New York Adjuster Exam UPDATED
Exam Questions and CORRECT Answers
The insured has moved into a dwelling that was being build and was covered by the "Dwelling
Under Construction" endorsement. How long does the insured have to report his / her occupancy
to the insurance company? - CORRECT ANSWER 30 days
When a New York Homeowners policy is still in the 60-day underwriting period, the insurer may
cancel it for any reason by providing a ______ notice. - CORRECT ANSWER 30 day
Personal property that is covered under the Personal Property Replacement Cost Endorsement is
damaged and a claim has been filed. The replacement cost of the property at the time of the loss
is $2,500. The full cost to repair the property is $2,000. The Coverage C limit of the
Homeowners policy is $8,000. No special limits apply to this property and there is no limit
applied to the type of property being claimed. Which of the following is the amount that will be
paid under the endorsement? - CORRECT ANSWER 2,000. The endorsement will pay the
smallest amount of the replacement cost at the time of the loss, the full repair cost, the Coverage
C limit, any applicable special limits, or the limit that applies to the type of property being
claimed.
The mandatory recoupment of the federal share through policyholder surcharges under Terrorism
Risk Insurance Program Reauthorization Act of 2015 was increased from 133% to - CORRECT
ANSWER 140%
A Building and Personal Property Coverage form provides coverage for all of the following
types of property, EXCEPT: - CORRECT ANSWER Growing crops and lawns.
The insured sets a fire to his home and is found to be guilty of arson. There is a lien on the
burned property by a mortgage company in the amount of $150,000. The property is insured for
$300,000 and is a total loss. The personal property of the insured, covered separately by a
Homeowners policy for $150,000, is also a total loss. How will this claim most likely be paid? -
CORRECT ANSWER The mortgagee is paid $150,000.
,The Terrorism Risk Insurance Act and all of its extensions and reauthorizations is actually an
agreement between: - CORRECT ANSWER Between the Federal Government and the
insurance companies.
The first effort to provide insurance for land transportation risks involved an extension of ocean
marine coverage known as the: - CORRECT ANSWER "Warehouse to warehouse" clause.
Which of the following is not a duty of an insurer in case of a loss? - CORRECT
ANSWER Separate the damaged property from the undamaged property and protect the
property from further loss
An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is
worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under
the pair or set clause the insurance company will pay a maximum of which of the following
amounts? - CORRECT ANSWER $7,000
Traditionally, the most common type of crop insurance sold prior to the creation of the Multi-
Peril Crop Insurance Program was: - CORRECT ANSWER Coverage for hail damage.
An adjuster's report that contains all the facts, evidence and disposition of the claim and is
considered to be the final report is known as the: - CORRECT ANSWER Full report.
The New York Superintendent of Insurance may refuse to renew, suspend or revoke a license as
a result of which of the following?
I. A violation of any provision of the New York Insurance Code.
II. A licensee making a material misstatement in application for license.
III. A licensee being found guilty of fraud or dishonest practices. - CORRECT ANSWER I, II
and III
No insurer may issue checks or drafts or partial settlement of a loss or claim that is still being
negotiated that: - CORRECT ANSWER Releases the insurer from additional liability.
, The insured owns a two family dwelling and is covered under a Homeowner policy. One of the
units is rented. The insured also maintains a small incidental business in the structure. In case of
a covered loss, which of the following would NOT be paid under Coverage D - Loss of Use? -
CORRECT ANSWER Loss of income from the incidental business.
The adjuster bond required in New York is payable to: - CORRECT ANSWER The state of
New York.
An earthquake and landslide has occurred and soon after a house insured on an unendorsed HO-3
is damaged by fire and then an explosion. What would be covered in this scenario? - CORRECT
ANSWER Only the resulting fire and explosion damage would be covered
If any person engages in activities in violation of the Federal Insurance Fraud and False
Statements regulation, he or she may be subject to which of the following? - CORRECT
ANSWER A civil penalty of not more than $50,000.
Kelly would like to obtain an Independent Adjuster license in New York, however, she has been
convicted of a felony involving dishonesty or breach of trust. Kelly plans to submit a 1033
Waiver from the Department of Financial Services so that she can begin looking for a job. Which
of the following is NOT a requirement for the Superintendent to grant this waiver? - CORRECT
ANSWER Kelly is not required to submit evidence of restitution to the people of the state of
New York.
The Earthquake Endorsement will provide coverage to the dwelling and/or personal property
with the deductible stated as: - CORRECT ANSWER 5% of the limit that applies to all
Section I coverages
In order to avoid problems with underinsurance and overinsurance, a business which has
fluctuating inventory values during the year should consider coverage written on: - CORRECT
ANSWER The value reporting form.
Exam Questions and CORRECT Answers
The insured has moved into a dwelling that was being build and was covered by the "Dwelling
Under Construction" endorsement. How long does the insured have to report his / her occupancy
to the insurance company? - CORRECT ANSWER 30 days
When a New York Homeowners policy is still in the 60-day underwriting period, the insurer may
cancel it for any reason by providing a ______ notice. - CORRECT ANSWER 30 day
Personal property that is covered under the Personal Property Replacement Cost Endorsement is
damaged and a claim has been filed. The replacement cost of the property at the time of the loss
is $2,500. The full cost to repair the property is $2,000. The Coverage C limit of the
Homeowners policy is $8,000. No special limits apply to this property and there is no limit
applied to the type of property being claimed. Which of the following is the amount that will be
paid under the endorsement? - CORRECT ANSWER 2,000. The endorsement will pay the
smallest amount of the replacement cost at the time of the loss, the full repair cost, the Coverage
C limit, any applicable special limits, or the limit that applies to the type of property being
claimed.
The mandatory recoupment of the federal share through policyholder surcharges under Terrorism
Risk Insurance Program Reauthorization Act of 2015 was increased from 133% to - CORRECT
ANSWER 140%
A Building and Personal Property Coverage form provides coverage for all of the following
types of property, EXCEPT: - CORRECT ANSWER Growing crops and lawns.
The insured sets a fire to his home and is found to be guilty of arson. There is a lien on the
burned property by a mortgage company in the amount of $150,000. The property is insured for
$300,000 and is a total loss. The personal property of the insured, covered separately by a
Homeowners policy for $150,000, is also a total loss. How will this claim most likely be paid? -
CORRECT ANSWER The mortgagee is paid $150,000.
,The Terrorism Risk Insurance Act and all of its extensions and reauthorizations is actually an
agreement between: - CORRECT ANSWER Between the Federal Government and the
insurance companies.
The first effort to provide insurance for land transportation risks involved an extension of ocean
marine coverage known as the: - CORRECT ANSWER "Warehouse to warehouse" clause.
Which of the following is not a duty of an insurer in case of a loss? - CORRECT
ANSWER Separate the damaged property from the undamaged property and protect the
property from further loss
An insured owns a set of six drawing pens designed and used by Benjamin Franklin. Each pen is
worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a covered peril. Under
the pair or set clause the insurance company will pay a maximum of which of the following
amounts? - CORRECT ANSWER $7,000
Traditionally, the most common type of crop insurance sold prior to the creation of the Multi-
Peril Crop Insurance Program was: - CORRECT ANSWER Coverage for hail damage.
An adjuster's report that contains all the facts, evidence and disposition of the claim and is
considered to be the final report is known as the: - CORRECT ANSWER Full report.
The New York Superintendent of Insurance may refuse to renew, suspend or revoke a license as
a result of which of the following?
I. A violation of any provision of the New York Insurance Code.
II. A licensee making a material misstatement in application for license.
III. A licensee being found guilty of fraud or dishonest practices. - CORRECT ANSWER I, II
and III
No insurer may issue checks or drafts or partial settlement of a loss or claim that is still being
negotiated that: - CORRECT ANSWER Releases the insurer from additional liability.
, The insured owns a two family dwelling and is covered under a Homeowner policy. One of the
units is rented. The insured also maintains a small incidental business in the structure. In case of
a covered loss, which of the following would NOT be paid under Coverage D - Loss of Use? -
CORRECT ANSWER Loss of income from the incidental business.
The adjuster bond required in New York is payable to: - CORRECT ANSWER The state of
New York.
An earthquake and landslide has occurred and soon after a house insured on an unendorsed HO-3
is damaged by fire and then an explosion. What would be covered in this scenario? - CORRECT
ANSWER Only the resulting fire and explosion damage would be covered
If any person engages in activities in violation of the Federal Insurance Fraud and False
Statements regulation, he or she may be subject to which of the following? - CORRECT
ANSWER A civil penalty of not more than $50,000.
Kelly would like to obtain an Independent Adjuster license in New York, however, she has been
convicted of a felony involving dishonesty or breach of trust. Kelly plans to submit a 1033
Waiver from the Department of Financial Services so that she can begin looking for a job. Which
of the following is NOT a requirement for the Superintendent to grant this waiver? - CORRECT
ANSWER Kelly is not required to submit evidence of restitution to the people of the state of
New York.
The Earthquake Endorsement will provide coverage to the dwelling and/or personal property
with the deductible stated as: - CORRECT ANSWER 5% of the limit that applies to all
Section I coverages
In order to avoid problems with underinsurance and overinsurance, a business which has
fluctuating inventory values during the year should consider coverage written on: - CORRECT
ANSWER The value reporting form.
