New York State Auto Damage and
Theft Study Guide based on the
anticipated 2026/2027 syllabus
aligned with NYS DMV licensing exams for adjusters, appraisers, and
investigators.
Section 1: General Principles & Definitions (Q1–Q15)
Q1: What is the legal definition of "actual cash value" (ACV) under New York insurance
law for auto damage claims?
ANSWER ✓ The cost to replace the damaged property with new property of like kind
and quality, less depreciation.
Q2: What does "diminished value" refer to in a New York auto claim?
ANSWER ✓ The loss in market value of a vehicle after it has been repaired from an
accident, even if repaired properly.
Q3: In NY, how many years does a claimant have to file a lawsuit for auto property
damage?
ANSWER ✓ 3 years from the date of the accident (statute of limitations).
Q4: What is a "salvage certificate of title" in New York State?
ANSWER ✓ A title issued for a vehicle that has been declared a total loss by an insurer.
Q5: Define "betterment" in auto damage repair.
ANSWER ✓ The increase in value or condition of a vehicle due to replacement of old
parts with new, for which the insurer may deduct from the claim.
Q6: What does "subrogation" mean for auto damage claims?
, ANSWER ✓ The insurer's right to recover payment made to a policyholder from the at-
fault party.
Q7: Under NY regulations, what is the maximum time for an insurer to acknowledge a
auto damage claim?
ANSWER ✓ 15 business days.
Q8: What is an "appraisal clause" in an auto policy?
ANSWER ✓ A provision allowing either party to demand an appraisal if they disagree on
the amount of loss.
Q9: Define "staged accident" as used by NY fraud investigators.
ANSWER ✓ A pre-planned collision designed to file false insurance claims.
Q10: What is a "broker's price list" in auto damage estimating?
ANSWER ✓ A guide of labor rates, parts prices, and paint materials used for repair cost
calculation.
Q11: What does "OEM part" stand for in collision repair?
ANSWER ✓ Original Equipment Manufacturer part.
Q12: What is a "non-OEM" or "aftermarket part"?
ANSWER ✓ A replacement part not made by the original vehicle manufacturer.
Q13: Under NY law, must an insurer disclose use of aftermarket parts?
ANSWER ✓ Yes, the insurer must provide written disclosure on the estimate.
Q14: What is a "declarations page"?
ANSWER ✓ The section of an auto policy listing named insured, vehicle, coverages,
limits, and deductibles.
Q15: Define "LKA" as it appears in theft claims.
ANSWER ✓ Last Known Address of the vehicle before theft.
Theft Study Guide based on the
anticipated 2026/2027 syllabus
aligned with NYS DMV licensing exams for adjusters, appraisers, and
investigators.
Section 1: General Principles & Definitions (Q1–Q15)
Q1: What is the legal definition of "actual cash value" (ACV) under New York insurance
law for auto damage claims?
ANSWER ✓ The cost to replace the damaged property with new property of like kind
and quality, less depreciation.
Q2: What does "diminished value" refer to in a New York auto claim?
ANSWER ✓ The loss in market value of a vehicle after it has been repaired from an
accident, even if repaired properly.
Q3: In NY, how many years does a claimant have to file a lawsuit for auto property
damage?
ANSWER ✓ 3 years from the date of the accident (statute of limitations).
Q4: What is a "salvage certificate of title" in New York State?
ANSWER ✓ A title issued for a vehicle that has been declared a total loss by an insurer.
Q5: Define "betterment" in auto damage repair.
ANSWER ✓ The increase in value or condition of a vehicle due to replacement of old
parts with new, for which the insurer may deduct from the claim.
Q6: What does "subrogation" mean for auto damage claims?
, ANSWER ✓ The insurer's right to recover payment made to a policyholder from the at-
fault party.
Q7: Under NY regulations, what is the maximum time for an insurer to acknowledge a
auto damage claim?
ANSWER ✓ 15 business days.
Q8: What is an "appraisal clause" in an auto policy?
ANSWER ✓ A provision allowing either party to demand an appraisal if they disagree on
the amount of loss.
Q9: Define "staged accident" as used by NY fraud investigators.
ANSWER ✓ A pre-planned collision designed to file false insurance claims.
Q10: What is a "broker's price list" in auto damage estimating?
ANSWER ✓ A guide of labor rates, parts prices, and paint materials used for repair cost
calculation.
Q11: What does "OEM part" stand for in collision repair?
ANSWER ✓ Original Equipment Manufacturer part.
Q12: What is a "non-OEM" or "aftermarket part"?
ANSWER ✓ A replacement part not made by the original vehicle manufacturer.
Q13: Under NY law, must an insurer disclose use of aftermarket parts?
ANSWER ✓ Yes, the insurer must provide written disclosure on the estimate.
Q14: What is a "declarations page"?
ANSWER ✓ The section of an auto policy listing named insured, vehicle, coverages,
limits, and deductibles.
Q15: Define "LKA" as it appears in theft claims.
ANSWER ✓ Last Known Address of the vehicle before theft.
