NEW YORK STATE AUTO DAMAGE AND THEFT QUIZ 17-71
ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS | VERIFIED |
GRADED A+
EXAM OVERVIEW
This comprehensive study is designed for candidates preparing for the New York State Series 17-
71 Auto Damage and Theft Adjuster/Appraiser Licensing Exam for the 2025/2026 cycle. In
New York, a licensed insurance adjuster must also hold an appraiser license to handle both the
appraisal and the claim for auto damage.
Exam Information:
• Exam Series: 17-71 Auto Appraiser
• Licensing Requirement: Must hold both adjuster (17-66) and appraiser (17-71) licenses
to handle auto claims in New York
• Regulatory Authority: New York Department of Financial Services (NYDFS)
• Question Count: Approximately 170 questions
• Passing Score: Determined by NYDFS
Section 1: Insurance Principles and Claim Concepts (Questions 1-20)
Q1: Jim Smith is involved in a collision claim and is no longer able to use the vehicle to go to work.
This "loss of use" is referred to as a:
• A. Direct loss
• B. Indirect loss
• C. Loss evaluation
• D. Consequential loss
Correct Answer: D [CORRECT]
Rationale:
• Loss of use resulting from an accident is considered a consequential loss (also known as
indirect loss), as it flows from the direct physical damage to the vehicle.
,Q2: In auto physical damage insurance, an insured peril cause of loss is known as:
• A. Direct loss
• B. Indirect loss
• C. Loss evaluation
• D. Consequential loss
Correct Answer: A [CORRECT]
Rationale:
• Damage caused directly by an insured peril (such as collision or theft) is classified as a
direct loss.
Q3: The burden of proof that a covered loss has occurred is normally a duty of:
• A. The insurance company
• B. The adjuster
• C. The appraiser
• D. The insured
Correct Answer: D [CORRECT]
Rationale:
• The insured bears the burden of proving that a covered loss has occurred under the terms
of the policy.
Q4: If an insured fails to comply with the immediate notice of claim requirement, which of the
following could happen?
• A. The loss will be partially paid
• B. The coverage could be denied
• C. The premium will be returned
• D. The policy will be cancelled
,Correct Answer: B [CORRECT]
Rationale:
• Failure to provide immediate notice of claim as required by the policy may result in
coverage being denied, as the insurer's ability to investigate is prejudiced.
Q5: Payment may be made if which of the following procedures has been executed?
• A. A partial signed release
• B. A Walk-Away release
• C. A prima-facie signed release
• D. None of the answer choices is correct
Correct Answer: B [CORRECT]
Rationale:
• A Walk-Away release indicates the final disposition of the matter and relinquishes the
claimant's right to sue, so payment may be issued. In some states, the signing of the
payment check itself can indicate a Walk-Away release.
Q6: Which of the following best describes the difference between direct and consequential loss?
• A. Direct loss is always total; consequential loss is always partial
• B. Direct loss results from the insured peril; consequential loss results from the direct loss
• C. Direct loss is covered; consequential loss is never covered
• D. Direct loss affects property only; consequential loss affects people only
Correct Answer: B [CORRECT]
Rationale:
• Direct loss is physical damage caused directly by the insured peril (collision, theft, fire).
Consequential loss (or indirect loss) flows from the direct loss, such as loss of use, rental
expenses, or lost wages due to the vehicle being damaged.
Q7: Under New York Insurance Law, an insured must provide notice of claim:
• A. Within 30 days of the loss
, • B. Within 10 days of the loss
• C. Immediately or as soon as practicable
• D. Only if requested by the insurer
Correct Answer: C [CORRECT]
Rationale:
• New York policies require immediate notice of claim or as soon as practicable under the
circumstances. Delay can prejudice the insurer's investigation rights.
Q8: A Walk-Away release is characterized by which of the following?
• A. The claimant reserves the right to sue for additional damages later
• B. The claimant accepts payment as full and final settlement
• C. The insurer reserves the right to recover payments made
• D. The release is valid for 30 days only
Correct Answer: B [CORRECT]
Rationale:
• A Walk-Away release is a final settlement where the claimant accepts the payment and
releases all future claims related to the loss, walking away from any further legal action.
Q9: In determining whether a loss is covered, the burden of proof initially rests with:
• A. The insurance company to prove exclusion
• B. The superintendent of insurance
• C. The insured to prove coverage
• D. The repair shop to prove damage
Correct Answer: C [CORRECT]
Rationale:
• The insured has the initial burden of proving that a loss occurred and that it falls within the
coverage grant of the policy. The insurer then has the burden of proving any exclusions
apply.
ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS | VERIFIED |
GRADED A+
EXAM OVERVIEW
This comprehensive study is designed for candidates preparing for the New York State Series 17-
71 Auto Damage and Theft Adjuster/Appraiser Licensing Exam for the 2025/2026 cycle. In
New York, a licensed insurance adjuster must also hold an appraiser license to handle both the
appraisal and the claim for auto damage.
Exam Information:
• Exam Series: 17-71 Auto Appraiser
• Licensing Requirement: Must hold both adjuster (17-66) and appraiser (17-71) licenses
to handle auto claims in New York
• Regulatory Authority: New York Department of Financial Services (NYDFS)
• Question Count: Approximately 170 questions
• Passing Score: Determined by NYDFS
Section 1: Insurance Principles and Claim Concepts (Questions 1-20)
Q1: Jim Smith is involved in a collision claim and is no longer able to use the vehicle to go to work.
This "loss of use" is referred to as a:
• A. Direct loss
• B. Indirect loss
• C. Loss evaluation
• D. Consequential loss
Correct Answer: D [CORRECT]
Rationale:
• Loss of use resulting from an accident is considered a consequential loss (also known as
indirect loss), as it flows from the direct physical damage to the vehicle.
,Q2: In auto physical damage insurance, an insured peril cause of loss is known as:
• A. Direct loss
• B. Indirect loss
• C. Loss evaluation
• D. Consequential loss
Correct Answer: A [CORRECT]
Rationale:
• Damage caused directly by an insured peril (such as collision or theft) is classified as a
direct loss.
Q3: The burden of proof that a covered loss has occurred is normally a duty of:
• A. The insurance company
• B. The adjuster
• C. The appraiser
• D. The insured
Correct Answer: D [CORRECT]
Rationale:
• The insured bears the burden of proving that a covered loss has occurred under the terms
of the policy.
Q4: If an insured fails to comply with the immediate notice of claim requirement, which of the
following could happen?
• A. The loss will be partially paid
• B. The coverage could be denied
• C. The premium will be returned
• D. The policy will be cancelled
,Correct Answer: B [CORRECT]
Rationale:
• Failure to provide immediate notice of claim as required by the policy may result in
coverage being denied, as the insurer's ability to investigate is prejudiced.
Q5: Payment may be made if which of the following procedures has been executed?
• A. A partial signed release
• B. A Walk-Away release
• C. A prima-facie signed release
• D. None of the answer choices is correct
Correct Answer: B [CORRECT]
Rationale:
• A Walk-Away release indicates the final disposition of the matter and relinquishes the
claimant's right to sue, so payment may be issued. In some states, the signing of the
payment check itself can indicate a Walk-Away release.
Q6: Which of the following best describes the difference between direct and consequential loss?
• A. Direct loss is always total; consequential loss is always partial
• B. Direct loss results from the insured peril; consequential loss results from the direct loss
• C. Direct loss is covered; consequential loss is never covered
• D. Direct loss affects property only; consequential loss affects people only
Correct Answer: B [CORRECT]
Rationale:
• Direct loss is physical damage caused directly by the insured peril (collision, theft, fire).
Consequential loss (or indirect loss) flows from the direct loss, such as loss of use, rental
expenses, or lost wages due to the vehicle being damaged.
Q7: Under New York Insurance Law, an insured must provide notice of claim:
• A. Within 30 days of the loss
, • B. Within 10 days of the loss
• C. Immediately or as soon as practicable
• D. Only if requested by the insurer
Correct Answer: C [CORRECT]
Rationale:
• New York policies require immediate notice of claim or as soon as practicable under the
circumstances. Delay can prejudice the insurer's investigation rights.
Q8: A Walk-Away release is characterized by which of the following?
• A. The claimant reserves the right to sue for additional damages later
• B. The claimant accepts payment as full and final settlement
• C. The insurer reserves the right to recover payments made
• D. The release is valid for 30 days only
Correct Answer: B [CORRECT]
Rationale:
• A Walk-Away release is a final settlement where the claimant accepts the payment and
releases all future claims related to the loss, walking away from any further legal action.
Q9: In determining whether a loss is covered, the burden of proof initially rests with:
• A. The insurance company to prove exclusion
• B. The superintendent of insurance
• C. The insured to prove coverage
• D. The repair shop to prove damage
Correct Answer: C [CORRECT]
Rationale:
• The insured has the initial burden of proving that a loss occurred and that it falls within the
coverage grant of the policy. The insurer then has the burden of proving any exclusions
apply.
