NORTH CAROLINA PEARSON VUE ALL LINES ADJUSTER EXAM QUESTIONS AND ANSWERS

NORTH CAROLINA LATEST
PEARSON VUE ALL
LINES ADJUSTER EXAM
1. Insurance is defined as:


A. A savings plan
B. Transfer of risk from one party to another
C. Investment tool only
D. Loan agreement


Correct Answer: B
Rationale: Insurance transfers risk from the insured to the insurer in
exchange for a premium.


2. The insured is:


A. The company
B. The person covered by the policy
C. The agent
D. The regulator

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, NORTH CAROLINA LATEST
PEARSON VUE ALL
LINES ADJUSTER EXAM

Correct Answer: B
Rationale: The insured is the individual or entity protected under the
policy.


3. Premium refers to:


A. Claim payment
B. Cost of insurance
C. Deductible
D. Coverage


Correct Answer: B
Rationale: Premium is the amount paid for insurance coverage.


4. Deductible is:



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, NORTH CAROLINA LATEST
PEARSON VUE ALL
LINES ADJUSTER EXAM
A. Amount insurer pays
B. Amount insured pays before coverage applies
C. Total loss
D. Premium


Correct Answer: B
Rationale: Deductible reduces insurer’s liability.


5. Indemnity means:


A. Profit
B. Restore insured to pre-loss condition
C. Increase value
D. Reduce premium


Correct Answer: B
Rationale: Insurance compensates for loss, not profit.
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, NORTH CAROLINA LATEST
PEARSON VUE ALL
LINES ADJUSTER EXAM

6. Peril is:


A. Policy
B. Cause of loss
C. Deductible
D. Claim


Correct Answer: B
Rationale: Perils include fire, theft, etc.


7. Hazard is:


A. Loss
B. Condition increasing risk
C. Policy
D. Payment
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