NC PERSONAL LINES LICENSE BOARD
EXAMINATION SET 2026 CORRECT
ANSWERS GRADED A+
⩥ Insurance.
Answer: A way to transfer risk
⩥ Pure Risk.
Answer: Risk where there is no chance of gain (Insurable)
⩥ Hazard.
Answer: something that can cause harm or injury. It increases risk
⩥ Indemnity.
Answer: Restored to pre loss
⩥ insurable Intrest.
Answer: Must exist at the time of loss
⩥ Actual Cash value.
Answer: Replacement Cost - Depreciation
, ⩥ Negligence.
Answer: A tort, a civil wrong, that is grounds for a lawsuit. The failure to
act as a reasonable person would in the same set of circumstances.
⩥ Occurrence.
Answer: an event that happens over a period of time
⩥ Binder.
Answer: May be written or oral.
Provides coverage until the policy is issued.
Includes all coverages provided by the policy.
⩥ Warranty.
Answer: Is a literal truth
⩥ Representation.
Answer: A substantial truth.
Is a statement of the applicant/ policy holder that is true to the best of
their knowledge
⩥ Concealment.
EXAMINATION SET 2026 CORRECT
ANSWERS GRADED A+
⩥ Insurance.
Answer: A way to transfer risk
⩥ Pure Risk.
Answer: Risk where there is no chance of gain (Insurable)
⩥ Hazard.
Answer: something that can cause harm or injury. It increases risk
⩥ Indemnity.
Answer: Restored to pre loss
⩥ insurable Intrest.
Answer: Must exist at the time of loss
⩥ Actual Cash value.
Answer: Replacement Cost - Depreciation
, ⩥ Negligence.
Answer: A tort, a civil wrong, that is grounds for a lawsuit. The failure to
act as a reasonable person would in the same set of circumstances.
⩥ Occurrence.
Answer: an event that happens over a period of time
⩥ Binder.
Answer: May be written or oral.
Provides coverage until the policy is issued.
Includes all coverages provided by the policy.
⩥ Warranty.
Answer: Is a literal truth
⩥ Representation.
Answer: A substantial truth.
Is a statement of the applicant/ policy holder that is true to the best of
their knowledge
⩥ Concealment.
