NORTH CAROLINA (NC)
ADJUSTER LICENSE PRACTICE
EXAM QUESTIONS WITH LATEST
SOLUTIONS A GRADED
All of the following are examples of insurable interest in property, EXCEPT: -
<<<<ANSWERS>>>The interest an individual has in the property her parents will
someday leave to her.
All of the following is considered an "insured" under a CGL policy, EXCEPT: -
<<<<ANSWERS>>>Lawyers of the named insured
What specific type of liability policy gives an owner protection against liability claims
arising out of the acts of its independent contractors? - <<<<ANSWERS>>>Owners and
Contractors Protective Liability Policy.
Which of the following would be eligible for coverage under a Businessowners policy? -
<<<<ANSWERS>>>A small retail store
Which of the following is NOT a correct statement in determining the cost of a
"comparable automobile" when a physical damage loss has a occurred? -
<<<<ANSWERS>>>The cost of a comparable automobile as determined by a
computerized automobile valuation service that produces statistically valid fair market
values within the United States market
George went out for target practice one day with his handgun. He has practiced many
times with the same target located in the woods behind his house. Unbeknownst to
George, a neighbor was walking in the woods behind the target one day and was shot
in the leg by George. Intentional acts are never covered by insurance, however, the
claim filed by the injured neighbor may be covered under George's liability coverage.
Which of the following is the most likely reason why? - <<<<ANSWERS>>>Shooting the
gun was an intentional act committed by George, but the consequences of act (his
neighbor being shot) were not intended
The duties of the insured after a loss are included in insurance policy language to: -
<<<<ANSWERS>>>Assist in the adjuster's investigation of the claim
The perils insured against by a Homeowners policy are contained within the: -
<<<<ANSWERS>>>Insuring Agreements
, Under a standard HO-3, the limit for Coverage C -- Personal Property for a one or two-
family dwelling: - <<<<ANSWERS>>>Is set at 50% of Coverage A
Which of the following flood zones show a "flood depth" instead of a "base flood
elevation" on a FIRM? - <<<<ANSWERS>>>AO
North Carolina law stipulates that buildings located within the state that are covered
under a Fire policy and suffer a total loss, the insurance company: -
<<<<ANSWERS>>>Is not liable to pay amounts beyond the actual cash value of the
insured property at the time of the loss or damage
Which of the following is generally not considered to be a legal defense against claims
of negligence? - <<<<ANSWERS>>>The loss to the plaintiff was caused intentionally by
the defendant. .
All of the following are true regarding the "Write Your Own" program of the NFIP,
EXCEPT: - <<<<ANSWERS>>>Insurers are required to participate in the program
How are death benefits calculated for an employee who has died as a result of a work
related incident? - <<<<ANSWERS>>>66 2/3% of the employee's average weekly
wage for 500 weeks
Sharon's North Carolina home is covered under a Homeowner's policy with a
"Refrigerated Property Coverage" endorsement attached. She stores large amounts of
expensive meats in her freezer at any given time. One morning, she doesn't hear the
low hum of her freezer motor. When she opens her freezer door, she finds that the
freezer is no longer cold and all of her meat has spoiled. Sharon collects her receipts
and finds that the price of the spoiled meat totals $658 and she submits a claim for this
loss. How much will her insurer pay? - <<<<ANSWERS>>>$500
Which of the following terms does NOT apply to workers compensation coverage in
North Carolina? - <<<<ANSWERS>>>Temporary sick leave with benefits
Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil
Authority Prohibits Use" for: - <<<<ANSWERS>>>No more than two weeks
All of the following statements are TRUE of the terms used in the standard workers'
compensation policy, EXCEPT: - <<<<ANSWERS>>>"State" means any state of the
United States, the District of Columbia, and all territories and possessions.
Under the comprehensive coverage of a Business Auto policy, which of the following
would not be a covered loss? - <<<<ANSWERS>>>After sliding on an icy pavement, a
driver hits a guard rail.
ADJUSTER LICENSE PRACTICE
EXAM QUESTIONS WITH LATEST
SOLUTIONS A GRADED
All of the following are examples of insurable interest in property, EXCEPT: -
<<<<ANSWERS>>>The interest an individual has in the property her parents will
someday leave to her.
All of the following is considered an "insured" under a CGL policy, EXCEPT: -
<<<<ANSWERS>>>Lawyers of the named insured
What specific type of liability policy gives an owner protection against liability claims
arising out of the acts of its independent contractors? - <<<<ANSWERS>>>Owners and
Contractors Protective Liability Policy.
Which of the following would be eligible for coverage under a Businessowners policy? -
<<<<ANSWERS>>>A small retail store
Which of the following is NOT a correct statement in determining the cost of a
"comparable automobile" when a physical damage loss has a occurred? -
<<<<ANSWERS>>>The cost of a comparable automobile as determined by a
computerized automobile valuation service that produces statistically valid fair market
values within the United States market
George went out for target practice one day with his handgun. He has practiced many
times with the same target located in the woods behind his house. Unbeknownst to
George, a neighbor was walking in the woods behind the target one day and was shot
in the leg by George. Intentional acts are never covered by insurance, however, the
claim filed by the injured neighbor may be covered under George's liability coverage.
Which of the following is the most likely reason why? - <<<<ANSWERS>>>Shooting the
gun was an intentional act committed by George, but the consequences of act (his
neighbor being shot) were not intended
The duties of the insured after a loss are included in insurance policy language to: -
<<<<ANSWERS>>>Assist in the adjuster's investigation of the claim
The perils insured against by a Homeowners policy are contained within the: -
<<<<ANSWERS>>>Insuring Agreements
, Under a standard HO-3, the limit for Coverage C -- Personal Property for a one or two-
family dwelling: - <<<<ANSWERS>>>Is set at 50% of Coverage A
Which of the following flood zones show a "flood depth" instead of a "base flood
elevation" on a FIRM? - <<<<ANSWERS>>>AO
North Carolina law stipulates that buildings located within the state that are covered
under a Fire policy and suffer a total loss, the insurance company: -
<<<<ANSWERS>>>Is not liable to pay amounts beyond the actual cash value of the
insured property at the time of the loss or damage
Which of the following is generally not considered to be a legal defense against claims
of negligence? - <<<<ANSWERS>>>The loss to the plaintiff was caused intentionally by
the defendant. .
All of the following are true regarding the "Write Your Own" program of the NFIP,
EXCEPT: - <<<<ANSWERS>>>Insurers are required to participate in the program
How are death benefits calculated for an employee who has died as a result of a work
related incident? - <<<<ANSWERS>>>66 2/3% of the employee's average weekly
wage for 500 weeks
Sharon's North Carolina home is covered under a Homeowner's policy with a
"Refrigerated Property Coverage" endorsement attached. She stores large amounts of
expensive meats in her freezer at any given time. One morning, she doesn't hear the
low hum of her freezer motor. When she opens her freezer door, she finds that the
freezer is no longer cold and all of her meat has spoiled. Sharon collects her receipts
and finds that the price of the spoiled meat totals $658 and she submits a claim for this
loss. How much will her insurer pay? - <<<<ANSWERS>>>$500
Which of the following terms does NOT apply to workers compensation coverage in
North Carolina? - <<<<ANSWERS>>>Temporary sick leave with benefits
Coverage D - Loss of Use on the Homeowners forms provides coverage for "Civil
Authority Prohibits Use" for: - <<<<ANSWERS>>>No more than two weeks
All of the following statements are TRUE of the terms used in the standard workers'
compensation policy, EXCEPT: - <<<<ANSWERS>>>"State" means any state of the
United States, the District of Columbia, and all territories and possessions.
Under the comprehensive coverage of a Business Auto policy, which of the following
would not be a covered loss? - <<<<ANSWERS>>>After sliding on an icy pavement, a
driver hits a guard rail.
