NY INDEPENDENT ADJUSTER EXAM
2025 QUESTIONS AND ANSWERS
The crew of a ship is guilty of fraud with the intention of reaping gains at the expense of the
owner. In ocean marine coverage, what is this called? (EX: Setting the ship on fire, diverting the
ship from its course, or embezzlement of the cargo). - ANS Barratry.
An aleatory contract is most accurately described by which of the following? - ANS It is a
contract in which the performance of one party is contingent upon the occurrence of a
fortuitous (accidental) event.
Which of the following would not be excluded under the Liquor Liability Exclusion of the CGL? -
ANS Mary's Antique Shop is having a customer appreciation social and serves alcohol at no
charge to her guests.
Workers compensation would cover a heart attack under all of the following situations, EXCEPT:
- ANS Intoxication and horseplay caused the heart attack.
Another name for umbrella liability insurance is: - ANS Excess.
The insured owns a two-family dwelling and rents out one of the units. The insured suspects
that drugs are being sold from the apartment unit he is renting and enters the premises
without notice and searches the premises but does not find drugs. What coverage would the
insured need if the tenant brings a lawsuit for invasion of privacy? - ANS Personal Injury
Coverage.
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,Any misinformation provided by an applicant which is such that the insurance company would
not have issued a policy if the true facts were known is: - ANS Material Misrepresentation.
Who is responsible for the legal fees in a lawsuit covered by Employer's Liability in a standard
workers compensation policy? - ANS The insurer.
An insured carries property insurance with a limit of $25,000 and an 80% coinsurance clause.
The covered building, however, is worth $40,000. How much would she collect in the event of a
total loss? - ANS $25,000
All of the following are excluded under the theft, disappearance and destruction coverage form,
except: - ANS Dishonest Acts of Customers.
An "uninsured motor vehicle" does not include: - ANS An abandoned car used as a residence.
The New York Superintendent of Insurance can issue a temporary adjuster permit in emergency
situations for up to _____ to assist in the adjustment of claims arising from a common
catastrophe. - ANS 120 days.
The unfair claim settlement laws and regulations in New York provide that a violation in each
instance will be treated as a separate violation. A fine in the amount of _____ will be imposed
against the insurance company for each violation. - ANS $500
Mr. Jones has injured Susan Miller in an auto accident. Susan has sustained medical expenses,
loss of wages, and the loss of use of her vehicle. These types of expenses are known as: -
ANS Special damages (the costs are known or can easily be determined).
Which of the following is included in the definition of a first party claimant:
I. An individual II. A corporation III. A partnership - ANS I, II, and III.
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,Which of the following situations would be covered under bodily injury (BI) liability coverage? -
ANS Physical impairment.
Under the personal liability of Section II of a Homeowner policy, a cemetery plot is considered
to be: - ANS An insured location.
What is the difference between arbitration and mediation in the adjusting of claims? -
ANS Mediation is not binding whereas with arbitration, the decision is final and binding on
the parties.
A curtain catches fire above the stove in the kitchen. This is what type of fire? -
ANS Unfriendly.
When an insured purchases Optional Basic Economic Loss coverage (OBEL), he or she can
collect up to an additional $25,000 coverage that pertains to all of the following, EXCEPT: -
ANS Pain and suffering.
In the commercial general liability form, the contractual exclusion does not apply to which of
the following types of contracts? - ANS The exclusion does not apply to any of the responses
In commercial automobile insurance, medical payments limits apply: - ANS Per person, per
accident.
Which of the following is not excluded under Section II-Liability of the BOP? - ANS Valet
parking bodily injury.
The insured's vehicle has been involved in an accident with a third party who is at fault. The
insured's insurance company pays the claim according to the terms of their policy. In
subrogation proceedings against the negligent driver, what is required of the insurer? -
ANS Request payment of the insured's deductible.
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, An independent adjuster represents the interest of: - ANS The insurer.
What is the definition of custom farming? - ANS Farming for Others.
Cyber liability coverage provides all of the following, EXCEPT: - ANS An employee
intentionally downloading a program containing a virus onto the company computer which
compromises customer information.
Medical coverage under a Personal Auto policy will cover the insured if he/she is injured while:
- ANS Passenger on a bus.
A person acting in a catastrophe or emergency situation and registered with the insurance
commissioner for that purpose: - ANS Does not have to obtain an adjuster's license.
Which of the following experience modification factors would indicate that an insured has
sustained a relatively high frequency and severity of losses in the recent past? - ANS 1.25
The Homeowners policy forms exclude liability coverage for which of the following motorized
vehicles owned by an insured? - ANS A snowmobile operated off the insured's premises.
Richard Lanham has been advised by the Superintendent of Insurance to cease and desist in the
performance of certain infractions of the insurance code. He has had a hearing and been issued
a cease and desist order. He continues to violate the cease and desist order. He can be fined a
penalty of up to: - ANS $5,000 per violation.
Which of the following is considered a "garage operation"?
I. Ownership, maintenance or use of garage premises.
II. Sale of products or services in connection with garage operations.
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2025 QUESTIONS AND ANSWERS
The crew of a ship is guilty of fraud with the intention of reaping gains at the expense of the
owner. In ocean marine coverage, what is this called? (EX: Setting the ship on fire, diverting the
ship from its course, or embezzlement of the cargo). - ANS Barratry.
An aleatory contract is most accurately described by which of the following? - ANS It is a
contract in which the performance of one party is contingent upon the occurrence of a
fortuitous (accidental) event.
Which of the following would not be excluded under the Liquor Liability Exclusion of the CGL? -
ANS Mary's Antique Shop is having a customer appreciation social and serves alcohol at no
charge to her guests.
Workers compensation would cover a heart attack under all of the following situations, EXCEPT:
- ANS Intoxication and horseplay caused the heart attack.
Another name for umbrella liability insurance is: - ANS Excess.
The insured owns a two-family dwelling and rents out one of the units. The insured suspects
that drugs are being sold from the apartment unit he is renting and enters the premises
without notice and searches the premises but does not find drugs. What coverage would the
insured need if the tenant brings a lawsuit for invasion of privacy? - ANS Personal Injury
Coverage.
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,Any misinformation provided by an applicant which is such that the insurance company would
not have issued a policy if the true facts were known is: - ANS Material Misrepresentation.
Who is responsible for the legal fees in a lawsuit covered by Employer's Liability in a standard
workers compensation policy? - ANS The insurer.
An insured carries property insurance with a limit of $25,000 and an 80% coinsurance clause.
The covered building, however, is worth $40,000. How much would she collect in the event of a
total loss? - ANS $25,000
All of the following are excluded under the theft, disappearance and destruction coverage form,
except: - ANS Dishonest Acts of Customers.
An "uninsured motor vehicle" does not include: - ANS An abandoned car used as a residence.
The New York Superintendent of Insurance can issue a temporary adjuster permit in emergency
situations for up to _____ to assist in the adjustment of claims arising from a common
catastrophe. - ANS 120 days.
The unfair claim settlement laws and regulations in New York provide that a violation in each
instance will be treated as a separate violation. A fine in the amount of _____ will be imposed
against the insurance company for each violation. - ANS $500
Mr. Jones has injured Susan Miller in an auto accident. Susan has sustained medical expenses,
loss of wages, and the loss of use of her vehicle. These types of expenses are known as: -
ANS Special damages (the costs are known or can easily be determined).
Which of the following is included in the definition of a first party claimant:
I. An individual II. A corporation III. A partnership - ANS I, II, and III.
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,Which of the following situations would be covered under bodily injury (BI) liability coverage? -
ANS Physical impairment.
Under the personal liability of Section II of a Homeowner policy, a cemetery plot is considered
to be: - ANS An insured location.
What is the difference between arbitration and mediation in the adjusting of claims? -
ANS Mediation is not binding whereas with arbitration, the decision is final and binding on
the parties.
A curtain catches fire above the stove in the kitchen. This is what type of fire? -
ANS Unfriendly.
When an insured purchases Optional Basic Economic Loss coverage (OBEL), he or she can
collect up to an additional $25,000 coverage that pertains to all of the following, EXCEPT: -
ANS Pain and suffering.
In the commercial general liability form, the contractual exclusion does not apply to which of
the following types of contracts? - ANS The exclusion does not apply to any of the responses
In commercial automobile insurance, medical payments limits apply: - ANS Per person, per
accident.
Which of the following is not excluded under Section II-Liability of the BOP? - ANS Valet
parking bodily injury.
The insured's vehicle has been involved in an accident with a third party who is at fault. The
insured's insurance company pays the claim according to the terms of their policy. In
subrogation proceedings against the negligent driver, what is required of the insurer? -
ANS Request payment of the insured's deductible.
3 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
, An independent adjuster represents the interest of: - ANS The insurer.
What is the definition of custom farming? - ANS Farming for Others.
Cyber liability coverage provides all of the following, EXCEPT: - ANS An employee
intentionally downloading a program containing a virus onto the company computer which
compromises customer information.
Medical coverage under a Personal Auto policy will cover the insured if he/she is injured while:
- ANS Passenger on a bus.
A person acting in a catastrophe or emergency situation and registered with the insurance
commissioner for that purpose: - ANS Does not have to obtain an adjuster's license.
Which of the following experience modification factors would indicate that an insured has
sustained a relatively high frequency and severity of losses in the recent past? - ANS 1.25
The Homeowners policy forms exclude liability coverage for which of the following motorized
vehicles owned by an insured? - ANS A snowmobile operated off the insured's premises.
Richard Lanham has been advised by the Superintendent of Insurance to cease and desist in the
performance of certain infractions of the insurance code. He has had a hearing and been issued
a cease and desist order. He continues to violate the cease and desist order. He can be fined a
penalty of up to: - ANS $5,000 per violation.
Which of the following is considered a "garage operation"?
I. Ownership, maintenance or use of garage premises.
II. Sale of products or services in connection with garage operations.
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