSWERS a tort is always
unintentional.
Which of the following is considered temporary substitute auto for physical damage?
1. a covered auto
2. a nonowned auto
3. an undefined risk
4. a noninsured auto - CORRECT ANSWERS a nonowned auto
All of the following are common exclusions in a liability policy EXCEPT - CORRECT ANSWERS damage
caused by acts of civil disobedience and riots.
An annuitant is paying into an annuity. The annuity contract is in the - CORRECT ANSWERS
annuitization period.
The insured causes an accident in which three persons are injured. One person claims $50,000, the second claims $100,000,
and the third claims $250,000. The insured has a combined single limit of $250,000 liability on his automobile policy. What is
the sum total the policy will pay? - CORRECT ANSWERS $250,000
, Which of the following causes of loss to a vehicle will trigger collision coverage on the personal auto policy Part D- coverage for
damage to your auto?
1. Contact with an animal
2. Explosion or earthquake
3. Missiles or falling objects
4. Vehicle upset - CORRECT ANSWERS Vehicle upset
When an individual with a pre-existing condition is in an automobile accident and the insurance covers rehabilitation only to
the level of the condition prior to the accident, this is because of which of the following principles? - CORRECT ANSWERS
indemnity
All of the following are excluded losses under Part D-damage to an auto of the personal auto policy EXCEPT - CORRECT
ANSWERS to caps, covers, or bedliners on pickup trucks.
Which of the following is one of the objectives of the Terrorism Risk Insurance Act of 2002? - CORRECT ANSWERS
It limits the exposure of individual insurers and the insurance industry as a whole.
An insured with split liability limits of $300/400/400 is at fault in an automobile accident and the other vehicle sustains $15000
in property damages, as well as two passengers have bodily injury and are claiming $9500 each. What is the MOST insurance
will pay to each occupant? - CORRECT ANSWERS $300,000
In which of the following types of contracts is only one party legally required to do something after the insured has completed
the act of paying the premium? - CORRECT ANSWERS Unilateral
All of the following are commonly included in the declarations page EXCEPT - CORRECT ANSWERS the
birth date of the insured.
Which cost-control mechanism allows employers and insurers to monitor the quality and necessity of patient care?
1. mandated care
2. utilization review
3. excessive capacity
4. health savings account - CORRECT ANSWERS utilization review
