Understanding New York Adjuster Exam Sections 17 and 70
If you're studying for the New York Adjuster Exam, sections 17 and 70 of the New York Insurance Law are the parts that deal specifically with public adjusting. They matter because they define who can operate as a public adjuster in New York, what the licensing requirements are, and what happens when someone violates the rules. The exam tests these sections more heavily than most people expect. I spent years working claims in New York before getting into the licensing side, and the first thing I'll tell you is that these sections overlap in ways the study guides don't always make clear. Section 17 covers individual public adjuster licensing. Section 70 covers public adjusting firms. You need to understand both because the exam will absolutely blend them together in scenario questions.
New York Adjuster Exam 17 70 Study Focus
Section 17 requires every public adjuster to obtain a license from the Department of Financial Services. The key requirements are straightforward but easy to miss under exam pressure. You need to be at least 18 years old. You need to pass an examination approved by the Superintendent. You need to file a $10,000 surety bond. And you need to complete continuing education requirements, which are two hours every two years, including at least one hour on ethics. The continuing education piece trips people up on the exam. The exam doesn't just ask how many hours you need. It asks about the specific breakdown and the timing. You complete the CE before renewing your license, not after. If you don't, your license lapses and you have to reapply. I once had a adjuster come to me with a lapsed license because she thought she could complete the hours anytime during the two-year cycle. She couldn't. The deadline is the renewal date. Section 17 also covers grounds for denial, suspension, and revocation of a public adjuster license. These include fraud, misrepresentation, making false statements on an application, violating any provision of the Insurance Law, or knowingly allowing an unlicensed person to act as a public adjuster. The exam loves to ask about the distinction between grounds for denial and grounds for revocation. They overlap but they are not identical. A person can be denied a license for a prior conviction, then have that same conviction become grounds for revocation later if it comes to light after licensure.
Under Section 70, which governs public adjusting firms, the requirements shift slightly. A firm must register with the Department. The firm itself needs to maintain a $25,000 surety bond. Every public adjuster employed by or associated with the firm must hold an individual license under Section 17. The firm cannot operate unless it meets the registration and bonding requirements, and the individuals working for it must be licensed separately. The surety bond amounts are different for individuals versus firms. That is a very common exam question. $10,000 for an individual public adjuster. $25,000 for a public adjusting firm. Memorize those numbers. They show up repeatedly. Here is something most study materials gloss over: Section 70 also requires firms to keep records. Specifically, a public adjusting firm must maintain records of all transactions and business dealings for at least six years. This includes engagement agreements, fee schedules, and communication with policyholders. During an audit by the Department, those records are what they look at first. I handled a case where a firm was cited for inadequate recordkeeping. They had lost engagement agreements from three years prior because they stored everything digitally without a backup. The department considers that a violation regardless of intent. Six years is the minimum, but I recommend keeping everything longer. Storage is cheap. Fines are not.
Get the Full Details
Another area where the exam gets tricky involves the fee structure. Under both sections, a public adjuster cannot demand or receive any compensation before the claim is settled. This is a hard rule. The fee can only be collected after the policyholder has received payment from the insurer. Some people on the exam will see a question where a public adjuster collects a retainer upfront and assume it is allowed as long as it is disclosed. It is not allowed. Period. No retainer before settlement. I once saw an adjuster try to argue that a small upfront fee for mileage and documentation was exempt. It was not. The statute does not carve out an exception for administrative costs. The registration process for firms under Section 70 requires filing an application with the Department, paying the applicable fee, and providing evidence of the required surety bond. The application must list every public adjuster affiliated with the firm. If someone leaves or joins the firm, the firm must update the registration within 30 days. Missing that 30-day window is a violation, and the exam will test it. The deadline is not "promptly" or "as soon as practical." It is 30 days from the change. Penalties under these sections are not trivial. A violation of Section 17 or 70 can result in a civil penalty of up to $5,000 per violation. Criminal penalties are possible for knowing violations, ranging from misdemeanors to felonies depending on the severity. The exam will ask about the difference between civil and criminal exposure. Know it.
One practical tip that actually helps on test day: when you see a question about Section 17 versus Section 70, identify whether the subject is an individual or a firm. That single classification point eliminates half the wrong answers immediately. If the question mentions a company, entity, or office, it is likely testing Section 70. If it mentions a person, licensee, or agent, it is likely testing Section 17. The bond amounts, the recordkeeping rules, and the registration requirements all differ between the two. The New York Adjuster Exam 17 70 material is not difficult if you understand the structure, but it is easy to lose points on details that feel like trivia until you know they matter. The $10,000 versus $25,000 bond distinction. The six-year recordkeeping requirement. The 30-day update window for firm changes. The absolute prohibition on pre-settlement fees. These are the questions that separate people who pass on the first attempt from people who need to study again. If you want the actual text of the law, it is available on the New York State Department of Financial Services website. Reading the statutory language directly will help more than any third-party summary because the exam pulls its answers straight from the statute. A summary might say "records must be kept" while the law specifies the exact duration and scope. On the exam, those details are the difference between the right answer and a very plausible wrong answer.
