NC ADJUSTER COMPLETE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GUARANTEED PASS
◉ pure risk. Answer: risk when there is a chance of only loss; the
subject of insurance protection
◉ insurable risk. Answer: risk that an insurance company is willing to
accept and has the following characteristics
1. low probability of occurring
2. less than catastrophic results
3. the loss must be measurable
4. the loss must be significant
5. the loss must be accidental and unintended
◉ hazard. Answer: increase the probability of a peril occurring
◉ physical hazard. Answer: hazard that deals with structure (i.e. faulty
wiring)
◉ peril. Answer: cause of loss
◉ economic loss. Answer: loss of rental income
, ◉ principal of indemnity. Answer: Insured is intended to be restored to
the same financial or economic condition that existed prior to the loss
◉ insurable interest. Answer: Any financial interest in life or property
such that, if the life or property were lost or harmed, the insured would
suffer financially
◉ deductible. Answer: Amount you must pay before you begin
receiving any benefits from your insurance company; always pay on
direct loss and never pay on indirect loss or liability (retention)
◉ direct loss. Answer: a financial loss that results from the physical
damage, destruction, or theft of the property (house, detached garage,
contents)
◉ indirect loss. Answer: a financial loss that results indirectly from the
occurrence of a direct physical damage or theft loss (loss of rental
income and incurring additional expenses to live elsewhere)
◉ named peril. Answer: A specific cause of loss listed and described in
an insurance policy; burden of proof is on insured
◉ open peril. Answer: All perils except those specifically excluded;
burden of proof on insurer (i.e. special, inland marine)
FULL QUESTIONS AND SOLUTIONS
GUARANTEED PASS
◉ pure risk. Answer: risk when there is a chance of only loss; the
subject of insurance protection
◉ insurable risk. Answer: risk that an insurance company is willing to
accept and has the following characteristics
1. low probability of occurring
2. less than catastrophic results
3. the loss must be measurable
4. the loss must be significant
5. the loss must be accidental and unintended
◉ hazard. Answer: increase the probability of a peril occurring
◉ physical hazard. Answer: hazard that deals with structure (i.e. faulty
wiring)
◉ peril. Answer: cause of loss
◉ economic loss. Answer: loss of rental income
, ◉ principal of indemnity. Answer: Insured is intended to be restored to
the same financial or economic condition that existed prior to the loss
◉ insurable interest. Answer: Any financial interest in life or property
such that, if the life or property were lost or harmed, the insured would
suffer financially
◉ deductible. Answer: Amount you must pay before you begin
receiving any benefits from your insurance company; always pay on
direct loss and never pay on indirect loss or liability (retention)
◉ direct loss. Answer: a financial loss that results from the physical
damage, destruction, or theft of the property (house, detached garage,
contents)
◉ indirect loss. Answer: a financial loss that results indirectly from the
occurrence of a direct physical damage or theft loss (loss of rental
income and incurring additional expenses to live elsewhere)
◉ named peril. Answer: A specific cause of loss listed and described in
an insurance policy; burden of proof is on insured
◉ open peril. Answer: All perils except those specifically excluded;
burden of proof on insurer (i.e. special, inland marine)
