Free Insurance Licensing NY-Independent-General-Adjuster Practice Exam with Questions & Answers | Set: 3

The correct answer is C — submitting surveys of the insured business to the insurer. The CPP Common Policy Conditions grant the first named insured several special rights and responsibilities. The first named insured may cancel the policy by providing the required written notice, is the party to whom applicable premium refunds are sent, and is authorized to make policy changes with the insurer's consent. Therefore, requesting an adjustment to policy limits falls within the first named insured's authority to seek policy changes.

The Inspections and Surveys condition operates differently. It gives the insurer the right, but generally not the obligation, to make inspections and surveys, provide reports concerning conditions found, and recommend changes. The policy does not impose a standard responsibility on the first named insured to prepare and submit surveys of the business. Standard common-policy wording expressly assigns the inspection-and-survey right to the insurer.

The first named insured also has important premium-related functions. Standard CPP wording provides for return premiums to be sent to the first named insured and recognizes the first named insured's cancellation authority.

The Series 17-70 outline specifically tests CPP components, Common Policy Declarations, Common Policy Conditions, and the First Named Insured.

The correct answer is D — Property damage. New York's Comprehensive Motor Vehicle Insurance Reparations Act establishes the state's No-Fault / Personal Injury Protection system. PIP is designed to reimburse qualifying injured persons for basic economic loss resulting from bodily injury arising out of the use or operation of a motor vehicle, without regard to fault.

New York DFS states that basic No-Fault protection includes medical and health expenses, lost earnings, and certain other reasonable and necessary expenses. Medical expenses expressly include dental services, so both options A and C may qualify. Lost earnings are also expressly included, subject to statutory limitations.

Property damage is fundamentally different. Damage to another person's vehicle or other property is handled under property damage liability coverage, not first-party PIP benefits. PIP follows the injured person and addresses economic losses caused by personal injury; it does not reimburse the insured for physical damage to automobiles or other tangible property.

The Series 17-70 examination outline specifically includes the Comprehensive Motor Vehicle Insurance Reparations Act, mandatory Personal Injury Protection, basic economic loss, and New York auto coverage requirements.

Therefore, D is correct.

For the New York Independent General Adjuster Series 17-70, the correct answer is D — complete the continuing education requirements. This is an important New York-specific distinction.

The official New York PSI licensing bulletin expressly states that Independent Adjusters are not subject to the continuing-education requirements that apply to resident agents, brokers, consultants, and public adjusters. The bulletin separately lists Independent Adjusters among license classes exempt from CE.

Renewal itself is governed by Insurance Law §2108. Every adjuster's license expires on December 31 of even-numbered years and may be renewed for the ensuing two calendar years by filing the prescribed renewal application. The law also requires the applicable license fee when applying for renewal.

The wording of option A is imprecise because New York law specifically provides that a renewal application filed by December 31 of the expiration year allows the existing license to continue while the application is processed; the statute does not establish a universal “within 30 days” formulation as written. Nevertheless, the decisive Series 17-70 rule tested here is the CE exemption.

The official Series 17-70 outline specifically includes renewal under §2108(i) and (j).

Therefore, D is the verified Series 17-70 answer.

The correct answer is B — auto body damage caused by a roll-over. In automobile physical damage insurance, Other Than Collision, commonly called Comprehensive coverage, protects against specified noncollision causes of physical loss. New York DFS specifically identifies theft, fire, flood, windstorm, glass breakage, vandalism, animal impact, and falling or flying objects as examples of comprehensive losses.

Accordingly, an electrical fire causing interior damage falls within the fire exposure contemplated by Comprehensive coverage. Flood damage to the vehicle is also a Comprehensive exposure, and hailstorm damage falls within windstorm/hail-type noncollision loss.

A roll-over or overturn, however, is classified as a collision loss. Collision coverage traditionally includes physical damage resulting from the covered automobile's impact with another vehicle or object and from upset or overturn. Thus, an automobile that rolls over during operation would require Collision coverage rather than Other Than Collision coverage.

This distinction is important because both coverages are optional physical-damage protections in most circumstances and may carry different deductibles. The adjuster must determine the actual mechanism of damage before selecting the applicable coverage.

The Series 17-70 Auto Insurance curriculum specifically tests Collision versus Other Than Collision physical damage coverage, exclusions, limits, and loss settlement.

Therefore, B is the exception.

The correct answer is C. New York Insurance Law Article 4 is expressly titled the Insurance Frauds Prevention Act. Its legislative findings recognize that insurance transactions—including organization and licensing, issuance of policies, and the adjustment and payment of claims and losses—have potential for abuse and illegal activity. The statutory framework is intended to prevent, detect, investigate, and penalize fraudulent insurance conduct.

Therefore, option C most accurately expresses the purpose among the available choices: protecting the insurance system and consumers from illegal and fraudulent conduct associated with policy and claim transactions.

Option A concerns underwriting standards and risk selection rather than insurance-fraud prevention. Option B concerns insurance advertising regulation, which is governed through separate statutes and regulations. Option D concerns insurer financial reporting and solvency regulation, not the core purpose of Article 4.

New York DFS emphasizes that insurance fraud affects consumers through higher premiums and costs and encourages detection and reporting of suspected fraudulent activity. Article 4 also requires reporting of suspected fraudulent insurance transactions and authorizes investigation and enforcement.

Accordingly, C is the correct examination answer.

The correct answer is A — May 1. New York Insurance Law §2134(a) requires a licensee under Article 21 to inform the Superintendent, by a means acceptable to the Superintendent, of a change of address within 30 days of the change.

Because the producer moved the office on April 1, the 30-day reporting period makes May 1 the applicable answer among the choices. The requirement is designed to keep DFS licensing records current so that official notices, regulatory communications, licensing information, and other required correspondence can be properly directed to the licensee.

July 1 would be approximately three months after the move, October 1 approximately six months later, and December 31 almost nine months later; each exceeds the statutory 30-day reporting period.

The reporting obligation should not be confused with separate Article 21 requirements involving license renewals, administrative-action reporting, criminal-prosecution reporting, appointment changes, or continuing education. Each has its own statutory trigger and timing requirements.

The official Series 17-70 content outline expressly identifies Change of address — all addresses, including email — under Insurance Law §2134 and applicable regulations as required examination material.

Therefore, an April 1 office-address change must be reported within 30 days, making A — May 1 correct.

The correct answer is A. New York Insurance Law §2601 identifies specified conduct as unfair claim settlement practices when performed without just cause with sufficient frequency to constitute a general business practice. One expressly identified practice is failing to attempt in good faith to effectuate prompt, fair, and equitable settlements of claims in which liability has become reasonably clear. Deliberately or unjustifiably delaying such a settlement therefore falls directly within the regulatory concept tested by this question.

Option C describes the opposite behavior. Insurers are expected to adopt and implement reasonable standards for prompt claim investigation and settlement. Failure to establish reasonable standards may itself support an unfair-practices finding.

Option D is likewise inconsistent with an unfair-practice answer because accurate disclosure of relevant coverage or settlement provisions promotes informed claim handling. Misrepresentation or improper withholding of material policy information, rather than appropriate disclosure, raises regulatory concerns. Option B does not describe an unfair claim settlement practice on the facts given.

The official New York Series 17-70 blueprint specifically includes Claim Settlement Laws and Regulations—Regulation 64, Part 216, and Unfair Claim Practices—Insurance Law §2601 under Insurance Regulation.

Accordingly, the conduct in A is the regulatory violation contemplated by the question.

The correct answer is C — the insured is the owner-occupant. The Broad Theft Coverage endorsement is designed to add theft protection to a Dwelling Policy for an eligible residence occupied by the named insured. Broad theft coverage is distinguished from limited theft coverage primarily by its eligibility and its ability to provide both on-premises and qualifying off-premises theft coverage.

For a dwelling, condominium, or cooperative unit, broad theft coverage requires the residence to be owner occupied. Where the dwelling is non-owner occupied, a limited theft form is generally the appropriate theft endorsement.

Option A is therefore insufficient because being a landlord does not make the insured eligible for the broad theft endorsement when tenants occupy the insured dwelling. Vacancy, option B, is not an eligibility requirement and may instead trigger important restrictions in theft coverage. Option D also fails because ownership of personal property by a landlord does not substitute for the occupancy requirement.

New York's official Series 17-70 outline expressly identifies the Broad Theft Endorsement (DP 04 83) as a tested Dwelling Policy endorsement. New York DFS's prelicensing topic locator likewise identifies DP 04 83 as required dwelling-policy subject matter.

Therefore, owner-occupancy makes C correct.

The correct answer is A. The BOP Hired Auto and Non-Owned Auto Liability Endorsement fills an important gap created by the standard auto exclusion. Non-owned auto liability applies to bodily injury or property damage arising from use of a non-owned automobile in the insured's business. A classic example is an employee using the employee's personally owned automobile while conducting business for the employer.

Standard endorsement wording provides that Non-Owned Auto Liability applies to bodily injury or property damage arising from use of any “non-owned auto” in the business. It specifically contemplates automobiles owned by employees when they are being used for business purposes.

Options B and C involve a company-owned van. An owned business automobile should ordinarily be insured under an appropriate commercial auto policy rather than the BOP's hired/non-owned endorsement. Option D likewise involves a company auto and therefore does not satisfy the non-owned or hired-auto concept.

The endorsement is principally liability coverage; it does not automatically pay physical damage to the employee's personal automobile.

The Series 17-70 BOP curriculum specifically tests the Hired Auto and Non-Owned Auto Liability endorsement, liability exclusions, and automobile-related business exposures.

Therefore, A is correct.

The correct answer is B — the dishonesty of an insured. Under the Homeowners 2011 framework tested by Series 17-70, an Additional Coverage addresses Credit Card, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money. Traditional ISO homeowners wording provides up to $500 for specified losses involving unauthorized use of covered cards or access devices, forgery or alteration of checks and similar negotiable instruments, and acceptance in good faith of counterfeit U.S. or Canadian paper currency.

However, the coverage does not protect an insured against losses caused by the dishonesty of an insured. Such a result would conflict with the basic insurance principle that intentional dishonest acts of an insured are not transformed into fortuitous insured losses.

Option A is within the purpose of the coverage when the credit card is stolen and subsequently used without authorization, subject to policy conditions. Option C is specifically contemplated by forgery coverage, and option D is expressly part of counterfeit-money protection.

The official New York Series 17-70 outline identifies the Homeowners (2011) Policy, including Section I property coverages, Additional Coverages, exclusions, conditions, and selected endorsements.

Therefore, B is the required answer.