New York Independent General Adjuster Practice Test

Correct answer: C. An independent adjuster license, because Dana adjusts claims for insurers

Section 2101(g)(1) defines an independent adjuster as anyone who, for compensation, investigates and adjusts claims on behalf of an insurer, and the definition expressly includes a person who adjusts on behalf of an independent adjuster. Section 2108(a)(3) bars anyone from acting for an insurer without that license. A public adjuster license is for people who act for the insured, not the insurer.

Reference: N.Y. Insurance Law Sections 2101(g)(1) and 2108(a)(3)

Correct answer: A. No, because a licensed agent adjusting only his agency's policies for no more than $50 per loss is excluded

Section 2101(g)(1)(G) excludes from the definition of independent adjuster a licensed agent of an authorized insurer who adjusts losses for that insurer solely under policies issued through his agency, provided he receives no more than $50 per loss adjusted. If Rafael adjusted other agencies' policies or earned more than $50 per loss, the exclusion would no longer apply and he would need the license.

Reference: N.Y. Insurance Law Section 2101(g)(1)(G)

Correct answer: D. A contract adjuster paid per claim by an independent adjusting firm

The statute excludes insurer officers and regular salaried employees, licensed New York attorneys, average adjusters and adjusters of maritime losses, insurer-owned adjustment bureaus and a few others. It does not exclude someone paid to adjust on behalf of an independent adjuster: the definition specifically includes that person, so a contract adjuster working through a firm must be licensed.

Reference: N.Y. Insurance Law Section 2101(g)(1)

Correct answer: A. The PSI exam for the license class, passed within 2 years before applying

DFS states that no prelicensing course is required for independent adjuster candidates, but every adjuster applicant must pass the appropriate PSI exam within 2 years of applying. The 40-hour course (or one year of insurance experience) is a public adjuster requirement, and the $1,000 bond also applies only to public adjusters.

Reference: NY DFS, Insurance Adjuster Licensing; N.Y. Insurance Law Section 2108(f)(1)

Correct answer: C. Pass the New York PSI exam for the license class, then apply with fingerprints

The PSI New York bulletin states that there is no reciprocity for adjuster licensing and that all adjuster applicants must pass the New York examination. Nonresidents can be licensed, but they must pass the exam, apply within 2 years and submit fingerprints (nonresidents mail a fingerprint card). A temporary permit is issued only after a catastrophe, at an insurer's request.

Reference: PSI New York Insurance Candidate Information Bulletin, License requirements based on residency; NY DFS, Insurance Adjuster Licensing

Correct answer: A. He must pass the licensing exam again, because he has not been licensed within the past 2 years

The PSI bulletin's retesting rule requires anyone previously licensed who has not been licensed within the 2 years immediately preceding the application date to pass the licensing exam again. Section 2108(f)(3) lets the superintendent waive the exam only for a former independent adjuster who reapplies within 2 years after the license ended, and Tomas is well past that window.

Reference: N.Y. Insurance Law Section 2108(f)(3); PSI New York bulletin, Retesting Requirements

Correct answer: D. An employee dishonesty claim under a fidelity bond

Section 26.3(j) gives the general license authority over the classes in subdivisions (a) through (g): fire, inland marine, aviation, automobile, no-fault and workers compensation health service charges, auto damage or theft appraisals, and casualty. Fidelity and surety (subdivision (h)) and accident and health (subdivision (i)) are separate license classes, so the fidelity bond claim requires the fidelity and surety license.

Reference: 11 NYCRR 26.3 (Insurance Regulation 25), Types of licenses

Correct answer: D. On December 31 of even-numbered years

Section 2108(j)(1) sets every adjuster license to expire on December 31 of an even-numbered year, renewable for the next two calendar years. Unlike New York agent and broker licenses, adjuster licenses do not use birth-date renewal. A license issued to a new applicant may run up to 30 months so that it falls into that cycle.

Reference: N.Y. Insurance Law Section 2108(j)(1); PSI New York bulletin, License Fees and Renewal Dates

Correct answer: B. $100

The fee is $50 for each year or fraction of a year the license is valid, so a two-year term costs $100. Section 2108(i)(3) adds that this fee covers any one or more types of independent adjuster license, so holding two classes does not double it. Charging $50 per year for each class ($200) is the common mistake.

Reference: N.Y. Insurance Law Section 2108(i)(1) and (3)

Correct answer: D. Only public adjusters must file a $1,000 bond and five certificates of character

Section 2108(l) requires a $1,000 bond for every adjuster license other than an independent adjuster's license, and Section 2108(d)(3) exempts independent adjuster applications from the five-citizen character certification. DFS confirms that bonds and certificates of character are no longer required of independent adjuster applicants. Both types of applicant must still submit fingerprints. The 2023 PSI bulletin checklist still lists a bond and character certificates for every adjuster, but the statute and DFS control.

Reference: N.Y. Insurance Law Section 2108(d)(3) and (l); NY DFS, Insurance Adjuster Licensing

Correct answer: C. None, because New York's adjuster CE rule applies to public adjusters only

The PSI New York bulletin lists independent adjusters among the licensees not subject to continuing education, and Section 2108(r) applies the 15-credit-hour biennial requirement only to public adjusters. The 24-hour figure with 3 hours of ethics is the Texas rule. Independent adjusters renew by filing the renewal application and paying the fee.

Reference: N.Y. Insurance Law Section 2108(r); PSI New York bulletin, Continuing Education

Correct answer: D. The insurer applies and certifies them, and DFS may issue permits of up to 120 days

Section 2108(n) lets the superintendent issue a temporary permit, for a term not exceeding 120 days, to a resident or nonresident to act as an independent adjuster for an authorized insurer after a conflagration or catastrophe causing widespread property losses. The insurer must file the application and certify that the person is qualified by experience and training. The superintendent may renew the permit as needed.

Reference: N.Y. Insurance Law Section 2108(n)

Correct answer: A. No, the permit covers only claims from the catastrophe named in the insurer's application

Circular Letter No. 1 (2026) says DFS issues Section 2108(n) permits only for widespread catastrophes causing severe loss to many New Yorkers, and a permit lets its holder adjust only claims related to the catastrophe named on the insurer's application, during the permit's term. DFS expects insurers to keep enough New York-licensed independent adjusters for everyday losses such as this fire.

Reference: NY DFS Insurance Circular Letter No. 1 (2026), Section II.B.3; N.Y. Insurance Law Section 2108(n)

Correct answer: C. A temporary permit to adjust as an employee of the licensed firm, for no more than 120 days

Section 2108(h) lets a person with at least five years of claims experience as an employee of an authorized insurer, who has applied for an independent adjuster license, request a temporary permit to adjust as an employee of a licensed independent adjuster while the application is pending. The permit may not exceed 120 days, and the superintendent may suspend or revoke it on ten days' written notice.

Reference: N.Y. Insurance Law Section 2108(h)

Correct answer: A. She must not advise the claimant on questions of law

Section 2108(o) forbids any licensed adjuster, in the business of adjusting, from misrepresenting facts or advising any person on questions of law. Grace can explain the claim process and the insurer's position, but filing deadlines and whom to sue are questions for an attorney. Public adjusters are bound by the same rule, so referring the claimant to one for legal advice is no answer.

Reference: N.Y. Insurance Law Section 2108(o)

Correct answer: A. No, he may share such fees only with a licensed independent adjuster

Section 26.5 bars an independent adjuster from dividing or giving any fee or commission for procuring the adjustment of a loss unless the recipient held an independent adjuster's license when the loss occurred. A violation is grounds to refuse, suspend or revoke the license. The 12.5% figure is the cap on public adjuster fees and has nothing to do with this rule.

Reference: 11 NYCRR 26.5 (Insurance Regulation 25), Prohibition as to methods of doing business

Correct answer: D. 30 days

Section 2110(i) and 11 NYCRR 26.7 require a licensee to report any administrative action taken in another jurisdiction, or by another New York agency, within 30 days of the final disposition, with a copy of the order or consent order. A criminal prosecution is reported within 30 days of the initial pretrial hearing date under Section 2110(j).

Reference: N.Y. Insurance Law Section 2110(i) and (j); 11 NYCRR 26.7

Correct answer: D. $500 per offense and $2,500 in total

Section 2127(a) allows a penalty of up to $500 for each offense and up to $2,500 in the aggregate for all offenses in one proceeding, in lieu of revocation or suspension. If the licensee does not pay within 20 days after the order is mailed, and no court stays it, the superintendent may then revoke or suspend the license.

Reference: N.Y. Insurance Law Section 2127

Correct answer: C. Within 15 business days

Section 216.4(a) requires acknowledgment within 15 business days of notification of a claim, in writing or by other means noted in the claim file. Notice given to the insurer's agent is notice to the insurer. Replies to other pertinent communications have the same 15-business-day standard under 216.4(b). A business day excludes Saturdays, Sundays and New York legal holidays.

Reference: 11 NYCRR 216.4 (Insurance Regulation 64)

Correct answer: C. Start investigating and list the items and forms it will need from her

Section 216.5(a) requires insurers to commence an investigation within 15 business days of notice of claim and, within the same period, to notify the claimant of all items, statements and forms the insurer reasonably believes will be required. The decision clock in 216.6(c) starts later, after the insurer receives a properly executed proof of loss and all requested items.

Reference: 11 NYCRR 216.5 (Insurance Regulation 64)

Correct answer: B. Notify the claimant within 15 business days, with reasons, then write every 90 days

Section 216.6(c) requires written acceptance or rejection within 15 business days after the proof of loss and requested items arrive. If more time is needed, the insurer must say so within those 15 business days, giving its reasons, then send a new letter 90 days after the first and every 90 days after that unless the matter is in litigation or arbitration. Thirty-day letters apply to auto physical damage claims under 216.7(d).

Reference: 11 NYCRR 216.6(c) (Insurance Regulation 64)

Correct answer: D. 30 business days

Normally 11 NYCRR 216.6(c) requires a decision within 15 business days after the proof of loss and requested items arrive. When the insurer suspects arson, the regulation reads that period as 30 business days, consistent with Insurance Law Section 2601(a)(4), which calls for acceptance or denial within thirty working days after a properly executed proof of loss.

Reference: 11 NYCRR 216.6(c); N.Y. Insurance Law Section 2601(a)(4)

Correct answer: B. $756

Unless a law or the policy defines it otherwise, Section 216.6(b) defines actual cash value as the lesser of the cost to repair the property to its pre-loss condition or to replace it with a substantially identical item, including sales tax paid or payable. Replacement costs $700 + $56 = $756, less than the $780 repair, so ACV is $756. Leaving out the tax ($700) is the usual mistake.

Reference: 11 NYCRR 216.6(b) (Insurance Regulation 64)

Correct answer: A. No, a first-party check may not say that cashing it is a final release

Section 216.6(g) prohibits a check or draft on a first-party claim that states, expressly or by implication, that accepting it is a final settlement or a release of future obligations from the loss. Insurers also may not require a release broader than the settlement on any claim. Once an amount is agreed, 216.6(f) requires payment within five business days of receiving the agreement.

Reference: 11 NYCRR 216.6(f) and (g) (Insurance Regulation 64)

Correct answer: B. 24 months after the inception of the loss

The suit clause in the New York standard fire policy bars an action on the policy unless all policy requirements have been met and suit begins within 24 months after inception of the loss. Many fire forms elsewhere use 12 months, which is the trap. The same policy requires a sworn proof of loss within 60 days after the loss unless the insurer extends the time in writing.

Reference: N.Y. Insurance Law Section 3404(e), Standard fire policy, Suit and Requirements in case loss occurs