NC ADJUSTER LICENSE EXAMINATION TEST
2026 PRACTICE SOLUTION QUESTIONS AND
ANSWERS GRADED A+
◉ Records must be maintained for. Answer: No less than 5 years
◉ It is unlawful to discriminate in the rates charged for automobile
coverage based on. Answer: age or sex
◉ Proof of loss must be submitted within. Answer: 15 days receiving
notification of a loss
◉ What is twisting. Answer: The misrepresentation of a policies
terms and values to include the lapse or replacement of an existing
policy.
(lying about what a policy covers)
◉ What is rebating?. Answer: Giving something of value in order to
persuade the client to purchase an insurance policy.
,◉ It is illegal for an agent to charge money in excess of a premium
fee for a policy unless?. Answer: 1. A sign is posted in the business
lobby
2. The client provides written consent
3. A separate receipt is issued for the payment for such fees.
◉ Commingling. Answer: An illegal practice which clients funds are
deposited with the general agency funds.
◉ What are pretext interviews?. Answer: When an individual does
not reveal their identity or pose as someone else.
◉ How long is a disclosure of authorization form good for?. Answer:
12 months max effective time
◉ An Adverse Writing Decision. Answer: Must be a written request
within 90 days. The company must respond within 21 days of the
decision and the insured has 30 days to dispute the decision.
◉ What is the 1st felony that can result in criminal prosecution in
NC?. Answer: Agent/Broker who converts to their own use of any
money or property.
,◉ What is the 2nd felony that can result in criminal prosecution in
NC?. Answer: Willfully submitting false statement.
◉ What is the 3rd felony that can result in criminal prosecution in
NC?. Answer: Knowingly placing and insurance coverage with a non
admitted insurance.
◉ What is a named peril?. Answer: Coverage for only the named
perils on a policy.
◉ What is an open peril?. Answer: Coverage on all perils except for
those specifically excluded on a policy.
◉ If an insurER cancels a policy?. Answer: The premium refunded is
pro-rate basis. The insurED cannot be penalized.
◉ If the insurED cancels a policy?. Answer: The premium refunded
is on a short rate basis. The insurED received less than half of the
premium. The InsurED CAN be penalized.
◉ Vandalism and Malicious Mischief (VMM). Answer: Only added if
extended coverage endorsement (WHARVES) is included.
, ◉ When is VMM suspended?. Answer: If property is vacant or
unoccupied for 30 days.
◉ When is SFP suspended?. Answer: if a property is vacant or
unoccupied for 60 days.
◉ What Dwelling and Homeowners policies provide replacement
cost for partial structural losses?. Answer: DP 2/3 and HO 2/3/5
◉ What is the purpose of the Unfair Trade Practices act?. Answer:
The purpose of this act is to prohibit all practices considered by this
state as an unfair method of competition or deceptive practice.
◉ What is the action that constitute unfair trade practices?. Answer:
Misrepresentation of advertising policies (twisting, dividends,
financial conditions or reserves of the insurer, and names or titles of
insurance policies that misrepresent the true nature of the contract)
◉ What are the other action that constitutes unfair trade practices?.
Answer: Defamation
boycotting, coercion and intimidation
False financial statements
Unfair discrimination
Rebating
2026 PRACTICE SOLUTION QUESTIONS AND
ANSWERS GRADED A+
◉ Records must be maintained for. Answer: No less than 5 years
◉ It is unlawful to discriminate in the rates charged for automobile
coverage based on. Answer: age or sex
◉ Proof of loss must be submitted within. Answer: 15 days receiving
notification of a loss
◉ What is twisting. Answer: The misrepresentation of a policies
terms and values to include the lapse or replacement of an existing
policy.
(lying about what a policy covers)
◉ What is rebating?. Answer: Giving something of value in order to
persuade the client to purchase an insurance policy.
,◉ It is illegal for an agent to charge money in excess of a premium
fee for a policy unless?. Answer: 1. A sign is posted in the business
lobby
2. The client provides written consent
3. A separate receipt is issued for the payment for such fees.
◉ Commingling. Answer: An illegal practice which clients funds are
deposited with the general agency funds.
◉ What are pretext interviews?. Answer: When an individual does
not reveal their identity or pose as someone else.
◉ How long is a disclosure of authorization form good for?. Answer:
12 months max effective time
◉ An Adverse Writing Decision. Answer: Must be a written request
within 90 days. The company must respond within 21 days of the
decision and the insured has 30 days to dispute the decision.
◉ What is the 1st felony that can result in criminal prosecution in
NC?. Answer: Agent/Broker who converts to their own use of any
money or property.
,◉ What is the 2nd felony that can result in criminal prosecution in
NC?. Answer: Willfully submitting false statement.
◉ What is the 3rd felony that can result in criminal prosecution in
NC?. Answer: Knowingly placing and insurance coverage with a non
admitted insurance.
◉ What is a named peril?. Answer: Coverage for only the named
perils on a policy.
◉ What is an open peril?. Answer: Coverage on all perils except for
those specifically excluded on a policy.
◉ If an insurER cancels a policy?. Answer: The premium refunded is
pro-rate basis. The insurED cannot be penalized.
◉ If the insurED cancels a policy?. Answer: The premium refunded
is on a short rate basis. The insurED received less than half of the
premium. The InsurED CAN be penalized.
◉ Vandalism and Malicious Mischief (VMM). Answer: Only added if
extended coverage endorsement (WHARVES) is included.
, ◉ When is VMM suspended?. Answer: If property is vacant or
unoccupied for 30 days.
◉ When is SFP suspended?. Answer: if a property is vacant or
unoccupied for 60 days.
◉ What Dwelling and Homeowners policies provide replacement
cost for partial structural losses?. Answer: DP 2/3 and HO 2/3/5
◉ What is the purpose of the Unfair Trade Practices act?. Answer:
The purpose of this act is to prohibit all practices considered by this
state as an unfair method of competition or deceptive practice.
◉ What is the action that constitute unfair trade practices?. Answer:
Misrepresentation of advertising policies (twisting, dividends,
financial conditions or reserves of the insurer, and names or titles of
insurance policies that misrepresent the true nature of the contract)
◉ What are the other action that constitutes unfair trade practices?.
Answer: Defamation
boycotting, coercion and intimidation
False financial statements
Unfair discrimination
Rebating
