NC ADJUSTER LICENSE PRACTICE TEST PAPER
2026 COMPLETE QUESTIONS AND
SOLUTIONS GRADED A+
◉ The traditional definition of actual cash value (ACV) is: Answer:
Replacement cost minus depreciation
◉ Sam and Dan are working to clean out the gutters around the roof
on Sam's house. Sam and Dan are standing at the top of separate
ladders that are propped against the side of Sam's house, when
Dan's ladder begins to wobble and ultimately falls into Sam's ladder.
Both men and their ladders crash to the ground. Whose injuries will
be covered by Sam's Homeowners policy under Coverage E -
Personal Liability? Answer: Only Dan's injuries would be covered
◉ Torts that can be covered by insurance policies include all of the
following, EXCEPT: Answer: Intentional torts purposely committed
to cause harm to another.
◉ The insured has a $1,000,000 personal umbrella policy with a
$5,000 retention limit. For a $7,000 liability loss not covered under
the insured's personal auto policy, but covered under the umbrella
policy, the insurance company would pay: Answer: $2,000
,◉ All of the following is considered an "insured" under a CGL policy,
EXCEPT: Answer: 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? Answer: Owners and Contractors Protective Liability
Policy.
◉ Which of the following would be eligible for coverage under a
Businessowners policy? Answer: 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? Answer: 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
◉ All of the following statements are TRUE of North Carolina
automobile liability policies, EXCEPT Answer: If the insured carries
limits greater than the minimum financial responsibility limits
required by state law, they are not required to carry
Uninsured/Underinsured Motorists coverage.
◉ The basic limit for Coverage F -- Medical Payments of the standard
Homeowners forms is: Answer: $1,000 per person
, ◉ Oliver Dogwood was in an auto accident which destroyed his car.
While investigating the accident, Adjuster Doright found that Mr.
Dogwood paid $1,000 for the vehicle. After checking with others he
found the same vehicle with an asking price of $1,700, a retail price
of $2,150 and a dealer price of $1,750. What amount will Mr.
Dogwood receive? Answer: $2,150
◉ When a claims representative is collecting information from a
third-party claimant, which of the following is the information that
should be obtained first? Answer: The nature and extent of the
injuries or property damage claimed.
◉ The Business Auto uses Symbol 7 to cover "specifically described
autos" identified in the declarations. An auto acquired during the
policy period will only be covered: Answer: If the insured insures all
of their vehicles with the company or it replaces a covered auto..
◉ What coverage under the BOP automatically applies if a customer
slips and falls on the named insured's premises, regardless of legal
liability? Answer: Medical expense coverage
◉ When an insurer is called upon to defend a suit under a CGL
policy, the amount that can be paid for the defense costs is: Answer:
Not limited
2026 COMPLETE QUESTIONS AND
SOLUTIONS GRADED A+
◉ The traditional definition of actual cash value (ACV) is: Answer:
Replacement cost minus depreciation
◉ Sam and Dan are working to clean out the gutters around the roof
on Sam's house. Sam and Dan are standing at the top of separate
ladders that are propped against the side of Sam's house, when
Dan's ladder begins to wobble and ultimately falls into Sam's ladder.
Both men and their ladders crash to the ground. Whose injuries will
be covered by Sam's Homeowners policy under Coverage E -
Personal Liability? Answer: Only Dan's injuries would be covered
◉ Torts that can be covered by insurance policies include all of the
following, EXCEPT: Answer: Intentional torts purposely committed
to cause harm to another.
◉ The insured has a $1,000,000 personal umbrella policy with a
$5,000 retention limit. For a $7,000 liability loss not covered under
the insured's personal auto policy, but covered under the umbrella
policy, the insurance company would pay: Answer: $2,000
,◉ All of the following is considered an "insured" under a CGL policy,
EXCEPT: Answer: 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? Answer: Owners and Contractors Protective Liability
Policy.
◉ Which of the following would be eligible for coverage under a
Businessowners policy? Answer: 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? Answer: 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
◉ All of the following statements are TRUE of North Carolina
automobile liability policies, EXCEPT Answer: If the insured carries
limits greater than the minimum financial responsibility limits
required by state law, they are not required to carry
Uninsured/Underinsured Motorists coverage.
◉ The basic limit for Coverage F -- Medical Payments of the standard
Homeowners forms is: Answer: $1,000 per person
, ◉ Oliver Dogwood was in an auto accident which destroyed his car.
While investigating the accident, Adjuster Doright found that Mr.
Dogwood paid $1,000 for the vehicle. After checking with others he
found the same vehicle with an asking price of $1,700, a retail price
of $2,150 and a dealer price of $1,750. What amount will Mr.
Dogwood receive? Answer: $2,150
◉ When a claims representative is collecting information from a
third-party claimant, which of the following is the information that
should be obtained first? Answer: The nature and extent of the
injuries or property damage claimed.
◉ The Business Auto uses Symbol 7 to cover "specifically described
autos" identified in the declarations. An auto acquired during the
policy period will only be covered: Answer: If the insured insures all
of their vehicles with the company or it replaces a covered auto..
◉ What coverage under the BOP automatically applies if a customer
slips and falls on the named insured's premises, regardless of legal
liability? Answer: Medical expense coverage
◉ When an insurer is called upon to defend a suit under a CGL
policy, the amount that can be paid for the defense costs is: Answer:
Not limited
