NORTH CAROLINA INSURANCE ADJUSTER EXAM 2024 | 2
CURRENTLY TESTING EXAM WITH 100 ACCURATE
QUESTIONS AND ANSWERS EACH WITH A STUDY GUIDE |
EXPERT VERIFIED FOR GUARANTEED PASS | ALREADY
GRADED A
Which of the following is commonly debited from a claims payment before that amount is
remitted to the insured?
A. Salvage costs
B. A liability fee
C. A deductible
D. Future premiums
C. A deductible
Which of the following serves as temporary evidence that coverage is in effect?
A. An endorsement
B. A rider
C. An exclusion
D. A binder
D. A binder
Which of the following is the definition of "accident" as it pertains to insurance?
A. A sudden and unforeseen event or a continuous and repeated exposure to an event that results
in a financial loss.
B. The actual injury or damage sustained by the insured
C. The state of being subject to loss because of some type of hazard
D. A sudden and unforeseen event resulting in a financial loss
D. A sudden and unforeseen event resulting in a financial loss
Which of the following is the clause that declares that the insurance company is entitled to the
insured's right of recovery from a negligent party?
A. Subrogation clause
B. Other insurance clause
C. "Other Sources of Recovery on Insurance under Two or More Policies" clause
D. Entire Contract clause
A. Subrogation clause
,A written modification of an insurance policy is:
A. A proof of loss
B. A condition
C. A deductible
D. An endorsement
D. An endorsement
All of the following are actions the Commissioner/Director/Superintendent may take, after a
hearing where it has been determined that a violation has been committed by an insurance
licensee, EXCEPT:
A. Issue a cease and desist order
B. Impose a fine
C. Impose criminal penalties
D. Suspend or revoke the license
C. Impose criminal penalties
All of the following are true regarding State Guaranty Associations, EXCEPT:
A. The association allows any admitted insurer to advertise that they are a member of the
Guaranty Association
B. The association does not apply a maximum limit to workers compensation claims
C. The association does not assess surplus lines companies for funding
D. The association covers the claims of admitted insurer who becomes insolvent.
A. The association allows any admitted insurer to advertise that they are a member of the
Guaranty Association
Each person who is elected or appointed as Insurance Commissioner/Director/Superintendent:
A. Sets the premium rates for all insurers in their state.
B. Is authorized to create insurance laws in the state
C. Automatically holds a seat in the state legislature
D. Automatically becomes a member of the National Association of Insurance Commissioners
(NAIC)
D. Automatically becomes a member of the National Association of Insurance Commissioners
(NAIC)
Which of the following is a type of insurer that may conduct business in a state without holding a
certificate of authority?
A. A surplus lines company
B. An authorized company
,C. A nonadmitted company
D. An admitted company
A. A surplus lines company
All of the following are duties of the Insurance Commissioner/Director/Superintendent,
EXCEPT:
A. Setting insurance rates for insurers within their state
B. Monitoring the financial solvency of insurance companies
C. Issuing licenses and certificates of authority
D. Conducting hearings on insurance matters to determine if violations have occurred.
A. Setting insurance rates for insurers within their state
A doctrine stating that if loss or damage to property occurs as a result of 2 or more causes, and 1
cause is covered under the policy but the other cause is not covered, the damages will likely be
compensated by the insurer, is known as:
A. Coinsurance
B. Indirect loss coverage
C. Concurrent causation
D. Loss settlement
C. Concurrent causation
When an existing coverage under the policy is expanded, this is a(n):
A. Rider
B. Endorsement
C. Coverage extension
D. Additional coverage
C. Coverage extension
The most common method of risk management is:
A. The sharing of risk
B. The assumption of risk
C. The transfer of risk
D. Risk avoidance
C. The transfer of risk
Which of the following types of risk is associated with change is not insurable?
A. Fundamental risk
B. Particular risk
, C. Dynamic risk
D. Static risk
C. Dynamic risk
Insurers are able to calculate their probable losses and to establish the rates for premiums that
will cover losses and operating expenses, by using:
A. Insurable interest
B. Insurance
C. The principle of indemnity
D. The law of large numbers
D. The law of large numbers
The process by which an insurance company selects certain types of risks that have historically
produced a profit, and rejecting those risks that have historically produced a loss, is known as:
A. Underwriting
B. Reinsurance
C. Risk avoidance
D. Risk control
A. Underwriting
Which of the following "hazards" arise out of an insured's attitude of apathy toward causing or
preventing a loss?
A. A dynamic hazard
B. A moral hazard
C. A morale hazard
D. A physical hazard
C. A morale hazard
Concealment
A. Is the failure of the insured to reveal material facts when applying for insurance
B. Is an insurance company making untrue statements regarding the provisions of an insurance
policy
C. Is making untrue statements on an application for insurance
D. Is lying when asked a direct question regarding an item on an insurance policy
A. Is the failure of the insured to reveal material facts when applying for insurance
All of the following are elements of a valid contract, EXCEPT:
A. Consideration
CURRENTLY TESTING EXAM WITH 100 ACCURATE
QUESTIONS AND ANSWERS EACH WITH A STUDY GUIDE |
EXPERT VERIFIED FOR GUARANTEED PASS | ALREADY
GRADED A
Which of the following is commonly debited from a claims payment before that amount is
remitted to the insured?
A. Salvage costs
B. A liability fee
C. A deductible
D. Future premiums
C. A deductible
Which of the following serves as temporary evidence that coverage is in effect?
A. An endorsement
B. A rider
C. An exclusion
D. A binder
D. A binder
Which of the following is the definition of "accident" as it pertains to insurance?
A. A sudden and unforeseen event or a continuous and repeated exposure to an event that results
in a financial loss.
B. The actual injury or damage sustained by the insured
C. The state of being subject to loss because of some type of hazard
D. A sudden and unforeseen event resulting in a financial loss
D. A sudden and unforeseen event resulting in a financial loss
Which of the following is the clause that declares that the insurance company is entitled to the
insured's right of recovery from a negligent party?
A. Subrogation clause
B. Other insurance clause
C. "Other Sources of Recovery on Insurance under Two or More Policies" clause
D. Entire Contract clause
A. Subrogation clause
,A written modification of an insurance policy is:
A. A proof of loss
B. A condition
C. A deductible
D. An endorsement
D. An endorsement
All of the following are actions the Commissioner/Director/Superintendent may take, after a
hearing where it has been determined that a violation has been committed by an insurance
licensee, EXCEPT:
A. Issue a cease and desist order
B. Impose a fine
C. Impose criminal penalties
D. Suspend or revoke the license
C. Impose criminal penalties
All of the following are true regarding State Guaranty Associations, EXCEPT:
A. The association allows any admitted insurer to advertise that they are a member of the
Guaranty Association
B. The association does not apply a maximum limit to workers compensation claims
C. The association does not assess surplus lines companies for funding
D. The association covers the claims of admitted insurer who becomes insolvent.
A. The association allows any admitted insurer to advertise that they are a member of the
Guaranty Association
Each person who is elected or appointed as Insurance Commissioner/Director/Superintendent:
A. Sets the premium rates for all insurers in their state.
B. Is authorized to create insurance laws in the state
C. Automatically holds a seat in the state legislature
D. Automatically becomes a member of the National Association of Insurance Commissioners
(NAIC)
D. Automatically becomes a member of the National Association of Insurance Commissioners
(NAIC)
Which of the following is a type of insurer that may conduct business in a state without holding a
certificate of authority?
A. A surplus lines company
B. An authorized company
,C. A nonadmitted company
D. An admitted company
A. A surplus lines company
All of the following are duties of the Insurance Commissioner/Director/Superintendent,
EXCEPT:
A. Setting insurance rates for insurers within their state
B. Monitoring the financial solvency of insurance companies
C. Issuing licenses and certificates of authority
D. Conducting hearings on insurance matters to determine if violations have occurred.
A. Setting insurance rates for insurers within their state
A doctrine stating that if loss or damage to property occurs as a result of 2 or more causes, and 1
cause is covered under the policy but the other cause is not covered, the damages will likely be
compensated by the insurer, is known as:
A. Coinsurance
B. Indirect loss coverage
C. Concurrent causation
D. Loss settlement
C. Concurrent causation
When an existing coverage under the policy is expanded, this is a(n):
A. Rider
B. Endorsement
C. Coverage extension
D. Additional coverage
C. Coverage extension
The most common method of risk management is:
A. The sharing of risk
B. The assumption of risk
C. The transfer of risk
D. Risk avoidance
C. The transfer of risk
Which of the following types of risk is associated with change is not insurable?
A. Fundamental risk
B. Particular risk
, C. Dynamic risk
D. Static risk
C. Dynamic risk
Insurers are able to calculate their probable losses and to establish the rates for premiums that
will cover losses and operating expenses, by using:
A. Insurable interest
B. Insurance
C. The principle of indemnity
D. The law of large numbers
D. The law of large numbers
The process by which an insurance company selects certain types of risks that have historically
produced a profit, and rejecting those risks that have historically produced a loss, is known as:
A. Underwriting
B. Reinsurance
C. Risk avoidance
D. Risk control
A. Underwriting
Which of the following "hazards" arise out of an insured's attitude of apathy toward causing or
preventing a loss?
A. A dynamic hazard
B. A moral hazard
C. A morale hazard
D. A physical hazard
C. A morale hazard
Concealment
A. Is the failure of the insured to reveal material facts when applying for insurance
B. Is an insurance company making untrue statements regarding the provisions of an insurance
policy
C. Is making untrue statements on an application for insurance
D. Is lying when asked a direct question regarding an item on an insurance policy
A. Is the failure of the insured to reveal material facts when applying for insurance
All of the following are elements of a valid contract, EXCEPT:
A. Consideration
