NC Adjuster License Practice Exam __ Q/A
Manny is purchasing a Commercial Property policy with a Business Income
form included. Manny can select from any of the following as a method to
provide coverage, while avoiding the coinsurance requirement, EXCEPT:
Correct Ans - The maximum monthly limit of indemnity optional coverage
The traditional definition of actual cash value (ACV) is: Correct Ans -
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? Correct Ans - Only Dan's injuries
would be covered
Torts that can be covered by insurance policies include all of the following,
EXCEPT: Correct Ans - 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: Correct Ans - $2,000
All of the following is considered an "insured" under a CGL policy, EXCEPT:
Correct Ans - 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? Correct Ans -
Owners and Contractors Protective Liability Policy.
Which of the following would be eligible for coverage under a Businessowners
policy? Correct Ans - 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?
Correct Ans - 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 Correct Ans - 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: Correct Ans - $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? Correct Ans - $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? Correct Ans - 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: Correct Ans - 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? Correct
Ans - 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: Correct Ans - Not
limited
, Any North Carolina lender in making or servicing real estate mortgage or deed
of trust loans on one to four family residences must accept a binder as proof of
insurance. The binder presented to the lender must include all of the
following, EXCEPT Correct Ans - A sworn statement that the insurance
will be kept in force.
Which of the following statements is TRUE concerning Part A - Liability
coverage on a standard Personal Automobile policy? Correct Ans - The
coverage is provided only for accidents caused by those who are "insureds"
under the policy..
Which of the following is NOT a reason to purchase a Dwelling policy instead
of a Homeowners policy? Correct Ans - The Dwelling policy provides
higher limits of liability than the Homeowners policy..
Which of the following is NOT excluded by Section II - Liability of the Business
Automobile policy? Correct Ans - Cost to defend the insured
The insured and her 18-year-old son, who lives in the insured's household, are
crossing the street when both of them are struck by a drunk driver. The Part B
- Medical Payments coverage of the insured's personal auto policy will:
Correct Ans - Provide coverage for both the insured and her son
All of the following are types of rehabilitative services provided under a
workers' compensation policy, EXCEPT: Correct Ans - Substance abuse
Which of the following statements defines a "bailee"? Correct Ans -
Someone, other than the insured, to whom the insured property is entrusted
temporarily.
In North Carolina, the motor vehicle liability policy law requires owners of
motor vehicles to carry limits of: Correct Ans - $30/60/25
Many states amend property insurance coverage additions and extensions by
statute due to insufficient coverage amounts or time limits. All of the following
are property insurance additions or extensions that are frequently amended
by state statute, EXCEPT: Correct Ans - Other Structures
Manny is purchasing a Commercial Property policy with a Business Income
form included. Manny can select from any of the following as a method to
provide coverage, while avoiding the coinsurance requirement, EXCEPT:
Correct Ans - The maximum monthly limit of indemnity optional coverage
The traditional definition of actual cash value (ACV) is: Correct Ans -
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? Correct Ans - Only Dan's injuries
would be covered
Torts that can be covered by insurance policies include all of the following,
EXCEPT: Correct Ans - 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: Correct Ans - $2,000
All of the following is considered an "insured" under a CGL policy, EXCEPT:
Correct Ans - 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? Correct Ans -
Owners and Contractors Protective Liability Policy.
Which of the following would be eligible for coverage under a Businessowners
policy? Correct Ans - 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?
Correct Ans - 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 Correct Ans - 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: Correct Ans - $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? Correct Ans - $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? Correct Ans - 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: Correct Ans - 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? Correct
Ans - 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: Correct Ans - Not
limited
, Any North Carolina lender in making or servicing real estate mortgage or deed
of trust loans on one to four family residences must accept a binder as proof of
insurance. The binder presented to the lender must include all of the
following, EXCEPT Correct Ans - A sworn statement that the insurance
will be kept in force.
Which of the following statements is TRUE concerning Part A - Liability
coverage on a standard Personal Automobile policy? Correct Ans - The
coverage is provided only for accidents caused by those who are "insureds"
under the policy..
Which of the following is NOT a reason to purchase a Dwelling policy instead
of a Homeowners policy? Correct Ans - The Dwelling policy provides
higher limits of liability than the Homeowners policy..
Which of the following is NOT excluded by Section II - Liability of the Business
Automobile policy? Correct Ans - Cost to defend the insured
The insured and her 18-year-old son, who lives in the insured's household, are
crossing the street when both of them are struck by a drunk driver. The Part B
- Medical Payments coverage of the insured's personal auto policy will:
Correct Ans - Provide coverage for both the insured and her son
All of the following are types of rehabilitative services provided under a
workers' compensation policy, EXCEPT: Correct Ans - Substance abuse
Which of the following statements defines a "bailee"? Correct Ans -
Someone, other than the insured, to whom the insured property is entrusted
temporarily.
In North Carolina, the motor vehicle liability policy law requires owners of
motor vehicles to carry limits of: Correct Ans - $30/60/25
Many states amend property insurance coverage additions and extensions by
statute due to insufficient coverage amounts or time limits. All of the following
are property insurance additions or extensions that are frequently amended
by state statute, EXCEPT: Correct Ans - Other Structures
