ESTUDYR
NEW YORK STATE AUTO DAMAGE AND THEFT
MOST TESTED QUESTIONS AND ANSWERS GRADED
A+ WITH RATIONALES
Jim Smith is involved in a collision claim and is no longer able to use the vehicle to go to work. This “loss
of use” is referred to as a:
A) Direct loss
B) Indirect loss
C) Loss evaluation
D) Consequential loss
Rationale: “Consequential loss” (or “loss of use”) compensates for extra expenses or income loss
resulting from an insured event.
When the rear of the vehicle is damaged and a gap appears between the trunk lid and quarter panel,
the appraiser should also inspect the:
A) Center pillar
B) Trunk floor
C) Quarter panels
D) Frame rails
Rationale: Frame rails can shift in a rear impact, causing misalignment between body panels.
In auto physical-damage insurance, an insured peril cause of loss is known as a:
A) Direct loss
B) Indirect loss
C) Loss evaluation
D) Consequential loss
Rationale: A “direct loss” stems immediately from an insured peril (e.g., collision), damaging the vehicle.
If an appraiser must forfeit his bond in New York, the bond amount is:
A) $500
B) $1,000
C) $2,000
D) $5,000
Rationale: New York regulation requires a $1,000 bond for licensed auto appraisers.
Which of the following is NOT true regarding auto appraisers?
A) They must carry—and display upon request—their license during inspections.
B) They must leave a copy of their appraisal with the repair shop and the owner.
,ESTUDYR
C) They may not rely on photographs or calls in lieu of personal inspection.
D) They are permitted to traffic in vehicle salvage obtained from their own appraisals.
Rationale: Appraisers are prohibited from profiting by selling salvage from vehicles they inspect.
The burden of proof that a covered loss has occurred normally rests with the:
A) Insurance company
B) Adjuster
C) Appraiser
D) Insured
Rationale: The insured must demonstrate that the loss was caused by an insured peril.
Before revoking or suspending an appraiser’s license, the Superintendent must give at least ____
notice and an opportunity for a hearing.
A) 3 months
B) 45 days
C) 10 days
D) 60 days
Rationale: Regulations mandate 10 days’ notice prior to disciplinary hearings.
The linkage between the camshaft and the valves is commonly known as the:
A) Piston
B) Crankshaft
C) Valve train
D) Cylinder
Rationale: The valve train transmits camshaft motion to open and close valves.
Which component acts as the vehicle’s onboard computer?
A) Controller (ECU)
B) Pump
C) Speed sensor
D) Valve
Rationale: The Electronic Control Unit (“controller”) manages engine functions.
Payment may be made once the claimant signs a:
A) Partial release
B) Walk-Away release
C) Prima facie release
D) None of the above
Rationale: A Walk-Away release finalizes the claim and prevents further suits.
,ESTUDYR
If an insured fails to give immediate notice of a claim, the insurer may:
A) Partially pay the loss
B) Deny coverage
C) Return the premium
D) Cancel the policy
Rationale: Late notice can void coverage if it prejudices the insurer.
An adjuster’s license in New York must be renewed by:
A) December 31 of even-numbered years
B) April 1 every other year
C) Continuously unless revoked
D) January 1 every four years
Rationale: Licenses expire December 31 in even years and require biennial renewal.
What part of the exhaust system reduces pollution emissions?
A) Muffler
B) Tailpipe
C) PCV valve
D) Heat shield
Rationale: The PCV valve recirculates crankcase vapors back into combustion, lowering pollutants.
The first molding beneath the window on a car door is called the:
A) Side-body molding
B) Edge panel
C) Door decal
D) Sill
Rationale: Side-body molding runs under windows to protect the door’s surface.
When appraising, the vehicle should be inspected:
A) From the rear forward
B) From point of impact
C) From front to rear
D) None of the above
Rationale: Front-to-rear inspection ensures systematic coverage of all panels and systems.
Which is NOT a duty of an auto appraiser?
A) Listing unrelated damage
B) Describing vehicle condition
C) Identifying betterment or depreciation
D) Determining “loss of use” damages
, ESTUDYR
Rationale: Appraisers measure vehicle damage; rental or “loss of use” is handled by claims examiners.
In rear‐wheel‐drive vehicles, the engine turns:
A) Transmission → reduction gear → driveshaft
B) Driveshaft → rear drive axle
C) Transaxle with CV joints
D) None of the above
Rationale: Power flows from transmission to driveshaft to rear axle in RWD layouts.
If the 7th character of a VIN is numeric, the vehicle was made prior to:
A) 2000
B) 2005
C) 2010
D) 2012
Rationale: Post-2010 VINs use letters in the 7th position to encode safety systems.
Which component converts crankshaft rotation into up-and-down piston motion?
A) Camshaft
B) Piston
C) Cylinder
D) Engine block
Rationale: The camshaft’s lobes press valves; the crankshaft (not listed) actually converts rotary to
reciprocating motion.
Appraisers may only use repair estimates obtained by:
A) Telephone calls
B) Photographs
C) Personal inspection
D) All of the above
Rationale: Regulations require firsthand inspection for accurate appraisals.
Factors when estimating a flooded vehicle include:
I. Type of water
II. Time submerged
III. Height of flood
IV. Speed of repair start
A) I, II & III only
B) II, III & IV only
C) I, II, III & IV
D) I, III & IV only
NEW YORK STATE AUTO DAMAGE AND THEFT
MOST TESTED QUESTIONS AND ANSWERS GRADED
A+ WITH RATIONALES
Jim Smith is involved in a collision claim and is no longer able to use the vehicle to go to work. This “loss
of use” is referred to as a:
A) Direct loss
B) Indirect loss
C) Loss evaluation
D) Consequential loss
Rationale: “Consequential loss” (or “loss of use”) compensates for extra expenses or income loss
resulting from an insured event.
When the rear of the vehicle is damaged and a gap appears between the trunk lid and quarter panel,
the appraiser should also inspect the:
A) Center pillar
B) Trunk floor
C) Quarter panels
D) Frame rails
Rationale: Frame rails can shift in a rear impact, causing misalignment between body panels.
In auto physical-damage insurance, an insured peril cause of loss is known as a:
A) Direct loss
B) Indirect loss
C) Loss evaluation
D) Consequential loss
Rationale: A “direct loss” stems immediately from an insured peril (e.g., collision), damaging the vehicle.
If an appraiser must forfeit his bond in New York, the bond amount is:
A) $500
B) $1,000
C) $2,000
D) $5,000
Rationale: New York regulation requires a $1,000 bond for licensed auto appraisers.
Which of the following is NOT true regarding auto appraisers?
A) They must carry—and display upon request—their license during inspections.
B) They must leave a copy of their appraisal with the repair shop and the owner.
,ESTUDYR
C) They may not rely on photographs or calls in lieu of personal inspection.
D) They are permitted to traffic in vehicle salvage obtained from their own appraisals.
Rationale: Appraisers are prohibited from profiting by selling salvage from vehicles they inspect.
The burden of proof that a covered loss has occurred normally rests with the:
A) Insurance company
B) Adjuster
C) Appraiser
D) Insured
Rationale: The insured must demonstrate that the loss was caused by an insured peril.
Before revoking or suspending an appraiser’s license, the Superintendent must give at least ____
notice and an opportunity for a hearing.
A) 3 months
B) 45 days
C) 10 days
D) 60 days
Rationale: Regulations mandate 10 days’ notice prior to disciplinary hearings.
The linkage between the camshaft and the valves is commonly known as the:
A) Piston
B) Crankshaft
C) Valve train
D) Cylinder
Rationale: The valve train transmits camshaft motion to open and close valves.
Which component acts as the vehicle’s onboard computer?
A) Controller (ECU)
B) Pump
C) Speed sensor
D) Valve
Rationale: The Electronic Control Unit (“controller”) manages engine functions.
Payment may be made once the claimant signs a:
A) Partial release
B) Walk-Away release
C) Prima facie release
D) None of the above
Rationale: A Walk-Away release finalizes the claim and prevents further suits.
,ESTUDYR
If an insured fails to give immediate notice of a claim, the insurer may:
A) Partially pay the loss
B) Deny coverage
C) Return the premium
D) Cancel the policy
Rationale: Late notice can void coverage if it prejudices the insurer.
An adjuster’s license in New York must be renewed by:
A) December 31 of even-numbered years
B) April 1 every other year
C) Continuously unless revoked
D) January 1 every four years
Rationale: Licenses expire December 31 in even years and require biennial renewal.
What part of the exhaust system reduces pollution emissions?
A) Muffler
B) Tailpipe
C) PCV valve
D) Heat shield
Rationale: The PCV valve recirculates crankcase vapors back into combustion, lowering pollutants.
The first molding beneath the window on a car door is called the:
A) Side-body molding
B) Edge panel
C) Door decal
D) Sill
Rationale: Side-body molding runs under windows to protect the door’s surface.
When appraising, the vehicle should be inspected:
A) From the rear forward
B) From point of impact
C) From front to rear
D) None of the above
Rationale: Front-to-rear inspection ensures systematic coverage of all panels and systems.
Which is NOT a duty of an auto appraiser?
A) Listing unrelated damage
B) Describing vehicle condition
C) Identifying betterment or depreciation
D) Determining “loss of use” damages
, ESTUDYR
Rationale: Appraisers measure vehicle damage; rental or “loss of use” is handled by claims examiners.
In rear‐wheel‐drive vehicles, the engine turns:
A) Transmission → reduction gear → driveshaft
B) Driveshaft → rear drive axle
C) Transaxle with CV joints
D) None of the above
Rationale: Power flows from transmission to driveshaft to rear axle in RWD layouts.
If the 7th character of a VIN is numeric, the vehicle was made prior to:
A) 2000
B) 2005
C) 2010
D) 2012
Rationale: Post-2010 VINs use letters in the 7th position to encode safety systems.
Which component converts crankshaft rotation into up-and-down piston motion?
A) Camshaft
B) Piston
C) Cylinder
D) Engine block
Rationale: The camshaft’s lobes press valves; the crankshaft (not listed) actually converts rotary to
reciprocating motion.
Appraisers may only use repair estimates obtained by:
A) Telephone calls
B) Photographs
C) Personal inspection
D) All of the above
Rationale: Regulations require firsthand inspection for accurate appraisals.
Factors when estimating a flooded vehicle include:
I. Type of water
II. Time submerged
III. Height of flood
IV. Speed of repair start
A) I, II & III only
B) II, III & IV only
C) I, II, III & IV
D) I, III & IV only
