NYS 17-62 Public Adjuster Examination –
Full-Length Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download
Pdf
SECTION 1: INSURANCE REGULATION (Questions 1-20)
1. Which type of risk is characterized by the possibility of loss without any
chance of gain?
A) Speculative risk
B) Pure risk
C) Moral hazard
D) Physical hazard
E) Morale hazard
Correct ,,,,answer,,,,: B
Rationale: Pure risk involves only the chance of loss (e.g., fire, theft) with no
possibility of profit, unlike speculative risk which includes both loss and gain (e.g.,
stock market investment). This is a fundamental concept tested on the exam .
2. Under New York Insurance Law §2101, a public adjuster is defined as a
person who:
,A) Investigates claims on behalf of an insurer
B) Investigates and adjusts losses on behalf of an insured for compensation
C) Acts as a neutral third-party arbitrator
D) Appraises property damage for the courts
Correct ,,,,answer,,,,: B
Rationale: NYIL §2101(g) defines a public adjuster as any person, firm,
association, or corporation that, for compensation, investigates and adjusts losses
on behalf of an insured. Public adjusters represent the policyholder, not the
insurer .
3. What is the minimum age requirement to obtain a public adjuster's license
in New York?
A) 18
B) 21
C) 25
D) 30
Correct ,,,,answer,,,,: A
Rationale: Applicants must be at least 18 years old at the time of license issuance.
This is a basic qualification requirement under NY Insurance Law .
4. Under New York Insurance Law, which of the following is a ground for
suspension or revocation of a public adjuster's license?
A) Failure to pay a traffic ticket
B) Incompetence or untrustworthiness in handling claims
C) Changing residence without notification
D) Owning a personal business unrelated to adjusting
Correct ,,,,answer,,,,: B
,Rationale: The NY Department of Financial Services may suspend a license for
incompetence or untrustworthiness in claim handling. Incompetence or dishonesty
in handling claims directly impacts consumer protection .
5. An independent adjuster differs from a public adjuster primarily because
the independent adjuster:
A) Works exclusively for the policyholder
B) Is licensed by the state to represent the insurer
C) Receives a commission from the insured
D) Can only handle claims in the state of residence
Correct ,,,,answer,,,,: B
Rationale: Independent adjusters are appointed by insurers and must be licensed;
public adjusters represent the insured and are not employed by the insurer.
Independent adjusters work on behalf of the insurance company .
6. Under NYIL §2108, no adjuster shall act on behalf of an insured unless
licensed as a:
A) Independent adjuster
B) Public adjuster
C) Staff adjuster
D) Claims adjuster
Correct ,,,,answer,,,,: B
Rationale: NYIL §2108(a)(3) explicitly states that no adjuster shall act on behalf of
an insured unless licensed as a public adjuster. This is a fundamental licensing
distinction .
7. What is the maximum allowable time after a loss for an insured to submit a
proof of loss under a standard property policy?
, A) 30 days
B) 60 days
C) 90 days
D) 120 days
Correct ,,,,answer,,,,: B
Rationale: Standard property insurance policies typically require the insured to
submit a sworn proof of loss within 60 days of the loss. This is a common policy
condition .
8. Under NYCRR Regulation 10 (Part 25), the maximum compensation a
public adjuster may receive is:
A) 10% of the settlement amount
B) 12.5% of the settlement amount
C) 15% of the settlement amount
D) No statutory fixed percentage, but must be disclosed in writing
Correct ,,,,answer,,,,: D
Rationale: Regulation 10, Part 25.7 addresses maximum compensation; however,
there is no fixed statutory percentage. Compensation must be agreed upon in
writing and disclosed in the contract. A common guideline is 12.5% .
9. Under New York law, a public adjuster's license term is:
A) 1 year
B) 2 years
C) 3 years
D) 4 years
Correct ,,,,answer,,,,: B
Full-Length Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant Download
SECTION 1: INSURANCE REGULATION (Questions 1-20)
1. Which type of risk is characterized by the possibility of loss without any
chance of gain?
A) Speculative risk
B) Pure risk
C) Moral hazard
D) Physical hazard
E) Morale hazard
Correct ,,,,answer,,,,: B
Rationale: Pure risk involves only the chance of loss (e.g., fire, theft) with no
possibility of profit, unlike speculative risk which includes both loss and gain (e.g.,
stock market investment). This is a fundamental concept tested on the exam .
2. Under New York Insurance Law §2101, a public adjuster is defined as a
person who:
,A) Investigates claims on behalf of an insurer
B) Investigates and adjusts losses on behalf of an insured for compensation
C) Acts as a neutral third-party arbitrator
D) Appraises property damage for the courts
Correct ,,,,answer,,,,: B
Rationale: NYIL §2101(g) defines a public adjuster as any person, firm,
association, or corporation that, for compensation, investigates and adjusts losses
on behalf of an insured. Public adjusters represent the policyholder, not the
insurer .
3. What is the minimum age requirement to obtain a public adjuster's license
in New York?
A) 18
B) 21
C) 25
D) 30
Correct ,,,,answer,,,,: A
Rationale: Applicants must be at least 18 years old at the time of license issuance.
This is a basic qualification requirement under NY Insurance Law .
4. Under New York Insurance Law, which of the following is a ground for
suspension or revocation of a public adjuster's license?
A) Failure to pay a traffic ticket
B) Incompetence or untrustworthiness in handling claims
C) Changing residence without notification
D) Owning a personal business unrelated to adjusting
Correct ,,,,answer,,,,: B
,Rationale: The NY Department of Financial Services may suspend a license for
incompetence or untrustworthiness in claim handling. Incompetence or dishonesty
in handling claims directly impacts consumer protection .
5. An independent adjuster differs from a public adjuster primarily because
the independent adjuster:
A) Works exclusively for the policyholder
B) Is licensed by the state to represent the insurer
C) Receives a commission from the insured
D) Can only handle claims in the state of residence
Correct ,,,,answer,,,,: B
Rationale: Independent adjusters are appointed by insurers and must be licensed;
public adjusters represent the insured and are not employed by the insurer.
Independent adjusters work on behalf of the insurance company .
6. Under NYIL §2108, no adjuster shall act on behalf of an insured unless
licensed as a:
A) Independent adjuster
B) Public adjuster
C) Staff adjuster
D) Claims adjuster
Correct ,,,,answer,,,,: B
Rationale: NYIL §2108(a)(3) explicitly states that no adjuster shall act on behalf of
an insured unless licensed as a public adjuster. This is a fundamental licensing
distinction .
7. What is the maximum allowable time after a loss for an insured to submit a
proof of loss under a standard property policy?
, A) 30 days
B) 60 days
C) 90 days
D) 120 days
Correct ,,,,answer,,,,: B
Rationale: Standard property insurance policies typically require the insured to
submit a sworn proof of loss within 60 days of the loss. This is a common policy
condition .
8. Under NYCRR Regulation 10 (Part 25), the maximum compensation a
public adjuster may receive is:
A) 10% of the settlement amount
B) 12.5% of the settlement amount
C) 15% of the settlement amount
D) No statutory fixed percentage, but must be disclosed in writing
Correct ,,,,answer,,,,: D
Rationale: Regulation 10, Part 25.7 addresses maximum compensation; however,
there is no fixed statutory percentage. Compensation must be agreed upon in
writing and disclosed in the contract. A common guideline is 12.5% .
9. Under New York law, a public adjuster's license term is:
A) 1 year
B) 2 years
C) 3 years
D) 4 years
Correct ,,,,answer,,,,: B
