NY INDEPENDENT GENERAL
ADJUSTER EXAM - SERIES 17-70
QUESTIONS AND ANSWERS
(VERIFIED ANSWERS)| ALREADY
SCORED A+ | NEW 2026
Competence - ANSWER//One of the four qualifications of
a legally binding contract. All parties must be competent
with the necessary legal and mental capacity.
Consideration - ANSWER//One of the four qualifications of
a legally binding contract. All parties must bring something
of value to the contract. Four requirements of a legal a
contract - ANSWER//agreement, consideration, competent
parties, legal purpose Indemnification -
ANSWER//Reimbursement for a loss, which leaves the
claimant in the same financial position that she was in
before the loss Indemnify - ANSWER//To restore by
payment, repair, or replacement Indemnity Insurance -
ANSWER//Insurance that indemnifies loss as opposed to
liability Insurance - ANSWER//A financial device that
transfers the risk of unexpected, catastrophic loss from
one party to another Insurance Company -
ANSWER//Company which sells insurance policies to
individuals or to other companies Insurance policy -
ANSWER//A contract wherein an insured pays premiums
to an insurer in exchange for financial protection in the
event of a covered loss Insured - ANSWER//A person
covered by an insurance policy Insurer - ANSWER//The
person providing coverage to one or more insureds Loss -
ANSWER//Bodily injury, property damage, or damage
caused by the insured's negligent acts; loss is the basis
for an insurance claim. Loss can also mean the sum the
insured will have to pay Policyholder - ANSWER//Also
called the "insured", a policyholder is a person who has
,purchased an insurance policy - or contract-from an
insurer. Premium - ANSWER//A scheduled an affordable
fee, paid by the policyholder to the insurer, in return for
coverage. Principle of Indemnity - ANSWER//The principle
that insurance policies should provide a benefit no greater
than the loss suffered by an insured. Insured cannot profit
from the loss. Adhesion - ANSWER//Characteristics of an
insurance contract. Means that one party (The insurer)
sets the terms, and the other (the policyholder) can "take it
or leave it" Aleatory - ANSWER//A contract in which
participating parties exchange unequal amounts.
Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the
insurer will pay in the event of a loss. Certificate of
Insurance - ANSWER//A legal document that indicates
that an insurance policy has been issued, and that states
both the amounts and types of insurance provided.
Conditions - ANSWER//provisions in the policy that qualify
or place limitations on the insurer's promise to perform
Coverages - ANSWER//The amount and extent of
protection provided by an insurance policy. Declarations
Page - ANSWER//The basic information about a policy:
Who - names of insurer and insured What - description of
insured property Where - address and legal description of
insured property When - effective and expiration dates.
How Much - limits of coverage, deductible, premium
Definitions - ANSWER//Clarifies terms used in the policy
Endorsement(s) - ANSWER//An optional provision that
can be added to a policy to increase, reduce, or modify
coverage for specific property types or perils Exclusions -
ANSWER//A sections of an insurance policy that reduces
coverage by listing specific individuals, property, or perils
that the policy does NOT cover Good Faith -
ANSWER//Acting honestly and fairly, with good intentions
and full disclosure. Insuring Agreement - ANSWER//The
section of an insurance policy containing the insurer's
promise to pay, the description of coverage provided and
,perils insured against. Legal Purpose - ANSWER//On of
the four qualifications of a legally binding contract. The
purpose of the contract must be legal and not against
public policy. Unilateral - ANSWER//A characteristic of
insurance contracts. It means that only one of the parties
(the insurer) makes a promise to perform. The insurer is
obligated to fulfill this promise, whereas the insured is free
to void the contract at any time. Utmost Good Faith -
ANSWER//An obligation to act in complete honesty and to
disclose all relevant facts. Six Characteristics of Insurance
Contract - ANSWER//1. Personal Contract 2. Contract of
Adhesion 3. Utmost Good Faith Contract 4. Aleatory
Contract 5. Unilateral Contract 6. Conditional Contract
Fraternal Benefits Societies - ANSWER//Non-profit,
mutual aid organizations that engage primarily in
charitable of benevolent activities. Thy offer their members
insurance against death, disease, and disability. Also
known as Fraternal Associations. Government Insurance -
ANSWER//An insurance program where risks are
transferred to a government agency. Also known as social
insurance. Government insurance usually exists in
situations where the exposure to loss is too high for
private insurers to reliably insure risks. Mutual Insurance
Company - ANSWER//An insurance company that is
owned by its policyholders who participate in dividends.
These companies have no shareholders and are not
traded publicly. Non-commercial - ANSWER//Non-
Commercial insurers are not-for-profit insurance
companies that return profits to policyholders by reducing
premiums or expanding benefits. Private Insurance -
ANSWER//Private insurance is the term for any insurance
other than social insurance. Social insurance programs
are run by the government instead of by private individuals.
Reciprocal Insurer - ANSWER//an unincorporated
organization in which all members insure one another
Reinsurers - ANSWER//Companies which sell insurance
to insurers to reduce the insurer's exposure to loss. Risk
, Purchasing Group - ANSWER//Groups of people with
similar insurance needs who form an organization to buy
insurance as a group. Risk Retention Group (RRG) -
ANSWER//A group in which the members insure each
other, using their own capital to write insurance policies.
Stock Insurance Company - ANSWER//A stock company
is owned by stockholders or shareholders. Directors and
officers direct the company operations and are elected by
stockholders. Declined Coverage - ANSWER//takes place
when an insurance company rejects an application for
coverage. Exposure - ANSWER//the extent to which an
item is open to damage or loss. More exposure means a
loss is more likely, so this is a determining factor in an
insurers underwriting decisions. Peril - ANSWER//The
actual cause of loss or damage, such as lightning, fire, or
theft. Named Peril Policy - ANSWER//A policy that names
all perils that will be covered. Contrast with open-peril
policies. open perils policy - ANSWER//An open perils
policy insures covered property for all perils that are not
specifically excluded under the policy Risk - ANSWER//In
the insurance industry, risk can have two meanings: 1) the
potential for financial loss; being exposed or open to
damage, and 2) an insured item Pure Risk - ANSWER//a
risk that presents the chance of loss but no opportunity for
gain Speculative Risk - ANSWER//a risk that may result in
either financial gain or no change in circumstance.
Uninsurable. Uninsurable - ANSWER//Risks are said to be
uninsurable when they do not meet certain qualifications.
For example, an insurable risk cannot involve a loss that
the insured deliberately causes. Again, certain perils are
too catastrophic to be insurable (like war or nuclear
events). Risk Avoidance - ANSWER//Insurers' practice of
denying insurance applications that they believe would
involve an inordinate amount of risk. Risk Management -
ANSWER//Measures taken by an insurance company to
ensure that their exposure is not too high an to control the
effect o a loss; for example, an insurer might charge
ADJUSTER EXAM - SERIES 17-70
QUESTIONS AND ANSWERS
(VERIFIED ANSWERS)| ALREADY
SCORED A+ | NEW 2026
Competence - ANSWER//One of the four qualifications of
a legally binding contract. All parties must be competent
with the necessary legal and mental capacity.
Consideration - ANSWER//One of the four qualifications of
a legally binding contract. All parties must bring something
of value to the contract. Four requirements of a legal a
contract - ANSWER//agreement, consideration, competent
parties, legal purpose Indemnification -
ANSWER//Reimbursement for a loss, which leaves the
claimant in the same financial position that she was in
before the loss Indemnify - ANSWER//To restore by
payment, repair, or replacement Indemnity Insurance -
ANSWER//Insurance that indemnifies loss as opposed to
liability Insurance - ANSWER//A financial device that
transfers the risk of unexpected, catastrophic loss from
one party to another Insurance Company -
ANSWER//Company which sells insurance policies to
individuals or to other companies Insurance policy -
ANSWER//A contract wherein an insured pays premiums
to an insurer in exchange for financial protection in the
event of a covered loss Insured - ANSWER//A person
covered by an insurance policy Insurer - ANSWER//The
person providing coverage to one or more insureds Loss -
ANSWER//Bodily injury, property damage, or damage
caused by the insured's negligent acts; loss is the basis
for an insurance claim. Loss can also mean the sum the
insured will have to pay Policyholder - ANSWER//Also
called the "insured", a policyholder is a person who has
,purchased an insurance policy - or contract-from an
insurer. Premium - ANSWER//A scheduled an affordable
fee, paid by the policyholder to the insurer, in return for
coverage. Principle of Indemnity - ANSWER//The principle
that insurance policies should provide a benefit no greater
than the loss suffered by an insured. Insured cannot profit
from the loss. Adhesion - ANSWER//Characteristics of an
insurance contract. Means that one party (The insurer)
sets the terms, and the other (the policyholder) can "take it
or leave it" Aleatory - ANSWER//A contract in which
participating parties exchange unequal amounts.
Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the
insurer will pay in the event of a loss. Certificate of
Insurance - ANSWER//A legal document that indicates
that an insurance policy has been issued, and that states
both the amounts and types of insurance provided.
Conditions - ANSWER//provisions in the policy that qualify
or place limitations on the insurer's promise to perform
Coverages - ANSWER//The amount and extent of
protection provided by an insurance policy. Declarations
Page - ANSWER//The basic information about a policy:
Who - names of insurer and insured What - description of
insured property Where - address and legal description of
insured property When - effective and expiration dates.
How Much - limits of coverage, deductible, premium
Definitions - ANSWER//Clarifies terms used in the policy
Endorsement(s) - ANSWER//An optional provision that
can be added to a policy to increase, reduce, or modify
coverage for specific property types or perils Exclusions -
ANSWER//A sections of an insurance policy that reduces
coverage by listing specific individuals, property, or perils
that the policy does NOT cover Good Faith -
ANSWER//Acting honestly and fairly, with good intentions
and full disclosure. Insuring Agreement - ANSWER//The
section of an insurance policy containing the insurer's
promise to pay, the description of coverage provided and
,perils insured against. Legal Purpose - ANSWER//On of
the four qualifications of a legally binding contract. The
purpose of the contract must be legal and not against
public policy. Unilateral - ANSWER//A characteristic of
insurance contracts. It means that only one of the parties
(the insurer) makes a promise to perform. The insurer is
obligated to fulfill this promise, whereas the insured is free
to void the contract at any time. Utmost Good Faith -
ANSWER//An obligation to act in complete honesty and to
disclose all relevant facts. Six Characteristics of Insurance
Contract - ANSWER//1. Personal Contract 2. Contract of
Adhesion 3. Utmost Good Faith Contract 4. Aleatory
Contract 5. Unilateral Contract 6. Conditional Contract
Fraternal Benefits Societies - ANSWER//Non-profit,
mutual aid organizations that engage primarily in
charitable of benevolent activities. Thy offer their members
insurance against death, disease, and disability. Also
known as Fraternal Associations. Government Insurance -
ANSWER//An insurance program where risks are
transferred to a government agency. Also known as social
insurance. Government insurance usually exists in
situations where the exposure to loss is too high for
private insurers to reliably insure risks. Mutual Insurance
Company - ANSWER//An insurance company that is
owned by its policyholders who participate in dividends.
These companies have no shareholders and are not
traded publicly. Non-commercial - ANSWER//Non-
Commercial insurers are not-for-profit insurance
companies that return profits to policyholders by reducing
premiums or expanding benefits. Private Insurance -
ANSWER//Private insurance is the term for any insurance
other than social insurance. Social insurance programs
are run by the government instead of by private individuals.
Reciprocal Insurer - ANSWER//an unincorporated
organization in which all members insure one another
Reinsurers - ANSWER//Companies which sell insurance
to insurers to reduce the insurer's exposure to loss. Risk
, Purchasing Group - ANSWER//Groups of people with
similar insurance needs who form an organization to buy
insurance as a group. Risk Retention Group (RRG) -
ANSWER//A group in which the members insure each
other, using their own capital to write insurance policies.
Stock Insurance Company - ANSWER//A stock company
is owned by stockholders or shareholders. Directors and
officers direct the company operations and are elected by
stockholders. Declined Coverage - ANSWER//takes place
when an insurance company rejects an application for
coverage. Exposure - ANSWER//the extent to which an
item is open to damage or loss. More exposure means a
loss is more likely, so this is a determining factor in an
insurers underwriting decisions. Peril - ANSWER//The
actual cause of loss or damage, such as lightning, fire, or
theft. Named Peril Policy - ANSWER//A policy that names
all perils that will be covered. Contrast with open-peril
policies. open perils policy - ANSWER//An open perils
policy insures covered property for all perils that are not
specifically excluded under the policy Risk - ANSWER//In
the insurance industry, risk can have two meanings: 1) the
potential for financial loss; being exposed or open to
damage, and 2) an insured item Pure Risk - ANSWER//a
risk that presents the chance of loss but no opportunity for
gain Speculative Risk - ANSWER//a risk that may result in
either financial gain or no change in circumstance.
Uninsurable. Uninsurable - ANSWER//Risks are said to be
uninsurable when they do not meet certain qualifications.
For example, an insurable risk cannot involve a loss that
the insured deliberately causes. Again, certain perils are
too catastrophic to be insurable (like war or nuclear
events). Risk Avoidance - ANSWER//Insurers' practice of
denying insurance applications that they believe would
involve an inordinate amount of risk. Risk Management -
ANSWER//Measures taken by an insurance company to
ensure that their exposure is not too high an to control the
effect o a loss; for example, an insurer might charge
