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New York Adjuster Exam Questions and 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? ✔✔ 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. ✔✔ 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? ✔✔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
A Building and Personal Property Coverage form provides coverage for all of the following types
of property, EXCEPT: ✔✔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?
✔✔The mortgagee is paid $150,000.
The Terrorism Risk Insurance Act and all of its extensions and reauthorizations is actually an
agreement between: ✔✔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: ✔✔"Warehouse to warehouse" clause.
Which of the following is not a duty of an insurer in case of a loss? ✔✔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? ✔✔$7,
Traditionally, the most common type of crop insurance sold prior to the creation of the Multi-
Peril Crop Insurance Program was: ✔✔Coverage for hail damage.
An adjuster's report that contains all the facts, evidence and disposition of the claim and
is considered to be the final report is known as the: ✔✔Full report.
The New York Superintendent of Insurance may refuse to renew, suspend or revoke a
license as
a result of which of the following?
I. A violation of any provision of the New York Insurance Code.
II. A licensee making a material misstatement in application for license.
III. A licensee being found guilty of fraud or dishonest practices. ✔✔I, II and
III
No insurer may issue checks or drafts or partial settlement of a loss or claim that is still being
negotiated that: ✔✔Releases the insurer from additional liability.
When an insured suffers a property loss, he or she is obligated by the terms of the policy to
do
In order to receive full replacement cost recovery on a covered loss under a BOP, the
named insured must maintain insurance limits equal to at least what percentage of the covered
property's full replacement value? ✔✔80% of the property value
Under the Multi-Peril Crop Insurance program, the policy providing the lowest amount of
protection available is: ✔✔A Catastrophe Policy.
The Dwelling endorsement for Broad Theft Coverage excludes losses to dwellings that
have
been vacant for more than days immediately prior to the loss. ✔✔ 30 days
How is personal property of a dwelling covered under a farm policy?
✔✔ACV
all of the following, EXCEPT: ✔✔The insured is not obligated to employ a 'public adjuster" to
assist in the claim against the insurance company. It is an option on the part of the insured.
In lieu of suspending or revoking a New York adjuster license for a violation of insurance
laws,
the Superintendent may order the licensee to pay a monetary penalty of up to: ✔✔$
for each offense up to an aggregate penalty of $2,500.
The Terrorism Risk Insurance Program Reauthorization Act of 2015 covers all of the following,
EXCEPT: ✔✔Crop Insurance
An insurance policy is a contract. If any part of the policy language is ambiguous, the court
will generally rule: ✔✔In favor of the insured
If you have the Agreed Value Option on your policy and it is not renewed, at expiration
your policy reverts: ✔✔Back to the coinsurance clause
Under the "emergency program" the National Flood Insurance Program will insure a single
family residence for up to: ✔✔$35,
After a claim has been paid, any recovery rights applying to the amount paid by the
insurance company belong to: ✔✔The insurance company.
Which of the following should be insured by an HO-6? ✔✔The owners of condominiums and
townhouses
When Todd, an adjuster, shows up to a claimant's property to adjust a claim, he finds that the
claimant has an attorney with him. From this point on: ✔✔Todd should deal directly with the
attorney, not the claimant.
Jack rents a home to Tanya and maintains a DP-3 policy on the dwelling. Tanya accidentally
leaves the oven on all day while she is out, her Lasagna catches fire, burning Jack's house to
the
ground, along with all the contents located inside. Which of the following items would be
covered under Coverage C of Jack's DP- 3 policy? ✔✔Jack's appliances
The insured is a CPA and has his office in his home. He needs business personal property
coverage with a limit of $50,000. He has valuable papers and records on the premises that
belong to others. He often visits his clients off the premises. What endorsement would he need
to cover his exposures under his Homeowners policy? ✔✔Home Business Insurance
Endorsement
After receiving an inquiry from the New York Department of Insurance regarding a claim,
an insurer must respond within: ✔✔ 10 business days.
The standard ISO Identity Fraud Expense endorsement requires a deductible of: ✔✔$
An insured is covered under a BOP policy. He insures a piece of equipment separately under a
floater policy. In case of a loss what coverage will apply under the BOP policy? ✔✔The BOP
will be excess over the floater policy
Replacement cost coverage is best defined as: ✔✔Replacement without deduction for
depreciation..
Coverage A of the Homeowners policy would provide coverage for all of the following,
EXCEPT:
✔✔A storage shed connected to the dwelling by a utility line
The endorsement to the homeowner policy for water that backs up through a sewer or drain
including mechanical breakdown of a sump pump contains which of the following? ✔✔The
endorsement will set a limit of coverage per occurrence for these losses and also impose a
stated deductible, which could be less than or greater than the standard deductible for property
losses stated on the declarations page. Both the coverage limit and the deductible vary based
on each insurer's underwriting guidelines.
Which part of an insurance policy sets the rules of conduct, duties, and obligations of
the insured and insurer under the terms of the insurance contract? ✔✔Conditions
What does "Transfer Of Your Rights And Duties Under This Policy" refer to in the BOP?
✔✔The Subrogation Clause
When a claimant is represented by an attorney, which of the following is prohibited by the
adjuster? ✔✔Contact the claimant without the consent of the attorney
A building is insured by three insurance companies to spread coverage on a particular
type of
hazardous risk. In case of a loss under a Commercial Property policy, the payment of the claim
would invoke the pro-rata liability clause which means: ✔✔Each insurer pays in accordance to
the percentage its coverage bears to the total amount of insurance in force.
A farmer purchases a crop hail policy with a limit of $10,000 on 5000 acres that sustains a 30%
loss. Coverage is written with a 5% minimum loss before the policy will pay. How much will the
farmer receive? ✔✔$3,
Which of the following is not covered by an unendorsed HO policy?
✔✔flood
Loss settlement for unscheduled personal property that is covered under a standard ISO
Homeowners policy is on a: ✔✔ACV basis
In situations where the insured and the insurer may disagree on the value of an item, it
would be best to insure that item as: ✔✔Agreed value
Which of the following events would require a change on a homeowner policy? ✔✔A change
in mailing address
An insured's loss payment is reduced by depreciation. Which of the following best describes this
situation? ✔✔ACV
Which of the following statements defines a "bailee"? ✔✔Someone, other than the insured, to
whom the insured property is entrusted temporarily.
What part of the policy contains the promises made by the insurance company to the insured?
✔✔the insuring agreement
What is the amount of bond that must be posted with the state of New York to obtain
an adjuster's license? ✔✔$1,
Which type of Crop Insurance Policy covers the entire farm instead of an individual
crop?
✔✔Adjusted Gross Revenue
Under which of the following claims settlements are the claim invoices presented and paid with
no attempt to obtain a separate release? ✔✔A walk-away release.
Which of the following would be considered vacant on an unendorsed Commercial Property
policy? ✔✔A leased building in which less than 31% of the building is occupied.
If an insured would like to purchase additional amounts of coverage, above the "Special Limits"
provided under his Homeowners policy for jewelry or firearms, it can be obtained through the
use of: ✔✔A Scheduled Personal Property endorsement.
The term "time element coverage" is used when the amount of loss depends on: ✔✔The
time it takes to repair, rebuild or restore damaged property.
Under the standard ISO Farm insurance Special Cause of Loss form, coverage for vandalism or
breakage of glass is excluded if the premises has been vacant for days or more. ✔✔ 60
Which of the following causes more property damage in the United States than any
other
natural disaster? ✔✔Floods
The Terrorism Risk Insurance Program Reauthorization Act of 2015 excludes all acts of terrorism
if the act is committed as part of the course of a war declared by Congress with the exception of
one line of insurance. Which of the following is the only line of insurance that would still
be
covered in case of a war? ✔✔Workers compensation
An insured has a HO- 5 Homeowner Policy; they have insured the wife's diamond ring and the
husband's guns on a personal articles floater. All of the items are stolen. What policy and
deductibles would apply? ✔✔The homeowner policy would not pay and the personal
articles
floater would pay without a deductible..
Which of the following time periods is ordinary payroll coverage limited to in case of a
business
income loss under the BOP? ✔✔ 60 days
All of the following would be covered under a Builders Risk Policy, EXCEPT: ✔✔Prospective
buyer.
Under the New York Cybersecurity Regulation, an exempt covered entity that ceases to qualify
for an exemption will have to comply with the requirements of the regulation. ✔✔ 180
days
Isaac owns a home with an older furnace in need of repair. He leaves his home for a month
to
avoid the cold weather. He returns to find that the furnace had stopped working. Water pipes
have frozen and burst and his property has been damaged. Since the water ran for almost
a
month, his water bill is extremely high. What will the adjuster pay? ✔✔The water damage.
The Superintendent of Insurance may issue a temporary permit to an individual to
adjust claims while an adjuster's application is pending. ✔✔ 120 day
Which of the following statements describes an action that the adjuster cannot take after a
claimant has hired an attorney to represent him/her in handing a claim? ✔✔Contact the
claimant without the consent of the attorney.
An intentional act designed to deceive and induce another party to part with something
of value is known as: ✔✔Fraud
Under the New York Cybersecurity Regulation (23 NYCRR 500) each covered entity,
including insurance companies, must submit a written statement by of each year certifying that it
is in compliance. ✔✔February 15
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? ✔✔Evidence
must be submitted to show that restitution was made to the people of the state of New York for
the felony in which Kelly was convicted.
unless: ✔✔The losses that occur relate to commercial property and specified casualty risks
No act will be certified by the Secretary of the Treasury, in consultation with the Secretary of
Homeland Security, as an act of terrorism under the Terrorism Risk Reauthorization Act of 2015
The Common Policy Conditions apply to which coverage parts of a Commercial Package Policy?
✔✔All parts of the policy
What is the standard deductible under an Equipment Breakdown policy? ✔✔$
All of the following are claim practice principles (ethical principles) to be followed by all insurers
in New York, EXCEPT: ✔✔
Each of the following is true about the Multi-Peril Crop Insurance (MPCI) program, EXCEPT:
✔✔Coverage is available only in large agricultural states..
The endorsement to the homeowner policy for water that backs up through a sewer or
drain including mechanical breakdown of a sump pump contains which of the following?
✔✔separate coverage and separate deductible
Which of the following watercraft would be covered for liability under "Section II - Liability" of
the Homeowners policy? ✔✔None listed. A sailboat must be less than 26 feet in length, the
rented jet ski must be less than 50 HP and an outboard motor boat must be less than 25 HP.
The business personal property limits will be increased by what amount in order to
cover seasonal variations in stock in the BOP? ✔✔25%
In ocean marine insurance, each of the following is true about the term "general
average" EXCEPT: ✔✔Only the party having an interest in the lost property suffers a loss.
Policies issued under the National Flood Insurance Program provide removal coverage for
property which is moved to another location to protect it from a flood. This coverage applies
for up to: ✔✔ 45 days
All of the following are true regarding the "write your own" program under flood
insurance, EXCEPT: ✔✔Insurers are required to participate in the program
Under the livestock coverage form, how must livestock be covered? ✔✔80% to value
Under an ISO standardized Businessowners policy, which of the following is NOT automatically
covered under the policy? ✔✔Hired and Non-owned Automobile coverage
If a named insured obtains "newly acquired property" such as a new outboard motor after
theirPersonal Watercraft policy period begins, that property is covered under the policy for a
maximum of days after the date it came into the insured's possession. ✔✔ 14
A Commercial Package Policy (CPP) always includes: ✔✔A Commercial Package Policy (CPP)
always includes a common Declarations page and Conditions section. It does not include a
common Exclusions section, as the items excluded would be specific to the coverage part.
Under the Terrorism Risk Insurance Program Reauthorization Act of 2015, the maximum limit
for the Act for total claims paid under the Act by either private insurers or the government is
still limited to: ✔✔$100 billion
Which of the following homeowner forms offers the broadest coverage? ✔✔HO- 5
Which of the following dwelling forms provides coverage for loss of rental income? ✔✔All of
the forms provide for rental value coverage. In the DP- 2 and DP-3, it is 20% of the Coverage A
limit and is additional coverage. With the DP-1, the 20% coverage reduces the available
Coverage A amount on the dwelling. (Note: in North Carolina the percentage is 10%.)
Mikela is walking from her car, across a dark parking lot, to her apartment one evening after
work. Suddenly, a masked man jumps out from between two cars and holds a gun to
Mikela's
head. The man tells Mikela that he will kill her if she does not give him her purse. Mikela has
just experienced a: ✔✔robbery
An adjuster commits an act of insurance fraud covered by the Federal Insurance Fraud &
False Statements Act. The fraud does not affect the financial stability of the company. What is the
maximum time the adjuster may be confined to prison? ✔✔ 10 years
In New York, insurers must maintain records pertaining to claims, rating, underwriting,
marketing and other pertinent information for a period of: ✔✔ 6 years
Miranda's home is covered under a Homeowners policy with an Earthquake
Endorsement attached. She has selected the base deductible of 5% and her limit of liability under Coverage
C
is greater than Coverage A. Her Coverage C limit of liability is $1,000. What is the deductible
that Miranda will have to pay? ✔✔$
Although 5% multiplied by $1,000 is $50, the endorsement states that the deductible will never
be less than $500.
Which section of the Commercial Package Policy varies based on the lines of coverage
included?
✔✔coverage part
What is the standard deductible under an Equipment Breakdown policy? ✔✔$
Pollutant cleanup under the commercial building and personal property form: ✔✔Is
an additional coverage.
A "full release settlement" when properly prepared, should include: ✔✔The names of
the releasee and releasor
An independent adjuster acts on behalf of his or her principal. Which of the following is
the principal for an independent adjuster? ✔✔Insurer
In the property insurance field, a "friendly fire" is one which: ✔✔Remains within its
intended limits..
All of the following are perils insured against by the Dwelling Broad Theft Coverage
Endorsement - DP 04 83, EXCEPT: ✔✔robbery
Axel Jamison contacts an insurance agent to purchase a Homeowners policy. The agent advises
Axel that he will stop by later that day to inspect the home and take the policy application.
Before the agent arrives, Axel hides his collection of venomous snakes and does not disclose
them on his policy application. The Homeowners policy, with personal liability coverage is
issued later that week, and the next day a snake escapes and bites a neighbor. How will the
adjuster handle this claim? ✔✔The claim will be denied because Axel is guilty of
concealment..
Convenience stores selling gasoline must have a minimum of square feet in total
floor
area in order to qualify for the BOP? ✔✔ 3000
The New York Water Back-up and Sump Discharge or Overflow Endorsement to the
Homeowners policies, applies a special deductible of: ✔✔$
A non-waiver agreement allows the insurer to: ✔✔Investigate a loss without implying that it is
covered
Which type of Crop Insurance Policy covers the entire farm instead of an individual crop?
✔✔Adjusted Gross Revenue.
A typical Homeowners policy without a Home Business endorsement has how much coverage
available for business personal property? ✔✔$
All of the following are reasons that an adjuster should keep very detailed log notes, EXCEPT:
✔✔To produce notes that will support a fraudulent denial of claims.
An agent, insured or claimant has intentionally misled an insurer for financial gain. Such an
act is
known as: ✔✔fraud
Under the "regular program" a flood insurance policy will insure a single family residence for
up to: ✔✔$250,
The limit under the regular flood program is $250,000. Under the emergency flood program the
dwelling is covered for only $35,000.
A commercial property policy specifies which of the following responsibilities as a duty of the
insured? ✔✔To provide a proof of loss statement following a loss if requested by the company.
If a ship's captain must jettison a disproportionate amount of his policyholder's cargo in order to
save the ship, there is a provision in Ocean Marine policies that will spread that lost among all
of the insureds involved with the ship. What is this provision called? ✔✔General Average clause
The coverage extension "Business Personal Property Temporarily in Portable Storage Units" will
provide $10,000 of coverage for up to: ✔✔ 90 days
What is the main difference between the DP- 1 and DP- 2 forms? ✔✔The perils insured
against.
DP- 1 and DP- 2 are similar forms, both designed to provide property insurance for personally-
owned residential buildings containing up to four living units without requiring the insured
to
reside there. These two forms are different in the "perils insured against" section. The DP- 2
broad form covers all the perils included in the DP-1 plus several "broad" perils including
burglary damage, ice or snow damage, falling objects, freezing of plumbing, heating, or
air
conditioning systems or household appliances, accidental discharge of water from plumbing,
heating, or air conditioning systems, and breakage of glass.
In which of the following situations should an adjuster consider obtaining a non-waiver
agreement? ✔✔In dealing with a potential coverage dispute.
What are the unique features of the ISO standardized Businessowners policy form? ✔✔The
BOP provides "open peril" coverage for property..
Which of the following best describes "no release or walk-away" release? ✔✔The bills are paid
and no attempt to obtain a separate release is made..
The focus of Equipment Breakdown coverage is: ✔✔prevention of loss
If an insured takes precautionary measures to protect property from flood damage such as
creating a retaining wall of sand bags, how much coverage if any, will be provided by a
flood
policy? ✔✔$1,000 if the flood is imminent and the property is in danger of flooding..
Under the commercial property condominium association form, coverage is based on: ✔✔The
association agreement and bylaws
A Commercial Property Policy includes a protective safeguard endorsement indicating there are
protective safeguards installed in the risk such as a sprinkler system. Should the system become
inoperative, how long does the insured have to report this fact to the insurer? ✔✔ 48
hrs
The Main Street Gazette is interested in protecting against the additional costs of continuing to
print the newspaper, at a temporary location in the event its building was destroyed. Which of
the following coverages should the Main Street Gazette purchase for this purpose? ✔✔extra
expense
John has commercial property coverage written on a value reporting form. The maximum limit
of coverage for inventory values is $150,000. The insured has reported an inventory value
of $75,000 when the actual value was $100,000. A $20,000 loss occurs. The insurer will
pay: ✔✔$
The insured is required to carry a 100% coinsurance clause when the reporting form method
is used. The insured is also required to report 100% of the actual inventory values. This insured
reported less than the actual inventory by 25% and will only receive 75% of a partial loss
or $15,000.
A weather report would be considered what type of evidence? ✔✔documentary
